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Ocean Casino Resort

Coordinates: 39°21′42.30″N 74°24′48.59″W / 39.3617500°N 74.4134972°W / 39.3617500; -74.4134972
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Revel Casino Hotel
File:Revel Resorts Logo.svg
Revel, seen from the boardwalk
Location Atlantic City, New Jersey
Address 500 Boardwalk
Opening dateApril 2, 2012
Closing dateSeptember 2, 2014
ThemeOcean
No. of rooms1,399
Total gaming space150,000 sq.ft.
Signature attractionsOvation Hall
HQ
Ivan Kane's Royal Jelly Burlesque
Poker Room
OwnerPolo North Country Club
ArchitectArquitectonica
Previous namesRevel Resort

Revel Atlantic City was a resort, hotel and casino in Atlantic City, New Jersey, United States. Revel is the northernmost casino on the Atlantic City Boardwalk, located on 20 acres (8.1 ha) of land, adjacent to the Showboat Hotel & Casino. Revel opened on April 2, 2012.

After declaring Chapter 11 bankruptcy for the second time, Revel closed on September 2, 2014. Later that month, on September 11, 2014, the casino reached a deal to sell itself to Glenn Straub's Polo North Country Club, a developer based in Florida, for $90 million, a fraction of the cost of construction. The plans fell though, and Revel was planned to be sold at a September 30, 2014 auction to Brookfield Asset Management for $110 million. However, on November 19, Brookfield Management backed out of the deal.[1] On April 7, 2015, Revel was sold to Polo North Country Club for $82 million.[2]

Revel was the third of four Atlantic City casinos to close in 2014.

Design and construction

View of the Construction of the Revel Resort from the beach in October 2011

Revel's hotel tower is the tallest structure in Atlantic City and the second tallest in the state of New Jersey at 47 stories, and the second tallest casino tower in the United States.[3][4] Arquitectonica was the design architect of the project.[5] BLT Architects was the executive architect for the entirety of the project and architect of record for 75% of the facility.[6] Tishman Realty & Construction, which served as construction manager for The Borgata, performed the same role at Revel.[7] Scéno Plus, a Montreal-based design firm, aided in the conceptualization and implementation of Revel's 150,000 square feet (14,000 m2) casino.[8] In the summer of 2008 the project was officially scaled back to include just one hotel tower with 1,900 rooms due to lack of financing. In March 2009, construction was stopped because of difficulties in raising the financing necessary to complete the project.[9] Revel resumed construction in February 2011 after new financing was secured, and opened with 1399 rooms.[10]

Amenities

Revel featured two nightclubs, 13 restaurants, two live entertainment venues (which featured acts like The Eagles, Beyonce, Rihanna and Maroon 5), and multiple swimming pools. The resort featured a 2-acre (8,100 m2) landscaped rooftop deck containing outdoor pools, cabanas, fire pits and a "pine grove" (known as Sky Garden) with more than 30,000 live trees and plants. The casino was located six stories above the ocean, and a three-story nightclub overlooked the lobby.[11] Revel was completely smoke-free upon opening, but the resort announced in early 2013 that it would create a smoking area.[12][13]

Gaming

Revel Atlantic City had 130,000 sq ft (12,000 m2) of gaming space, more than 2,500 slot machines, and 120 table games. The casino was separated into several areas, including the following:

Dining

The resort had 3 main restaurants:

Revel offered less formal dining options:

Incidents

Construction safety incidents

A tower crane on the Revel construction site collapsed in high winds on March 13, 2010, injuring one person on the ground.[16] On March 20, 2010, the use of welding torches to remove the collapsed crane sparked a rooftop fire. The damage from the fire was minor, and there were no injuries.

