ATLANTIC CITY, N.J. -- A union representing Atlantic City casino hotel workers is suing New Jersey to try to block $261 million in tax aid for the half-finished Revel casino project.
<!--Display the nav box on the first page and for the remaining pages displayLocal 54 of the Unite-HERE union filed the lawsuit last week against the state Economic Development Authority, but publicized it on Thursday. The EDA agreed last month to refund $261 million in taxes to Revel over 20 years to help restart the stalled project.
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TwitterThat aid guarantee was seen as instrumental in Revel obtaining the remaining $1.15 billion in private financing it needs to finish the casino-hotel.
The union claims the state violated open public meetings and records laws and wants the tax break canceled.
The union opposes Revel because it fears the mega-resort will force older, struggling casinos to close, killing thousands of union jobs.
"Revel could close two or more casinos," said Ben Begleiter, a research analyst with the union and one of the plaintiffs in the suit. "It's clear that the credit that EDA handed them was central to them getting the private financing.
"The state is picking winners and losers in Atlantic City," he said. "If they're going to do something in Atlantic City, it should be something that raises all boats, not focusing on a single operator."
Gov. Chris Christie hailed the state assistance during a bill signing ceremony in Atlantic City, saying it provides a way for the state to share in the expected profits from the casino. His press secretary Michael Drewniak declined comment on the lawsuit.
A Revel spokesman did not immediately return a request for comment Thursday.
Revel was begun in 2007, before the national recession hit and credit markets dried up. It ran out of money in January 2009 and halted work with just the exterior nearing completion. Wall Street giant Morgan Stanley ( MS - news - people ), the project's major backer, pulled out in April 2010, deciding it was better to take a nearly $1 billion loss on the project than see it through to completion.
Revel is likely to be the last project of its kind in Atlantic City for the foreseeable future. It was begun when the resort was awash in grand construction plans, including four new casino-hotels worth more than $10 billion. The first (and only) project to actually put shovels in the ground and begin construction, Revel progressed to the point where it was considered too far along to abandon when money ran out.
The ocean-themed casino is being built on a 20-acre site at the northern end of the Boardwalk, next to the Showboat Casino Hotel. Its gently sloping contours are designed to appear sculpted by ocean waves.
It is set for a mid-2012 opening. Its owners say they expect the project to create 5,500 permanent jobs, and 2,100 construction jobs.
Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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