A bank is foreclosing on the power plant at the center of a dispute that has helped keep Atlantic City's former Revel casino shut.
Bank of New York Mellon has begun foreclosure proceedings against ACR Energy Partners, the sole source of utilities for the casino, which closed Sept. 2, 2014.
ACR and Revel owner Glenn Straub have been unable to agree on a deal to provide utility service for the building.
Under an emergency order from the New Jersey Department of Community Affairs, ACR is providing enough electricity to power fire-safety systems at Revel. But the bank says Straub has fallen $800,000 behind on those payments.
Guy Amoresano, an attorney for the bank, said in a court filing that Straub's Polo North Country Club was in "flagrant contempt" of a June court order mandating payments for the utility service ordered by the state.
"Polo North's modus operandi is that it wants that which belongs to others, and does not want to pay for it," he wrote.
ACR says it has offered to provide heat for the winter to Revel to prevent pipes from freezing and bursting if both sides can agree on a price. The company says it believes Straub has hired a contractor to connect boilers into utility equipment owned by ACR, which the company fears could damage the equipment.
Straub has said repeatedly he won't be forced into dealing with ACR and will seek alternate utility service for Revel. His lawyer, Stuart Moskovitz, called the alleged $800,000 debt "a mythical figure for which they have not provided adequate backup despite numerous requests to do so."
Straub bought Revel, which cost $2.4 billion to build, out of bankruptcy court on April 7 for $82 million.