Borgata Hotel Casino and Spa is involved with a tax appeal, as are many other Atlantic City casinos. In 2014, a decision to sell $140 million in bonds to cover the tax appeals was made. Now it is 2015 and the bonds have not been sold. Instead Atlantic City borrowed $40 million from New Jersey. This $40 million loan is due March 31, 2015 to repay New Jersey.
Atlantic City is attempting to now sell part of the $140 million in bonds due to better interest rates. Borgata says the funds raised by the bond sale are going to repay the New Jersey loan and not be used to pay the tax appeal funds they were promised. Borgata has filed a lawsuit against Atlantic City stating the funds from any bond sale must be given as part of the tax appeal that they cannot be used to pay New Jersey or other debtors back. It would be a violation of the original agreement Resolution 199.