A little over a month after receiving permission to re-brand the former Revel Casino Hotel as Ten and the property’s owner, Polo North Country Club Incorporated, has been ordered to take any further matters concerning its long-running rent dispute with nightclub operator IDEA Boardwalk to state court.
“This court has admonished the parties repeatedly that it does not intend to serve as an unending private landlord [or] tenant court,” wrote federal bankruptcy judge Michael Kaplan in his October 21 decision.
According to a report from The Press Of Atlantic City newspaper, IDEA Boardwalk had ran the Center Bar, the HQ Nightclub and the HQ Dayclub inside the now-shuttered Atlantic City venue but had not been paying rent after arguing that Glenn Straub, the Florida real estate developer behind Polo North Country Club Incorporated, had defaulted on their agreed lease.
The newspaper reported that Kaplan, who had retained jurisdiction over all matters relating to the Revel Casino Hotel following its 2013 bankruptcy, declared that IDEA Boardwalk could remain on the property as long as it paid rent since Straub was only required to provide the tenant with possession of a space and nothing more. He also ruled that the nightclub owner was within its rights to use $16 million being held in escrow to pay off any back rental fees as it had submitted these funds for the initial outfitting of the three venues in expectation of recouping this cash within four years under the terms of its original lease.
“We are pleased with the recent decision,” Barry Roy, an attorney acting for IDEA Boardwalk, told the newspaper. “It ensures IDEA [Boardwalk] will receive the benefit of its bargain under the lease. We look forward to working with Mr Straub and the management group at TEN to make the operation a success.”
However, Polo North Country Club Incorporated was not as pleased by the decision concerning the New Jersey property with its attorney, Stuart Moskovitz, declaring that he expects to appeal the ruling as IDEA Boardwalk still owes more than a year of back rent.
“We have been arguing for months that this case belongs in state court, not federal court,” Moskovitz told The Press Of Atlantic City. “IDEA [Boardwalk] argued otherwise and the court has now made it clear that further proceedings must be in state court. The court ruled that IDEA [Boardwalk] can no longer remain in the building without paying rent. [It] owes us back rent for over a year. Unless [it] begins paying rent immediately, we will go into state court and move to terminate [its] lease.”