A popular saying in beach destinations around the nation, “sand in my shoes,” is especially heartfelt in Atlantic City, describing the stalwart loyalty of locals and fans to the legendary seaside resort.
Throughout its 161-year history, Atlantic City has rewarded that affinity while also testing it to the fullest. The cycles of boom and bust, however, have invested the city and its people with moxie and a fighting spirit that has never been more evident of late.
Today, “sand in the shoes” stands equally for traction, as a blockbuster new conference venue and other investments keep the Boardwalk Empire turning around and moving forward.
Transformative Minds
When the chips are down, helping hands make all the difference.
For Atlantic City, an especially firm grip comes from the broad-shouldered Casino Reinvestment Development Authority. Established in 1984 by the state legislature, the CRDA is the only agency of its kind in the nation, uniquely facilitating the reinvestment of casino revenue in community and economic development projects around New Jersey.
“CRDA is not a regulatory or funding agency, but one that provides redevelopment support and services to businesses and organizations seeking to grow,” explains Executive Director John Palmieri.
In the role since October 2011, Palmieri brings more than three decades of public service experience in urban development, including successful engagements in Providence, R.I.; Boston; Hartford, Conn.; and Charlotte, N.C. Taking stock of his tenure so far, he is encouraged by the destination’s progress.
“It’s well understood that rising competition mandated that Atlantic City move toward a more diversified economy,” Palmieri says. “Heading into 2015, however, I’d say that move became more aggressive, with a greater sense of urgency. Today, all stakeholders are on board. Everybody understands what has to be done, and what we are here to do.”
In Las Vegas and other gaming destinations, the rallying cry of “product diversification” typically means complementing and enhancing the casino base with new entertainment, F&B, experiential, major event and related offerings. While Atlantic City has those covered, along with its Atlantic City Convention Center, the reinvigorated commitment to a non-gaming footprint here goes deeper.
“The focus now is acting more aggressively and efficiently to expand beyond gaming, entertainment and hospitality to other sectors, such as education and healthcare,” Palmieri says. “While we are down to eight casinos, receipts have actually been decent, so there’s stability there as CRDA continues to evaluate new redevelopment opportunities. It will take time, but the commitment and urgency are there.”
Atlantic City continues to receive most of CRDA’s statutory reinvestment of 1.25 percent of gaming revenues. Of the $1.8 billion reinvested in over 400 statewide projects since 1984, more than $1.5 billion has gone to Atlantic City, where all eight remaining resort-casinos are CRDA investment partners. As CRDA-supported activity surges forward, meetings and events are very much in the framework.
Investment Savvy
With lineage back to 1868, including opening in 1978 as Atlantic City’s first casino hotel, and the first legal casino outside of Nevada—Resorts Casino Hotel is a prime CRDA-supported success story.
Announced one year ago, the property undertook a $9.4 million expansion of its convention space. Unveiled in August 2015, the result is the dynamic new 12,000-square-foot Resorts Conference Center. Featuring 11 new conference rooms, the state-of-the-art center boosts Resorts’ total meeting and event capacity to more than 64,000 square feet of new and refreshed space, including the 6,500-square-foot Atlantic Ballroom, offering singular ocean views.
The expansion follows some $80 million in other recent renovations and enhancements, including the $35 million Jimmy Buffet-themed Margaritaville Entertainment Complex. Collectively, the transformations have proven a beacon to planners, with group bookings up double digits year-over-year since 2013, and wins including the March 2016 New Jersey Governor’s Conference on Tourism.
“The completion of our new technologically advanced conference center, in conjunction with the numerous enhancements made in recent years, positions Resorts Casino Hotel as a premier meeting and event space in Atlantic City,” says President and CEO Mark Giannantonio. “We continue to be committed to offering our guests the finest service and the best in meeting space, lodging, gaming, dining and entertainment.”
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There’s yet more ahead: Resorts is planning to fully renovate its Ocean Tower, slated for completion in late 2016.
With the new Harrah’s Atlantic City Waterfront Conference Center (see On the Scene, page 55) attracting its own big show—MPI’s 2016 World Education Congress (WEC)—other CRDA partnerships are yielding their own dividends.
