Proposal for the Sahara Boardwalk Hotel and Casino, Atlantic City, documents supporting petition for New Jersey Gaming License, 1980

BEFORE THE NEW JERSEY CAStNO CONTROL COMM!SS!ON In the Matter of SAHARA BOARDWALK Casino Control Commission CORPORATION (Sahara Boardwalk Casino Hotel) FILE NO. 011B (11-00-B) Casino License Applicant PETITION FOR A STATEMENT OF COMPLIANCE PURSUANT TO N.J.S.A. 5:12-46, AND 5:12-81a. AND b. AND FOR A RESERVATION OF A CASINO LICENSE PURSUANT TO N.J.S.A. 5:12-81c. TABLE OF CONTENTS PAGE /. 4PPL/CAN7" A. NAME OF CASINO LICENSE APPLICANT ... B. NAME AND ADDRESS OF PROJECT C. PROCEDURAL HISTORY: 1. Casino License Application 2. Temporary Casino Permit Application . .. 3. Operation Certificate Application 4. Casino Hotel Alcoholic Beverage License Applications 5. Prior Petitions for Declaratory Rulings or Statements of Compliance 1 6. Casino License Application Fees 2 7. Petition Fees 2 8. Petition for Commitment to Reserve a Casino License 2 D. COMPONENTS OF THE CASINO LICENSE APPLICANT: 1. Owner of Land 2 2. Owner of Approved Hotel 2 3. Any Other Person with Either a Landlord or Tenant Relationship to the Land or Approved Hotel 2 4. Name of Company Intended to Operate the Approved Hotel and Its Principal Operating Executive 2 5. Name of Company Intended to Manage the Casino and Its Principal Operating Executive 3 6. Identities of any Holding, Intermediary, or Subsidiary Companies Relative to Project 3 7. Identity of Persons Financing the Project 3 PAGE E. PERSONS ASSOCIATED WITH CASINO LICENSE APPLICATION: 1. Project Chief Executive 3 2. Attorneys 3 3. Architect 3 4. General Contractor 3 5. Environmental Consultant 4 6. Interior Designer 4 7. Accounting Firm 4 8. Affirmative Action Officer(s) 4 / / . PKOJEC7" DESCn/PTVON A. "APPROVED HOTEL" SITE 5 1. Acreage, Street and Boardwalk Frontage 5 2. "Out Parcels" 5 3. Ownership Status of Project Land 5 4. Identification of Prior Land Owners and Description of Terms of Acquisition 5 5. Identification of Other Parties With Interests In the Project Land 8 6 Phasing 8 7. Traffic 8 (a) Private Vehicular Transportation 8 (b) Mass Transportation 11 8 Parking 12 9. Existing Buildings: (a) Description of Demolition of Existing Buildings and Relocation Efforts for Displaced Tenants 14 PAGE (b) Description of Any Existing Structures to be Retained 14 (c) Description of Any Planned Reconstruction 14 10. Description of Litigation Relating to the Site 15 11. Land Use and Zoning Designations 15 12. Riparian Rights, Street Vacations, Right-of-Way, etc 15 13. Title Insurance 16 14. Other Relevant Facts 16 B. "APPROVED HOTEL" 16 1. Exterior 16 2. Structural and H.V.A.C. Systems 18 3. Interiors: (a) Sleeping Units 19 (b) Indoor Dining, Entertainment and Sports Space 20 (c) Indoor Meeting and Exhibition Space 23 (d) Non-Qualifying Public Space 23 (e) Kitchen Support Facilities 24 (f) Non-Qualifying "Back of House" Space 24 4. Casino Hotel Alcoholic Beverage Licenses 26 5. "Personality" of the Convention Hotel Complex 26 ii PAGE C. CASINO 1. Interior 27 2. Access 28 3. Miscellaneous Casino Information: 28 (a) Drop Box and Slot Bucket Routes... 28 (b) Routes From Count Rooms to Cage, to Depositories 28 (c) Hard Count Room 28 (d) Soft Count Room 28 (e) Cashier's Cage 28 (f) "Eye-ln-The-Sky" Coverage 29 (g) Security 29 (h) Offices 29 (i) Barrier-Free Design 29 (j) Casino Ceiling and Floor 29 (k) Slot Machine Repair Room 29 (I) Gaming Equipment Storage Room. .. 29 D. CONSTRUCTION PROGRAM 29 / / / . CEP7/F/FD Sr477S77CAL S U M A M K r A. SITE SIZE 30 B. APPROVED HOTEL QUALIFYING SPACE. .. 30 1. Guest Rooms 30 2. Qualifying Space Summarized by Category 31 3. Qualifying Space Summarized by Floor. 