It looks like the government has some big money to pay to Hard Rock after the dust has settled in a recent tax dispute. In fact, Hard Rock can expect a sum of $4.8 Million to come from Atlantic County and City. Indeed, the county will pay 8% of the sum while the city will take care of the remaining 92%. Although, the whole amount doesn’t have to find its way to Hard Rock in one go. In fact, the involved parties have four years to pay, which means that Hard Rock will receive $1.2 Million extra a year. On that note, let’s see how this situation came to surface.
Atlantic City PILOT to blame
As we understand, the PILOT program (Payment in Lieu of Taxes) was created to encourage the growth of the city. It proposed a fixed tax amount, instead of fluctuating property taxes for resorts and casinos operating in the city. Governor Chris Christie signed the PILOT bill in October 2016. And in August 2017 the AC casinos got a total settlement of $80 million. However, it didn’t include the Hard Rock.
The NJ Department of Community Affairs said “Because of the timing of Hard Rock’s purchase of the property. And the work that needed to get done to get the casino into the PILOT. The 2017 appeal was not able to include in the $80 Million bond ordinance the city approved in August 2017 to fund other property-tax appeals.” Said Lisa M Ryan, representing NJDCA.
Tight Lips from Hard Rock
According to sources, Hard Rock has decided not to release any official statement on the settlement. But what we know is that Jim Allan, Chairman of Hard Rock International said in the past. “Our commitment to Atlantic City has never been stronger. And we look forward to being a catalyst for further growth and development of the area.” After acquiring the property in 2017. Now, reading in-between the lines, it’s quite clear that Hard Rock has AC’s best interest at heart. Although Hard Rock decided not to comment on the subject matter. They are most certainly happy to receive an extra $1.2 Million for the next coming four years. And as we all know, Hard Rock’s motto is Love all serve all! So it’s likely they’ll put the money where their heart is, so in Atlantic city!