Lightning from a brief but intense storm struck three concrete workers on September 15, 2011, killing one.[17] On September 30, 2011, a worker was listed in critical condition with a head injury after falling off a ladder.[18] On September 10, 2012, a customer was severely injured at Revel when he fell off an escalator to the floor 40 feet (12 m) below.[19]

Ray Rice incident

On September 8, 2014, NFL running back Ray Rice was suspended indefinitely following release of video by TMZ showing him assaulting his fiancée in an elevator at Revel earlier in the year. The publication of the security video forced the Ravens and the NFL to revisit their positions on the matter, leading the league to extend Rice's suspension (formerly for 2 weeks) and the team to release him. The only public video before September 8, 2014 was from outside of the elevator and showed Ray Rice dragging his unconscious fiancée partially out of the elevator before a hotel employee stopped to help them.

Financial problems and closure

Construction of the resort cost $2.4 billion.[20] Global financial company Morgan Stanley, the owner of 90% of Revel Entertainment Group, decided in April 2010 to discontinue construction and put its stake in Revel up for sale and walk away from its $932 million investment.[21] On February 1, 2011, as part of his plan to revitalize Atlantic City, Governor Chris Christie announced that the State of New Jersey would provide tax incentives up to $261 million in the stalled project in exchange for 20% of certain equity distributions.[22] The tax incentives would be paid for by a portion of state taxes generated by the project. None of the $261 million in tax incentives were paid to Revel. On February 17, 2011, Revel Entertainment Group, LLC announced that it completed a $1.15 billion financing package which enabled the company to complete construction of Revel.

Revel lost $35 million in the 2nd quarter of 2012, and lost $37 million in the 3rd quarter of 2012.[23] In August 2012, Moody's Investor Services and Standard and Poor's downgraded Revel's credit to Caa2 and CCC, respectively.[24] On August 20, 2012, Revel asked lenders for a $100 million credit cushion.[25] In November 2012, casino officials warned federal regulators about growing debt load of more than $1.3 billion could lead to bankruptcy or foreclosure if revenues did not increase in the foreseeable future. Atlantic City officials noted that Revel owed $12 million in unpaid property taxes, and Unite Here Local 54 said that Revel owed $51 million to contractors.[26] A month later, Revel stated that they had received another $150 million in loans, including a $125 million term loan and a $25 million increase to an existing $100 million revolving loan.

In early 2013, because of uncertainty about whether Revel would have enough revenue to pay back its loans, Moody's and Standard and Poor's downgraded Revel's credit rating again to Caa3 and CC, respectively.[27] On February 19, 2013, Revel announced that it was filing for Chapter 11 bankruptcy. The prepackaged bankruptcy will include immediate payment of all priority claims (e.g., vendors, taxes), and the reduction of Revel's debt from $1.503 billion to $272 million in exchange for the transfer of all of Revel's equity to the creditors.[28][29] As part of their bankruptcy filing, Revel declared that the casino's value had dropped from $2.4 billion to $450 million, and predicted that Revel would not be profitable until 2017.[30] In an attempt to attract more business, Revel has created a smoking area and reduced hotel room prices, and plans to create an inexpensive food court, and a private lounge for high rollers.[13][30]

On June 19, 2014, Revel once again filed a Chapter 11 bankruptcy petition, warning of closing in early September if a buyer was not found.[31]

On August 12, 2014, Revel announced that no suitable bids were received, and that it would close by September 1.[32] By August 18, Revel Casino Hotel announced the official closing.[33]

The hotel, resort, and casino closed permanently on September 2, 2014. Revel was the third Atlantic City casino to close in 2014, after Showboat Hotel Casino closed on August 31, 2014, following the Atlantic Club Hotel Casino. The hotel was closed on September 1, 2014 at 11:00 am and the casino was closed the next day at 6:00 am. All reservations after September 1 were canceled and room deposits were automatically refunded. All Revel guests who self-parked or utilized the valet were required to remove their parked cars from the facility by 9:00 am on September 2.

