For a long time, there’s been talk of Stockton College opening a satellite campus in Atlantic City. Many thought it would land at the Atlantic Club Hotel but, disposing of a non-core asset in a non-gaming transaction, Caesars Entertainment has sold the Showboat to Stockton College. The latter gains 28 acres and 1,425,000 square feet. But there’s still a lot of due diligence to be done and the sale price remains a mystery.
College President Herman Saatkamp could only say, “Our intent is to engage in a project that enhances Stockton’s educational growth, offerings and cost-containment while at the same time brings new educational opportunities to Atlantic City.” Caesars CEO Gary Loveman accentuated the potential economic-diversification angle: “I believe the construction of a Stockton campus there will [be] critical to its future well-being.” And, of course, competitors won’t be gambling there.
The divestiture of the Showboat could presage other asset sales and massive layoffs, to enable the cash-strapped company to gin up an additional $250 million to $300 million in cash flow. It’s going to be a grim holiday season at the company in a toga.
* Meanwhile, in an apparent rebuke to Mayor Don Guardian (R), Gov. Chris Christie made noises about Atlantic City needing an emergency manager. Other fixes he put on the table for the city’s ongoing fiscal crisis were somewhat nebulous at this point: “a public-private partnership; tax, school, and pension reform; and a shared services agreement.” On one point Christie was clear: “The current [economic] model is completely and utterly, remarkably unsustainable.” I’d say he didn’t leave any ambiguity there.
Very interesting developments in AC! I hope Stockton lets HOB reopen (turn the business back to HOB and put their marquee at the top of the building). They can do many things with this relatively well-kept asset. Sell Seaview while they are at it and transfer all their hotel operations to the Boat. This building has multiple towers. They can use some as dorms some as classrooms and some as hotel (while opening up restaurants and convention space too).