31 4. Non-Qualifying Space 32 C. CASINO STATISTICS 32 1. Size 32 2. Gaming Tables 32 PAGE 3. Gaming Table Pits 33 4. Slot Machines 33 5. Aisle Widths 33 6. Slot Change Booths 33 7. Cashier's Cage 34 8. Hard Count Room 34 9. Soft Count Room 34 10. Casino Service Bars 34 11. Public Restrooms 34 12. Commission Inspectors' Areas 34 13. Division of Gaming Enforcement Offices 34 14. Closed Circuit Television System 34 15. Casino Public Gaming Area 34 D. CERTIFICATION 34 / y . PROJECT* G/MPH/CS A. RENDERINGS 1. EXTERIORS (i) Exterior Rendering From Boardwalk 35 2. INTERIORS (i) Interior Rendering - Hotel Lobby/Front desk 36 (ii) Interior Rendering - Casino Main Level 37 (iii) Interior Rendering - Casino Upper Level 38 (iv) Interior Rendering - Coffee Shop Restaurant 39 (v) Interior Rendering - House of Lords Restaurant 40 (vi) Interior Rendering - Convention Facilities Main Banquet Room 41 PAGE (vii) Interior Rendering - Typical Room 42 (viii) Interior Rendering - Typical Suite ... 43 B. PHOTOGRAPHS 1. AERIAL PHOTOGRAPH OF SITE AND SURROUNDING AREA - PRIOR TO DEMOLITION OF PRESIDENT TOWERS 44 2. PHOTOGRAPH OF ANY EXISTING STRUCTURE (As indicated in Section 11, A. 9 (b), page 14, there are no longer any buildings existing on the site.) 3. PHOTOGRAPH OF ANY EXISTING MODEL (The Developer has determined that a facsimile model of the project will not be necessary, consequently no photographs of a model are available.) C. FINISH MATERIALS (See Interior Renderings, Section IV, A. 2, pages 36-43, supra, and description under, Section II B, pages 19-24 supra.) D. ELEVATION DRAWINGS 1. South Elevation - From Boardwalk 45 2. West Elevation - From Albany Avenue... 46 3. North Elevation - From Pacific Avenue... 47 4. East Elevation - From Hartford Avenue 48 E. SECTION DRAWINGS 1. South to North Section - Looking From Hartford Avenue 49 2. East to West Section - Looking From Boardwalk 50 F. SITE PLAN 1. Site Plan 51 iii PAGE 2. Site Survey - Showing Formerly Existing Buildings 52 G. APPROVED HOTEL FLOOR PLANS (i) Parking Level Plan 53 (ii) First Floor Plan 54 (iii) First Floor Mezzanine Plan 55 (iv) Second Floor Plan 56 (v) Third Floor Plan 57 (vi) Fourth Floor Plan 58 (vii) Fifth Floor Plan 59 (vm) Sixth Floor Plan 60 (ix) Hotel Tower Plans 61 (x) Typical Room and Elevator Core Plans 62 H. CASINO FLOOR PLANS — (See Pages 54 and 56) I LANDSCAPE/ROOFSCAPE PLAN — (See Pages 35 and 60) J. OVERALL PARKING PLAN — (See Page 53) K. TRAFFIC CIRCULATION PLAN — (See Pages 10 and 51) L. APPROVED HOTEL EXTERIOR SIGNAGE PLAN — (See Pages 35, 45, 46, 47, 48) V. OTHER 4GENCV A P P K O M L S A. CITY OF ATLANTIC CITY: 1. Planning Board 63 2 Zoning Board of Adjustment 63 3 Building Inspector 63 4. Department of Police — Traffic Engineer 63 PAGE 5 Fire Department 63 6 Department of Public Works — Municipal Engineer 63 B. ATLANTIC CITY SEWERAGE COMPANY 63 C. C.A.F.R.A. PERMIT APPLICATION STATUS 64 D B O C A CODE COMPLIANCE 64 E. BARRIER-FREE DESIGN REQUIREMENTS. .. 65 F. FEDERAL EMERGENCY MANAGEMENT AGENCY 65 G. FEDERAL AVIATION ADMINISTRATION 65 W. E/NANCE A. PROJECT BUDGET (Estimated Costs) 66 1. Site Acquisition 66 2. Direct Construction Costs 66 3. Casino Furniture, Fixtures and Equipment 66 4 Non-Casino Furniture, Fixtures and Equipment 66 5. All Other Project Development and Pre- Opening Expenses 66 B FINANCING PLAN 66 C. PROJECTED OPERATING REVENUES AND EXPENSES 66 PAGE W/. /MPAC7" S7UD/ES A. MARKET IMPACT 67 1. Current Patron Demand for Casino Gaming in Atlantic City 67 (a) Annual Number of Visitors to Atlantic City 67 (b) Average Length of Visit 67 (c) Effect of the Project on Annual Number of Visitors 67 (d) Anticipated Average Gaming Expenditure per Patron 67 2. Present Unfilled Patron Demand Due to Insufficient Number or Size of Casinos... 