County Executive Dennis Levinson says Atlantic County is willing to explore a role in preserving the hotel crucial to Atlantic City's convention business, but taxpayer money would require guarantees and state cooperation.
ATLANTIC CITY, N.J. — Atlantic County Executive Dennis Levinson is opening the door to possible county involvement in an effort to save the Sheraton Atlantic City Convention Center Hotel — including potentially putting county financial resources on the table.
But there's a catch.
Nobody has asked.
“No one has contacted me from the state. No one from CRDA and no one from the convention authority,” Levinson said Friday on The Don Williams Show on News Talk 1400 and 92.3 WOND.
“And we're here.”
The comments represent a significant development in the growing effort to prevent the 502-room hotel adjacent to the Atlantic City Convention Center from closing.
When directly asked whether Atlantic County would consider getting involved, Levinson said it would.
“The county would certainly, with our expertise, the county would certainly sit and listen,” Levinson said.
But he immediately established conditions.
“I'm not going to commit taxpayer funds unless there's a guarantee, and unless we get cooperation from the state.”
‘Somebody's Got to Ask’
The Sheraton's owner, LINY Investor LLC, is pursuing an approximately $100 million redevelopment that would convert part of the building into 130 age-restricted apartments while renovating and retaining 252 hotel rooms.
Developer Tom Scannapieco says the existing 502-room hotel is not financially sustainable on convention business alone.
The project is awaiting a decision on an application for $79 million in state Aspire tax credits. Scannapieco says construction cannot move forward without that assistance.
Meanwhile, Marriott International is preparing to lay off the hotel's approximately 180 employees by mid-December if the situation is not resolved.
The prospect has alarmed local tourism and government officials who consider the hotel essential to the Convention Center.
Levinson says Atlantic County hasn't been included in discussions about finding a solution.
“No one has talked to any of the commissioners. No one has talked to me,” Levinson said.
“Give us a shot. Sit down with us and let's see what we can work out.”
He repeated the point when pressed about county participation.
“Somebody's got to ask,” Levinson said.
“We will cooperate, but all somebody has to do is ask, and that has not occurred.”
County Money Isn't Off the Table
Levinson stopped well short of promising county money.
But he also didn't rule it out.
He said Atlantic County has borrowing capacity and could consider options if officials are brought into negotiations.
“Yeah, we do have borrowing power,” Levinson said. “But before I borrow that money and put it in, we're going to have to have some guarantees.”
“And, you know, the way I am, we're also going to have to have a little bit of control.”
Later, Levinson emphasized that any use of public money would require safeguards.
“Before I put county money in, before I put tax money in, we have to have assurances,” he said.
“I don't know that we can solve the problem there, but we can sure have a dialogue.”
County Has Done It Before
Levinson pointed to two previous Atlantic County financing decisions as evidence that unconventional public-private arrangements can work.
In 2009, Atlantic County backed a $3 million, 10-year loan to Boscov's during a period of financial trouble for the retailer.
The agreement was intended to keep the Egg Harbor Township store operating and protect hundreds of jobs. It also included employment protections and requirements involving new hires.
Boscov's made its final payment in 2019.
“He paid it back in 10 years with interest,” Levinson said of the late Al Boscov.
“The reason that I got involved in this ... is that we didn't need another empty shopping center.”
Levinson also pointed to Atlantic County's involvement in financing Stockton University's Atlantic City campus.
The Atlantic County Improvement Authority, the county's financing and development agency, has the ability to facilitate public and private financing, redevelopment financing and economic-development projects.
“We financed that also and got our money back 100%,” Levinson said of Stockton.
The county executive acknowledged that both decisions drew criticism at the time.
“Sometimes you have to think outside the box,” he said.
Sheraton's Convention Role at Center of Fight
The dispute isn't simply about preserving a hotel.
The Sheraton sits directly adjacent to the Atlantic City Convention Center and has long served as its primary convention hotel.
Scannapieco, who was involved in developing the hotel in the 1990s and is now behind its proposed redevelopment, says the building has historically struggled financially.
He argues that converting part of it to residential use is the only practical way to finance a major renovation without requiring an ongoing public subsidy.
Others contend reducing the hotel to 252 rooms would weaken the Convention Center's ability to compete for large events.
CRDA board member Frank Formica has publicly called for intervention, warning that losing the Sheraton could severely damage Atlantic City's convention business.
Levinson agrees that the stakes extend well beyond one property.
“That hotel is an amenity,” Levinson said.
He said conventions are booked years in advance and organizers evaluate available hotel rooms and other amenities before selecting a destination.
“This is very vital to the health of the casino industry and the thousands of people that work there,” Levinson said.
Levinson Questions State's Priorities
Levinson has also criticized the state for supporting convention-related development elsewhere in New Jersey while Atlantic City's convention hotel faces an uncertain future.
He recently wrote Gov. Mikie Sherrill expressing concern about $75 million in state tax credits for redevelopment of the Asbury Park Convention Hall complex and plans being discussed for convention space in the Meadowlands.
He repeated those concerns Friday.
“If we're going to put this money in to save the convention business down here, what the hell is the state putting up 300,000 square feet in the Meadowlands?” Levinson said.
“We're competing with ourselves.”
The Sherrill administration told WHYY that tourism and hospitality are important to Atlantic City's future and that the administration is communicating with stakeholders.
‘Sit Down With Us’
For now, there is no Atlantic County rescue package, no proposed county loan and no commitment of taxpayer money.
What has changed is Levinson's willingness to participate in the discussion.
He says the county wants an opportunity to determine whether it can help.
“We're here,” Levinson said. “There's nine commissioners and myself. You know, let's see if we can get something done.”
“Sit down with us. Sit down with the commissioners.”
And despite repeatedly stressing that he cannot promise a solution, Levinson made clear he doesn't want the Sheraton's future decided without Atlantic County at the table.
“I don't know that we can solve the problem there,” he said, “but we can sure have a dialogue.”
Atlantic County Executive Dennis Levinson spoke Friday on The Don Williams Show on News Talk 1400 and 92.3 WOND. The Don Williams Show airs Monday through Friday from 6 to 10 a.m.
About the Author
Scott Stephens
Scott has been an on-air personality, producer and newscaster for 30+ years. He has been a mainstay in the South Jersey Community and on the air across many different area stations. Scott can currently be heard on Kool 98.3 and News Talk 1400 & 92.3 WOND.
