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Atlantic County Plans New Push to Save Sheraton as Dec. 15 Closure Deadline Looms

Scott Stephens
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Atlantic County Plans New Push to Save Sheraton as Dec. 15 Closure Deadline Looms

Commissioners June Byrnes and Maureen Kern plan resolution as Visit Atlantic City chief prepares to address county board Tuesday

ATLANTIC CITY — Atlantic County officials are preparing to intensify their push to keep the Sheraton Atlantic City Convention Center Hotel open, with two county commissioners planning a formal resolution and the head of Visit Atlantic City scheduled to address the county board Tuesday.

Atlantic County Commissioner-at-Large June Byrnes said Thursday that she and Commissioner Maureen Kern will co-sponsor a resolution supporting County Executive Dennis Levinson's effort to get state officials involved in finding a solution for the troubled hotel.

“We have to keep it open,” Byrnes said on Talking with Anne on News Talk 1400 & 92.3 WOND. “We can't let it close.”

For Byrnes, the concern extends well beyond the hotel itself.

“How do we not have a sister property to the convention center?” she said. “How do we bring in businesses, conventions, anything if we don't have a hotel?”

The push comes as the clock continues to run toward a possible Dec. 15 closure of the 502-room hotel connected directly to the Atlantic City Convention Center.

Owner LINY Investor LLC is pursuing approximately $79 million in tax credits through the New Jersey Economic Development Authority's Aspire program to help finance a roughly $100 million redevelopment. Developer Tom Scannapieco recently told WHYY that private financing is largely in place but the project cannot proceed without the state assistance.

The redevelopment would substantially renovate the property while converting part of it into 130 age-restricted apartments and retaining approximately 250 hotel rooms.

If the financing doesn't materialize, Scannapieco and hotel operator Marriott have said the Sheraton could close Dec. 15.

County Commissioners Preparing Resolution

Byrnes said the Sheraton has moved to the top of the county government's agenda.

“When you said what's going on right now, what came first in my mind is something that we all — we're under the gun right now to get it to the governor — is the Sheraton,” Byrnes said.

She said she has been communicating with Levinson, who recently wrote Gov. Mikie Sherrill about the hotel's future and broader concerns surrounding state investment in convention facilities elsewhere in New Jersey.

“This is up first and foremost right now in his list of things to do,” Byrnes said.

Levinson argued in his letter that losing the Sheraton could seriously damage Atlantic City's ability to attract convention business, while questioning potential state support for convention facilities elsewhere in New Jersey. He specifically pointed to $75 million in state tax credits for redevelopment of Asbury Park's Convention Hall complex and discussion of convention space in the Meadowlands.

Byrnes said she and Kern, who serves as liaison to the county's tourism committee, are now preparing to formally put the Board of Commissioners behind that effort.

“Myself and Commissioner Maureen Kern, who is the liaison to the tourism committee, we're co-sponsoring a resolution on Tuesday,” Byrnes said.

She said the resolution will support Levinson's letter and be distributed to state and local officials.

“Atlantic County government is behind this,” Byrnes said. “We need this to come to fruition.”

“It has to stay open.”

Visit Atlantic City Chief to Address Commissioners

The county board is also expected to hear directly Tuesday from Gary Musich, president and CEO of Visit Atlantic City.

“I invited Gary Musich from VisitAC,” Byrnes said. “He will be coming to our commissioners meeting this coming Tuesday to really inform all of our commissioners, to share with the public.”

Byrnes said commissioners need a better understanding of the situation because they are fielding questions throughout Atlantic County.

“We all need to come together,” she said. “This is not Republican or Democrat. This is all of us.”

Whether the hotel remains under its current ownership, changes hands or ultimately involves some form of government participation is secondary to keeping the property functioning, Byrnes said.

“Whether it stays, you know, owned — if the state owns it, wonderful. I don't know if that's an option,” she said. “If another company comes in and purchases it, great.”

“We need CRDA, Eric Scheffler to be a part of it, which he is,” Byrnes added. “So it's really a combined effort to get that going right now.”