Revel Group LLC, headed by former Revel Atlantic City CEO Kevin DeSanctis, released a statement on September 22, 2014, announcing they were terminating their license agreement with Revel, citing "the property has failed to use the licensed marks in a manner consistent with Revel's standards of quality as provided for in its License Agreement."[34]

Toronto-based Brookfield US Holdings LLC won a bankruptcy court auction for Revel on October 1, 2014 and planned to reopen it as-is. It submitted a bid of $110 million in an auction.

A bankruptcy court hearing to approve the sale was scheduled for October 7, 2014. An opposing bidder, Florida developer Glenn Straub, was selected as the backup bidder in case the Brookfield bid did not close on the deal. However Brookfield Management backed out of this deal on November 19, 2014. On January 5, 2015 a federal bankruptcy judge approved the sale of Revel to Polo North Country Club, Inc., led by Straub. On February 11, 2015, due to court battles, the sale to Straub was canceled by Revel. Then, on April 6, 2015, Straub got approval to discuss the sale of the casino to him.

On April 7, 2015, Revel was sold to Glenn Straub's Polo North Country Club for $82 million.[2]

Events after sale to Polo North

Two days after Revel was sold to Polo North Country Club, on the afternoon of April 9, 2015; ACR, owner of the Energenic Inlet District Energy Center (which is the sole source of primary power, backup power, and, hot and chilled water to the Revel) stopped supplying power and water to the building.[35]

On April 29, 2015, after 20 days without power or water, U.S. District Judge Jerome Simandle ordered power and chilled water to be restored to the Revel under a two-week deal between Straub and ACR. Revel facilities staff said limited power was restored around 11:00 am that morning, and engineers said there was no damage done to the building. The deal was later enforced indefinitely.[36]

Revel's chief engineer, John Lezenby, resigned on June 9, 2015, leaving behind nine engineers and four security guards to continue to run the Revel's critical systems. Lezenby stated the uncertain future of the building and the fact that it has been closed to the public as reasons for his resignation.[37]

In late June, U.S. Bankruptcy Judge Michael Kaplan ruled that Revel owner Polo North Country Club Inc. must allow tenants access to the property "to preserve physical assets, as well as to investigate, plan, and take the necessary steps to restart operations."[38]

On September 30, Glenn Straub booted nine unionized workers from the property, leaving the Revel's command center unstaffed. He said the union engineers, from Local 68 of the International Union of Operating Engineers, were overpaid, and announced that Siemens was in the process of training new engineers within 30 days.[39] Engineers have since returned to the property.

On October 9, 2015, Atlantic City Sewerage Co. announced it was suing to bar sewer service to the Revel, citing Straub owing them more than $162,000.[40]

On November 17, an attorney for Polo North said the Revel was "cold, dark and on the verge of suffering widespread property damage", only receiving chilled water since a dispute back in April.

On November 24, Glenn Straub announced he was buying the Energenic power plant from ACR. ACR previously warned the city that bondholders were planning to foreclose on the power plant. The deal was announced after Atlantic City threatened to issue fines and said it would consider litigation if the building’s interior dipped below 40 degrees.[41]

On January 12, 2016, Polo North announced it had completed purchase of the Energenic power plant, and introduced heat and full electricity back to the Revel.[42]

Also in January, Straub announced his plans for the former Revel Resort, including a smaller casino, water park, and other family attractions. He plans to reopen the resort on June 15.[43]

On the night of February 29, 2016, the signature Pearl at the top of Revel was lit for the first time since the resort closed.[44] The next morning on March 1, Straub said it was part of an ongoing effort to test systems at the Revel in preparation for the anticipated June 15 opening. Straub also said he expects to have 500 hotel rooms ready to go and most, if not all, of the property's restaurants up and running, stating that the restaurant owners have been wanting to reopen since the property originally closed. Additionally, he stated the reopened resort will not be named Revel, but he has yet to decide on a name.[45]

