Vol. 3, No. 4, April 2005
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Our Investment in the State
Why the CRDA provides valuable service to Atlantic City and New Jersey
There's never been a more exciting time to be in Atlantic City. Seemingly everywhere you look, there's development, growth, and opportunity. In the last few years, we've seen the addition of The Quarter and new hotel towers at Resorts, Harrah's, and Showboat. Currently underway are the Caesars parking garage, which will add an additional 3,200 parking spaces to the center of the city; The Pier at Caesars, a retail, dining, and entertainment complex; and the House of Blues at Showboat.
In addition to growing the Atlantic City marketplace, the common point of all of these projects is that they were funded in part by the CRDA. Over the past 21 years, the CRDA has helped millions of people and has directly, or partially, been responsible for the construction of countless projects in the Atlantic County region and throughout the state.
As an employee of the Atlantic City casino industry, you are actively contributing to the positive work of the CRDA. However, many of you—whether you are new to the industry or a long-time veteran—are still unclear as to what exactly the CRDA is or how it functions. I thought it would be helpful to take this opportunity to provide an overview of the CRDA. For those of you who have a complete understanding of the CRDA, I encourage you to share this with other employees. After all, the more informed we are as a group, the stronger we are as an industry.
The CRDA, or perhaps you may have heard it pronounced by a casino executive or government official as CREE-DA, is the acronym for the Casino Reinvestment Development Authority. The CRDA was established by the state of New Jersey in 1984 to "maintain public confidence in the casino gaming industry through the reinvestment of a portion of gaming industry revenues to revitalize Atlantic City and other areas throughout New Jersey."
Each Atlantic City casino is required by law to pay 2.5 percent of its gross revenues as a tax or to invest 1.25 percent of its gross revenues in obligation deposits to the CRDA. The obligation deposits can be use for direct investments (such as hotel towers), bond issues, or for donations to finance CRDA-approved projects (such as entertainment and cultural festivals and park beautifications).
The CRDA also assists in the funding of a number of non-casino projects that have greatly enhanced the Atlantic City experience for both visitors and workers. Many of you have enjoyed boxing events and concerts at the newly renovated Boardwalk Hall. We are also now attracting many new visitors to Atlantic City with the addition of The Walk, which features nationally recognized factory outlet retailers, interactive entertainment, and restaurants in a 320,000 square foot complex.
The CRDA's investment of more than $200 million in the construction of new residential housing is revitalizing the image of Atlantic City as an attractive place to live, as well as to work. This investment is restoring the vitality of the resort's architecturally and culturally diverse neighborhoods and re-establishing thriving residential communities.
Curtis Bashaw, executive director of the CRDA, recently unveiled the plans for a $100 million renovation of the Atlantic City Boardwalk. His design plan includes architectural flourishes such as terraces, decorative facades and courtyards will be encouraged for both renovation projects and new construction on the Boardwalk. The program also promotes the use of brick, stone, terra cotta, and other traditional building materials. Some of the focuses of the Boardwalk renovations include the enhancement of the exteriors of Resorts, the Claridge and Showboat.
"We really want to have the Boardwalk revitalized as a singular attraction from the Showboat to the Hilton and beyond," Bashaw said, defining the casino district's boundaries on the Boardwalk. "We want to make it a first-rate attraction in Atlantic City."
The impact of the CRDA is not limited to the Boardwalk. In the Marina District, for example, the Borgata's new expansion, which will include a new hotel tower, casino space, retail shops and dining, is underway.
The CRDA was created to encourage the revitalization of Atlantic City through reinvestment in its community, its infrastructure, and its businesses. The goal has always been to continue growing our region as a tourist attraction.
I am confident that when you look around at the new developments, you'll agree that we are making great progress, and that there's never been a more exciting time to be in Atlantic City. I'm proud, as I know you are, to be a part of it.