Unveiled this summer, Tropicana Casino & Resort’s $50 million-plus rejuvenation included all 434 North Tower hotel rooms, an electrifying new Boardwalk-facing Tropicana Multimedia Light & Sound Show, and a new 12,455-square-foot fitness center.
“Our renovations are getting tremendous reviews from our meeting groups, who particularly love the North Tower update,” says Jim Ziereis, Tropicana’s assistant vice president, hotel sales. “This complete room renovation has positioned us to attract groups looking for a higher-end room product, such as corporate retreats.”
With the tower’s new 10 North lounge also garnering favorable reviews as a pre-dinner gathering spot, Ziereis sees bright times ahead.
“Offering so much under one roof at the Tropicana, we can truly say that our meetings business is year-round,” he says. “With great citywide, association and corporate meetings already quickly locking in their dates for 2016 and beyond, we are extremely bullish on the Atlantic City meetings market.”
Also this summer, Borgata Hotel Casino & Spa debuted Borgata Festival Park, part of a $14 million renovation project. Located adjacent to Borgata at its northeast entrance, the 50,000-square-foot outdoor facility has been an immediate hit, accommodating some 4,500 people for concerts, electronic dance festivals, culinary events and other gatherings. The renovation also includes the addition of a new upscale nightclub, scheduled to debut this month.
Directly and indirectly benefiting the meetings market are diverse other investments that illustrate CRDA’s reach.
First announced in 2013, the addition of a giant observation wheel adjacent to the Steel Pier is now reportedly on track for a spring 2016 debut. Slated to feature some 400 fully enclosed, climate-controlled gondolas, the roughly 200-foot-tall structure has been shipped in sections from factories just outside Venice, Italy, throughout 2015. Assembly of the year-round attraction, costing some $14 million, awaits final approval of a new supporting pier.
Dramatic, too, is the Golden Nugget Villa Project, which aims to redevelop unused restaurant space into two state-of-the-art, multipurpose villas available as meeting space for small groups and hospitality suites. In June, plans were announced for the possible revival of the shuttered Atlantic Club Casino Hotel into a hotel, entertainment and waterpark complex.
The agency is also behind Atlantic City’s expanding market for sporting events and major summertime concerts and festivals; residential developments; schools; job programs; the city’s 9/11 Memorial; lighting displays, facade and street refurbishments; and much more.
“We are also consulting with Devco, the organization that helped revitalize New Brunswick, N.J. (including the IACC-certified Heldrich Hotel) on redevelopment projects including a new medical college and corporate campus,” Palmieri says. “It’s all part of creating momentum in sectors that will diversify and strengthen the overall Atlantic City economy.”
That includes committing some $8 million to underwriting marketing and promotional efforts by Meet AC, the agency focused on building Atlantic City’s convention, meetings and event market.
Positive Returns
Jim Wood, who became CEO of Meet AC in June 2014 following previous roles as president and CEO of Kentucky’s Louisville CVB and the Providence Warwick [R.I.] CVB, is just as determined to take Atlantic City to the next level.
“Several major accomplishments have helped to elevate Atlantic City’s national image as a vibrant meetings and convention destination, starting with being awarded the 2016 MPI WEC Conference,” Wood says. “From the positive media we have received to being included in the closing lunch at this year’s event, hosting MPI WEC next year really puts us on the map.”
Profile-boosting, too, was the January 2015 launch of the Atlantic City Sports Commission.
“Then, in June, we were awarded the 2016 TEAMS Conference, which is the largest gathering of sports related events and conventions in the country,” Wood says, noting also the “tremendous investment” into Atlantic City’s resort-casinos.
“Harrah’s opened their 100,000-square-foot Waterfront Conference Center, Resorts added 12,000 square feet of meeting space and Tropicana spent over $50 million on new improvements to their public space and guest rooms,” Wood says. “All in all, we are very optimistic about 2016 and beyond as Atlantic City continues to diversify its offerings while more vigorously pursuing the meetings market.”
