Fate of museums part of casino talks

Monday, Aug. 16, 1999 | 11:40 a.m.

ATLANTIC CITY, N.J. -- Atlantic City Mayor James Whelan says the fate of the city's art and museum district is a key factor in its negotiations with MGM Grand Inc. to build a $1 billion casino on the South Inlet.

MGM has expressed concerns to Whelan that a new casino near Atlantic City's Garden Pier would "look out on a pier that is a dump," Whelan told the Press of Atlantic City. MGM is in negotiations to build an $800 million to $1 billion casino in the city.

The Pier is home to a group of museums opened in 1995. A portion of the pier extending into the sea is a decaying concrete skeleton. It is possible that the pier could be widened, but Whelan said that would require the approval of New Jersey environmental regulators.

Whelan said it was crucial that the museums "have to be in the mix" of any final plans, but wouldn't say if the museums would stay on the pier or if MGM would pay to have them relocated.

Whelan also said Sunday that MGM had closed on deals with several land speculators who were blocking the deal. New York businessman Shalom Dai remains the lone holdout, the Press said, and he is demanding $2,000 per square foot for his land.

Atlantic City has declared the property blighted and in need of redevelopment, which would allow the city to condemn Dai's property and determine a price later in arbitration. Whelan said the city will file a notice of taking in court in September.

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