By Alexandra Berzon
Unite Here has sued New Jersey over the state’s promise to help Revel Entertainment Inc., an enormous casino project in struggling Atlantic City.
The move was the latest attempt by Unite Here to stop public assistance for the project, which last month eked out $1.15 billion in financing to re-start construction.
Key to the new financing was the promise from New Jersey’s Economic Development Authority to send back $261 million in taxes from the project over 20 years under an economic-redevelopment initiative. Most of that money is to be used by Revel to spruce up the scruffy neighborhood and boardwalk around the casino. About $70 million will go into an account that can be used to pay initial interest on a portion of the loan if the project doesn’t meet projections.
In a complaint filed last week in Mercer County court, Unite Here Local 54 argued that the state’s Economic Development Authority had violated rules governing public-meeting announcements and the distribution of public documents in making decisions on Revel financing. The union asked that the grant be voided as a result.
A spokeswoman for the Economic Development Authority did not comment on the dispute.
While building trades unions firmly back the project, Local 54, which represents thousands of workers at Atlantic City’s 11 casinos, has long opposed state help for the Revel project. The union argues that when Revel opens it may put other casinos in the city out of business, and it has sought to block previous attempts to deliver the state assistance.
”You should do something that raises all boats, not that focuses on one in particular,” said Ben Begleiter, a union official who is named as one of the plaintiffs in the lawsuit.
Revel CEO Kevin DeSanctis has argued that the project would have a positive impact for other casinos in Atlantic City by drawing new people into town. He had no comment on the lawsuit.
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