68 3. Patron Demand Yearly Through 1984, Assuming No Neighboring State Authorizes Casino Gaming 68 4 Impact of Neighboring States' Authorization of Casino Gaming on Patron Demand During Period Through 1984 68 5. Maximum Number of Casino Patrons the Project Could Serve During a Day and Estimated Actual Number it Would Serve 68 6 Number of Expected Junket Patrons by Geographic Area and Their Percentage Compared to Non-Junket Patrons 68 7. Impact of Project on Patrons and Revenues of Existing Casinos 68 8 Estimated Annual Demand for Steeping Units Through 1984, to Serve Expected Convention Demands and Number of First-Class Units to be Available 68 iv PAGE B. ENVIRONMENTAL IMPACT (NATURAL RESOURCES): 1. Inventory of Existing Environmental Conditions at Project Site and in Surrounding Region 69 (a) Existing Regional Conditions 69 Atlantic City Outline (General Profile) 69 1. Water Availability 71 2. Water Quality Analysis 71 3. Atlantic City Climate 71 4. Air Quality 72 5. Atlantic City Land Use; Existing Zoning 72 6. Atlantic City Real Property Assessed Values, 1973-78 72 7. Atlantic City Population and Projections 73 8. Atlantic County Population and Projections 73 9. Proximity of Other Municipalities in Atlantic County 74 10. Atlantic County Municipal Profile 75 11. Age of Housing Stock in the Atlantic County Area 76 12. Changes in the Atlantic City Housing Stock, 1970-77 76 13. Distribution and Composition of Housing Production in Atlantic City, 1967-1976 76 14. Average Travel Time in Minutes from Atlantic City to Various Areas in Atlantic County 77 PAGE 15. Projected Demand for Housing 77 16. Average Annual Residential Building Authorizations, Atlantic County, 1967-71, 1972-76 78 17. Distribution of Employment in the Atlantic City Labor Market Area, 1960-1974 79 18. Projected Employment Distribution in Atlantic County, 1982-1990 79 19. Projected Employment to be Generated by Casino Hotel Development, 1978-1990 79 20. Atlantic County Households by Income Group 79 21. Approximate Distances of Major Population Centers from Atlantic City 80 22. Metropolitan Populations Within Weekend Driving Distances (300 Miles) 80 23. Atlantic City Parking Inventory 80 24. Projected Additional Parking Requirements 81 25. Highway Access 81 26. Existing and Projected Vehicular Trip Origins 82 27. Projected 1990 Trips to and from Atlantic City by Mode (Average August Day) 83 28. Tax/Fee Structure 83 29. Federal and State Open Space in Atlantic County 84 30. Present Annual Energy Supply 84 PAGE 31. Sunshine and Isolation Mean Values 85 32. Projected Impact of Casino/Hotels on the Local Atlantic City Economy 85 33. Historic Trends in the Supply of First Class Hotel Rooms. .. 85 34. Projected Trends in the Supply of Hotel Rooms, 1978- 1990 86 35. Historic and Projected Changes in Tourism Trends... 86 36. Seasonal Convention/Tourism Pattern 86 (b) General Site Location 87 (c) Existing Site Conditions 88 (d) Demographic, Social and Economic Conditions 91 (e) Hydrology 95 (f) Water Supply 99 (g) Geology and Soils 100 (h) Vegetation 100 (i) Fish, Shellfish and Wildlife 100 (j) Air Quality 101 (k) Historical and Cultural Resources 103 (I) Aesthetics 103 2. Construction Plan 104 3. Unavoidable Adverse Environmental Impacts 106 4. Alternatives 109 C. ENVIRONMENTAL IMPACT (ECONOMIC, SOCIAL, DEMOGRAPHIC AND COMPETITIVE CONDITIONS): 1. Employment, Employee Housing, and Affirmative Action 111 v PAGE (a) Estimate of Employment to be Generated: (i) Construction Phase 111 (ii) Operations Phase 112 (iii) Secondary Employment 118 (b) Estimate, by Job Category, of Employee Demand to be Filled From Greater Atlantic City Area 118 (c) Impacts on Housing 118 (1) Household Projections 119 (2) Housing Characteristics 119 (i) Housing Types 119 (ii) Structural and Plumbing Conditions 121 (iii) Seasonal Units 121 (iv) Low and Moderate Income Housing 121 (v) Vacancy Rates 122 (vi) Housing Tenure 122 Housing Summary 122 PAGE (3) Future Demand for Housing 125 (i) Housing Demand in Primary Market Areas 125 (ii) Housing Demand in Secondary Market Areas 126 (d) Affirmative Action Goals 126 2. Land Use Impacts 127 (a) Land Use History 127 (b) Future Land Use 127 3. Impact on Local Government Services... 128 (a) Sewerage System 128 (b) Medical Services 129 (c) Telephone 129 (d) Welfare 129 (e) Education 129 (f) Police 130 (g) Fire Protection 130 Bibliography 130 PAGE W//. LEGAL /SSUES A. CASINO ROOM SIZE AND DOMINANCE 136 B. LIMITED NUMBER OF CASINO LICENSES... 