Annual Report - Casino Reinvestment Development Authority

Casino Reinvestment
Development Authority
2014 Annual Report
Moving Forward
A message from
Governor Chris Christie and
Lieutenant Governor Kim Guadagno
The rebuilding of Atlantic City continued through 2014, amid casino closures and the challenges in attracting investments and
implementing strategies to move the destination forward amid the shifting sands of change.
The CRDA and its partners have shown an amazing resiliency to adjust to the changing market and move the Tourism District forward.
Ongoing work on projects including Harrah’s Waterfront Conference Center, Bass Pro Shops, Pacific Avenue repaving, affordable housing
projects, the Resorts conference center project and the Tropicana improvement project continues to contribute to the overall success of the
Atlantic City Tourism District. Through the CRDA entertainment grant program, a total of nine concerts were presented on the beach and
Boardwalk during an expanded CRDA Summer Concert Series last summer.
Also in 2014, the CRDA successfully oversaw the creation of a new, not-for-profit spin-off company, Meet AC, which is designed to
maximize the potential of the Atlantic City Convention Center and Boardwalk Hall. Meet AC is concentrating on attracting regional and state
associations, along with sports and marketing business through their newly formed Atlantic City Sports Commission. Their efforts allow us to
begin to see increased growth in the future of shows at both venues in addition to other bookings throughout the destination.
We look forward to continuing our collaboration with the CRDA and the future development of the Atlantic City Tourism District that
will ultimately benefit the residents of the State of New Jersey.
Sincerely,
Sincerrel
ely,
y
y,
Chris
Chriis Christiee
Ch
Governor
Kim
Kim Guadagno
Ki
G ad
Gu
adag
aggno
no
Lieutenant
Lieu
eutenant Governor
2014 Annual Report
Moving Forward
1
Casino Reinvestment
Development
Authority
VICE-CHAIRMAN
Robert E. Mulcahy, III
SECRETARY
Howard J. Kyle
John Hoffman
Attorney General
Charles A. Richman
Community Affairs
Tom Ballance
Debra P. DiLorenzo
Edward H. Gant
Mark Giannantonio
Mayor
Don Guardian
Matthew B. Levinson
Chairman, CCC
William T. Mullen
Gary Puma
Andrew P. Sidamon-Eristoff
State Treasurer
Frank Spencer
Richard Tolson
Gary Hill
2014 Annual Report
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CHAIRMAN
James B. Kehoe
Moving Forward
Letter from
CRDA Board
Chairman
James Kehoe
Let me welcome you to the 2014 Casino Reinvestment Development Authority’s Annual Report. Now in its third year of existence,
the Atlantic City Tourism District, following the blueprint outlined in the Master Plan, continues to welcome nearly 27 million visitors to
our shores each year for fun in the sun, frolicking on the beach and in the surf, shopping, dining, gaming, sporting events, concerts, worldclass entertainment and much more.
In 2014, the CRDA Board, in collaboration with its development and investment stakeholders, and continued partnership with
the Atlantic City Alliance, took steps that attracted many exciting world-class entertainers and events, such as two, free beach concerts
featuring country stars Blake Shelton and Lady Antebellum, the World Championship of Sand Sculpting, Beach Volleyball tournament,
Atlantic City Airshow, Challenge Triathlon, Garden State Film Festival, and of course the Miss America Pageant and Parade, that attracted
hundreds of thousands of visitors to Atlantic City.
A new not-for-profit organization, Meet AC, was successfully spun off by the CRDA in 2014. Meet AC is a tourism economic
development agency that focuses on maximizing the potential in the meetings and conventions markets at the Convention Center and
Boardwalk Hall. Meet AC also developed the Atlantic City Sports Commission, which is helping drive sports industry-related events to
Atlantic City as well.
With these successes in hand, we clearly understand, though, that with four casino property closures in the past year and the
subsequent reduction in gaming revenues that comes with it that Atlantic City is in the midst of a difficult period of uncertainty and
transition.
With the tremendous support of Governor Chris Christie and his administration, the CRDA is helping steer the ship through these
difficult waters by contributing towards the diversification of Atlantic City as a year-round, world-class destination.
