Atlantic City Weekly

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To my recollection, this is the first time in many, many years that this column came out on the last day of a year. It is easy to write about the past year, but it is more interesting to contemplate what is going to happen in 2010. Federal officials have proclaimed that we are near the end of the economic problems we had over the past year-and-a-half. However, others proclaim that we will not see a complete turnaround until 2011.

There is good news and bad news to report from the past year. President Barack Obama instituted the TARP program, which provided loans to our banks so that they could loan money to business owners throughout the nation. During the past few months, several of the banks have repaid their loans with interest — that is good news. However, the banks neglected to fulfill their obligation by providing loans to the businesses. At a recent meeting with representatives of the biggest banks, Obama held a White House conference urging them to open their pocketbooks and allow for loans to businesses throughout the nation. According to news stories I have read, the banks are still not fulfilling their obligation — that is bad news. Hopefully we will see it happen in 2010.

Last year, I noted my belief that we would begin to see some progress in our economic conditions before the end of 2009. I noted that I am not an expert in statistical data, but I am a person who sees the glass half full and not half empty. I wagered a slice of the Original Fudge Kitchen’s delicious chocolate fudge that I’d be right. According to the statements of many within the government, my premise that there has been some progress in the economic conditions of our nation is true. Unfortunately, none of you accepted my proposition and, therefore, I will not receive slices of the delicious chocolate fudge.

2010 — A Good Year?

Will 2010 be a good year for Atlantic City? Let’s look first at a few of the good things that we noted were going to take place this year. On Feb. 6, the ACES train service between Atlantic City and New York City began. It took a while to make people aware of the fact that they had another means of transportation between the two cities. A recent statement showed that there was a loss of $6 million in its first 10 months of operation, which included pre-opening and start-up costs. Please be aware that three casinos — Borgata, Caesars and Harrah’s Resort — and the Casino Reinvestment Development Authority are responsible for all financial obligations of the train. With the lessons learned from this year’s operation, it is anticipated that there will be a dramatic increase in the rail service in 2010.

At the beginning of 2009, an improvement in air service to and from Atlantic City was announced by the South Jersey Transportation Authority (SJTA). The organization stated that in May, Spirit Airlines would begin offering direct service between Atlantic City and Boston. There would be one flight a day, and that flight has proved to be a successful one for Spirit as its occupancy rate is over 90 percent. As a result of the successful daily run, Spirit will begin a second daily flight to and from Boston next May. The schedule will permit the opportunity to go to or from Boston and Atlantic City and return in the evening.

There were two other airlines that began service this year at ACY. AirTran is now running a daily trip to Orlando and two trips per day to and from Atlanta, where you can connect with flights going around the world. The Atlantic City International Airport now has its first international air service. WestJet, the second-largest airline in Canada, provides service between Atlantic City and Toronto four times a week. WestJet will also offer connections throughout Canada. Operators of the new services are pleased with their occupancy rate to date, and in the first quarter of 2010 it is anticipated that there will be direct service to and from Chicago.

Improvements have also been made in the airport’s terminal. There is now a direct escalator that takes you to the baggage-claim area from the second level, where you depart from your plane. In most instances you may pick up your baggage within 15 minutes. By the way, the SJTA has begun work on expanding the Atlantic City Expressway’s two westbound lanes to three lanes, between the 7 and 3.3 mile posts.

Pertaining to casino development, it is my belief that Revel Entertainment will receive the necessary funding to complete its first tower within the next couple of months. Revel CEO Kevin DeSanctis has been working diligently to put his deal together so that they may begin working on the interior of the complex.

The Tropicana is out of the bankruptcy court and final legal papers are being put in place so that Carl Icahn and his cohorts will soon be taking over full operation of the facility.

In a related issue, there is a big battle looming in the bankruptcy court between the Trump Entertainment Resorts’ bondholders and Donald Trump, and Icahn and Beal Bank. Icahn bought 51 percent of the $486 million senior secured bank debt for about 93 cents on the dollar. A judge ruled that the 83-year-old investor could push his plan to take over the casinos alongside the bondholders and Trump’s plan. Trump could get a 10 percent equity stake in the company if his side wins. After spending $225 million to purchase a majority of the bank debt of the companies, Icahn is promising to pump another $225 million into the ailing gambling emporium.

This is going to be an interesting year and I wish you and yours have the best one you have ever had.

Pinky’s Corner airs Monday through Friday from 4 to 6pm on News Talk WOND-AM 1400. His TV show, WMGM Presents Pinky, airs Saturday at 7:30pm on TV40. Pinky’s e-mail address is: pinky@acweekly.com.