137 1 Analysis Justifying the Reservation of a Casino License for the Project 137 2.(a) Developer's Opinion as to the Appropriate Number of Casino Licenses to be Issued 137 (b) Developer's Opinion as to What Ought to be the Character and Personality of the Boardwalk 139 3 Deficiency Factors Retarding the Pace of Casino Development 140 4 Recommendation as to the Total Number of Casino Licenses to be Issued 140 C. OTHER SPECIAL LEGAL ISSUES 140 vi /. 4PPL/6AN7" A. NAME OF CAS!NO LiCENSE APPLiCANT. This Petition is filed on behalf of the Sahara Boardwalk Corporation, a New Jersey Corporation, whose Certificate of Incorporation was filed with the Secretary of State of New Jersey on January 17, 1980, and whose Business Entity Disclosure Form (Corporate) was filed with the New Jersey Casino Control Commission on February 15, 1980. All of the Common Stock of this Corporation, is held by the Del E. Webb Corporation. NOTE: The New Jersey Casino Control Commission may sometimes hereinafter be referred to as the "Commission," the Sahara Boardwalk Corporation may sometimes hereinafter be referred to as the "Petitioner," and the proposed Sahara Boardwalk Casino Hotel may hereinafter sometimes be referred to as the "Project." B. NAME AND ADDRESS OF PROJECT. The operating name of the proposed casino hotel complex and its address are as follows: SAHARA BOARDWALK CASINO HOTEL 3625 Boardwalk Atlantic City, New Jersey 08401 Its current mailing address is: c / o Del Webb Hotels 3029 Pacific Avenue P. O. Box 448 Atlantic City, N. J. 08401 C. PROCEDURAL HiSTORY. 1. Casino License Appiication. A Business Entity Disclosure Form (Corporate) was filed with the Casino Control Commission on February 15, 1980. Casino Control Commission Application Number 011B (11-00-B) has been assigned. A Casino Hotel Facility Statement will be filed with the Casino Control Commission at such time as the issues presented in this Petition are satisfactorily resolved by action of the Commission. Personal History Disclosure Forms (No. One) have been filed by each Director and each Officer of Sahara Boardwalk Corporation. Additional Personal History Disclosure Forms will be filed at such time as Casino Key Employees, Casino Employees, and Casino Hotel Employees are identified and hired. Other than an Application for an Operation Certificate pursuant to N.J.S.A. 5:12-35 and 5:12-96, and Applications for Casino Hotel Alcoholic Beverage Licenses, pursuant to N.J.S.A. 5:12-103, additional forms to be filed with the Commission in order to complete the Casino License Application have not yet been identified and are not presently known to the Petitioner. 2. Temporary Casino Permit Appiication. The Petitioner has not filed an Application for a Temporary Casino Permit pursuant to Section 21 of P L. 1978, c. 7 (March 17, 1978). 3. Operation Certificate Appiication. The Petitioner has not yet filed an Application for an Operation Certificate pursuant to N.J.S.A. 5:12-35 and 5:12-96. 4. Casino Hotei Aicohoiic Beverage License Appiications. The Petitioner has not yet filed any Applications for Alcoholic Beverage Licenses at the proposed Casino Hotel Project pursuant to N.J.S.A. 5:12-103. 5. Prior Petitions For Deciaratory Ruiings Or Statements Of Compiiance. The Petitioner has not filed any previous Petitions for Declaratory Rulings or Statements of Compliance. 1 6. Casino License Appiication Fees. On April 27, 1979, two checks, drawn on the Det E. Webb Corporation, (Parent of Petitioner) each in the amount of $100,000, and each payable to the New Jersey Casino Control Commission, were delivered on behalf of the Del E. Webb Corporation, and its wholly owned subsidiary, Del E. Webb New Jersey, Inc. It is requested that the $100,000 non-refundable deposit delivered on behalf of the Del E. Webb Corporation, be transferred or reassigned for the benefit of the Casino License Application of Sahara Boardwalk Corporation, the Petitioner herein, for use at the proposed Sahara Boardwalk Casino Hotel. 