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View Full Version : Casino building jobs are plentiful: Atlantic City



donybrx
Feb 23, 2008, 2:34 AM
Posted on Fri, Feb. 22, 2008

http://www.philly.com/inquirer/local/20080222_Casino_building_jobs_are_plentiful.html


Casino building jobs are plentiful
Atlantic City is planning $20 billion in projects.
By Suzette Parmley

Inquirer Staff Writer

ATLANTIC CITY - Jeffrey Barton moved to the Shore from Redondo Beach, Calif., a year ago to cash in on an unprecedented building boom here.
"I'm here for one thing," said Barton, 44, who makes $31.97 an hour as a tile finisher. "The work."

There are plans over the next four years for $20 billion worth of casino, hotel, restaurant and retail construction and renovation projects, many of which began in 2003. And in a slowing national economy, all that development is attracting construction workers from around the country.

Since arriving from Southern California, Barton has had plenty to do. His skill was recently needed on the Water Club, the $400 million hotel tower going up at the Borgata. Since January, he has been remodeling hotel suites on the 51st floor of the Dennis Hotel at Bally's casino.

When the Bally's project winds down next month, Barton hopes to land either at the Trump Taj Mahal's new hotel tower or the $2.5 billion Revel casino-resort - one of four megacasinos proposed here.

"It's going to be nonstop for the next four or five years for sure," Barton said while recently grouting tiles as part of the Dennis Hotel's $20 million renovation that began last November.

Only Las Vegas, which currently has $35 billion worth of casino-related construction planned or under way, according to the Las Vegas Convention and Visitors Authority, rivals what is happening at the Shore.

Atlantic City's manic pace of development is to fortify itself against new slots competition from neighboring states.

"The building is about the fact that they [casino operators] are under a lot of pressure for the convenience gambler from Pennsylvania and Delaware," said David G. Schwartz, author of Roll the Bones: The History of Gambling, and director of the Center for Gaming Research at the University of Nevada at Las Vegas. "The only real direction they can go is to have more destination gamblers, which means more hotel rooms and nongaming attractions."

And with the credit crunch and subprime mess drying up commercial and residential work in other states - including Illinois, Michigan and Florida - imported workers say Atlantic City is on everyone's radar.

"This is one of the major spots right now," said Bill Moore, 44, who moved to the Shore from Chicago last Thanksgiving to install giant marble and granite slabs on the Borgata's Water Club. When completed, the hotel tower will feature 800 rooms, a giant spa, five swimming pools, luxury lofts, upscale retail shops - and no place to gamble.

The construction has another effect. Real estate experts estimate Atlantic City will bring in 25,000 to 30,000 new casino workers over the next seven years, who will need housing.

Scott DiStefano, a sales associate with Weichert Realtor-Brigantine Realty, said he had received a half dozen such calls for rentals in the last two months.

He has seen a steady flow of out-of-state workers, such as Barton and Moore, relocating to Brigantine, which is experiencing a steady increase in property values because of its proximity to the casinos.

Mary Lou Ferry, owner of Farley & Ferry, which has three offices along the Shore, said she had an investor last month buy three condos in Ventnor to prepare as rentals for employees and contractors who will be working on the Revel casino.

"More investors are buying along the outskirts of Atlantic City, like Ventnor, to prepare for all the new workers," she said. "Rental activity has spiked through the roof."

But it's not just frontline workers who are calling real estate agents. Top managers and senior-level staff, many from Louisiana, Mississippi and Florida, are also moving to the Shore.

"Florida is kind of dead right now. Completely dead because of the real estate bust and no more condominiums being built," said Dario Borge, a superintendent on the Revel casino from Miami.

Borge, 62, began renting in Brigantine eight weeks ago. He flies home to Miami on weekends and returns to Brigantine on Sunday nights.

Borge's company, Berkel & Co. Contractors Inc., a foundation firm based in Kansas City, Mo., plans to bid on the foundation work for the new $5 billion MGM Grand Casino in the city's Marina District.

If Berkel wins that job, Borge said he would be in Atlantic City through at least 2012.

The competition for workers like Borge, according to casino operators and union leaders, is fierce, and they have had to cast their net further out. Three hotel towers at Harrah's Marina, the Borgata, and the Taj Mahal are going up concurrently. Harrah's Waterfront Tower is scheduled to debut March 6, with the other two in the summer.

"When you have three big projects happening at the same time, it means the number of tradespeople coming from outside the jurisdiction is greater," said Tom Ballance, senior vice president of development for Boyd Gaming Corp., which co-owns the Borgata.

Ed Bardes, from Penndel in Bucks County, was a pump operator on the Revel project for three months before getting laid off two weeks ago when that work was complete. He is currently on a union call list for his next job - most likely the site for the $1.5 billion Pinnacle casino, where the former Sands Hotel Casino used to sit, or the MGM parcel in the Marina - both needing to be cleared by heavy equipment.