New non-gaming attractions and development, such as Bass Pro Shops, the Harrah’s Waterfront Conference Center, hundreds of
new housing units, downtown business facade improvements, airline service with Air Canada between Atlantic City and Toronto, free
community entertainment and the repaving of Pacific Avenue, are a testament to the CRDA’s commitment to a better future for Atlantic
City.
I, and the rest of the CRDA Board, am excited about the city’s prospects for the future and we look forward to many bright days and
years to come for Atlantic City over the horizon.
2014 Annual Report
Moving Forward
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Letter from
CRDA Executive Director
John Palmieri
In 2014 under the leadership of Governor Christie, our Commissioners and professional staff of the Casino Reinvestment Development
Authority delivered tangible economic development and community project results vital to the present and future growth of our seaside resort.
In short, the Tourism District Plan initiated in 2011 is being fulfilled. In the years since, the CRDA has attracted more than $750 million worth
of capital investment to the city with more than $250 million in investment currently in progress.
The future vibrancy of the Atlantic City tourism industry remains contingent on continuing the dramatic positive investment growth in
new non-gaming attractions. In 2014, we continued the strategy of leveraging investment to create these attractions and the resultant crowds
prove it is working: Bass Pro Shops Outpost, Jimmy Buffett’s Margaritaville Project and the LandShark Bar & Grill, the Multimedia Light Show
at Tropicana and creating the first fully multi-media Boardwalk anywhere.
Projects coming include: The Waterfront Conference Center at Harrah’s-a 100,000 square foot facility opening in fall of 2015 that will
attract many new corporate meetings; Festival Park at Borgata; The world famous Steel Pier continues its re-invigoration with the coming
addition of a spectacular Observation Wheel --with a planned opening by the end of 2015.
Producing some of the best publicity Atlantic City has received in recent years, two 2014 beach concerts featuring Blake Shelton and
Lady Antebellum attracted hundreds of thousands of visitors to the resort. More are in store.
These major projects opening in 2014 -15, and the continuing investments that are turning the tide in Atlantic City have one common
denominator—CRDA project investment and oversight. We are working with the Administration, Legislature, the City, Atlantic County and the
community to face the challenges and opportunities ahead.
2014 Annual Report
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Moving Forward
“Bass Pro Shops is very deliberate in selecting locations for new facilities, due to the significant investment involved. When evaluating New Jersey, and specifically Atlantic City,
we carefully weighed all factors- an iconic shore destination that draws millions of visitors
annually, a world-class salt water fishery, one of the premier migratory waterfowl flyways
in North America, a quarter of a million acres in wildlife management areas- to name just
a few area assets. We quickly realized that short term impacts from the recession and
from casino proliferation in neighboring states would not prevent the city from remaining
a premier destination for guests from across the country and around the world. We are
delighted with initial response to our Atlantic City location and anticipate robust growth in
the future.
The Cordish Company, the CRDA, and the City of Atlantic City have all been outstanding
partners in facilitating the critical steps to complete a project of this magnitude; Bass Pro
Shops is grateful to Mayor Don Guardian of Atlantic City, and John Palmieri, Executive
Director of the CRDA, for their leadership and guidance throughout this process. We could
not have accomplished all that we did without their programs and assistance. ”
Eric Clements
General Manager
Bass Pro Shops
INVESTMENTS
+
++
+++
Investment in
Atlantic City
The CRDA is committed to Atlantic City’s future and has earmarked
hundred of millions of dollars towards reinvestment in the city since the
creation of the Tourism District in 2011. In 2014, many important and
worthwhile projects broke ground or were completed.
• Atlantic Cape Community College’s Atlantic City Campus officially
opened its new 20,000-square-foot campus expansion that is being utilized
for the hospitality and culinary arts industries throughout the region. The
CRDA and Atlantic County each contributed $5 million towards this project.
• The First Responders & 9/11
9/1
/11
1 Memorial
Memorial
i l on the
thhe Boardwalk
Boardwalk
d lk at St.
St James
James
Place was created through a $145,000 commitment by the CRDA for its design,
construction and installation. This memorial was part of a greater CRDA-funded
Boardwalk reconstruction project that added new ramps, railings and support
structures to the Boardwalk at St. James Place.
