Stockton, Glenn Straub Reach Deal on Former Showboat Casino

In an effort to resolve the dispute between Stockton University and the Trump Taj Mahal that requires the Showboat to be run as a casino, the University and Polo North Inc. announced a deal to allow Polo North President and CEO Glenn Straub to purchase the former casino for $26 million.

Under the agreement with Straub, Stockton has an 18-month first right to purchase or lease all or part of the property for educational purposes.

A major contingency allows Stockton a 90-day period within which Stockton can terminate the contract. This enables Stockton to continue with its plans to open a residential campus in Atlantic City beginning in the fall of 2015 while evaluating any possible legal challenges from Trump Entertainment.

“I believe that this arrangement with Mr. Straub is in the best interests of both Stockton University and the city,” Stockton President Herman Saatkamp said.

This and the approval of the sale of the Revel to Straub for $82 million on Thursday are the first two steps in an eight-part plan named “The Phoenix Project.”

The Phoenix Project encompasses over $500 million in new investments within the Atlantic City area, according to the two groups.

Stockton agreed to buy the Showboat for $18 million in November, with the intent to transform the former casino into a branch campus. However, a clause came to light in March that requires the Showboat to be run as a casino.

“We believe that the Redevelopment Zone plan approved by the Atlantic City Planning Board and subject to a second reading of an Ordinance by Atlantic City Council will resolve the problem,” Saatkamp saod. “I am assured by counsel and others that we are on very firm ground should there be any legal challenges by any casinos regarding the 1988 covenant. I have worked with closely with Atlantic City Mayor Don Guardian, City Council President Frank Gilliam, Jr., and City Council as well as the Casino Reinvestment Development Authority to take the necessary actions that will insulate us from any successful legal challenges.”

Straub was the first to bid on the Revel after it closed. He initially put in a $90 million bid, and lost to Brookfield Asset Management, which put in a $110 million bid. Brookfield withdrew its bid following a dispute with the casino, and Straub was next in line. The initial asking price was $95.4 million, but Straub wanted that price lowered due to inconsistencies in the initial bidding process. A judge approved the sale for $82 million earlier this week.

“A warm thank you to the people of Atlantic City for giving both boards the opportunity to work on the transition project,” Straub said. “As the name of the project signals, the Phoenix rises out of the ashes to be reborn and will evolve to include diversified collection of projects including eight parts designed to show that the American dream is still alive and well. “

According to the two entities, the Phoenix Project anticipates in the first three years the approval of an RFP for Bader Field and will include an airfield project, extreme sports complex (televised X-games), two marinas with capacity to host super yachts, a world-class multipurpose equestrian complex, indoor and outdoor waterparks, two universities, a pier project with laser light shows, as well as high-speed ferries and helicopter service connecting Manhattan and Atlantic City. In addition, planning also includes a medical complex based on quality of life, high-end independent living facilities, and an entertainment hub.