Atlantic City’s push to expand year-round, non-gaming attractions received a boost this week with the closing of a $45.5 million Commercial Property Assessed Clean Energy (C-PACE) loan for the Island Waterpark at Showboat, a move city leaders say strengthens long-term investment along the Boardwalk.

The financing, provided by PACE Loan Group, is the first completed C-PACE loan under New Jersey’s statewide program, which allows developers to fund energy-efficient commercial projects through long-term, property-based financing. Project representatives said the loan will be used primarily to refinance existing construction debt while supporting the facility’s sustainable infrastructure.

City officials welcomed the funding as further validation of Atlantic City’s strategy to diversify beyond casinos. Mayor Marty Small Sr. said in a statement that projects like Island Waterpark help stabilize the local economy by attracting families, extending the tourism season, and supporting jobs that are not tied to gaming revenue.

Developers echoed that sentiment, noting that the waterpark has quickly become a key anchor on the city’s north Boardwalk. Representatives for the project said the C-PACE structure allows ownership to invest in large-scale attractions while keeping operating costs manageable, particularly through energy-efficient systems that reduce long-term expenses.

Since opening in 2023, the 120,000-square-foot indoor waterpark has drawn visitors throughout the winter months, offering an alternative to seasonal beach tourism. Business leaders say the continued success of the attraction has had ripple effects for nearby restaurants, hotels, and small businesses.

Economic development officials described the loan as a signal that lenders see Atlantic City as a viable market for modern, sustainable entertainment projects. They added that similar financing tools could play a role in future redevelopment efforts as the city continues reshaping its image as a multi-purpose destination.