• The CRDA sold a luxury tax revenue bond in October 2014 that would provide
approximately $100 million towards financing capital improvements at Boardwalk
Hall and the Atlantic City Convention Center, facilities that are owned by the
CRDA, and assist in refinancing debt and other obligations.
• The CRDA approved an incentive package in April 2014 that would provide Live Nation with potential bonuses for booking 12 or more
events at Boardwalk Hall during the life of the contract.
• The CRDA also provided more than $250,000 in entertainment grant
funding in 2014 for special events, such as the Atlantic City Marathon
Series, Annual Airshow and Seafood Festival, Boardwalk Art Show,
Atlantic City Ballet Performance Series, Jazz on the Beach Series,
Back to School Community Day for Kids, Atlantic City Triathlon and
more.
• Many more CRDA-approved projects that are providing millions of dollars
worth of investment in the city continued construction through 2014, such
as Bass Pro Shops, Harrah’s Waterfront Conference Center, Pacific
Avenue Paving Project, Tropicana Casino & Resort improvements,
Atlantic Avenue Facade improvements along the 1300, 1600 and 1700
blocks, Procida new housing developments and the Lighthouse District
Park in the city’s South Inlet.
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2014 Annual Report
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Moving Forward
INVESTMENTS
ENTERTAINMENT
Michael J. Darcy, CAE, Assistant Executive Director
New Jersey State League of Municipalities
BOARDWALK HALL
“During our 99th Annual Conference November 2014, our members once again
experienced the hospitality and professional attention that Atlantic City is known for.
Atlantic City’s changes have had positive effects on our conference and incorporated
well into our conference plans. ”
CONVENTIONS
+
++
COMMUNITY
S.I.D.
+++
Convention Center Division
and Meet AC
The CRDA saw a successful spin-off of its
Convention Center Division in 2014. On June
23, “Meet AC,” a 501(C) 6 not-for-profit
corporation debuted with a team of 26 full-time
associates and support staff set out to attract
more meetings and conventions to Atlantic City,
driving growth into the Atlantic City Convention
Center and Boardwalk Hall, as well as driving
additional business into Atlantic City hotels.
Meet AC is funded by the Casino Reinvestment
Development Authority (CRDA) and currently
operates with a five-year contract with the
CRDA. The Meet AC convention sales team was
previously part of the Atlantic City Convention
and Visitors Authority (ACCVA) which operated as
a department of the CRDA.
While 2014 contained big challenges,
including the closure of four casino hotels, the
re-deployment of sales managers into market
segments rather than geographical areas allowed
the Meet AC sales team to exceed 2013 group
room nights by an additional 12,000, bringing the
total for 2014 up to 172,000.
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Moving Forward
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Other highlights of 2014 include the following growth and successes:
• Definite bookings in 2014 grew by 59% to 171,465 room nights and 498,000 attendees.
• 35% of definite bookings for 2014 were new groups to Atlantic City.
• Meet AC realized 177 meetings, conventions and tradeshows at the convention center and Atlantic City hotel properties,
which represents a 4% increase over 2013.
• The 177 events generated 134,628 group room nights, a growth of 15% over the previous year.
• Meet AC generated events produced a delegate spending value for Atlantic City of $156 million, a 6% increase over 2013.
2014 Annual Report
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Moving Forward
INVESTMENTS
“Atlantic City has always provided the best and most qualified labor force anyone could
ask for. It’s great to hear that Global along with union labor organizations are able to
come back to their clients with an economically better deal to ensure that Atlantic City will
remain one of America’s first choices for showcasing the world’s best talent.”
BOARDWALK HALL
John Stevenson
Live Nation
CONVENTIONS ENTERTAINMENT
+
++
COMMUNITY
S.I.D.
+++
Boardwalk Hall
Owned by CRDA and operated by Global-Spectrum on our behalf, historic Boardwalk Hall serves as Atlantic City’s premier event
arena, hosting a stellar lineup of concerts, sports events and family events.
Boardwalk Hall’s success is mirrored in its 2014 year end ranking as one of the highest grossing arenas in the country by industry
publications Pollstar and Venues Today.
