In New Jersey, Morgan Stanley is seeking over $300 million in tax subsidies to bailout its investment in Revel Entertainment with a half-built $2.6 billion casino in Atlantic City. Revel Entertainment is asking for the bailout under the controversial 2009 NJ Economic Stimulus Act, which allows developers to get a rebate of 75% of property and sales taxes for up to 20 years. UNITE HERE is sponsoring a referendum to allow taxpayers to vote on the Morgan Stanley casino bailout.

“If the State of New Jersey wants to reduce Morgan Stanley’s taxes by 75%, then they should do the same for all taxpayers in New Jersey, not just the big banks,” said Seth Grossman, Director of Liberty and Prosperity. According to recent reports, the State of New Jersey is facing an $8.9 billion budget deficit for fiscal year 2010.”

According to Bob McDevitt, President of Unite Here Local 54: “Morgan Stanley received a $10 billion bailout from the federal government in 2008, now they want over $300 million from New Jersey taxpayers for their casino in Atlantic City.” In 2009 the bank reported profits of US$1.3 billion. Last July the Wall Street Journal reported that the developer needed an additional US$700 million to complete the casino property.

The twenty acre Revel Entertainment development site is on one of the largest properties in Atlantic City and is located at the northern end of the Boardwalk bordered by Oriental, New Jersey and Metropolitan avenues. The site features over 1,000 feet of beach frontage. The unfinished project originally included two hotel towers with approximately 1,900 rooms each, 150,000 square feet of casino space and 500,000 square feet of dining, retail and entertainment space including a 5,500 seat theater, an expansive health club and spa, meeting space and a one acre private beach. (E-02.04.10)

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