On Tuesday, March 15, 2016, Atlantic City officials Dale Finch (Director of Licence & Inspections) Elizabeth Terenik (Director of Planning & Development), Scott Evans (Fire Chief), and Wally Shields (Construction Official) conducted an inspection of Revel, escorted by Revel’s facilities manager. After a 90-minute tour, officials stated that Revel is ready for business, and that it's “amazingly intact” and in “great condition”, dispelling many rumors about the condition of the property.[46]

The officials also said that clubs are ready but HQ is not part of the reopening plan, the swimming pools are in good condition, there are at least 500 guest rooms that are currently ready, clean, and complete with bedding, artwork, lighting, and other fixtures, and that restaurants and gaming floors are ready to go. In addition, there is now a ropes course in the lobby. Glenn Straub said a job fair is planned and that they are looking to bring back as many former Revel employees as possible to the new Revel, and that it's ready to open as soon as possible.[47]

See also

References

  1. ^ NJ Real Estate Titan and a Manhatten developer preparing bid for bankrupt Revel Casion Source Says 2014
  2. ^ a b "Revel Casino Hotel sold to Straub's company". Press of Atlantic City.
  3. ^ Vanderborg, Carey. "Revel Atlantic City: What The New Hotel Means For Atlantic City" in International Business Times (10 April 2012). Retrieved 7 April 2013.
  4. ^ Barna, John. "Revel to begin previewing $2.3 billion Atlantic City casino resort on April 2" in The Gloucester County Times (9 February 2012). Retrieved 24 June 2013.
  5. ^ "Revel Entertainment Names Arquitectonica Design Architect for Its Atlantic City Resort Development Project", AllBusiness.com, May 2, 2007.
  6. ^ "Built to impress: Attention to detail is key at Revel", Press of Atlantic City, April 1, 2012.
  7. ^ "Tishman to Manage 20-Acre Revel Development Site in A.C.", NJBIZ, April 24, 2007.
  8. ^ Jaffoni, Joseph."Revel Entertainment names Arquitectonica design architect for its Atlantic City resort development resort", March 2007, accessed July 19, 2011.
  9. ^ "Revel casino to cannibalize Atlantic City market, report warns". Press of Atlantic City. Retrieved 2012-08-03.
  10. ^ Wittkowski, Donald (March 2, 2012). "Revel to add 300 rooms by May 31". Press of Atlantic City. Retrieved March 2, 2012.
  11. ^ "$2 billion Revel will focus its hotel layout and amenities on fun". Press of Atlantic City. Retrieved 2012-08-03.
  12. ^ AP (2012-02-09). "Revel casino in Atlantic City to open in April". NJ.com. Retrieved 2012-02-09. {{cite web}}: Cite has empty unknown parameter: |coauthors= (help)
  13. ^ a b Suzette Parmley (March 28, 2013). "Bankruptcy filing offers an inside look at Revel casino's woes". Philadelphia Inquirer.
  14. ^ "Press of Atlantic City". Press of Atlantic City.
  15. ^ "Revel: Dining" (commercial website). Retrieved 30 October 2013.
  16. ^ Johnson, Danielle (March 15, 2010). "High Winds Cause Crane Collapse in AC". NBC Philadelphia. Retrieved August 3, 2012.
  17. ^ Munson, John (September 15, 2011). "Lightning strike kills worker at Atlantic City casino site". The Star-Ledger. Retrieved August 3, 2012.
  18. ^ Cohen, Lynda (September 30, 2011). "Revel worker hospitalized, in critical condition, after falling off ladder". Press of Atlantic City. Retrieved September 30, 2011.
  19. ^ Cohen, Lynda (September 10, 2012). "Pennsylvania man, 29, injured after falling from escalator early Monday at Revel in Atlantic City". Press of Atlantic City. Retrieved December 8, 2012.
