Switching Authorities in A.C.

Atlantic City’s convention center authority now has the power to issue bonds, thanks to legislation that New Jersey Gov. Jon Corzine signed into law last week.

The initiative allows the transferring of ownership of Atlantic City’s convention center and its historic boardwalk to the newly renamed Atlantic City Convention and Visitors Authority from the New Jersey Sports and Exposition Authority and directs the NJSEA to seek approval from bondholders to complete the transaction. The NJSEA has $348 million of outstanding state-appropriation bonds for completed renovation and expansion projects at the convention center and the boardwalk.

The NJSEA will continue to pay debt service on the bonds with Atlantic City luxury tax revenues that the state treasury allocates to the authority, along with revenue from the general fund. The Atlantic City Convention and Visitors Authority can now issue bonds for projects that it oversees, including any potential refinancing of the outstanding debt. The ACCVA has been managing the convention center and the boardwalk through a contract agreement with the NJSEA.

The NJSEA would still continue to receive luxury tax revenue and state funds to cover debt service costs on the bonds. The ACCVA will now also receive luxury tax revenues directly from the state treasury, instead of from the NJSEA, to help cover operating expenses at the convention center.

The law also changed the agency’s name from the Atlantic City Convention Center Authority to the Atlantic City Convention and Visitors Authority.

Atlantic City’s convention center offers 500,000 square feet of exhibition space and 45 meeting rooms along with a 1,500-space parking garage. The boardwalk stretches over four miles, with shops, casinos, and hotels located on the walkway along with the historic Boardwalk Hall. Built in 1929, the facility seats up to 14,500 people for concerts, performances, and sporting events.

“I am gratified to sign this bill today so that both the Sports and Exposition Authority and the Atlantic City Convention and Visitors’ Authority can do what they do best: maintain and govern their own destinations in different parts of the state,” Corzine said in a press release.

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