Highlights from 2014 include country stars Luke Bryan and Jason Aldean, pop queen Lady Gaga, a Mother’s Day Music Festival
featuring Charlie Wilson, internationally acclaimed boxing matches including the Bernard Hopkins-Sergey Kovalev Light Heavyweight
Championship and a variety of family events including WWE, Ringling Bros. Circus, Disney Live and Cirque du Soleil.
As an added incentive, CRDA pledged Live Nation Entertainment – the top show producer in the country - as much as $500,000
per year for three years to increase bookings at Boardwalk Hall, starting in 2014.
Mission:
Attract incremental visitors to Atlantic City through an enhanced schedule of top entertainment, sports events and family shows;
provide economic impact through visitor spending on ticket sales, meals, hotel stays and other visitor expenditures.
2014 Annual Report
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Mission Accomplished:
In 2014, Global spectrum increased the number of ticketed events at Boardwalk
Hall by 26%.
On pace to book more concerts and in 2015 than any year since its renovation and
modernization was completed in 2001.
Implemented daily lunchtime concerts on the historic Midmer Losh organ, bringing
between 80 and 100 people to Boardwalk Hall every weekday from May through October
and exposing them to the event schedule.
ROI:
More than 253,000 tickets sold in 2014, generating $14.66 million
in revenue. 101% increase in group sales, totaling 7,703 tickets.
Exit interviews of concertgoers show significant economic impact:
• More than 70% travel more than 50 miles to attend concerts.
• More than 65 % dine at local restaurants while in Atlantic City for concerts.
• More than 38% stay at Atlantic City hotels while here for concerts.
• More than 37% gamble at Atlantic City casinos while here for concerts.
• More than 65% spend more than $100 while in Atlantic City for concerts,
while more than 19% spend more than $200.
Concertgoers Economic Impact
70
70%
65%
60
65%
50
40
38%
19%
30
37%
20
10
0
Spend $100+
Spend $200+
Travel
50+ Miles
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Moving Forward
Dine in AC
Stay in AC
Gamble in AC
ENTERTAINMENT
COMMUNITY
Alexandria Pieroni
Managing Director
Atlantic City Ballet
CONVENTIONS
“For the last four years the Atlantic City Ballet has had the privilege of working with the
CRDA on a number of different projects. The ballet has applied for and received funding
for our community outreach program Ballet on the Boardwalk. This program allows the
ballet to present free and open to the public ballet performances the not only enhance the
city but also provides a much needed artistic infusion into the community. The CRDA has
always been extremely supportive of Atlantic City Ballet’s mission. Most recently the CRDA
awarded a $130,000 grant to the ballet to renovate rooms in Boardwalk Hall and create a
rehearsal studio and office. Bringing the company back to its namesake city has been a top
priority for the ballet and to have it finally realized is a credit to the leadership of CRDA
and their commitment to the overall quality of life of the residents of Atlantic City. Each of
the dedicated staff members we have worked with have shown this commitment and have
always showed a level of professionalism throughout their relationship with us. ”
INVESTMENTS
+
++
S.I.D.
+++
CRDA Events/Entertainment
in Atlantic City in 2014
In 2014, the CRDA and its partners continued to offer various forms of free summertime entertainment throughout the Tourism District in
order to drive visitation to the city and to showcase all that Atlantic City has to offer.
The CRDA’s public/private partnership with the Atlantic City Alliance continued in 2014 with the collaboration of summertime special
events that attracted thousands of visitors to the city from all over the region.
Throughout the year, thousands of visitors were drawn to the Boardwalk for exciting events like the World Championship of Sand
Sculpting competition, Broadway on the Boardwalk, Boardwalk Wine Promenade, DO AC Tree & Light Fest, Pro Beach
Volleyball Invitational, Fourth of July fireworks and of course, the immensely-popular two free beach concerts that featured Blake
Shelton and Lady Antebellum, which alone drew nearly 135,000 spectators to the beach and Boardwalk over two days.