"There's work for the next 10 years easily," said Bardes, 18, a recent high school graduate who entered an apprenticeship program with Local 825 - the operators' union in New Jersey - because of the demand.

More than seven dozen giant cranes, tractors, excavators, and other heavy machinery are at work seven days a week setting foundation for two hotel towers, a podium and garage for the Revel casino next to Showboat on the Boardwalk.

"What was once a barren, unproductive property will be turned into a fantastic facility," boasted Bob Anderson, executive vice president of development for Revel Entertainment Group L.L.C., which is behind the huge casino scheduled to open in the summer of 2010.

Construction of the gambling palace will require upward of 3,000 workers that run the gamut from electricians to tile setters, carpenters and more.

Although still more than a year away from breaking ground on the Pinnacle casino, its chief executive officer, Kim Townsend, already has made contact with the unions "to make sure they understand the scope of the project," she said. She estimated up to 2,000 workers will be needed for the Pinnacle project.

The $1 billion casino proposed for the southern end of the Boardwalk by developer Curtis Bashaw and former Caesars Entertainment Inc. chief executive Wallace Barr will also need thousands of workers.

Union leaders have set up hotlines for Atlantic City nationally through a job-referral system. Local union halls in states post the jobs and what they pay.

That is how Bob Voss, 53, a tile mechanic, learned about all the openings in Atlantic City while working in New York. Voss and his crew arrived in November 2006 to remodel the casino floor at Caesars. He said they had not stopped working since.

"They've embedded us here," he said. "We've got it real good down here."

Crawford
Feb 23, 2008, 5:45 AM
In 10 years, Vegas will likely have two rough equals (or at least strong competitors): Macao and Atlantic City.

Vegas is currently the king by a longshot, but both Macao and AC have better locations in more populous regions, and less local competition, so I think it will even out relatively quickly.

Happily, I can't stand gambling. I'll leave it to everyone else to blow their money on these scams. :yes:

JackStraw
Feb 23, 2008, 6:01 AM
What A Great Economy!

antinimby
Feb 23, 2008, 6:02 AM
Do these "nomadic" workers stay or do they just pick up once again and leave when there's no work for them?

Pinion
Feb 23, 2008, 9:15 AM
In 10 years, Vegas will likely have two rough equals (or at least strong competitors): Macao and Atlantic City.

Vegas is currently the king by a longshot, but both Macao and AC have better locations in more populous regions, and less local competition, so I think it will even out relatively quickly.

Happily, I can't stand gambling. I'll leave it to everyone else to blow their money on these scams. :yes:


Pretty sure Macao is already making more money than Vegas.

I just took a pretty huge pay cut to stop working in a casino. Awful, awful place. Now I work in a university and can barely scrape by but I feel so much better to not be contributing to that destructive industry.

lfc4life
Feb 23, 2008, 7:36 PM
Pretty sure Macao is already making more money than Vegas.



macau only beat out the las vegas strip, clark county gaming revenue was roughly $10-11 billion in 2006 http://www.chinapost.com.tw/news/archives/business/2007124/100845.htm

if you look at the big picture, who are all the guys opening these new casinos in atlantic city and macau??? they are nearly all vegas companies, wynn, adelson (sands), mgm, boyd, harrahs etc. where do you think most of these profits will end up in the end??

steve wynn who owns hotels in both vegas and macau knows better than anyone

Macau's gaming win figure was "artificially inflated" because the region counts the revenue from a redeemable chip purchase program used by high-rolling Chinese gamblers. Those promotional costs could account for up to 25 percent of Macau's gaming revenue, he said

gambling has been legal in atlantic city for over 30 years, in that time vegas has gone grown enormously and not just in terms of gaming. people are not going to vegas just to gamble, that is clearly evident in terms of revenue on the strip, 40% of total Strip revenue was from gaming with roughly 15% or $2.2 billion coming from food; in comparison atlantic city gaming revenue is 79% of total, with food revenue only a quarter of the vegas strip about $600 million

donybrx
Feb 23, 2008, 8:50 PM
...but since this thread is about AC......and not a versus thread....

Austinlee
Feb 23, 2008, 9:38 PM
$20 billion in projects in Atlantic City? Dannnng. That's a lot.

lfc4life
Feb 23, 2008, 11:35 PM
investment was vital in atlantic city to stop it dying a slow death, similiar investment is probably needed in regards fremont street in las vegas (that area has been dying a very slow death since the birth of the mega resort on the strip, although the Golden Nugget is still doing great business)

Crawford
Feb 24, 2008, 1:44 AM
investment was vital in atlantic city to stop it dying a slow death, similiar investment is probably needed in regards fremont street in las vegas (that area has been dying a very slow death since the birth of the mega resort on the strip, although the Golden Nugget is still doing great business)

AC has nothing to do with Fremont Street. Why not compare the Strip to Deadwood while you're at it?

