As Showboat Faces Foreclosure Fight, Purdy Tells Blatstein: ‘Fix What You Have’

Atlantic County Republican chairman questions developer's plans for another Atlantic City project, while Blatstein says Showboat is growing and he's ‘not going anywhere’

ATLANTIC CITY, N.J. — As Showboat owner Bart Blatstein moves ahead with plans for another major attraction in Atlantic City, Atlantic County Republican Chairman Don Purdy is questioning whether the developer should be expanding while a foreclosure case involving part of his existing resort remains unresolved.

Purdy delivered unusually pointed criticism of Blatstein during an appearance Monday on Off The Press with Scott Cronick on News Talk 1400 and 92.3 WOND.

“Anybody that wants to come down and invest in Atlantic City, I mean, obviously my hat goes off to them,” Purdy said. “But, you know, at some point you'll have to have a plan in place to thoroughly do it.”

Purdy's comments come as Blatstein's Showboat REN I LLC seeks approval for a temporary, approximately 143,000-square-foot multipurpose event center on a surface parking lot across Pacific Avenue from the Showboat Resort.

The proposed facility would accommodate approximately 2,000 spectators and could host conventions, trade shows, concerts, banquets, community events and athletic competitions.

A public hearing on the proposal before the Casino Reinvestment Development Authority is scheduled for Oct. 15.

But Purdy says Blatstein should concentrate first on the property he already operates.

“Either get rid of it or try to fix what you have,” Purdy said. “You know, to keep going like this — you ever hear a saying, they say you fake it till you make it? Well, you know, I think he's living by that, and it's a shame.”

Foreclosure Case Remains Active

Purdy specifically pointed to a foreclosure case involving a portion of the Showboat property.

Computershare Trust Company, acting as trustee for holders of commercial mortgage-backed securities, filed a foreclosure complaint in June involving a $48.5 million loan secured by portions of the Showboat complex.

The lender alleges Showboat has not made its monthly debt-service payments since April 2025.

The foreclosure action does not involve the entire Showboat complex, and the resort remains open and operating.

The lender is currently seeking court intervention, while Showboat's attorneys have argued that the property remains a functioning, revenue-generating business and that its debt obligations are being addressed.

Showboat's attorneys have said the property served approximately 1.2 million guests, customers and event attendees over the previous year and supports approximately 500 direct and indirect employees.

A court decision on the latest dispute is expected Oct. 9.

Purdy cited the foreclosure as one reason he questions further expansion.

“At my point, you know, him looking to do another project, which is what I commented on, with an empty parking lot, I mean, stop,” Purdy said. “Just stop where you're at there.”

Blatstein: ‘I'm Not Going Anywhere’

Blatstein addressed the foreclosure case directly during an Aug. 27 appearance on Off The Press, telling Cronick that he expected the matter to be resolved.

“This is just due with a lender, and it's being resolved as we speak,” Blatstein said. “And it will be resolved, and it's a moot point.”

More than a month later, the litigation remains active, with the lender continuing to press its claims in Superior Court.

But Blatstein made clear during that interview that he had no plans to abandon either Showboat or Atlantic City.

“I'm not going anywhere,” Blatstein said. “Atlantic City is where I'm staying and I'm going to keep on investing.”

“Sometimes in business, things go south temporarily,” he added. “That's what that's about.”

Blatstein also pushed back against suggestions that Showboat itself was performing poorly.

“We're up. There's no question about it,” Blatstein said. “Our numbers are up.”

No independently audited financial figures were provided during that interview to substantiate that assertion.

Purdy Questions More Public Assistance

Purdy also raised concerns about government incentives for private development, arguing that taxpayers should not continually be expected to help projects experiencing financial difficulties.

“I like people who have vision,” Purdy said. “I like that, especially with Atlantic City, but you can't use other people's monies to do it, and you can't expect businesses to take hits on the chin with it.”

Showboat has previously benefited from public economic-development assistance.

The New Jersey Economic Development Authority approved a $4.2 million Atlantic City Revitalization Grant for Showboat REN I LLC to support expansion of the Lucky Snake Arcade and Raceway and other improvements.

Blatstein, however, has emphasized that not every Showboat improvement has relied on public incentives.

During his August WOND interview, he pointed to improvements along the Boardwalk outside Showboat.

“We did a lot of work this year,” Blatstein said. “If you've been by, we expanded the Boardwalk.”

“It happened later than I hoped, but it was all done privately,” he added. “There were no tax credit money for it.”

There is also an important distinction involving the latest event-center proposal: the application currently before CRDA is for land-use approvals and variance relief. South Jersey NewsBeat has found no indication in the current application that Blatstein is seeking CRDA financing for construction of the temporary event center.

Contractor Disputes Also Part of Debate

Purdy also referenced previous disputes involving contractors who worked on Showboat projects.

There is at least one significant documented case.

Buena-based Lee-Way Electrical previously sought more than $532,000 for work connected to Showboat properties. After a court judgment and subsequent collection proceedings, the debt was ultimately paid.

Other contractor claims have also surfaced involving Showboat-related construction.

Purdy used those issues to argue that Blatstein should stabilize his existing operations before expanding further.

Blatstein, however, has consistently portrayed those financial disputes as temporary complications associated with large-scale development rather than evidence that he is pulling back from Atlantic City.

“I believe in Atlantic City, as anybody will tell you, and I do put my money where my mouth is,” Blatstein said during his August interview.

“We're going to keep on developing,” he added. “We're going to keep on trying to make a difference and to help Atlantic City out.”

Another Big Bet on Showboat

The latest proposal suggests Blatstein intends to do exactly that.

Plans submitted to CRDA call for the temporary event center to operate for approximately six months, from January through June 2027.

The developer anticipates approximately 30 events, with the flexible venue capable of accommodating everything from conventions and trade shows to basketball, volleyball, wrestling, cheerleading, dance, martial arts and pickleball events.

No new parking is proposed specifically for the facility. The application says existing Showboat parking facilities would accommodate visitors.

Purdy isn't opposed to investment in Atlantic City. In fact, he repeatedly said he welcomes developers willing to invest in the resort.

His disagreement is over when continued expansion becomes too risky.

Blatstein's position is almost the opposite: he has repeatedly argued that continued investment is precisely what Atlantic City and the Showboat need.

That debate will now play out against two very different proceedings — the continuing foreclosure litigation involving part of the Showboat complex and the upcoming CRDA hearing on Blatstein's next proposed project.

Bart Blatstein's Aug. 27 comments and Don Purdy's Sept. 28 comments were made on Off The Press with Scott Cronick on News Talk 1400 and 92.3 WOND. The program airs Monday through Friday from 4 to 6 p.m.