Atlantic County GOP Chairman Opposes Sheraton Senior Housing Plan as Critical State Funding Deadline Approaches

Don Purdy calls for a public-private partnership to preserve Atlantic City's convention hotel, joining other local leaders seeking alternatives as the owner warns of a December 15 closure.

ATLANTIC CITY, N.J. — Atlantic County Republican Chairman Don Purdy is calling for a public-private partnership to preserve the Sheraton Atlantic City Convention Center Hotel, rejecting a proposal to convert a portion of the property into senior apartments as a critical state funding deadline approaches.

Speaking with Scott Cronick on Off The Press on News Talk 1400 & 92.3 WOND, Purdy said the Casino Reinvestment Development Authority should be considered as a potential partner in finding a solution to the hotel's financial problems.

"I think that it has to be, if it is a public-private partnership, it should be with something like the CRDA or something like that," Purdy said. "But it should not be 55 and older homes."

His comments come as the New Jersey Economic Development Authority prepares for its November 16 board meeting, the last regularly scheduled meeting before the hotel's owner says the property could close December 15 without financial assistance.

The NJEDA did not consider the Sheraton's application for approximately $79 million in Aspire tax credits during its October 22 meeting.

The agency's next regularly scheduled meeting after November 16 is December 16, one day after the owner's announced closure deadline.

It remains unclear whether the Sheraton application will appear on the November agenda. The authority could also schedule a special meeting or take other action.

The uncertainty has intensified concerns about the future of the 502-room hotel, which is connected to the Atlantic City Convention Center and plays an important role in attracting meetings and conventions to the resort.

Purdy: Preserve the Hotel, Improve the Surrounding Area

Purdy said he believes the focus should be on restoring the Sheraton's role in the convention industry rather than reducing its hotel-room inventory.

"I think that you make it clean and safe and you clean the area up around it, that will help you get work in there and get conventions back into that facility," he told Cronick.

The Republican chairman argued that improving the hotel and its surroundings could help Atlantic City attract additional business.

He was also sharply critical of how the property has been maintained.

"I think that guy is running into the ground," Purdy said, referring to the hotel's management or ownership. "It needs so much work. It didn't happen overnight, Scott."

"He ran it into the ground. Now everybody else has got to be the one to bail it out."

Those comments reflect Purdy's assessment of the hotel's condition and responsibility for its financial problems.

The owner has presented a different explanation, arguing that the aging hotel requires a major renovation and that existing convention business is insufficient to support its continued operation as a 500-room property.

Purdy did not identify a specific funding source or announce any formal negotiations involving the CRDA.

However, his comments add another voice to a growing discussion about whether government agencies and private investors can develop an alternative to the owner's redevelopment proposal.

November 16 Meeting Could Be Pivotal

The Sheraton's owner, LINY Investor LLC, an affiliate of Philadelphia-based Scannapieco Development Corporation, is seeking approximately $79 million in state Aspire tax credits to support a redevelopment estimated at roughly $100 million.

The proposal would convert part of the hotel into approximately 130 age-restricted apartments while retaining about 252 hotel rooms.

Supporters of preserving the existing hotel have argued that reducing its capacity by roughly half could undermine Atlantic City's ability to compete for larger conventions.

The owner maintains that the current hotel is financially unsustainable and that the mixed-use redevelopment offers the only viable financial path it has identified.

Developer Tom Scannapieco reiterated those concerns before the October 22 NJEDA meeting.

"Time is running out," Scannapieco said in a statement reported by The Press of Atlantic City.

He said delays in reviewing the application were costing the hotel experienced employees and bookings for the first quarter of 2027.

The hotel has already issued prospective layoff notices as the December deadline approaches.

Although the November 16 meeting is now an important date, no approval is guaranteed, and there has been no public confirmation that the Sheraton application will be considered.

Democrat and Republican Leaders Raise Similar Concerns

Purdy's remarks follow comments from former Atlantic County Democratic Chairman Michael Suleiman, who recently called for state, county and city participation in preserving the hotel.

Speaking October 26 on Off The Press with Scott Cronick, Suleiman said he believes government agencies should work together rather than argue over which one should take responsibility.

"There's nothing wrong with giving the Sheraton tax credits to save it," Suleiman said. "I think we need to do that."

He also urged the NJEDA to become involved.

"I think we need the EDA involved," Suleiman said. "We need tax credits to support it."

Suleiman suggested that Atlantic County could participate through a financing arrangement, provided appropriate safeguards were established.

He also argued that Atlantic City should have a role in the discussions.

"I just think everybody's got to have skin in the game here," Suleiman said.

The former Democratic chairman criticized what he described as a tendency for government agencies to shift responsibility to one another.

"How about we all just chip in and just we all be part of the solution here and save the Sheraton?" he asked.

Purdy and Suleiman have not announced a coordinated proposal, and neither has identified a completed financing package.