7. Petition Fees. No Petition Fees have been paid by Petitioner. 8. Petition For Commitment To Reserve A Casino License For A Specified Period. By this instant Petition, and incorporated herein by reference, Petitioner hereby requests that the Casino Control Commission accompany the issuance of a Statement of Compliance for the Sahara Boardwalk Casino Hotel project, with a written commitment that a Casino License be reserved for a period not to exceed 30 months or within such additional time period as the Commission, upon a showing of good cause therefor, establishes pursuant to N.J.S.A. 5:12-81c, as amended. D. COMPONENTS OF THE CASiNO LiCENSE APPLiCANT. 1. Owner Of Land. With the exception of a parcel of land consisting of approximately 14,760 square feet which is held under a ground lease from a Mr. Saul R. Bogatin, the fee simple title to the remaining 83,700 square feet of the Project site is owned by the Del E. Webb Corporation, it is contemplated that the title to this land will ultimately be deeded to 2 Petitioner; Sahara Boardwalk Corporation, as a capital contribution from its Parent. 2. Owner Of Approved Hote!. It is presently contemplated that the owner of the Approved Hotel will be the Petitioner, Sahara Boardwalk Corporation. 3. Any Other Person With Either A Landiord Or Tenant Reiationship To The Land Or Approved Hote). Other than Mr. Sau) R. Bogatin of 103 Hartford Street, Atlantic City, New Jersey 08401 (more fulty identified in response to Section H A. 5., on page 8, hereof), there are no other persons with present or contemplated future landlord or tenant relationships to the land or the approved hotel. It is contemplated that the proposed Casino Hotel Project, once constructed, wilt lease commercial mercantile shop space, however, the identities of any such shop tenants are not presently determinable. 4. Company intended To Operate The Approved Hote! And its intended Principa! Operating Executive. The Petitioner, Sahara Boardwatk Corporation, a wholly owned subsidiary of the Del E Webb Corporation, is the intended operator of the approved hotel. Although the Certificate of Incorporation of the Petitioner was only filed on January 17, 1980, and consequently it has no operating experience, it is a member of the Dei Webb Hotei Group of companies and this Group collectively constitutes one of the largest hotel-casino operators in the State of Nevada in terms of numbers of licenses, guest rooms, and employees. Mr. Dietrich Mayring, the intended Principal Operating Executive, is a 16-year employee of the Del Webb Hotel Group with 25 years of experience in all phases of the hospitality/gaming industry. His most recent assignment, prior to his relocation to New Jersey, was as General Manager of the Sahara Tahoe Hote) Casino at Stateline, Nevada, for four years. 5. Company intended To Manage The Casino And !ts intended Principa! Operating Executive. As in paragraph 4. supra, it is intended that the Sahara Boardwalk Corporation wit! manage the Casino, and Mr. Dietrich Mayring will be its Principal Operating Executive. Reference is made to Item I. D. 4., supra, for further details. 6. Any Hoiding, intermediary Or Subsidiary Company As To Any Of The Above Five Categories. The contemplated owner/operator of the approved hotel and the casino premises is the Petitioner, Sahara Boardwalk Corporation, a wholly owned subsidiary of the Del E Webb Corporation, which is a publicly traded corporation, whose shares of Common Stock are traded on both the New York and the Pacific Stock Exchanges. 7. Persons Financing The Project. Details as to the financing of the Sahara Boardwalk Casino Hotel may be finalized during 1980. At such time as the full details as to the various components and sources of such financing become available, they will be provided to the New Jersey Casino Control Commission. This information will be presented in the tabular form requested with indications of the amounts of capital committed by each identified source, the date and nature of the commitment, and whether the financing is to be secured or unsecured. E. PERSONS ASSOCiATED WiTH CASiNO LiCENSE APPLiCATiON. 