1 Beating the Odds: The Transformation of Atlantic County Robert Checchio Dyana Tanasy January 31, 2006

2 Objectives  Examine Atlantic City’s economic growth  Compare Atlantic City to a successful Model  Consider future obstacles to growth  Present a strategy for growth and success for Atlantic County

3 Outline  Atlantic City  Las Vegas  Key Differences  Proposed Solution  Transportation Issues  Issues to Resolve

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5 Atlantic City  Historic tourist location  Famous boardwalk  Home to Miss America, the Steel Pier, Lucy, and salt water taffy  Tourism declined after WW II

6 Atlantic City – Gaming Comes In  Legislation introduced in 1976  Economic Impact –Gaming Revenue –Non-gaming Revenue

7 Atlantic City – Why not more?  Questions to be answered: –Why is Atlantic City not experiencing more robust economic growth? –Are there demographic factors? –Are there geographic factors? –Are there political/policy factors?

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9 Las Vegas, Nevada  City developed first as a rail stop in 1980 – first rails completed 1904  Gambling was banned October 1, 1910  Legalized gambling returned to Nevada during the Great Depression (1931)  Casino boom started in the 1940s, and surged during the 1950s Source:

10 Las Vegas – The Second Boom  The introduction of gaming in Atlantic City led to a second boom – the creation of the “mega-resort”  Hotel-casinos began the race to become full-blown destination resorts for travelers, vacationers, gamblers, conventioneers and all members of the family.

11 Economic Impact - Gaming Revenue

12 Gaming vs. Non-Gaming Revenue

13 Visitors by Type

14 Atlantic City – An Auto Destination

15 Rooms Available Source: Las Vegas Convention and Visitors Authority, Atlantic City Convention Center Authority

16 Past and Planned Developments  The Borgata  The Walk  Showboat’s House of Blues  Tropicana’s “The Quarter”  Pier at Caesars

17 Employment Levels – Last 14 Years Source:

18 Gaming Revenue Breakdown

19 Competition Ahead  New York Racetrack Slot Machines  New York Indian Resort Casinos  Connecticut Indian Casinos  Delaware  West Virginia  Maryland (planned)  Pennsylvania (planned)  The Internet…

20 Online Competition

21 Key Differences  Fewer restrictions on gaming areas  Availability of land for expansion  Emphasis on (and growth of) non-gaming vs. gaming revenues  Flip-side: Nothing in Atlantic City except gaming  Atlantic City as a “daytime destination”, vs. Vegas as an “overnight destination”  Atlantic City more vulnerable to competition

22 Our Proposal: XANADU SOUTH

23 Xanadu as a Model  Model after Xanadu Meadowlands  Location: eastern Hamilton Township  Focus on growth of non-gaming revenue –Restaurant and Retail –Entertainment –Hotels  Goal: the “new” Atlantic County –Create a new overnight destination: a family- oriented entertainment center as an adjunct to the gaming district

24 Xanadu South Key Components  Lodging  Conference Centers  Restaurants  Family-focused Entertainment  Sports and Amusements

25 Xanadu South Benefits  Jobs  Economic Development  Tax Revenue  Infrastructure Development

26 Xanadu South - Transportation  Eliminate the need for personal automobiles  Personal Rapid Transit connecting Xanadu- South to: –Atlantic City International Airport (ACY) –Atlantic City – “The Boardwalk” –Park-and-Ride Centers at appropriate locations at AC Airport and near the Garden State Parkway Atlantic City Expressway  Extend PATCO to Xanadu-South

27 Xanadu South – Personal Travel  Based on the successful system in service since the 1970s in Morgantown, WV

28 Xanadu South - PATCO Extension  Draw visitors from Philadelphia

29 Xanadu South – Patco Extension

30 Xanadu South – Issues  Legislative –Gaming currently restricted to Atlantic City (limits growth potential)  Environmental Concerns –Use Xanadu Meadowlands as the model  Financing –Casino revenues –Private developers