Content area
Full Text
The governor takes a conciliatory stance to get hotel rooms built
Governor James E. McGreevey, arch enemy of Atlantic City casino operators 10 months ago, is now cozying up to the gambling houses. What does he want in return? How about construction of new hotel rooms, maybe a new Borgata or two?
The governor has detailed plans for a $92 million incentive fund in next year's state budget for casinos willing to build new, noncasino-related facilities-in particular, badly needed hotel rooms.
Moreover, he has reportedly offered to phase out a controversial tax hike imposed last year on complimentary rooms and meals given to high rollers. he even promised not to introduce any new casino-specific taxes for the next four years.
This is a very different story from last summer, when McGreevey imposed a total of $90 million in new taxes on the casino industry, spurring the Atlantic City Casino Association to run ads complaining that the governor "must really hate South Jersey."
Fast forward to this month. McGreevey was in Atlantic City standing side-by-side with David Jonas, senior vice president of Atlantic City operations for Harrah's Entertainment. They unveiled a $200 million Harrah's expansion plan that included a 700-room tower that would be eligible for financial support under McGreevey's $92 million incentive program.
"I've said I want to make Atlantic City a top overnight tourist destination," the governor intoned. "To get more conventions and more air service to Atlantic City, we've got to build more hotel rooms."
He's hardly the first to say that. Growing out-of-state competition has led experts to call for more hotel rooms and nongambling attractions to make Atlantic City a multi-day destination instead of a day trip.
Casino-industry analysts worried last year that rising taxes and competition from other states would scare off new development. Indeed, Caesars and Bally's canceled hotel expansions. But...