1. Project Chief Executive. DIETRICH MAYRING Executive Vice President SAHARA BOARDWALK CORPORATION 3029 Pacific Avenue P. O. Box 448 Atlantic City, N. J. 08401 Phone: (609) 347-2111 2. Attorneys. A New Jersey Attorney of Record with the Casino Control Commission has not yet been selected. The Commission will be promptly advised when such determination has been made. The Attorneys primarily responsible for the preparation and filing of the Casino License Application and this Petition are Fred G. Pace, General Counsel, and Richard J. Waters, Assistant General Counsel of the: DEL E. WEBB CORPORATION Suite 1700 3800 North Central Avenue Phoenix, Arizona 85012 Phone: (602) 264-8011 3. Architect. MARTIN STERN, JR. AIA-Architect (a Professional Association) 9348 Santa Monica Boulevard Beverly Hills, California 90210 Phone: (213) 273-0215 AND (New Jersey Address) 100 Hamilton Plaza Paterson, New Jersey 07505 Phone: (201) 278-0500 Brian W. Webb — Project Architect 4. Genera) Contractor. DEL E. WEBB CORPORATION 3029 Pacific Avenue P. O. Box 749 Atlantic City, New Jersey 08404 Phone: (609) 347-2111 Thomas Sorenson — Chief of Operations - New Jersey 3 f f P R O J E C T D E S C R F P y f O N It is anticipated that by late May 1980, architectural and engineering drawings will have been sufficiently finalized to permit the solicitation of bids from the various subcontracting trades. At such time as bids for the Project are accepted, and subcontracts awarded, the names, addresses, and categories of work of the ten primary subcontractors selected, will be provided to the New Jersey Casino Control Commission. 5. Environments! Consuitant. COASTAL PLAINS, !NC., ENVIRONMENTAL CONSULTANTS & PLANNERS 21 Gordon's Alley Atlantic City, New Jersey 08401 Phone: (609) 347-9500 Mr. Gary S. SawhiH Ms. Barbara Bernard 6. interior Designer. YATES, SILVERMAN & CO. c / o Lombardi Hotel 3d Floor Kentucky & Boardwalk Atlantic City, New Jersey 08404 Phone: (609) 345-3231 Mr. Charles Silverman Mr. Irving Marcus 4 7. Accounting Firm. PEAT, MARWtCK, MITCHELL & CO. Suite 1440 100 West Clarendon Avenue Phoenix, Arizona 85013 Phone: (602) 263-1104 Mr. Donald V. Upson — Partner 8. Project Affirmative Action Officers. During the construction phase, the following individual wil! have responsibility for Affirmative Action matters: Mr. Roy Villanueva DEL E. WEBB CORPORATION Suite 1600 3800 North Central Avenue Phoenix, Arizona 85012 Phone: (602) 264-8011 During the operations phase, the following individual wilt have responsibility for Affirmative Action matters: Ms. Vesta Vallentine SAHARA BOARDWALK CORPORATION 3029 Pacific Avenue Atlantic City, New Jersey 08401 Phone: (609) 347-2111 / / . PPOJEC7*DESCP/Pr/ON A. "APPROVED HOTEL" S!TE. 1. Acreage, Street And Boardwaik Frontage. The Site Plan which is set forth on page 51, hereof, indicates that the parcel of land upon which the proposed Sahara Boardwalk Casino Hotel is to be constructed, consists of 98,460 square feet, or 2.26 acres. Frontage on the Boardwalk extends 268.3 feet, and runs 342.73 feet on Albany Avenue, 295.2 feet on Pacific Avenue, and 356.18 feet on Hartford Avenue. 2. "Out Parceis." There are no "out-parcels" within the rectangular block comprising the parcel depicted on the Site Plan. "Out-parcels" in this context are understood to mean immediately adjacent or abutting parcels of land which are not under the ownership or control of the developer, and they do not inciude anciitary parceis located away from the Casino Hotel site which are to be used for such support services as office and warehousing space, employee and patron off-site parking, etc. 3. Ownership Status Of Project Land. With the exception of the parcel consisting of approximately 14,760 square feet which is under lease from Mr. Saul R. Bogatin, the remaining 83,700 square feet are owned by the Del E. Webb Corporation (Parent of the Petitioner) in fee simple. 