A.C. tries duplicating success of Las Vegas with retail plaza

John Curran

Tuesday, Dec. 5, 2000 | 10:46 a.m.

ATLANTIC CITY -- The first phase of a $150 million downtown shopping plaza that one official called "the next big step for Atlantic City" was given unanimous approval by the state Casino Reinvestment Development Authority.

The 60-store project, eyed for an area bounded by Atlantic, Ohio and Arkansas avenues and the city's new convention center, would be built on what is now vacant lots and parking areas.

But it would also force the relocation of a bus terminal built only three years ago at a cost of $16 million. The terminal, located at the corner of Atlantic and Michigan avenues, would be moved to the opposite corner of the block, at Atlantic and Ohio avenues.

The Cordish Co., of Baltimore, the CRDA's partner in the deal, would build and lease the plaza but it would be owned by the CRDA, the state agency that funnels casino taxes into community projects.

The CRDA has already appropriated $40 million for the $80 million first phase; the remainder will come from private financing, but it is not in place yet.

Construction is expected to begin next summer and take nine months to complete.

CRDA and Cordish officials described the development -- as yet unnamed -- as a pedestrian-friendly link between the new Atlantic City Convention Center and the Boardwalk, adding a non-casino attraction to a city starved for them.

Gary Block, vice president for leasing for Cordish, displayed a 22-foot long scale model of the 350,000-square-foot development at a CRDA board meeting last month.

He said it would have tree-lined outdoor plazas, "signature-type restaurants," a 3-D movie theater with three screens and bold signage all along Michigan Avenue.

The Cordish Co. is in talks with several well-known clothing makers as potential tenants, but Block wouldn't name names.

Block said he was not concerned about gamblers' tendencies to stay inside the casinos during their five-hour visits. Since casinos debuted here in 1978, dozens of restaurants and other businesses that hoped to cash in have closed their doors because they got so little business from gamblers.

"It's been proven across the country, in Vegas and the Gulf Coast of Mississippi and elsewhere that if the right makeup of shopping and entertainment is there, no matter how hardcore a gambler you are, you have to take a break," Block said.

"We have a built-in clientele of 35 million tourists who come here each year. These people are already here," he said.

Las Vegas, in fact, has become a world-class shopping and dining mecca with several major themed and non-themed retail malls operating or planned on the Las Vegas Strip.

The plan got a lukewarm reception from city residents who saw the presentation. Several had reservations because the development would not have its own parking; shoppers would have to use casino parking garages.

City Councilman Lorenzo Langford wanted to know about taxes. Since the development would be owned by the state, it would be tax-exempt. CRDA Executive Director James Kennedy said a payment in lieu of taxes program would be worked out, but he didn't have specifics.

Redenia Gilliam-Mosee, vice president of governmental relations for Bally's Park Place Casino Hotel, said her company has reservations about some aspects of the project but they are not enough to oppose it.

"If we are to be a world-class, multifaceted place, we have to embrace what we see here. It's an opportunity that's already in existence in other gaming jurisdictions," Gilliam-Mosee said.

But CRDA board members were enthusiastic.

"We have a tendency in Atlantic City to always shoot things down," said Karlos LaSane.

The CRDA still must reach a development agreement with Cordish before work begins. In addition, NJ Transit must sign off on the bus terminal's relocation. Block said Cordish officials have spoken to NJ Transit officials about the possibility but no agreement had been reached.

"We are aware of the proposal, but we've had no formal discussions," said NJ Transit spokesman Mike Klufas. "But whatever ends up happening here, nothing will happen that will adversely affect our customers.

"If they want to move us, we are not going to incur the cost. They are going to have to pay the cost to move us," he said.