Nevertheless, their comments show that prominent figures from both political parties are publicly discussing alternatives to the proposed senior-housing conversion.

Levinson Says County Willing to Listen

Atlantic County Executive Dennis Levinson has also expressed a willingness to consider a county role in preserving the hotel.

During an earlier appearance on The Don Williams Show on WOND, Levinson said Atlantic County has experience participating in complex economic-development financing arrangements.

"The county would certainly, with our expertise, the county would certainly sit and listen," Levinson said.

However, he emphasized that taxpayers would need to be protected before the county committed any financial resources.

"I'm not going to commit taxpayer funds unless there's a guarantee, and unless we get cooperation from the state," Levinson said.

"Before I put county money in, before I put tax money in, we have to have assurances."

Levinson said county officials were willing to discuss possible solutions, but he stopped short of promising financial assistance.

"I don't know that we can solve the problem there, but we can sure have a dialogue."

No county bond authorization or formal financing agreement has been announced.

Formica Warns About Convention Business

Casino Reinvestment Development Authority board member Frank Formica has been among the most vocal advocates for preserving the Sheraton's approximately 500 hotel rooms.

During a previous appearance on The Don Williams Show, Formica said the hotel's direct connection to the Convention Center makes it especially important to Atlantic City's meetings and convention industry.

"The hotel, as you asked in a question, is not only needed, it is vital to the convention center's infrastructure," Formica said.

He argued that losing the full-service hotel could have consequences extending well beyond the property itself.

"If that convention center does not have a 500-room hotel, you can expect an economic impact that will affect most people in this county," Formica said.

Formica said the effects could extend to restaurants, casinos and other businesses that depend on convention visitors.

He has previously discussed efforts to bring public and private stakeholders together to develop an alternative financing plan.

"I have reached out," Formica said, "to come up with a plan for success to keep that hotel at 500 rooms."

Although Formica has described meetings and discussions aimed at preserving the property, no finalized rescue agreement has been publicly announced.

Mayor Small Has Defended Redevelopment Proposal

Atlantic City Mayor Marty Small Sr. has taken a different view of the proposed conversion.

During a September appearance on The Don Williams Show, Small defended the owner's redevelopment approach as a response to the hotel's financial and operational challenges.

He acknowledged concerns that reducing the number of rooms could affect Atlantic City's ability to attract certain conventions.

"I understand that our tourism folks may not be as happy because they're saying it disqualifies us to receive certain conventions based on a 500-plus room host hotel," Small said.

However, the mayor questioned whether the hotel should be maintained at its current size when other large hotels operate nearby.

Small has pointed to the city's casino properties as potential alternatives for accommodating convention visitors.

The debate highlights a fundamental disagreement over the Sheraton's future: whether Atlantic City needs to preserve the full 502-room property as a convention hotel or whether a smaller hotel combined with residential development offers a more sustainable financial model.

Owner Says Current Proposal Is Only Viable Option

Scannapieco has repeatedly said his company cannot continue operating the Sheraton indefinitely without a financial solution.

In an October 14 statement reported by The Press of Atlantic City, he said no viable alternative had emerged to the proposed redevelopment.

The developer has also argued that the Convention Center does not generate enough business to sustain the hotel's existing room count.

Those assertions have been challenged by local officials who believe the hotel is essential to Atlantic City's convention industry and should be preserved through some combination of public and private financing.

The owner has not publicly accepted an alternative proposal.

Likewise, no government agency has announced a binding agreement to finance a different redevelopment plan.

The Aspire application remains central to the owner's strategy, but the requested tax credits have not been approved.

A Narrowing Window for a Decision

With the November 16 NJEDA meeting approaching, the debate over the Sheraton is increasingly focused on whether a workable agreement can be reached before December 15.

The owner continues to pursue a redevelopment that would retain a smaller hotel alongside age-restricted housing.

Formica wants to preserve the existing hotel capacity.

Levinson has offered to discuss county financing, subject to taxpayer protections.

Suleiman wants multiple levels of government involved.

And Purdy is now advocating a public-private partnership while rejecting the senior-apartment component.

What remains missing is a publicly announced agreement identifying the financing, ownership structure and operating plan necessary to keep the hotel open.

For Purdy, the priority is preserving the property's ability to attract convention business.

"I think that you make it clean and safe and you clean the area up around it," he said, arguing that those improvements would help bring conventions back to the facility.

Whether state officials, local governments and the hotel's owner can agree on a financial solution before the December deadline remains unresolved.

South Jersey NewsBeat will continue monitoring the NJEDA's November 16 meeting and any developments involving the Sheraton's future.

Don Purdy discussed the Sheraton Atlantic City Convention Center Hotel on Off The Press with Scott Cronick, heard weekdays from 4–6 p.m. on News Talk 1400 & 92.3 WOND.