New Jersey § 5:12-80

§ 5:12-80.

a. Notwithstanding the provisions of P.L.1977, c. 110 ( C.5:12-1 et seq. ) to the contrary, the Casino Control Commission shall establish a pilot program under

which it shall issue two additional types of casino licenses: a small-scale casino

facility license and a staged casino facility license. The commission shall not issue a total of more than two licenses under the pilot

program and at least one of the licenses issued shall be a staged casino facility

license. Each small-scale casino facility and each staged casino facility licensed under

this section shall be new construction, located within the Boardwalk casino zone,

and shall originate on the beach block touching the Boardwalk, but may extend across

the street. b. An applicant may apply to the commission for a casino license to operate a small-scale

casino facility consisting of not more than 24,000 square feet of casino space and

not less than 200 qualified sleeping units, with additional casino space as may be

approved by the commission in connection with the development of special amenities

pursuant to section 2 of P.L.2010, c. 115 ( C.5:12-80.2 ). c. An applicant may apply to the commission for a casino license to operate a staged

casino facility which shall initially consist of not more than 34,000 square feet

of casino space and not less than 200 qualified sleeping units, on the condition that

within two years of the date of licensure the licensee shall begin an expansion of

the facility to include not less than a total of 500 qualified sleeping units which

shall be completed within five years of initial licensure. A staged casino facility licensee shall be deemed to have begun the expansion required

by this subsection if the licensee has obtained all necessary permits, including a

permit issued pursuant to the “Coastal Area Facility Review Act,” P.L.1973, c. 185

( C.13:19-1 et seq. ), that are necessary for the commencement of site work and the construction of footings

and foundations, and has begun site work, including grading, footing and foundation

work. A licensee shall be deemed to have completed the expansion of the facility upon

receipt of a temporary or permanent certificate of occupancy for the qualified sleeping

units. Upon the completion of 75% of the expansion of the facility, as certified by the

project architect or engineer, such level of completion shall be deemed an addition

of those sleeping units for purposes of calculating such licensee's maximum allowable

casino space under section 83 of P.L.1977, c. 110 ( C.5:12-83 ), provided that, upon the completion of the expansion, for every 100 qualified sleeping

units above the initial 200, the initial maximum of 34,000 square feet of casino space

may be enlarged by 10,000 square feet, for a maximum of 54,000 square feet of casino

space, except that any enlargement of the initial casino space undertaken during the

period of staged casino licensure in connection with the development of special amenities

as provided under section 2 of P.L.2010, c. 115 ( C.5:12-80.2 ) shall be counted toward the calculation of the maximum 54,000 square feet of casino

space. Upon the completion of all of the additional qualified sleeping units the commission

shall convert the licensee's license from a staged casino facility license to a standard

casino license issued under P.L.1977, c. 110 ( C.5:12-1 et seq. ). d. An applicant for a small-scale casino facility license or a staged casino facility

license shall submit a notice of the intent to proceed to the commission on such forms

as the commission may provide which shall include a statement of intention to apply

for either a small-scale casino facility license or a staged casino facility license,

a description of the general elements of the project, a description of the financing

and source of funds for the project, and a commitment to a minimum investment threshold

that includes acquisition costs and hard and soft development costs. In addition, the applicant shall provide a bond, letter of credit or cash deposit

in the amount of $1,000,000 for the benefit of the State, which shall be forfeited

upon the failure to commence or complete a project within the applicable time frames

or refunded upon timely completion of the project, and upon the issuance of a permit

pursuant to the “Coastal Area Facility Review Act,” P.L.1973, c. 185 ( C.13:19-1 et seq. ) and the commencement of site work, including grading, footing and foundation work,

a cash deposit of $1,000,000 to the State Treasurer, which shall be a non-refundable

fee to be accessed by the City of Atlantic City and used to fund infrastructure improvements

within the City of Atlantic City, provided that such improvements are related to the

applicant's project. e. The commission shall require the holder of a small-scale casino facility license

or a staged casino facility license to deposit annually an amount equal to 5% of gross

revenues into a special non-lapsing fund to be administered by the State Treasurer. Funds deposited by the holder of a staged casino facility license shall be made

available to the licensee for the purpose of expanding the facility as provided by

this section. Funds deposited by the holder of a small-scale casino facility license shall be

made available to the licensee for the purpose of expanding the number of qualified

sleeping units at the facility. Funds that are not used for these purposes, within five years of initial licensure,

shall be expended for the purpose of funding infrastructure improvements in the City

of Atlantic City or made available for low interest loans for capital expenditures

for existing casinos, including small-scale casino facilities and staged casino facilities,

provided that neither the city, nor the existing casinos collectively, shall be eligible

to receive more than 50% of the amount in the fund and provided that all funds received

by the city or existing casinos shall be used for capital improvements in the Boardwalk

casino zone as described in subsection a. of this section. In addition, if a staged casino facility licensee fails to expand the total number

of sleeping units at the facility to at least 500 rooms within five years of initial

licensure: the licensee's casino space shall be reduced by 10,000 square feet until

the number of sleeping units reaches 500; and the amount the licensee is required

to deposit annually into the special non-lapsing fund pursuant to this section shall

be increased to 10% until the end of a period of five years or until the number of

sleeping units reaches 500, whichever occurs first. f. No more than two facilities shall be licensed pursuant to this section at the same

time and at least one of the facilities shall be a staged casino facility. If at any time the commission is in receipt of more than two applications for licensure,

the commission shall rank the applications according to criteria developed by the

commission, including, without limitation, job preservation, job creation, immediacy

of project development and neighborhood benefit, but shall give preference to applicants

seeking licensure to operate a staged casino facility as provided herein. g. The holder of a casino license issued pursuant to the provisions of P.L.1977, c.

110 ( C.5:12-1 et seq. ) shall be eligible for licensure under this section to operate a small-scale casino

on the behalf of a small-scale casino licensee. h. The provisions of P.L.1977, c. 110 ( C.5:12-1 et seq. ) shall apply to licensure under this section except to the extent that those provisions

may be inconsistent with this section. i. The commission shall require the holder of a license to establish a small-scale

casino facility or a staged casino facility to establish and maintain an approved

hotel that is in all respects a superior, first class facility of exceptional quality

which will help restore Atlantic City as a resort, tourist and convention destination. j. The commission shall also require the holder of a license to establish a small-scale

casino facility or a staged casino facility to establish and maintain as part of its

premises at least one first class restaurant and at least one entertainment venue. The type and quality of a restaurant or entertainment venue established by a licensee

pursuant to this subsection shall be subject to the approval of the commission.