As the summer heats up, so does development in Atlantic City, with the assistance of the Casino Redevelopment Investment Authority (CRDA), represented by Patrick J. McAuley and Joseph M. Murphy of Connell Foley. Rick McAuley and Joe Murphy represented the CRDA in two recent transactions for the development of two new premier destinations in Atlantic City, NJ.
The first involved execution of a development agreement and ground lease with The Cordish Company for property located along Christopher Columbus Boulevard. The property is to be developed with a Bass Pro retail store as another phase of the project known as The Walk. In addition to representing the CRDA in connection with the negotiations for the development agreement and ground lease, Mr. McAuley and Mr. Murphy’s involvement included negotiating loan documents for the CRDA’s provision of up to $12.3 million in financing for the construction of the Bass Pro store.
In the second transaction, the CRDA agreed to provide financing of up $4.11 million to Steel Pier Associates to be used for the upgrade and expansion of the Steel Pier. The work to be funded by this loan will allow for the installation and operation of a 200 foot high observation/ferris wheel with approximately 40 enclosed gondolas on the expanded area of the Steel Pier. This financing follows on an initial funding made available by CRDA for improvements and upgrades to the Steel Pier in the amount of $6.1 million in a transaction which closed in April of 2012. Mr. McAuley and Mr. Murphy also represented CRDA in the 2012 financing.