Pinnacle Atlantic City

Pinnacle Atlantic City was a proposed casino resort development in Atlantic City, New Jersey, planned by Pinnacle Entertainment for the former site of Sands Atlantic City. It was not an operating casino or completed resort; the project was cancelled after Pinnacle suspended its plans during the economic downturn and later moved to sell its Atlantic City assets. The development originated with Pinnacle Entertainment's acquisition of the Sands property from investor Carl Icahn. Following the purchase, the company closed the Sands Atlantic City casino and gave employees 60 days' notice. Pinnacle also conducted a liquidation sale for hotel supplies and removed the property's slot machines for use at other Pinnacle-owned properties. More than $61 million in table chips were destroyed after the closure. During the removal of the slot machines, workers found $17,193.34, with portions allocated to taxes and to the dismantling of the people mover linking the Boardwalk with the Sands site along Brighton Park. Pinnacle initially expected the replacement resort to open in late 2011 or early 2012. The proposal was part of the company's broader interest in expanding its presence in Atlantic City, including consideration of an additional casino at the former Bader Field site. No Bader Field casino was formally announced, however. On March 6, 2009, Pinnacle chairman and chief executive officer Dan Lee announced that the Atlantic City project had been suspended indefinitely and that the company might seek to sell the property. In July 2010, Pinnacle stated that it intended to sell its Atlantic City assets and abandon its casino projects in the city. In a March 2013 filing with the U.S. Securities and Exchange Commission, Pinnacle disclosed a definitive agreement to sell its Atlantic City holdings to an undisclosed buyer for $30.6 million, with closing expected by the end of that month. Because the resort was never built or opened, Pinnacle Atlantic City remained a cancelled development rather than a functioning consumer brand. The former Sands site was subsequently used for a temporary public art park.

Pinnacle Atlantic City was conceived as a new casino resort for the former Sands Atlantic City property in Atlantic City, New Jersey. Pinnacle Entertainment acquired the site from investor Carl Icahn and intended to replace the closed casino with a new development under the Pinnacle name. The project was part of the company's interest in expanding or repositioning its Atlantic City operations during a period when casino operators were evaluating major capital investments in the market. After acquiring the property, Pinnacle shut the Sands Atlantic City operation and provided casino employees with 60 days' notice. The closure generated a substantial liquidation and dismantling effort. Hotel supplies were sold in a liquidation sale, while more than $61 million in table chips were destroyed. Pinnacle transferred the former property's slot machines to other properties in its portfolio. During that process, $17,193.34 was discovered in the machines. Some of the money was used for taxes and for financing the dismantling of the people mover that had connected the Boardwalk to Sands Atlantic City along Brighton Park. Pinnacle's original schedule called for the new resort to open in late 2011 or early 2012. The plans did not progress to construction. On March 6, 2009, Pinnacle chairman and chief executive Dan Lee announced that the project had been suspended indefinitely and that the company could pursue a sale of the property. The suspension effectively halted the planned resort before it became an operating casino. The company subsequently made its withdrawal from Atlantic City more explicit. In July 2010, Pinnacle stated that it planned to sell its Atlantic City assets and abandon its casino projects in the city. Pinnacle had also considered a separate casino project at the Bader Field site, but that concept did not result in a formal announcement or completed development. In a March 2013 filing with the U.S. Securities and Exchange Commission, Pinnacle disclosed that it had entered a definitive agreement to sell its Atlantic City holdings to an undisclosed buyer for $30.6 million. The transaction was expected to close before the end of March. Since the proposed resort was never constructed or opened, Pinnacle Atlantic City is best understood as a cancelled casino-resort development rather than an active hospitality or gaming brand. The former Sands site was later used as a temporary public art park.

• 2013

  Atlantic City holdings sale disclosed

  [1]Pinnacle Atlantic Cityen.wikipedia.org

  Pinnacle disclosed an agreement to sell its Atlantic City holdings for $30.6 million to an undisclosed buyer.

• 2010

  Pinnacle abandons Atlantic City casino plans

  [1]Pinnacle Atlantic Cityen.wikipedia.org

  Pinnacle stated that it would sell its Atlantic City assets and abandon its casino projects in the city.

• 2009

  Atlantic City project suspended indefinitely

  [1]Pinnacle Atlantic Cityen.wikipedia.org

  Pinnacle chairman and chief executive Dan Lee announced that construction plans were suspended indefinitely and that the property might be sold.

• Pinnacle acquires the former Sands Atlantic City site

  [1]Pinnacle Atlantic Cityen.wikipedia.org

  Pinnacle Entertainment purchased the former Sands Atlantic City property from investor Carl Icahn and began planning a replacement casino resort.

• Sands Atlantic City closes

  [1]Pinnacle Atlantic Cityen.wikipedia.org

  Following the acquisition, Pinnacle closed the Sands operation, notified employees, liquidated hotel supplies, destroyed table chips, and moved slot machines to other properties.

A proposed replacement casino resort intended to redevelop the former Sands Atlantic City property, but never brought to completion.

• Casino resort

  Pinnacle Atlantic City casino resort

  The central proposed offering was a new casino resort intended for the former Sands Atlantic City site. The plan contemplated a replacement gaming and hospitality property, but the development was suspended before construction and never opened to the public.

• 2013

  Sell Atlantic City holdingsM&A

  Background

  Pinnacle had decided to exit its Atlantic City casino development activities and dispose of the associated property interests.

  Action taken

  The company entered a definitive agreement to sell its Atlantic City holdings to an undisclosed buyer for $30.6 million.

  Aftermath

  The transaction was expected to close by the end of March, ending Pinnacle's planned development of the site.

  Sale price. $30.6 million (Agreement disclosed in March 2013)

  Source

• 2010

  Abandon Atlantic City casino projectsStrategy

  Background

  After the indefinite suspension of the planned resort, Pinnacle reassessed its Atlantic City assets and development plans.

  Action taken

  Pinnacle stated that it would sell its Atlantic City assets and abandon its casino projects in the city.

  Aftermath

  The company proceeded toward a sale of its Atlantic City holdings rather than developing the proposed resort.

  Source

• 2009

  Suspend the Atlantic City resort projectStrategy

  Background

  Pinnacle had planned to develop a new resort on the former Sands Atlantic City site, with an opening targeted for late 2011 or early 2012.

  Action taken

  Chairman and chief executive Dan Lee announced that the project was suspended indefinitely and indicated that Pinnacle might sell the property.

  Aftermath

  The project did not proceed to construction, and Pinnacle later announced plans to leave the Atlantic City market.

  Source

1. 1Pinnacle Atlantic Cityen.wikipedia.org