4. identification Of Prior Land Owners And Description Of Terms Of Acquisition. On September 13, 1978, the Del E. Webb Corporation acquired the site of the proposed Sahara Boardwalk Casino Hotel (formerly President Towers Apartment Hotel) in a complex mutti-step series of transactions. The site was acquired in four separate parcels which, in totality, constitute the entire block bounded by the Boardwalk, Albany, Pacific and Hartford Avenues in Atlantic City. In order to facilitate an understanding of the transaction and to aid in comprehending the procedure of the acquisition, the parcels of land in question have been arbitrarily assigned Numbers 1, 2, 3 and 4. The official Tax Maps in Atlantic City described the four parcels, all in Block 7, as follows: Parcel (1): Lots 9, 10, and 11 in Block BC-07 Parce) (2): Lots 5 and 12 in Block BC-07 Parce) (3): Lot 8 in Block BC-07 Parce! (4): Lot 13 in Block BC-07. 5 The following Plot Plan identifies the parcels for purposes of describing their acquisition. PACtFtC AVE. BOARDWALK RtGHT OF WAY (Site of proposed SAHARA BOARDWALK CASINO HOTEL) 6 PARCEL (1). This parcel, consisting of Lots 9, 10, and 11, was previously owned by the M. G. Albany Corporation, a New Jersey corporation, whose address was given as c / o Sherman Kendes, Esq., 309 Guaranty Trust Btdg., Atlantic City, N.J. 08401. !t is understood that the stock of this corporation was essentially beneficialty held by Mr. Leonard J. Mercer, Jr., its President and Mr. Hyman J. Goldfeld, its Secretary. The Del E. Webb Corporation received a conveyance of the fee simple title to this parcel for the sum of $700,000 cash at the closing on September 13, 1978. PARCEL (2). This parcei, consisting of Lots 12 and 5 is owned by a Mr. Saul R. Bogatin. Pursuant to an Agreement of Lease dated March 1, 1977, Mr. Bogatin leased this parcel to Leonard J. Mercer, Jr. This leasehold interest was purchased by the De) E. Webb Corporation for $550,000 on September 13, 1978. Of this total, $160,000 was paid in cash at the closing on that date, and the $390,000 balance was paid in cash on January 2, 1979. Pursuant to an instrument entitled "Assignment of Lease," dated September 13, 1978, the Del E. Webb Corporation received an assignment of all of the right, title and interest in and to the subject Lease from Messrs. Mercer and Goldfeld who assigned their interests as partners. On April 1, 1980, an Option Agreement was entered into by and between Mr. Sau! R. Bogatin, as Optionor, and the Del E. Webb Corporation as Optionee. Pursuant to the terms of the Option Agreement, the sum of $289,500 cash was paid to the Optionor for the right of the Optionee, or its nominee, to acquire within one year the fee simple title to the teased parcel (No. 2.), as well as a corner parcel consisting of approximately 6,500 square feet located directly across Hartford Avenue from the Project Site. The total proposed purchase price for both parcels is $2,127,000, with $270,000 of the option price to be applicable toward the payment of the total purchase price. There is an additional option consideration payable to the Optionor in the amount of $19,500 per month, during each month that the option remains unexercised, which is not applicable toward the purchase price. PARCEL (3). Title to this parcel. Lot 8, was previously vested in President Associates, a New Jersey limited partnership, of 225 Westchester Avenue, Port Chester, New York 10573. Pursuant to an Agreement dated April 17, 1975, Friendship House, Inc., a New Jersey corporation, of 309 Guarantee Trust Bldg., Atiantic City, N.J. 08401, acquired an option to purchase this parcel for $1,100,000. On March 20. 1977, Leonard J. Mercer, Jr., of the Gait Ocean Mite Hotel, Fort Lauderdale, Ftorida, and Hyman J. Goldfetd of 2777 Summer Street, Stamford, Connecticut 06905, acquired an option from Friendship House, inc., to purchase the tatter's interest in the subject parcel after the exercise of its April 17. 