Atlantic City to cultivate non-gambling attractions

The plans come as Atlantic City has lost four of its twelve casinos and is trying to make its tourism-centered economy less dependent on gambling.

The City Council on Wednesday approved an expansion of the iconic Steel Pier to make way for an already approved 62-meter tall observation wheel with enclosed, climate-controlled cars and a zip line ride. It also approved a redevelopment plan for the Northeast Inlet neighborhood including new eateries, entertainment and recreational facilities, a rebuilt Boardwalk and an elevated walkway to bring new business to the area. “It’s a reinforcement of the importance of adding these other amenities,” Casino Reinvestment Development Authority executive director John Palmieri said.

The agency has already approved the Ferris wheel project and will be contributing about US$8.1 million of its estimated US$14 million price tag through a loan to be repaid from a portion of revenue ride tickets. “It’s a good step forward in the ongoing effort to reinforce those non-gambling sectors,” Palmieri said.

It is also something Atlantic City has been talking about since 2007, the first year its casino gambling revenues posted a yearly decline due to the opening of casinos in neighboring Pennsylvania that ate into its customer base. Those revenues have plunged from US$ 5.2 billion in 2006 to US$ 2.74 billion last year as casinos have continued to open in Pennsylvania, New York and Maryland. Of the eight Atlantic City casinos that survived last year’s slew of closings, three are in bankruptcy.

The wheel and its 40 cars are being built in Italy and should be delivered to Atlantic City by December. The start of an expansion of the Boardwalk to support the wheel and the zip line ride could begin within two months.