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Deep discount lures buyer for Revel casino

By WTOP Staff

WAYNE PARRY
Associated Press

ATLANTIC CITY, N.J. (AP) — As one Atlantic City casino after another shut down and left thousands of workers jobless, Mayor Don Guardian insisted that the meltdown that claimed four of his city’s 12 casinos since January was actually the opportunity of a lifetime for savvy investors.

On Wednesday, someone finally agreed.

A Canadian asset management company won a bankruptcy court auction for the failed Revel casino hotel and announced plans to re-open it as a casino. Toronto-based Brookfield US Holdings LLC will pay $110 million to buy the 2-year-old casino that cost $2.4 billion to build, adding it to casinos it owns in Las Vegas and the Bahamas.

“These are the first people that realized what I’ve been saying about Atlantic City turning the corner and being a great investment due to the low prices,” Guardian told The Associated Press on Wednesday, hours after the successful bid was announced. “We’ve had a lot of bad news. This is certainly some good news.”

But this being Revel, for which nothing has ever come easily in its 2 ½-year history, the good news was tempered by concern about the would-be buyers’ financial situation in Las Vegas, where it owns the Hard Rock casino. Brookfield told securities regulators in August that it was unable to make an interest payment due that month, and was trying to work things out with its lenders, who could demand immediate repayment of nearly $1 billion in debt.

Brookfield spokesman Andrew Willis said the negotiations underway for the Hard Rock property will not affect its ability to complete the Revel purchase, which needs to be approved by a bankruptcy court judge on Oct. 7. It also owns the Atlantis Paradise Island casino in the Bahamas.

In an auction that began Tuesday morning and lasted until early Wednesday, an opposing bidder, Florida developer Glenn Straub, was selected as the backup bidder in case Brookfield did not close on the deal.

“Revel is a brand-new trophy asset on the beachfront, which we are acquiring at a substantial discount to replacement cost,” Willis said. “We are excited about owning the newest and highest quality asset in Atlantic City at such an attractive basis.”

He said the company is not ready to reveal specific business plans for Revel — or even whether they will still call it Revel — but confirmed the plan to operate it as a casino-hotel. He could not estimate when the property might re-open.

The would-be owners got an early vote of confidence from the casino workers’ union that bitterly fought the non-union Revel even before it opened. Bob McDevitt, president of Local 54 of the Unite-HERE union, said, “We look forward to sitting down with Brookfield and working out a positive relationship for the workers who were displaced by its closing.”

Revel closed on Sept. 2 after just over two years of operation, one of four Atlantic City casinos to go out of business this year, ending the jobs of 8,000 workers, so far. A fifth, the Trump Taj Mahal, may close on Nov. 13.

The attorney for Straub said the developer has not yet decided whether to challenge the auction’s outcome.

“We have to decide whether we’re going to fight it in court, whether to try to top (Brookfield’s bid), or something else,” Stuart Moskovitz said. “We have to come up with a plan before Tuesday.”

Straub, the Florida developer and polo aficionado, had spoken of re-opening Revel as a so-called “genius academy” at which highly intelligent people would tackle the world’s biggest problems. He said the property may or may not have had a casino.

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Wayne Parry can be reached at http://twitter.com/WayneParryAC

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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