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Moving Forward
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The CRDA collaborated with Tony Mart Presents to bring nine world-class free concerts on the beach at Arkansas Avenue and on the
Boardwalk at Kennedy Plaza, all part of the CRDA’s Summer Concert Series.
Well-known musicians and bands, such as The Charlie
Daniels Band, Felix Cavaliere and his Rascals, The Smithereens,
The Cowsills, The Persuasions, Marcia Ball, Coco Montoya, Tab
Benoit, Billy Pierce and The Billy Walton Band.
Other free Boardwalk entertainment like the Atlantic City
Free Public Library’s International Nights Series and the
Chicken Bone Beach Jazz Series combined to attract nearly
2,000 spectators over the course of the summer.
Also in 2014, the CRDA supported the Challenge
Triathlon and long-standing community favorites like the
Annual Atlantic City Farmers Market at Center City Park
and Bartram Avenue Beach and Movies Under the Stars at
Historic Gardner’s Basin, Brighton Park and the aforementioned
Bartram Avenue Beach.
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Moving Forward
INVESTMENTS
ENTERTAINMENT
Cassandra Boynton-Bell
BOARDWALK HALL
“My participation in the CRDA’s Farmer’s Market has allowed me to build a stronger
customer base with people throughout the city and to connect with visitors stopping by
this weekly event. The combination of vendors and music draws a crowd looking to find
unique items and being entertained at the same time. My hat is off to CRDA for allowing
someone like me to grow my business one week at a time.”
CONVENTIONS
+
++
COMMUNITY
S.I.D.
+++
Community Development
“…it is important that we understand our responsibility
to affect positive change in our communities.”
Ron Conway
Recognizing that a strong community provides a good foundation for a
strong tourism economy, CRDA’s investment in the Atlantic City community
continued through 2014 with a multi-pronged approach including:
• Residential housing development
• Improvement in social services delivery systems
• Development of business and community leaders
• Support of community-based improvements
• Entertainment
+
++
Residential Housing
• $30 million in CRDA funding for The Beach at South Inlet, a Boraie Development Company mixed-use project of 250 residential rental
units featuring first-floor retail spaces and lifestyle amenities, with 50 units set aside for affordable housing, scheduled for a 2015
groundbreaking.
• CRDA donation of land for Procida Development’s Carolina Crescent and Connecticut Crescent residential developments with 89
townhome-style rental units, with workforce pricing.
Social Services
• CRDA creation of a Citywide Jobs Program, a $400,000 inter-governmental agreement with the City of Atlantic City to provide gap
assessment, employment training and job placement.
• Provided Convention Center space and Boardwalk Hall space at no charge for the Department of Labor’s career fair and the Unite
Here resource center.
• CRDA funding of $13 million and assistance with site location for relocation of the John Brooks Recovery Center from the casino
district to more suitable areas for both in-patient and out-patient services. The relocation plan will enable CRDA to purchase two properties
owned by JBRC at an estimated cost of $4,1 million.
• CRDA Board approval of an intergovernmental agreement with Atlantic County and NJ Department of Human Services, and awarded a
contract with Jewish Family Services to be the qualified provider for the Atlantic County Integrated Homeless Assistance Model (“Single
Point of Entry Program”), to address the needs of social service entities who work with the homeless populations. The Project is funded
via a $2 million federal grant for a two year period.
• $40,497.82 in CRDA grant funding to the local Atlantic City chapter of the
Salvation Army for the purpose of helping fund the purchase and
installation of new air conditioning and heating units for its Community
Center Gymnasium.
• The CRDA provided $5 million in funding to create an open green way from
Historic Absecon Lighthouse towards Absecon Inlet. This project will
connect the north east inlet, south east inlet and the Boardwalk. Atlantic
County contributed another $4.2 million for park improvements including
pedestrian and bikeway infrastructure.
Development of Community Leaders
• $22,000 CRDA commitment to provide up to 25 carefully selected Atlantic City residents or employees a year-long leadership training
program, LEAD Atlantic City Tomorrow (LEAD ACT), in conjunction with Richard Stockton University.
• $5 million CRDA contribution to Atlantic Cape Community College’s Caesars Entertainment Wing for Hospitality and Gaming
Studies, which can educate up to 1,200 trainees per year.
