15 Year Old Debt Obligation Plugs AC Budget Deficit

It may have been 15 years since Atlantic City struck a deal with Mirage Resorts Inc to cleanup a landfill expected to house a $1 billion casino that was never built, but according to a letter received by Mayor Lorenzo Langford, the city will receive more than $6 million as they struggle to cut a massive budget deficit.

The payment is a part of a deal entered into by former Mirage Resorts owner, Steve Wynn to cleanup land in the Marina District that now houses the Borgata Resort owned by Boyd Gaming and MGM Resorts International. In 2000 MGM purchased the company from Wynn and although they have recently surrendered their Atlantic City casino license and are attempting to sell their 50% stake in the Borgata Resort, will fulfill the debt obligation.

Through state Legislation signed in 1995, Mirage Resorts was allowed a reimbursement of $20 million for cleanup cost, however must return $8 million to the city. When payments from the state stopped in 1998 so did payments to the city, resulting in a debt of $6.1 million.

MGM’s attorneys sent a letter to the Mayor and City Council President stating that the state of New Jersey will fulfill its obligations to Mirage Resorts, which will in return fulfill theirs to the city.