“Under the (Economic Redevelopment Growth) agreement, no funds have been paid to Revel by the state,” said EDA Executive Director Michele Brown during wide-ranging testimony.
She said Revel, which is in bankruptcy court, has yet to file “final documentation before such funds can be paid.”
The $2.4 billion casino received a $261 million tax break from the EDA when it appeared construction might be abandoned in 2011. The casino opened in 2012, but last month filed for bankruptcy protection.
Brown said the bankruptcy reorganization puts the state in a better position.
“There’ll be more equity in the project and fewer loans,” she said. The casino plans to convert $1.5 billion in debt into $1 billion in equity for its creditors, giving them ownership of the casino.
Brown said the timetable for another struggling project, the American Dream complex in East Rutherford, was undecided.
“They have not finalized their application with us yet,” she said, “nor has the Sports and Exposition Authority finalized the work they need to do.” She said the SEA still has to reach agreements with the Jets and Giants.
Two weeks ago, she told the state Senate Budget Committee she expected Triple Five, the American Dream developer, to request $300 million from the EDA.
“But I can’t give you a projection of precisely when that will be,” she said yesterday.
Brown summarized the authority’s year, noting nearly $700 million in assistance was awarded to 228 projects, more than half of which were small businesses.
“We do an awful lot of good in starting up little companies that can grow into bigger companies,” she said.
She acknowledged that New Jersey’s unemployment rate remained “unacceptably high” at 9 percent, but believed recent large-scale Urban Transit Hub grants will help bring the number down.
“I’m hopeful with all of the construction and all of the incentive money we have going out there that as the summer moves forward, our unemployment rate will continue to come down.”
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