The defunct Revel Casino Hotel in Atlantic City will have to pay their property taxes or risk having the property foreclosed. PokerUpdate reported that Atlantic City can collect $30 million in property taxes from the shuttered casino despite the fact it is in bankruptcy.
Judge Gloria Burns decided to lift the shield of protection in the Revel bankruptcy and allow Atlantic City to collect the tax debt. The city had argued that Revel’s failure to pay taxes would significantly impact the city and its budget. Revel’s tax bill was to be around $37 million this year, which is about 18% of the annual Atlantic City budget.
Now the city will have to decide whether to wait for Brookfield Asset Management to close on the property or to initiate a tax sale certificate. Brookfield was the winning bidder last month in the Revel bankruptcy auction and will purchase the property for $110 million. Part of the money from the sale will go towards the tax debt.
Should the city sell the debt off in a tax lien certificate, the certificate holder would then have to pursue payment from Revel. Should the certificate not be paid in full within two years, the holder could then foreclose on the property.
Revel was one of four Atlantic City casinos to close in 2014. The property opened in 2012 but never turned a profit. This is the second time the property has been in bankruptcy. A closing date has not been announced for the property but Brookfield has announced their intentions to reopen the casino, which will likely be sometime in the Spring of 2014.