TRENTON – The Economic Development Authority on Thursday approved a 20-year, $5 million tax reimbursement agreement for the development group creating the Margaritaville restaurant at the Resorts Casino in Atlantic City.
The total cost of the project after deducting the state Economic Redevelopment and Growth Grant, is $40.3 million.
The restaurant chain was started by singer Jimmy Buffet and has 16 location. It serves as one of the latest draws of non-gaming amenities to be brought to the Jersey town, as a way to create other reliable sources besides gaming for Atlantic City to be successful in the long run.
EDA cited the importance of Margaritaville to spruce up offerings on the Boardwalk and to prevent Resorts from losing more money.
“The project is needed to help stem the continuing decline in visitors and revenue that have plagued the Atlantic City gaming market since its peak in 2006,” according to EDA documents.
Resorts lost a total of $50 million in 2009 and 2010, $17 million in 2011 and $6.7 million so far this year, the EDA said.
Margaritaville is expected to be completed by May 30, 2013 and will produce 171 new full-time jobs and 125 part-time jobs. Average salaries for employees will be $23,245, according to the proposal.
It is expected to produce $2.2 million in annual local and state taxes.