Borgata Wants to Maintain Its Considerable Lead among Atlantic City Casinos
The Borgata in Atlantic City plans to open an outdoor concert hall this summer. Next fall, Borgata Casino expected to open a new nightclub. Both projects are part of a move away from casino gaming and towards a tourist economy, much like the visitor-based economy which has helped the Las Vegas Strip regain form in recent years.
The total project cost for the concert hall and nightclub will come to $15 million. The Casino Reinvestment Development Authority is paying $14 million of those expansion costs, though the Borgata expects to repay that money in time.
Investment Alternative Tax Payments
Under current New Jersey law, the 8 Atlantic City casinos are obligated to make what are called “investment alternative tax payments” to the state Authority. Those payments go towards redevelopment projects. The $14 million approved this last Tuesday will be offset by current and future payments made by Borgata.
The two projects represent two developing trends for Atlantic City’s economy–and especially its gambling economy. One, it represents a move on the part of individual casinos to do what businesses are supposed to do: take initiative in growing their customer base. Now that an agency which promotes tourism to the Borgata is going away, the casino has decided to build a venue which attracts people to their complex regardless without such advertisements.
Two, Borgata is trying to collect on the investment alternative tax payments before the state fund is used to pay Atlantic City debts or is tapped to help with a much wider redevelopment plan for the city which is gaining momentum in the state legislature.
Accessing State Funds While Still Available
As always, state funds have a lot of different parties interested in using them. Waiting on those funds as if they are sitting in the bank is folly, so Borgata decided to invest in their business before no money existed to make such investments.
Despite those advantages, Borgata executives are quick to point out that is not the reason they are building the concert venue and nightclub. Borgata President Tom Balance told the Courier Post, “We are thrilled with the opportunity to enhance and grow our already tremendous entertainment offerings through funding by the CRDA and a wonderful partnership with [concert promoter] Live Nation.”
Borgata Festival Park
Borgata Festival Park is going to be a 5,000-person standing-room-only outdoor concert area. An outdoor bar is set to be placed on its grounds. Eventually, Borgata officials hope to host outdoor “food and beverage festivals” at the location.
Though no acts have been announced yet for the Borgata Festival Park’s summer concert schedule, that schedule is expected to begin on June 13, 2015.
Josh Held Design Nightclub
The nightclub, on the other hand, has not yet been named. The New York City architectural firm “Josh Held Design” is set to design the nightspot, which should be open by the end of 2015.
Josh Held Design has developed a number of trendy nightclubs around the United States. Examples of clubs designed by Josh Held are TAO Restaurant and Nightclub in Las Vegas, Voyeur Nightclub in Los Angeles, and Marquee Nightclub in New York.
Borgata’s Senior Vice President Joe Lupo said recently the two developments are expected to create synergy between day and night entertainment experiences at the Borgata. He suggested that the best DJs would appear in the club, while top acts would perform at the outdoor concert venue.
Lupo added, “In addition to engaging the most elite DJs in the industry, we are thrilled with the prospect of this new nightclub working in conjunction with Borgata Festival Park to create an all-day-and-night entertainment experience unlike any other.“