AC in its current state is already a very strong second to the Strip in overall gaming revenues, despite having only one legitimate modern casino and virtually no non-gambling attractions. Only one casino has been built or gut renovated in decades, yet it still stacks up very well, because you would have a very hard time finding a better location for a casino. There are not too many places on earth with more people and money within a short drive/bus ride/train ride.

The Strip has dozens of modern casinos and tons of other attractions. Once the six casinos under development are opened, AC will be a strong competitor and cut into the Strip market.

PhillyRising
Feb 24, 2008, 4:08 AM
^It certainly helps that Atlantic City has a pretty nice beach and is on the ocean. With destination resorts, AC should be hopping mad from May to September...when Las Vegas is ungodly hot. Who want to go get fried in the desert in Nevada when you can take in the ocean breeze on the beach in New Jersey?

The one big thing they need to work on down there is to expand airline service at the AC airport. That should be one of the Philly region's secondary airports to take pressure off of PHL. It's would be hard to get tourists from outside the Northeast to go to AC without decent airline service. Flying into PHL and then driving the 60 miles to AC isn't the best setup.

I'm going to AC on Monday for a conference for work.

miketoronto
Feb 24, 2008, 5:02 AM
I use to spend my summers at my grandparents house in the Metro Atlantic City area, and all I can say is that Atlantic City needs help off the boardwalk strip. The Casinos have helped Atlantic City to some extent, but the rest of the city looks like a bomb went off.

Casinos are not the magic fix to the problems in Atlantic City. I never did understand how a small city of 50,000 has such massive urban decay, while its neighbouring shore cities are booming, like Ocean City.

I think it will be a while before AC becomes like The Strip. AC may have the casinos, but they do not have the same amount of big shows, attractions, etc.

Crawford
Feb 24, 2008, 5:12 AM
Mike, casinos don't do much to make crappy cities nice. They are valuable for jobs and govt. revenue.

Have you seen Vegas city proper? The Strip is technically not Vegas.

How about Tunica, MS? What about much of inner-city Detroit? How about Gary, IN, East St. Louis, or your typical Indian reservation?

These are America's casino centers. The casinos do not do much to reduce concentrated poverty and dysfunction.

lfc4life
Feb 25, 2008, 11:18 PM
AC has nothing to do with Fremont Street. Why not compare the Strip to Deadwood while you're at it?

AC in its current state is already a very strong second to the Strip in overall gaming revenues, despite having only one legitimate modern casino and virtually no non-gambling attractions. Only one casino has been built or gut renovated in decades, yet it still stacks up very well, because you would have a very hard time finding a better location for a casino. There are not too many places on earth with more people and money within a short drive/bus ride/train ride.

The Strip has dozens of modern casinos and tons of other attractions. Once the six casinos under development are opened, AC will be a strong competitor and cut into the Strip market.

when did i compare AC and fremont street, mentioning two places in the same statement is not comparing :)

actually AC has two very modern casinos and many of the rest have casinos as big/bigger than many on the strip, taj mahal with a 160,000 square foot casino (far bigger than most on the strip) was opened AFTER the likes of mirage (1989), Excalibur (1990), Circus Circus (1968), Harrahs (1973), Ballys (1973), Sahara, Tropicana, Riveria, Flamingo (1940s), Imperial Palace (1979)

places like borgata (165,000 sq foot), Tropicana AC (150,000 sq foot), Caesars AC (125,000 sq foot), Harrahs AC (130,000 sq foot), taj mahal (160,000 sq foot) dwarf alot of Strip properties in terms of casino size, in fact only MGM Grand (175,000 sq foot) and Mandalay Bay (135,000 sq foot) can compete in terms of casino size, the likes of Paris (80,000 sq feet), NYNY (80,000 sq feet) and Flamingo (75,000 sq feet) are lagging miles behind their AC rivals.

when borgata opened it became very popular very quickly, but it didn't really bring a huge wave of new gamblers to atlantic city as was expected, it actually took some patrons from other AC resorts, revenues in places like AC Hilton, sands and all the trump properties were all well down in 2004 in comparison to 2002

i am not sure what these six new casinos you mention in AC are, by my reckoning Harrah's are building a new tower as is borgata and Taj Mahal and MGM have proposed a huge project (which might not happen with the current credit crunch), revel also proposed a major resort (but that is already a year behind schedule so it looks a non-starter), so really that only adds up to two new resorts and three extensions.

AC is not looking to compete or rival vegas, the big worry on the horizon for AC is what happens if they lose their day trippers from places like NY and philly, what then?? they have been offering $20-$30 in free money to patrons who bus it from the likes of NY for years (thats the reason why i was tempted to go there twice :cool:) but if philly and NY were to open their own mega-resorts would these people be so tempted to take the bus down to AC if they can gamble on their doorstep??? again we don't know, competition helped vegas, it could also help AC, but it could also weaken it.



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