2014 Annual Report
Moving Forward
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Community-Based Initiatives
• Atlantic City Police Department Technology Grant of $3 million from the CRDA to the ACPD to upgrade CAD & RMS systems to aid
in deployment strategies and engage the anonymous help from the community with the Tip411 program.
• $145,000 in Boardwalk Revitalization funds to pay for the design, construction and installation of a First Responders and
9/11 Memorial as part of a greater Boardwalk reconstruction project at the St. James Place street end, including new ramps, railings and
enhanced support structures.
• Lighthouse District Park: $7.4 million in CRDA funding to create a greenway linking the Atlantic City Boardwalk with Absecon
Lighthouse, creating a park-like corridor for walking and bicycle riding.
• Atlantic Avenue Facade Improvement Program: The CRDA has committed $6 million to improve the appearance of participating
commercial properties along the 1300-1700 blocks of Atlantic Avenue. Funding is also available for restoration of upper-floor housing units
from the Atlantic County Improvement Authority.
Entertainment
• Farmer’s Market: Held twice weekly in the summer providing residents and center city office workers an opportunity to purchase fresh
produce and goods from local farmers, attracting on average 100 residents each day. CRDA investment: $15,000.00
• Movies Under the Stars: Weekly outdoor movies at three locations in Atlantic City in July and August, providing free family entertainment
for residents and visitors, attracting more than 700 viewers over the summer season. CRDA Investment: $4,252.00
• CRDA 2014 Community Development Grant Program Entertainment Grants: A total $281,868.00 investment to partially fund
events and entertainment for residents and visitors.
Results:
Event
Attendance
Atlantic City Marathon Series – 3 events
3,000 each
Annual Atlantic City Airshow
800,000
Annual Atlantic City Seafood Festival
23,000
Annual Jazz on the Beach Concert Series – 9 concerts
3,600 total
Annual DoArtAC Boardwalk Art Show
8,000
Annual Atlantic City Salutes America’s Armed Forces Parade
20,000
Atlantic City Ballet Performance Series – 5 performances
2,000 each
2014 Bangladesh Mela
3,000
Atlantic City International Triathlon
3,435
Total
880,035
2014 Annual Report
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Moving Forward
INVESTMENTS
Steven Reilly
Syracuse, New York
BOARDWALK HALL
“It’s wonderful to still see the Ambassadors along the boardwalk and avenues
in Atlantic City.
Great job to the CRDA and the Special Improvement District.”
CONVENTIONS
+
++
ENTERTAINMENT
COMMUNITY
S.I.D.
+++
CRDA Special Improvement
Division
2014 proved to be a productive and busy year for the CRDA’s Special Improvement Division. With new leadership in place beginning in April,
Tourism District quality control standards for cleanliness and maintenance were implemented.
Schedules for the Landscaping, EVS and Ambassadors were realigned to better mirror weekend and evening crowd volumes.
The SID work groups performed at optimal performance levels by being able to accomplish complete district restorations after each beach
concert, the air show, volleyball tournament, farmers market, and Gardeners Basin concert. Record tonnage of trash and recycling were
removed from tourist areas for these high volume events.
Leadership instituted operational goals of having the Boardwalk, parks and main corridors completely restored to pristine conditions
immediately after each event, before 8:00AM the next morning.
During the fourth quarter, the leadership and management teams developed a complete divisional re-organization plan for review for
implementation in 2015 with the objectives being to:
• Achieve overall cost savings,
• Improve processes,
• Streamline workflow,
• Elevate professionalism,
• Improve safety,
• Reduce contract labor and
• Create a district General Maintenance zone plan.
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Elbow Grease 2014
By the numbers:
• Under Boardwalk: 3,750 (32 gallon) bags of trash/debris
were removed
• Total efforts (citywide): 1,000.63 tons of
trash/debris removed
• Total recycling: 62.35 tons
• Graffiti issues identified: 2,329 of which 1,876 were
removed by SID, with the other 453 reported to and
corrected by the City of Atlantic City.
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Moving Forward
Financial Statements
For the 2014 Casino Reinvestment Development Authority
financial statements please visit www.njcrda.com