Take a look back at 2022 and a look ahead to 2023
Business Buzz
By Rich Baehrle
Take a look back at 2022 and a look ahead to 2023 at what we can expect in Atlantic and Cape May counties, including viewpoints and opinions from area economic leaders and experts.
For the most part it was a great year, especially for those who live on the islands. Real estate activity was off the charts, highlighted by multiple offers and higher prices. Even home rental prices set new records.
Let’s first look at activity reported by Michael Chait, president of the Greater Atlantic City Chamber of Commerce. The hospitality industry continues to be the main economic engine of the region with an average of approximately 20 million visitors per year. In 2022 there were 47,000 jobs directly associated with the gaming industry. Call Miichael Chait at 609-345-4524 to learn more.
The post-COVID comeback had a positive impact on brick and mortar businesses, online sports betting and gaming. Atlantic City non-gaming activities were highlighted by a number of new major projects, including Showboat Raceway, indoor electric go-karts, and its $100 million Island Water Park.
Many thought this would never happen. However, it will be a welcomed addition to the city as the effort to diversify non-gaming, family attractions continues. It will consist of water slides, pools, and lazy rivers, with an all-season retractable roof. The Showboat also received approval to convert 300 rooms into apartments.
Stockton University and AtlantiCare (eds and meds) will continue to provide thousands of quality jobs. These anchor institutions have spread roots throughout the county and they are likely to continue expanding in the region.
In the fall, AtlantiCare completed its $38.3 million Medical Arts Pavilion in Atlantic City. The new facility will expand AtlantiCare programs and services aimed at increasing access to care and addressing healthcare disparities.
To address the growing need for physicians in New Jersey and the anticipated nationwide shortage of medical professionals, the Medical Arts Pavilion will broaden AtlantiCare’s graduate and undergraduate physician education program opportunities.
Stockton University expanded its commitment to Atlantic City by breaking ground on Phase 2 of its Atlantic City Campus. The 416-apartment style residence hall expansion is a $70 million project set for completion in 2023.
The Denmark-based wind power firm Orsted has been approved to develop two offshore wind farms. It will bring significant economic investment to the state totaling more than $1.5 billion, which is expected to spur $5 billion in economic activity in New Jersey.
Atlantic City will be the hub for maintenance operations, housing offices and serving as a warehouse location for equipment. It will also be a home base for the technicians who will be transported directly to the Ocean Wind 1 and 2 offshore wind farms to do installation and maintenance work.
Keep an eye on the anticipated expansion of the cannabis industry in Atlantic City and many of the surrounding towns. It is expected to be an economic boost by adding dozens of new facilities in and around the city.
Don’t forget Bader Field with two distinct major proposals now under consideration for the former airport. Either way the region should come out a winner from the thousands of jobs that will be created. Stay tuned.
The legislative team of state Sen. Vince Polistina and Assembly members Claire Swift and Don Guardian have targeted their efforts to strengthen the Atlantic County economy by cleaning up Atlantic City and diversifying the local economy.
They made great strides in both areas in 2022. Rather than just continuing to talk about having clean, safe, and well-lit streets in the city, they took action led by new Atlantic County Prosecutor William Reynolds. He has prioritized targeting shoplifting, drug activity, homelessness, and getting the streets lit in Atlantic City. The year also saw a record commitment from the state with investments at Stockton for infrastructure repair, funds to bolster the emerging aviation industry, and the establishment of ANCHOR, the largest property tax relief program in the history of the state.
We don’t have a choice about getting our A Game together. It’s not a matter of “if” we are going to be facing stiff competition from New York gaming, it’s a question of “when.” The time is nigh.
The economic efforts will continue in 2023. A groundbreaking at the National Aviation Research and Technology Park at Atlantic City International Airport is expected to take place, with Building 2, the next phase of development at the Egg Harbor Township site. The NARTP to date has been a success, with momentum leading to further development. Stay tuned.
Max Slusher, director of business development for the Atlantic County Economic Alliance, checked in to indicate that after five years they have been able to develop relationships and lure the investments to see tangible, visible results throughout the county. Slusher said there are dozens of projects at various stages of development, and three of them have tremendous potential to go vertical in 2023.
In Atlantic City the ACEA has been working with the Ducktown Neighborhood Community Development Corporation to help secure funding from the state Department of Community Affairs Neighborhood Revitalization Tax Credits Program for the renewal of the city’s historic and central Ducktown neighborhoods.
This should be the year that an air cargo hub begins to take shape on 400 acres of land adjacent to the Atlantic City International Airport. The ACEA is partnering with the South Jersey Transportation Authority to bring in California-based Industrial Realty Group to develop a maintenance, repair and overhaul facility along with up to 1.5 million square feet of air cargo space – both in higher demand than ever thanks to the growth of ecommerce. In the short term, hundreds of jobs would be created in the construction of the facilities: and in the long term, up to 1,600 jobs would be created within the air cargo hub.
Finally, success has been achieved with tenant interest in the aviation park. The NARTP, with funding acquired, is set to break ground for a second building in the spring of 2023. This will provide construction jobs in the short term, and ultimately 200 high-paying permanent jobs once the building is completed in 2023.
They are expected to assist many businesses to diversify the local economy. If you need economic assistance, reach out to Max Slusher 609 245-0019.
Now turning to Cape May County: Vicki Clark, interim president and CEO of the Cape May County Chamber of Commerce, indicated that the primary industry, tourism, has recovered from the setbacks seen in 2020 caused by COVID. Experts predicted it would take at least five years to recover. There are some businesses that continue to struggle, but for the most part all of the islands have experienced tremendous activity.
Looking at the 2022 data, it showed that the visitor base remained strong and vacancies very low with more properties. While the crowds were strong, spending was lower because people had less disposable income. Tourists tended to cut back spending on souvenirs and excursions, Clark said.
With the higher gas prices and inflation, visitors are expected to be looking for packages in 2023. However, despite the higher interest rates, Cape May County resort towns are experiencing a very active real estate market. You can reach Vicki at 609-425-5380 to find out more.
Joe Molineaux, economic development program coordinator for Cape May County, has been continuing his efforts from 2022 to provide resources to assist businesses and residents. Tourism remains the economic driver, but diversification into technology innovation and aviation will be important elements to pursue in 2023. Some specific priority areas include Wildwood’s Pacific Avenue Corridor redevelopment project. Cape May County will also undertake creating a marketing plan for its new Tech Village at Cape May County Airport.
In 2021, the The Economic Development Administration awarded a $3 million grant to the county to build a new Cape May County Airport Hangars Technology Park. The county will use funding from the USEDA to assist in building Phase 2 after units in Phase 1 were successfully filled. There are many other projects taking place in an effort to diversify the economy. If you have any questions, reach out to Joe at 609-465-6875.
Keep an eye out for Icona Properties. They are developing first-class resorts in virtually every shore town, including plans for a major resort in Upper Township. Eustace Mita, CEO of Icona, is creative, ambitious, and a true mover and shaker with an appetite for quality developments.
In summary, in Atlantic and Cape May counties, we should be looking at the glass half full. The ball is in our court. It is up to us to stay positive and hit it out of the ballpark.
Remember to stop, shop, play and stay in Atlantic and Cape May counties. Support the dozens of businesses that I reported on all year.
Rich Baehrle of Berkshire Hathaway Fox and Roach. Can be reached at 609-226-6680 or 609-641-0011 richardbaehrle@gmail.com
www.getrichinrealestateSJ.com
