Revel’s bankrupt, and why it never really had a chance
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<p>Weinstein checks out the zoning notice posted at the 6008 Wayne Ave. property. (Bas Slabbers/for NewsWorks)</p>
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<p>"The answer is, no, I don't need another surplus church property. But Waldorf comes and says, 'We found this wonderful property; would you buy it and rehab it?' It had my name on it," Weinstein said. (Bas Slabbers/for NewsWorks)</p>
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<p>Detail of one of the fire places that still has all its tiles. (Bas Slabbers/for NewsWorks)</p>
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<p>Tiles around this fireplace in the house are missing. (Bas Slabbers/for NewsWorks)</p>
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Detail of an ornament found in what is left of the choir of the church. (Bas Slabbers/for NewsWorks)
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<p>An example of the artistic detail found inside. (Bas Slabbers/for NewsWorks)</p>
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This sign is found on a wall in the back of the church. (Bas Slabbers/for NewsWorks)
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<p>Interior of the church. (Bas Slabbers/for NewsWorks)</p>
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<p>The move to 6008 Wayne Ave. would give the school some room to grow, adding to its classes in preschool through grade 8. (Bas Slabbers/for NewsWorks)</p>
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<p>A portrait of Rev. Edward H. Vogt, rector from 1931 to 1954, was left behind. (Bas Slabbers/for NewsWorks)</p>
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<p>The 5,100-square foot church is without several historic stained glass window panels, removed after a lengthy disagreement between the Episcopal Diocese of Philadelphia and the city's Historical Commission. (Bas Slabbers/for NewsWorks)</p>
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<p>Developer Ken Weinstein climbs a cast-iron staircase in the library. (Bas Slabbers/for NewsWorks)</p>
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<p>An authentic hearth. (Bas Slabbers/for NewsWorks)</p>
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<p>There are examples of craftsmanship nearly every place the eye falls. (Bas Slabbers/for NewsWorks)</p>
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<p>Most of the metal roof ornamentation remains, and carved faces peer down from stone doorways near a stone breezeway and port-cochere. (Bas Slabbers/for NewsWorks)</p>
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<p>Philly Office Retail will buy the property for $435,000 and lease the campus to the school for at least 10 years, starting in 2014. (Bas Slabbers/for NewsWorks)</p>
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<p>The Gothic stone church, chapel, rectory and parish house were designed and built between 1873 and 1883 by Frank Furness and George Hewitt. (Bas Slabbers/for NewsWorks)</p>
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<p>A neighbor uses the property to walk his dog. (Bas Slabbers/for NewsWorks)</p>
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<p>The site would become the new home to the independent Waldorf School of Philadelphia, now located on the New Covenant campus at 7500 Germantown Ave. (Bas Slabbers/for NewsWorks)</p>
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<p>A view inside the property, for which developer Ken Weinstein has an agreement in place to buy and restore. (Bas Slabbers/for NewsWorks)</p>
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<p>St. Peter's Episcopal Church, located at Wayne Ave. and Harvey St., could soon be transformed into an elementary school campus. (Bas Slabbers/for NewsWorks)</p>
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<p>A view from the spa at Revel. (Photo courtesy of Revel Entertainment)</p>
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<p>One of the rooms in Revel with an ocean view. (Photo courtesy of Revel Entertainment)</p>
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<p>A look at one of the 10 pools at Revel. (Photo courtesy of Revel Entertainment)</p>
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<p>A look at one of the beer fridges in the casino-hotel. (Photo courtesy of Revel Entertainment)</p>
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<p>A look above some of the slot machines at the new Revel casino-hotel. (Photo courtesy of Revel Entertainment)</p>
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<p>Revel sits right outside the ocean in Atlantic City. (Photo courtesy of Revel Entertainment)</p>
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<p>Revel opens April 2. (Photo courtesy of Revel Entertainment)</p>
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<p>The Revel casino-hotel stands 47 stories tall. (Phil Gregory/WHYY)</p>
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<p>A view of the Altantic Ocean from Revel in Atlantic City. (Phil Gregory/WHYY)</p>
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<p>A look at one of the tables at Revel. The new casino-hotel boasts 130,000 square feet of casino space. (Phil Gregory/WHYY)</p>
Revel casino plans to file for chapter 11 bankruptcy next month, This is nearly 10 months after the $2.4 billion casino opened in Atlantic City.
Revel never really had a shot anyway, for two reasons: a declining gaming market and too much debt.
Declining Gaming Market
Revel was a complex conceived in the halcyon days of Atlantic City, when they still had a monopoly on East Coast gaming. MGM said it was going to build a $5.5 billion mega complex. Pinnacle blew up the Sands. In 2006, the year before the Revel project was announced, Atlantic City’s casinos scored in $5.2 billion gaming alone. Gaming has declined by eight to nine percent every year since 2005. In 2012, casinos only brought in $2.99 billion – a 42 percent drop from 2006.
Last summer, Revel became *the* place to be if you’re in Atlantic City and want to party and the place is absolutely stunning, but in order to sustain operations and meet debt payment requirements, they needed to win a lot in the actual casino, which they did not. Even with the state of Atlantic City gambling, the numbers were shocking. In January, Revel finished 11th in gaming revenues, bringing in less than $8 million.
Too Much Debt
Revel pushed ahead with construction plans despite warning signs that Atlantic City’s good luck was fading. In early 2009, construction on the interior of the building stopped, then started again after they got more cash. Then in April 2012, Morgan Stanley pulled out its stake in the project. The extra money came from N.J. state taxpayers and J.P. Morgan. Since opening, Revel has had tax liens filed against them, extended their line of credit multiple times, and there was threat of foreclosure or tax auction. Their total debt: $1.2 billion.
When Revel started to have financing problems in 2009, they had two options: stop construction completely and leave the building empty, or push on. They pushed on and here we are today.
What’s next
Revel is not going to close. This is a Chapter 11 filing, which means reorganizing debt. If a casino closed every time it declared bankruptcy, we’d no longer have Resorts, Tropicana, Trump Taj Mahal, Trump Plaza (which was recently sold), or the Atlantic City Club (formerly the Hilton). Revel officials say the restructuring should be done by this summer. They’re also adding more slots and affordable dining options with the hope of bring in more gamblers, and their money.
After that, who knows? The former Trump Marina has found new success as the Golden Nugget. Resorts has partnered with Mohegan Sun. And, hey, Miss America’s back. But be wary anytime you hear the word “game changer” in Atlantic City, as Revel was called by Gov. Chris Christie. So far, nothing’s worked.
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Jen A. Miller writes the Down the Shore with Jen blog for NewsWorks.org. Jen is author of The Jersey Shore: Atlantic City to Cape May, which is now in its second edition.
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