Specifically, it's part of a larger $92-million effort by the state to get upwards of 2,000 new casino hotel rooms built here over the next few years. The bill also authorizes the Casino Reinvestment Development Authority, a state agency, to approve five new entertainment-hotel districts eligible for funding and sales tax rebates for developers of retail and entertainment projects. Until now, CRDA was only authorized to approve a half-dozen such districts within the city.
Finally, A3121 also directs that half of the casino alternative tax obligation be used to fund projects outside of Atlantic City. Casinos are required by state law to reinvest 1.25% of their gross revenues in a variety of housing and other projects statewide.
At the same time, McGreevey signed into law a companion bill, A3120, which will phase out the 4.25% tax the state levies on complimentary items--things like free rooms and meals offered to high rollers. The city's casino hotel properties will gradually cease paying the tax by June 30, 2009.
"These bills are part of my plan to help this city reach its full potential as a world-class family destination," McGreevey said at the signing, which came before a crowd of public and casino industry officials and construction workers at Boardwalk Hall. "They will help the industry and help Atlantic City. We have collectively leveraged our ability to attract $3 billion in private capital investment to Atlantic City."
Considered by observers to be the most important aid package for the casino industry here since former Gov. Brendan Byrne signed the legislation in the 1970s authorizing casinos to begin with, the move is also seen as a defensive move against the recent authorization of slot machines statewide in neighboring Pennsylvania. It also comes at a time when casino-related construction is gaining some momentum here.
Indeed, the year-old Borgata is already launching a $200-million expansion, and such other casino hotel properties as the Tropicana Casino and Resorts have major expansions under way. Even Trump Hotels and Casino Resorts has announced tentative plans to expand and upgrade its troubled properties.
One early result of the signing: Caesars Entertainment officials indicated after the signing that they could be ready to move ahead with tentative plans for a 1,000-room tower attached to the company's Caesars Atlantic City.
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