Casino money will be used to raze New Jersey eyesores

John Curran

Thursday, Aug. 30, 2001 | 10:41 a.m.

EGG HARBOR TOWNSHIP, N.J. -- They line the road into Atlantic City, offering shabby $30-a-night accommodations for low-rolling gamblers and down-on-their-luck transients.

Built mostly in the 1950s, these squat roadside motels -- with names like Sea Breeze, Hi Ho and Santa Maria -- have increasingly become havens for prostitution and illegal drug use.

Now a powerful state agency that taps casinos for redevelopment money plans to spend up to $10 million to acquire and raze the U.S. 40 eyesores, replacing them with a big hotel, an office building or both.

Under a partnership with Egg Harbor Township, the state Casino Reinvestment Development Authority plans to acquire 27 properties on the north side of the road, known to generations of seashore-bound travelers as the Black Horse Pike, over the next five years and then raze them, assembling enough land for a bigger new development.

Not all are motels. Some vacant properties and at least one auto repair shop are among them.

"Many of the owners have expressed frustration to us that because of the size of the lots and their location in a flood plain, they can't improve them. No one wants to lend them money," said Township Administrator Peter Miller.

The township would like to eliminate the blight, improving one of the three east-west access routes into Atlantic City and attracting new investment and jobs.

"Aesthetically, it's not pleasing," Miller said. "They are eyesores. We've had problems with certain types of activity because they're low-income lodging. We've had drug arrests and prostitution arrests there more often than in other places."

James Kennedy, executive director of the CRDA, said the success of the redevelopment initiative depends on the casinos, which will provide the money on a voluntary basis.

The money would be deducted from their state reinvestment obligations, he said.

Sales, too, would be voluntary. The first few owners will get offers this fall, with demolition beginning next spring, he said.

"If we don't like the number, we won't buy. If they don't like the number, they won't sell," he said. If property owners hold out, they could be subject to eminent domain proceedings by the township, he said.

Several of the property owners said Wednesday they don't want to be bought out.

"I'm not interested," said Sunny Chokshi, owner of the 20-unit Hi Ho Motel. "For the last 10 years, I've been good here. I make money. Why should I go anywhere?"

Fathy Dewair, owner of One Stop Auto, had the same reaction.

"Yes, there's a lot of ugly stuff. But this is not an ugly place. They should help the people build up, not throw them out in the street," said Dewair, who has an option to buy the building his business is located in.

Others, like Budget Motel owner Kattie Daru, welcome government buyouts. She said she paid $450,000 for her 18-unit motel two years ago and would want at least much for it.

"Let's see what they offer," she said.