  20. ^ "Luxury mega-casinos to transform face of Atlantic City", USA Today, November 26, 2007
  21. ^ Associated Press (22 April 2010). "Morgan Stanley's monstrous loss in Atlantic City". Crain's New York Business.
  22. ^ "Christie: NJ to invest $260M in stalled casino project", Philly.com, February 1, 2011
  23. ^ Lisa Spengler (November 21, 2012). "DGE announces 3rd quarter 2012 results" (PDF). New Jersey Department of Law and Public Safety.
  24. ^ Suzette Parmley (August 24, 2012). "Moody's lowers Revel casino's credit ratings". Philadelphia Inquirer.
  25. ^ "Revel casino asks lenders for $100M cushion". Associated Press. August 20, 2012.
  26. ^ Salvador Rizzo (November 30, 2012). "Atlantic City's Revel resort, $1.3B in debt, faces potential bankruptcy or foreclosure". The Star-Ledger.
  27. ^ Krista Giovacco (February 11, 2013). "Revel Loan Falls to All-Time Low After Moody's Ratings Cut". Bloomberg Businessweek.
  28. ^ Hoa Nguyen (March 15, 2013). "Revel bankruptcy could jeopardize tax breaks the casino seeks to tap to pay creditors". Press of Atlantic City.
  29. ^ "Disclosure Statement for the Joint Plan of Reorganization of Revel AC, Inc. and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code". EDGAR (Security and Exchange Commission). As part of the bankruptcy, (a) $10 million in bankruptcy fees, and $22 million in administrative and priority claims will be paid immediately; (b) all of Revel's equity will be transferred to lenders; (c) 3 loans with $1.503 billion in principal and interest will be converted to a 5-year $260 million term loan, and a 4-year $12 million revolving loan, both with quarterly payments; (d) Revel will have minimal cash balance, and access to an additional $63 million in revolving loans.
  30. ^ a b Wayne Parry (March 26, 2013). "'Upscale' Revel N.J. casino files bankruptcy". USA Today.
  31. ^ "Bankrupt Revel casino warns it might close down this summer". Associated Press. June 19, 2014. Retrieved June 20, 2014.
  32. ^ Callan, James (August 12, 2014). "Revel Casino in Atlantic City to Close Next Month". Bloomberg. Retrieved August 12, 2014.
  33. ^ "Thousands out of work in Atlantic City as big casinos shut doors". Atlantic City News.Net. 1 September 2014. Retrieved 1 September 2014. {{cite news}}: Italic or bold markup not allowed in: |publisher= (help)
  34. ^ Revel Group, LLC (22 September 2014). "Revel Group, LLC Announces Plans it will Terminate License Agreement with the... -- NEW YORK, Sept. 22, 2014 /PRNewswire/ --".
  35. ^ "UPDATE: City to begin fining Straub; Power shut off to $2.4 billion former Revel Casino". Philly.com. 9 April 2015.
  36. ^ "UPDATE: There is now power into the Revel building, future still murky". Philly.com. 29 April 2015.
  37. ^ "Revel's chief engineer resigns". Press of Atlantic City.
  38. ^ "HQ and other Revel tenants win crucial ruling". Press of Atlantic City.
  39. ^ "Atlantic City begins fining Revel owner". Press of Atlantic City.
  40. ^ "Sewer company sues to end Revel service". Press of Atlantic City.
  41. ^ "Straub says deal forged for sale of Revel power plant". Press of Atlantic City.
  42. ^ "Revel heated, Straub says". Press of Atlantic City.
  43. ^ "Straub says reopened Revel will have a casino". Press of Atlantic City.
  44. ^ "The ball glows again atop shuttered Revel". Press of Atlantic City.
  45. ^ WAYNE PARRY. "Beacon of hope for soon-to-reopen Revel?". NorthJersey.com.
  46. ^ "Straub Ready for Revel Re-opening. Haters Denied". Atlantic City Prime Time.
  47. ^ "An Inside Scoop About the Inside of the Former Revel in Atlantic City". WPG 1040 FM.
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