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

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?

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