Suleiman Calls for Government Partnership to Save Atlantic City Sheraton as December Closure Deadline Looms

Former Atlantic County Democratic chairman says state tax credits, county financing and city participation should be explored to preserve the convention hotel.

ATLANTIC CITY, N.J. — With the Sheraton Atlantic City Convention Center Hotel facing a possible December 15 closure, former Atlantic County Democratic Chairman Michael Suleiman is calling for a coordinated government effort to save the property, suggesting that state tax credits, county financing and city participation could provide an alternative to converting part of the hotel into senior apartments.

Speaking Monday, October 26, on Off The Press with Scott Cronick on News Talk 1400 & 92.3 WOND, Suleiman said he believes the controversial residential conversion proposal may be losing support.

"I think the senior housing plan, if it's not dead, it's on life supports," Suleiman said.

"So I think that is a good thing."

But the hotel's owner continues to pursue that proposal, and there has been no confirmed announcement that it has been withdrawn.

The competing positions underscore the urgency surrounding the 502-room hotel, which is connected to the Atlantic City Convention Center and is considered an important part of the city's convention and meetings business.

Suleiman Wants State, County and City at the Table

Suleiman argued that preserving the Sheraton should be a shared responsibility rather than a financial burden assigned to one government agency.

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

He suggested that the New Jersey Economic Development Authority could help finance a rescue plan.

"I think we need the EDA involved," Suleiman said.

"We need tax credits to support it."

He also pointed to Atlantic County's willingness to consider a financial role.

"Without senior housing, the county, to their credit, has said they'd be willing to back the bonds, which I think is an admirable thing," Suleiman said.

"That's what they did for Stockton University's Atlantic City campus."

The former party chairman said Atlantic City itself should also participate in discussions.

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

He criticized the tendency of government agencies to argue over who should assume responsibility for major redevelopment projects.

"I think the problem with Atlantic City, Scott, is everybody wants to finger-point," Suleiman said.

"Oh, it's CRDA should fund it. Oh, the city should fund it."

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

He concluded with a call for shared responsibility.

"I think every government entity should have a piece of the action here and be part of the solution to help save it."

Owner Says Existing Hotel Is Financially Unsustainable

The Sheraton's owner, LINY Investor LLC, an affiliate of Philadelphia-based Scannapieco Development Corporation, has proposed an approximately $100 million redevelopment of the property.

The project would renovate and retain 252 hotel rooms while converting the remaining portion of the building into 130 upscale apartments restricted to residents age 55 and older.

Developer Tom Scannapieco maintains that the current 502-room hotel cannot operate profitably without major changes.

He has argued that the convention center does not generate enough multiday business to sustain a hotel of that size, particularly when casino properties compete for overnight guests.

The proposed apartments would provide another revenue source to support the property's renovation and operation.

Scannapieco has said the project is the only financially viable plan his development team has produced after years of evaluating alternatives.

Atlantic City Mayor Marty Small has supported giving the developer an opportunity to pursue the redevelopment.

However, representatives of the casino and convention industries have warned that reducing the hotel to 252 rooms could make Atlantic City less competitive for large conventions requiring hundreds of rooms within walking distance of the convention center.

That concern has become central to the debate over the Sheraton's future.

State Tax Credits Remain Unresolved

The proposed redevelopment depends on approximately $79 million in tax credits through the New Jersey Economic Development Authority's Aspire program.

The program is designed to help finance commercial, residential and mixed-use redevelopment projects that face financial gaps.

Scannapieco has said the private financing for his project is largely arranged but that construction cannot proceed without the state incentives.

The tax-credit application was not considered at the authority's October meeting.

That leaves the developer facing a narrowing window before the announced December 15 closure deadline.

Marriott International, which operates the Sheraton, has prepared for layoffs affecting approximately 180 employees if the hotel closes.

Scannapieco has warned that delays are already affecting staffing and future convention bookings.

The developer has not announced an alternative financing package that would preserve all 502 hotel rooms.

Suleiman's proposal therefore represents a possible direction for negotiations, not an approved or fully financed rescue plan.

A New Brunswick Hotel Offers a Possible Model

During the WOND interview, Suleiman pointed to another New Jersey convention hotel as an example of government involvement.

"I'll give you an example that the county of Middlesex is doing a public-private partnership to save the Heldrich Hotel in downtown New Brunswick," he said.

"I could see that happening here."

The Heldrich Hotel and Conference Center is a publicly supported hospitality and meeting facility in downtown New Brunswick.

Middlesex County announced a $16 million investment in 2024 to consolidate ownership of the property and expand its role as a training facility for students pursuing careers in hospitality and related industries.

The hotel was originally developed through a financing structure that included county improvement authority bonds, state assistance and private investment.

County officials have described the more recent investment as part of a broader economic development and workforce training strategy.

The Heldrich example demonstrates that New Jersey counties have participated directly in convention hotel financing and ownership.

However, the circumstances are different from those at the Sheraton.

The Atlantic City property has its own debt obligations, operating challenges and ownership structure. No comparable county-backed transaction has been publicly announced for the Sheraton.

Levinson Has Opened Door to County Involvement

Suleiman's comments follow recent statements by Atlantic County Executive Dennis Levinson, who said the county would consider participating in discussions to preserve the Sheraton.

During an earlier appearance on The Don Williams Show on WOND, Levinson said county officials had not been formally approached about providing assistance.

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

But he emphasized that county taxpayers would need financial protections.

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

Levinson acknowledged that Atlantic County has borrowing capacity but said any financing arrangement would require assurances and an appropriate role for county government.

"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."

Those comments do not amount to a commitment to issue bonds or provide county financing.

They do, however, establish that the county executive is willing to explore options if a formal proposal is presented.

Suleiman's latest remarks add another voice calling for county participation, although the two men have not presented a joint financing plan.

Convention Center's Future Also at Stake

The Sheraton's potential closure has raised concerns extending well beyond the hotel's employees and ownership.

The property is connected directly to the Atlantic City Convention Center, allowing convention attendees to move between hotel rooms and meeting facilities without traveling across the city.

Tourism officials have argued that retaining a large hotel next to the convention center is essential to attracting major events.

Casino Reinvestment Development Authority board member Frank Formica has publicly criticized the proposal to eliminate approximately half of the hotel's rooms.

He has also called attention to the need for improvements at the convention center itself, including technology and communications infrastructure.

The argument is that preserving the Sheraton without improving the convention center may not be enough to restore the property's long-term financial health.

The Sherrill administration has acknowledged that state officials are discussing the hotel's future with stakeholders.

Governor Mikie Sherrill previously said the Economic Development Authority was communicating with the hotel's owners about a possible path forward.

No final state financing decision has been announced.

December Deadline Raises the Stakes

The approaching December 15 deadline creates pressure on all parties to determine whether the Sheraton can remain open and under what financial arrangement.

The owner continues to advocate for its mixed-use redevelopment.

Convention and casino industry representatives want to preserve the hotel's full room capacity.

Levinson has expressed a willingness to consider county involvement, subject to financial protections.

And Suleiman now argues that a combination of state, county and city assistance should be explored.

His comments do not establish that the senior-apartment proposal is dead, nor do they resolve the question of whether a full-service 502-room hotel can operate without ongoing public support.

They do, however, raise a central question for the agencies involved: Can a public-private financing arrangement preserve the Sheraton's convention hotel role while addressing the financial problems that have threatened its operation?

For Suleiman, the answer begins with cooperation.

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

Michael Suleiman discussed the Sheraton's future during an October 26 interview on Off The Press with Scott Cronick, heard weekdays from 4–6 p.m. on News Talk 1400 & 92.3 WOND.