Penn National makes land offer

ATLANTIC CITY, New Jersey -- As reported by the Press of Atlantic City: "Casino and racetrack operator Penn National Gaming Inc. is offering $800 million to buy Atlantic City's largest tract of undeveloped land and wants to subdivide it for as many as three or four casinos.

"The offer would allow Penn to bypass a previously proposed bidding process and obtain exclusive redevelopment rights to one of the subdivided parcels of Bader Field, the 140-acre site that has been attracting intense interest from casino companies ever since it was closed down as an airport in September 2006 and targeted for redevelopment.

"The company would pay $800 million for the land, including two payments of $50 million each in the next two years for property-tax relief to help ease the burden of the city's property reassessment on local residents, according to a draft copy of the proposal.

"...The proposal says Penn would work with the city to subdivide the land and put it up for bids from other casino companies. Penn would build its own casino on the site in addition to seeking other developers. Penn would recoup its initial investment from the sale of the other undeveloped parcels, and the city would receive any money in excess of the original cost, according to the proposal.

"Penn's plan could result in as many as 5,000 or 6,000 casino hotel rooms being built, Miller said. Penn also would finance roadway improvements to the Route 40 corridor to improve access to the site and alleviate flooding in the surrounding neighborhoods of Chelsea Heights.

"...One opponent of the proposed deal, Thomas D. Carver, executive director of the state Casino Reinvestment Development Authority, doubted that Penn would be able to fulfill its promises..."