Tropicana conservator enters negotiations on N.J. property

Tuesday, Sept. 23, 2008 | 2:06 p.m.

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New Jersey gaming regulators announced today that the state-appointed trustee and conservator of the Tropicana Atlantic City Casino and Resort has entered negotiations with The Cordish Company to possibly purchase the property for $700 million.

The New Jersey Casino Control Commission voted Dec. 12 not to renew the Tropicana’s casino license, which was formerly held by Adamar of New Jersey. The state then asked trustee and conservator Gary Stein to find a potential buyer.

The Tropicana Atlantic City, once owned by Tropicana Entertainment LLC (owners of the Tropicana Las Vegas), was seized by the state of New Jersey after losing its license. Under the terms of the proposed transaction, Cordish would acquire all of Adamar’s assets.

Stein and investment banking firm Moelis & Co. identified Cordish as a leading bidder for a number of reasons, including the price and Cordish’s history in gaming, real estate development and management. Stein is expected to ask the commission for approval to designate Cordish as the lead bidder.

In Atlantic City, Cordish has completed phases of The Walk, an entertainment and retail development along the beachfront boardwalk.

The Cordish Company, through its affiliate Power Plant Entertainment, developed two Hard Rock-themed hotels and casinos in Hollywood, Fla., and Tampa, which are the first Hard Rock hotels and casinos outside of Las Vegas. The company recently was awarded a contact by the state of Kansas to develop a $705 million Hard Rock Hotel and Casino at the Kansas Speedway in Kansas City, Kan.

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