Borgata

NEW YORK, May 14 - Eight months after breaking ground for construction on the Borgata, executives for the new Atlantic City resort said the project is on target for completion in summer 2003.

When it opens, the $1 billion joint venture developed by gaming concerns Boyd Gaming BYD and MGM Mirage MGG, will be the first new addition to the New Jersey resort in more than a decade.

Borgata Chief Executive Robert Boughner told Reuters recently that the construction of the 4 million square-foot structure has run smoothly since building began in September in Atlantic City's Marina District.

Builders have almost completed driving more than 3,000 pilings into the landfill where the Borgata will stand, and they have begun construction of the second-floor of the resort's tower section.

Once the hotel-casino begins operations, Boughner said the Borgata's cash flow will be within the top quartile of other Atlantic City casinos. He said executives expect room occupancy north of 90 percent in the first year.

Borgata executives are betting that Atlantic City's Marina district, a short drive from the its better-known boardwalk, will breathe new life into the region's casinos.

"People in the marketplace know there is significant untapped potential here," Boughner said. "Every level of the market is ready to trade up from the whitest collar to the bluest collar."

Harrah's Entertainment HET and Trump Hotels and Casino Resorts Inc. DJT already operate casinos in the Marina District.

The Marina will be linked to an Atlantic City highway via a new $330 million roadway paid in part by MGM Mirage and local and state authorities, Boughner said.

Late last year, the Borgata project secured $414 million in equity and $630 million in financing from a consortium of five banks.

Boyd Gaming shares were trading up 2.95 percent or 13 cents at $4.54 on Monday afternoon, and MGM Mirage shares were trading up 61 cents at $31.07.