Blatstein weighs casino or non-gambling use for Showboat

Philadelphia developer Bart Blatstein says he is considering re-opening Atlantic City's former Showboat as a casino.

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But he says there are many non-gambling options, including office space and entertainment uses, that would work well at the building, which he is buying from Stockton University for $23 million.

That sale was supposed to close Monday, but was pushed back until Jan. 15. Blatstein will pay an additional $1 million to Stockton and pay $500,000 monthly carrying costs between now and then.

"I didn't realize all the options that were out there," he said Tuesday. "There's a number of really great possibilities, and I'm weighing them all. Aside from the obvious, which is reopening it as a casino, there's time shares, office, and entertainment. I'm getting companies wanting to locate office space there."

Delaying the closing until January provides Blatstein with tax advantages, Stockton said in a statement.

Stockton bought the former casino in December 2014 from Caesars Entertainment for $18 million, hoping to use it as a satellite campus.

But competing legal restrictions on how the property can be used scuttled that deal, and would have to be resolved before it could reopen as a casino. Blatstein said he's confident they can be overcome.

"I don't think anybody is out to keep that property from being repurposed," Blatstein said.

Under the revised sale contract approved Monday by Stockton's board of trustees, the purchase price was increased by $1 million, to $23 million. An escrow fund of $1.1 million will be released to Stockton to cover costs it incurred since September, and another $1 million will be deposited in escrow to be applied toward either the sale, or liquidated damages if the sale falls through.

Stockton President Harvey Kesselman said he's confident the deal with Blatstein's Tower Investments will close.

"Stockton is pleased to be working with Bart Blatstein and Tower Investments, given their record of successful community partnerships in Atlantic City and Philadelphia," Kesselman said. "We plan to continue working together in ways that will benefit Stockton and Tower Investments, and contribute to the renaissance of Atlantic City."

Both sides will try to reach an affiliation agreement that provides internships for Stockton students in the Hospitality and Tourism Management program at Blatstein's hotel operation. It also provides Stockton with use of the building's House of Blues concert venue up to six times a year for events.

Blatstein, who in June redeveloped the former Pier Shops complex on the Atlantic City Boardwalk into The Playground, said he feels no pressure to decide on a use for the Showboat right away.

"I've found it's always healthier not to rush," he said. "You rush to get the property, but then you don't rush decisions on what to do with it."