The company that brought the Sands down now plans to sell the land
Pinnacle Entertainment, Inc., the company that was scheduled to build a casino at the former location of the Sands, announced today that the company has dropped its plans for that casino and will sell the land instead.
According to a report on the Internet site Bloomberg BusinessWeek, Pinnacle’s decision was “due to the continuing economic downturn of the gaming market in Atlantic City as the result of other competing markets, primarily Pennsylvania, as well as the continued deterioration in commercial real estate values in the area.”
The company bought the Sands Casino and land in Atlantic City from Carl Icahn for $270 million in November 2006. The company had previously announced in February 2008 that it was postponing the building of a $1.8 billion casino hotel because of the credit crunch.
In its recent quarterly earnings report available on the company Web site, Pinnacle explains that its cost-cutting plans now includes, “Put [ting] our Atlantic City assets up for sale.”
The former Sands location is a 19-acre lot between Indiana and Kentucky avenues.
Article:
Atlantic City Beach Guide 2012
Article:
Atlantic Club Adopts MMSC
Article:
Remembering ‘Memorial Day’
Article:
Ted Nugent Talks
Article:
Unprecedented Concert Line-up for Atlantic City
Article:
Save-A-Lot, First Supermarket to Open in Atlantic City in Years
Article:
Black Keys in Atlantic City: Rock & Revel
Article:
Taste of Revel May 18-20
1. Madison said... on Feb 7, 2010 at 10:29AM
“This should come as NO SURPRISE to anyone. From the moment the deal was announced the company did not have the money for the project. A plan was never submitted to the CCC. The company had prior commitments in the pipeline ahead of anything in Atlantic City, commitments that would use up any available financing, even if the credit markets had not seized up. A little due diligence on the part of the media or the CCC would have shown that. But everyone was so ready to believe Dan Lee, the b/s artist, as if he was some kind of genius. And just look at the mess this company has left the town. Let's hope we never hear from them again.
And watch Carl Icahn swoop in and buy the vacant land for pennies on the dollar. He can afford to sit on it until the market turns around.”
2. Eric said... on Feb 11, 2010 at 05:43AM
“Maybe Bally's could use that space to build another tower. Before the economic downturn there were rumors that Harrah's Entertainment would demolish the Wild Wild West portion and build a new tower on that location. Caesar's has done a nice job upgrading its property. Bally's tower is nice. The newly renovated Dennis Hotel is an improvement. The Claridge is old and is showing it's age. I think something along the lines of the expansion and improvements made to Harrah's in the marina could be done at Bally's.”
3. American Gaming Guru said... on Feb 11, 2010 at 10:23AM
“Madison makes some good points....but clearly has some sour grapes (probably business related) with Pinnacle. Contrary to what many people think, Dan Lee really wanted to build there, but that was when times were good and banks were lending money to almost anyone and very favorable terms. No one could have predicted how the economy was going to tank and I don't believe that anyone predicted Pennsylvania would have such a negative effect on AC gaming revenue as it continues to do. Regardless, Lee was intending to sit on the land till the economy turned around and the competitive landscape was more defined. Pinnacle was able to do this because they purchased the land with all equity (insurance proceeds from a casino that was destroyed by Katrina)and had no debt obligations on the property; only property taxes and other minimal expenses.”
4. American Gaming Guru said... on Feb 11, 2010 at 10:26AM
“Continued...Which surprises me why they want to sell the land now when there is virtually no one in the market for it (although I also think it would be a great strategic move for Harrah’s). Am I saying that Pinnacle was good for AC? Certainly not..in a BIG way, but I am surprised at the actions that they are taking now with the land…but then again, Lee, for better or for worse is no longer in charge of Pinnacle.”