Morgan Stanley Asks New Jersey for $300 Million Toward Casino
Morgan Stanley is doing well enough to repay its $10 billion bailout by the federal government and to award over $14.4 billion in bonuses and salary to top employees, but it says it needs $300 million from New Jersey taxpayers to complete the stalled Revel casino under construction in Atlantic City. The financial services company is asking state lawmakers to grant $300 million in tax breaks toward the $700 million Revel is seeking to finish its gambling venue. The casino has been dormant since January 2009, with only exterior work continuing until Revel Entertainment can find further financing.
Revel executives have applied for a state grant through the Economic Development Authority which would allow about a quarter of all room and sales taxes to be paid over a twenty-year period. If the tax breaks are granted, Morgan Stanley may make up the difference needed to complete the casino.
New Jersey officials are eager to see the casino open, with its proposed 19 restaurants and 150,000 square-footage of gambling space. The area is suffering from rampant unemployment and desperately needs sources of new jobs.
But union leaders say the bankers and operators should pay for the completion costs on their own.
"I'm struggling to pay my taxes, and we're giving Morgan Stanley $300 million to build a casino," said Bob McDevitt, president of Unite Here Local 54, the largest casino employees union in the city, to APP.com. "Why should the people of New Jersey finance this project?"
Recent Comments
| Posted by: Joe | When: 03/08/2010 03:08:08 AM EST |
| It's not like they are asking for the money for free they will pay it back in the future! Atlantic city needs new blood and new operators who want to see the city grow! | |
| Posted by: Steven P. Mitchell | When: 04/01/2010 07:51:03 PM EST |
| Well Joe, in fact, they are asking for money for free. They will pay back through deferred taxes in the future only if the Casino makes money and they will take 20 years to pay it back. They want to use other people's money (NJ residents') - as is characteristic for their business - to place a futures bet that their development will be profitable. All at the expense of their competitors who will not get an equivalent subsidy from the state of NJ. | |
