Carl Icahn is currently in the process of preparing to demolish the Trump Plaza resort in Atlantic City. This is the last property within the city that has President Trump’s name on it. The demolition will begin relatively soon, but Ichan wants Atlantic City to help cover the cost of the demolition with local tax money. This has obviously caused some issues and the New Jersey Senate President, Stephen Sweeny, is adamant that Atlantic City will not assist with the cost of the demolition.
Icahn Provisionally Approved for $5.6 Million in Assistance
The total cost of demolishing Trump Plaza is expected to be in the region of $13.2 million. The Atlantic City Casino Reinvestment Development Authority (CRDA) gave initial approval last week to provide $5.6 million to Ichan to help cover the costs. This money would come out of funds provided by the Investment Alternative Tax (IAT). After hearing the news, Sweeny was very unhappy and made a statement.
In this statement, he urged the CRDA to reconsider its decision. Sweeney claims that Icahn should not be considered a friend of Atlantic City, as he has a history of treating his employees terribly. In addition to this, the funds generated by IAT are intended to promote economic development for Atlantic City and those who live there, not to be used by billionaire developers to cover their own costs.
Situation More Complex
However, things may not be as simple as that. As always, things have a habit of getting complicated. All casinos in Atlantic City pay 1.25% of the gaming wins into the IAT. Trump Plaza has actually contributed $5.6 million towards the IAT. While Sweeny and the mayor of Atlantic City, Don Guardian, might be against using the money to assist with the demolition, it appears that the money can only be used for Trump Plaza projects.
Having these empty casino resorts in the city is a constant reminder of the difficult times Atlantic City endured. It has been a priority for many to get rid of these buildings, or find new owners. Some people are even in favour of assisting to cover the cost of the demolition.
Time will tell what happens with this situation, but we’re sure residents of AC will be happy to see another closed casino resort removed.