1975, option. PARCEL (4). Title to this parcei, Lot 13, was previously vested in Hartford Associates, a New Jersey limited partnership, of 225 Westchester Avenue, Port Chester. New York 10573. Pursuant to an Agreement dated April 17, 1975, Friendship House, inc., a New Jersey corporation acquired an option to purchase this parcel for $1,100,000. On March 20, 1977, Leonard J. Mercer, Jr., and Hyman J. Goldfetd acquired an option from Friendship House, Inc.. to purchase the latter's interest in the subject parcel after the exercise of its April 17, 1975, option. On September 13. 1978, the Del E. Webb Corporation purchased the option rights of Messrs. Mercer and Gotdfeld to Parcels 3 and 4, for $4,700,000. Of this sum, $1,350,000 was paid in cash at the dosing of the transaction, and the $3,350,000 balance was paid to Messrs. Mercer and Goldfetd on January 2, 1979. The purpose of the purchase of these options was to extinguish the prior Mercer-Goldfeld rights to purchase the subject parcels. At the ctosing on September 13, 1978, the Del E. Webb Corporation purchased the Parcel 3 option right of Friendship House, Inc., for the sum of $525,000 (which it had acquired through Messrs. Mercer and Goldfetd), then extinguished this option right, and negotiated directly with President Associates, and ultimately acquired the fee simple title to Parcel 3 (Lot 8) from President Associates, a New Jersey limited partnership, by and through its General Partners: K. Bernard Weisman, Alan B. Weisman and Bernard H. Stuchin. The purchase price was $1,500,000, of which $372,000 was paid in cash at the closing ($50,000 having already been delivered as a down payment) and a note in the amount of $1,077,500 was given to President Associates for the balance. The note bears interest at 9% per annum and is payable fifteen (15) years after date in constant monthly installments of $12,500 each. There is no prepayment right for the first ten years. The note is secured by a Letter of Credit (No. S99442) issued on September 18, 1978, by Morgan Guaranty Trust Company of New York in favor of President Associates. Similarty, at the closing on September 13, 1978, the Del E. Webb Corporation purchased the Parcel 4 option right of Friendship House, Inc., for the sum of $525,000 (which it had acquired through Messrs. Mercer and Goldfeld), then extinguished this option right, and negotiated directly with Hartford Associates, and ultimately acquired the fee simple title to Parcel 4 (Lot 13) from Hartford Associates, a New Jersey limited partnership, by and through its General Partners: K. Bernard Weisman, Alan B. Weisman and Bernard Stuchin. The purchase price was $1,500,000, of which $422,500 was paid in cash at the dosing, and a note in the amount of $1,077,500 was given to Hartford Associates for the balance. The note bears interest at 9% per annum and is payable fifteen (15) years after date in constant monthly installments of $12,500 each. There is no prepayment right for the first ten years. The note is secured by a Letter of Credit (No. S99443) issued on September 18, 1978, by Morgan Guaranty Trust Company of New York in favor of Hartford Associates. 7 5. identification Of Other Parties With interests in The Project Land. Other than potential financing sources referenced in Section I, D. 7., Page 3, and Section VI, Page 66 hereof, there are no parties anticipated to have any existing mortgages, liens or encumbrances as to the land. As noted supra, an individual identified as Mr. Saul R. Bogatin, of 103 Hartford Avenue, Atlantic City, New Jersey 08401, is the owner of parcel No. 2, consisting of approximately 14,760 square feet on the southwest corner of the Project site, fronting 147.60 feet on Pacific Avenue and 100 feet on Hartford Avenue, and more graphically depicted in the Leasehold Plot Plan accompanying this