Carl C. Icahn, chairman of Icahn Enterprises (IEP), announced Thursday plans to sell the closed Trump Taj Mahal Casino Resort to investors in Hard Rock International. The Taj Mahal, which was formerly owned by President Donald Trump, ceased operations last October seven months after IEP acquired the casino when Trump Entertainment Resorts Inc. emerged from bankruptcy. Icahn also owns the still-open Tropicana Casino & Resort and the shuttered Trump Plaza, which is among five casinos to have shut down since 2014.
"We at IEP are extremely happy with our ownership of the Tropicana Casino & Resort, and after considerable analysis and deliberation we determined that we only wanted to own one operating casino property in Atlantic City," said Icahn in a statement announcing the sale. "A sale of the Taj Mahal therefore represents the optimal outcome for us."
Atlantic City is saddled with $226 million in bonded debt and is planning to sell $72 million in bonds to pay for a settlement reached with the Borgata Hotel Casino & Spa on $165 million of tax refunds the city owes the casino. New Jersey's Local Finance Board assumed control of Atlantic City's finances in November after rejecting a five-year rescue plan.
Hard Rock said Thursday that a $300 million purchase and renovation of the Taj Mahal is expected to create more than 3,000 jobs for Atlantic City. The 17-acre site will be rebranded as the Hard Rock Hotel & Casino Atlantic City.
"We are excited to be part of this revitalization of Atlantic City creating thousands of jobs to help local employment," Jim Allen, chairman of Hard Rock International, said in a statement. "We are 100 percent convinced Hard Rock Hotel & Casino will be a success."
Atlantic City Mayor Donald Guardian said Thursday he expects the casino to open next year and combined with other business developments will drive momentum to the Jersey Shore resort. Guardian noted that Stockton University is slated to open a satellite campus in Atlantic City in 2018 and South Jersey Gas is moving its headquarters to the city.
"All the pieces are coming back together one by one," said Guardian, a Republican who faces re-election for a second term as mayor in November. "Now is the time to invest in our great city."