There is already pressure within the Casino Reinvestment Development Authority to become more involved. CRDA board member Frank Formica recently called the Sheraton “absolutely critical” to Atlantic City's convention business and urged greater authority for the agency to participate in finding a solution.

Job Losses Add to the Urgency

The dispute isn't solely about a building or future convention bookings.

It's also about jobs.

An earlier WARN notice filed for the Sheraton listed Oct. 1 — Thursday — as the effective date affecting 99 workers. A subsequent WARN notice lists another 91 workers with an effective date of Dec. 15.

Scannapieco recently said Marriott plans to lay off the hotel's remaining workforce in December if the property closes.

Byrnes said the economic consequences would extend beyond people working inside the Sheraton.

“It doesn't only affect jobs at the physical location,” she said. “Think about all those vendors supplying all the outsourced products that come in.”

“It's our entire region,” Byrnes said.

Byrnes Says Hotel Needs Major Upgrades

The debate over the Sheraton is complicated by widespread agreement that the property itself needs substantial investment.

Scannapieco has said the hotel hasn't undergone a major renovation since it opened and that its current economics don't support continuing to operate all 502 rooms as a conventional hotel.

Byrnes also criticized the condition of the facility Thursday, arguing that outdated technology has made the property harder to market for conventions.

“Unfortunately, the truth of the matter is it's very difficult for our departments to book conventions there because they haven't upgraded that facility in many, many years,” Byrnes said.

She specifically raised concerns about connectivity and Wi-Fi.

“How is that in 2026?” Byrnes said. “It's impossible.”

She said upgrades are necessary “in order to upgrade the Sheraton so that people will begin using it again.”

South Jersey NewsBeat has not independently verified Byrnes' specific characterization of the hotel's Wi-Fi capabilities.

The broader need for renovation, however, is not disputed by the owner. Scannapieco says the proposed redevelopment would modernize the remaining hotel rooms and overhaul public areas while creating the residential component needed to make the overall property financially viable.

$100 Million Plan at Center of Debate

The approximately $100 million proposal calls for converting part of the existing hotel into 130 apartments for residents 55 and older, including affordable units, while renovating roughly half of the existing hotel rooms.

Atlantic City has already approved the redevelopment plan, and the Casino Reinvestment Development Authority has granted land-use approval.

But the plan has produced competing concerns.

Scannapieco argues the residential component provides the additional revenue necessary to save an otherwise financially troubled property. Tourism and casino representatives have expressed concern that reducing the number of hotel rooms could weaken the Convention Center's ability to compete for events requiring a large connected host hotel.

The Sheraton is connected to the Convention Center by an enclosed pedestrian bridge, making its future particularly important to the city's convention industry.

Byrnes said she doesn't yet know precisely what financial contribution would ultimately be necessary.

Asked whether she had been given an amount needed to restore the Sheraton as a premier convention hotel, Byrnes answered simply:

“I have not.”

State Says It Is Talking With Stakeholders

The ultimate decision on the requested Aspire tax credits rests with the New Jersey Economic Development Authority.

The Sherrill administration has not publicly committed to approving them.

A spokesperson for Sherrill told WHYY last week that tourism and hospitality are important to Atlantic City's future and that the administration is communicating with stakeholders.

Byrnes said local officials cannot afford to wait passively as Dec. 15 approaches.

“There's a deadline,” she said. “There's a December 15th deadline. It's now October 1st.”

“We need to get that moving now.”

She said the effort should cross political lines.

“We all have to work together again, Democrats and Republicans alike,” Byrnes said. “We need that.”

“Atlantic City can be moving forward,” she added. “We see a lot of good things going on.”

For Byrnes, keeping the Sheraton operating is part of protecting that momentum.

“The Sheraton is essential,” she said.

Tuesday's Atlantic County Board of Commissioners meeting should provide the next indication of how far county officials are prepared to go — and whether they can persuade state officials to help keep the hotel open.


June Byrnes made her comments on Talking with Anne, heard Monday through Friday from 10 a.m. to noon on News Talk 1400 & 92.3 WOND.

Scott Stephens

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.

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