Staub To Buy Power Plant…

The Florida real estate developer who owns the former Revel casino in Atlantic City said on Tuesday he reached a deal to buy the power plant that services the boardwalk property, putting an end to a protracted energy dispute at the shuttered gambling hall.

Developer Glenn Straub bought the bankrupt casino, which cost $2.4 billion to build, for $82 million in April but the building has remained shuttered amid the ongoing power dispute. Under the agreement, Straub’s Polo North will pay $30 million and ACR Energy Partners, the company that owns the power plant, will put up $15 million to pay off bondholders.

Straub said there were two major problems at the source of Revel’s bankruptcy: energy costs and property taxes.

“We’ve eliminated one of those problems,” he said.

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Polo North will take ownership of all utility equipment in the power plant across the street from the former Revel casino and in the building itself, according to Straub’s lawyer, Stuart Moskovitz.

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A detachable cogeneration unit located inside the power plant will still be owned by an affiliate of ACR but is expected to be removed and repurposed.

The Associated Press first reported the terms of the agreement between Polo North, ACR and the Bank of New York Mellon. The Bank of New York Mellon started foreclosure proceedings against the power plant in October.

The agreement was put on the record in federal court in Camden on Tuesday. The deal needs to be signed by Dec. 2.

U.S. District Court Judge Jerome Simandle said he was “very pleased and very surprised” at the agreement.

“This represents a great step forward for this property and its rejuvenation,” he said. “It’s an important step for Atlantic City. It may build some confidence that Atlantic City remains viable.”

The energy dispute at the property led to ACR shutting off utility service at the former Revel casino just days after Polo North closed on the property. ACR had been providing limited service to the building to address fire safety concerns.