As Atlantic City's convention business faces mounting uncertainty, the county executive says financing assistance is possible — but only with firm guarantees protecting public money.
ATLANTIC CITY, N.J. — Atlantic County Executive Dennis Levinson says the county has the financial resources to help preserve the threatened Sheraton Atlantic City Convention Center Hotel, but he is drawing a firm line when it comes to risking taxpayer money.
During an appearance Tuesday, Oct. 13, on The Don Williams Show on News Talk 1400 and 92.3 WOND, Levinson reiterated his willingness to consider county financing to help keep the 502-room hotel operating. However, he said any arrangement must include guarantees that the county would recover its investment.
"Why wouldn't I, Don? Anybody that makes a loan with somebody else's money, especially, should find a way for them to be made whole," Levinson said.
His comments come as the hotel's owners warn that the property could close in December without financial assistance, potentially dealing a major blow to Atlantic City's convention industry.
The situation has become increasingly urgent as convention officials report that uncertainty surrounding the hotel is already costing the resort business.
Gary Musich, president and CEO of Visit Atlantic City, said during an Oct. 8 economic forum that the threatened closure had already resulted in an estimated $147 million in lost convention and meetings business.
The figure represents business opportunities lost amid uncertainty over the hotel's future, rather than a direct financial loss to the county government.
County Financing Comes With Conditions
Levinson said Atlantic County's relatively low debt and available borrowing capacity could allow it to participate in a solution, but emphasized that no county funding should be committed without safeguards.
"Our debt is as low as you could possibly be, .067 of our capacity. So it's there if I want to use it," Levinson said. "But the bottom line here is I need guarantees, and without the guarantees, it doesn't happen."
He said any proposal would also have to be discussed with the Atlantic County Board of Commissioners.
Levinson pointed to previous county financing arrangements involving Boscov's and Stockton University's Atlantic City campus as examples of public financing used to support projects considered important to the local economy.
Discussing the Boscov's arrangement, Levinson said the county required repayment over 10 years with interest.
"The reason was we didn't need another abandoned mall, a shopping center," he said.
He also defended the county's role in helping Stockton establish its Atlantic City campus, saying the financing was repaid.
"We got our money back, but I do believe that Stockton could be doing a lot more and having more of a presence in Atlantic City," Levinson said.
He suggested that a similar approach could be considered for the Sheraton, provided the necessary protections were in place.
"Give us guarantees. But before I spend one cent of taxpayer money, there must be guarantees," he said.
Levinson did not identify a specific financing amount, announce an agreement with the hotel's owners or provide a timetable for any potential county action.
Hotel's Future Remains Uncertain
The Sheraton, which opened in 1998, is connected to the Atlantic City Convention Center and serves as an important source of accommodations for convention attendees.
Its owner, LINY Investor LLC, has proposed a roughly $100 million redevelopment that would renovate approximately half the existing hotel rooms and convert the remaining space into about 130 apartments for residents 55 and older.
Developer Tom Scannapieco has argued that the hotel cannot operate profitably in its present configuration without continuing financial assistance.
Under the proposed redevelopment, the hotel would retain approximately 252 rooms, compared with its current 502.
That reduction has raised concerns among convention and tourism officials who believe Atlantic City needs a full-service headquarters hotel with sufficient room capacity to compete for large meetings and trade shows.
The owner has sought substantial state tax credits to advance the redevelopment and has warned that the hotel could close if the necessary financing is not secured.
The potential closure also threatens approximately 180 hotel jobs.
In a September interview with South Jersey NewsBeat, Casino Reinvestment Development Authority board member Frank Formica said agency leadership had been exploring a potential public-private solution involving state agencies, private investors and local government.
Formica emphasized the importance of preserving the hotel's room capacity and warned that losing the property could severely damage Atlantic City's ability to attract conventions.
Levinson's latest comments indicate that Atlantic County remains open to participating in such an arrangement, although the details have not been negotiated publicly.
Levinson Questions State's Priorities
Levinson also used the interview to criticize what he sees as insufficient state attention to Atlantic City's convention infrastructure.
He questioned proposed convention development elsewhere in New Jersey, including a potential 300,000-square-foot facility in the Meadowlands and state support for improvements to the Asbury Park Convention Center.
"Well, that is not in the best interest of the Atlanta County residents," Levinson said, referring to competition for convention business and its potential impact on local workers.
He argued that Atlantic City's economic challenges make the preservation of its convention industry particularly important.
"I believe that our convention business is crucial to our well-being down here," Levinson said.
He also raised concerns about internet connectivity and other amenities at the Atlantic City Convention Center.
"And before you do anything, my state friend, will you just put Wi-Fi into the new convention center? You can't have a convention without Wi-Fi," he said.
His remarks reflect longstanding concerns about the convention center's technology and infrastructure, although the specific status of its current Wi-Fi service was not independently established during the interview.
Levinson said the state should focus on improving Atlantic City's existing convention facilities before supporting additional competing venues.
"The state has to say, yes, we're gonna concentrate on Atlantic City," he said.
Competing Visions for the Sheraton
The central question remains whether the Sheraton can continue operating as a full-size convention hotel or whether a smaller hotel combined with residential development offers a more sustainable financial model.
Scannapieco has argued that the residential conversion would provide a dependable source of revenue without requiring ongoing public subsidies.
Convention officials, however, have warned that cutting the room count nearly in half could weaken the very convention business the hotel was built to support.
Levinson did not endorse a specific redevelopment plan during the interview. Instead, he emphasized the importance of bringing the interested parties together to discuss a solution.
"Well, you have to sit down, Don, and have conversation," he said. "And if everybody's pulling in the same direction to save Atlantic City's convention business, it shouldn't be too difficult."
For now, the county executive says Atlantic County is willing to listen, but any financing arrangement would need to protect taxpayers and support the broader convention economy.
"We have money," Levinson said.
Whether the hotel owners, state officials and county government can agree on acceptable terms before the threatened December closure remains unresolved.
Dennis Levinson discussed the Sheraton Atlantic City Convention Center Hotel on The Don Williams Show on News Talk 1400 and 92.3 WOND on Tuesday, Oct. 13. The program 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.
