Lucy the Elephant's $5.4 Million Tax Credit Approval: What's Planned for Margate's Landmark

One of the Jersey Shore's most recognizable landmarks is moving closer to another major chapter.

Lucy the Elephant has announced unanimous approval of a $5.4 million tax credit award from the New Jersey Economic Development Authority, or NJEDA. The announcement outlines plans for a new visitor and interpretive center, completion of Lucy's interior restoration, and improvements to the surrounding park.

For Margate residents, returning summer visitors, and people discovering the Jersey Shore, the project offers a chance to preserve a familiar landmark while improving how visitors experience her story.

And for anyone interested in local real estate history, Lucy has an especially fitting origin: she was built to attract prospective land buyers.

What has NJEDA documented?

NJEDA's October 22, 2026 board agenda identifies the Save Lucy Committee, Inc. as the applicant for the Lucy the Elephant Interpretive Visitor Center and Elephant Interior Rehabilitation Project in Margate City, Atlantic County.

The agenda requested a tax credit award covering 100% of eligible project costs under CAFÉ. Lucy subsequently announced unanimous approval and identified the award as $5.4 million.

The distinction between eligible costs and the entire project budget matters. An award covering eligible costs does not establish that every expense, financing charge, or administrative cost is covered.

What improvements are planned?

According to the Press of Atlantic City's reporting, the project includes several connected improvements.

A new visitor and interpretive center

The proposed center would contain approximately 2,200 square feet and replace the gift-shop building. Planned uses include exhibits, administrative space, and public restrooms.

Interpretive exhibits would give visitors additional ways to understand Lucy's history and her connection to Margate's development.

Interior restoration

The article describes work within Lucy's approximately 1,300-square-foot interior, including repairs to water-damaged components and replacement of the aging heating-and-cooling system.

Lucy's Beach Grill

The reported plans also include Lucy's Beach Grill, intended to operate as a restaurant, snack bar, and catering service.

A new position for a historic railroad station

A former South Atlantic City railroad station associated with the site would be moved to the corner of Atlantic and Decatur avenues, giving it a more prominent place near the entrance.

Grounds and parking improvements

Additional reported work includes lighting, landscaping, walkways, reconfigured parking, and removal of two existing storage buildings.

These details describe the reported project plans. Final designs and construction arrangements may change.

How does a nonprofit use a tax credit?

The award's headline value requires some explanation.

A transferable tax credit can be sold to an eligible taxpayer, turning the credit into cash for the recipient. The buyer then uses it against qualifying state tax obligations.

NJEDA's published CAFÉ guidance describes credits issued after project completion and required certifications, in five equal annual installments. It permits approved sales at no less than 85% of face value.

For illustration, $5.4 million in credits sold at 85% would generate $4.59 million before fees and financing costs. That is an example, not a disclosed sale price or financing arrangement for Lucy.

Because construction expenses arise before credits are issued, applicants must also address how to finance that interval.

Where does the $1.2 million fit?

The Press of Atlantic City reports that the tax credits would be combined with $1.2 million in local funds.

The reporting does not identify the precise sources of the $1.2 million in local funds or establish that it represents a new municipal appropriation or an additional charge to Margate homeowners.

Likewise, simply adding the local funds to the credits' face value does not establish the final cash budget. Sale proceeds, financing costs, other funding, and eligible expenses all affect that calculation.

Why does New Jersey offer CAFÉ credits?

CAFÉ supports construction and rehabilitation of cultural facilities. NJEDA describes goals that include attracting visitors and expanding cultural experiences for residents and visitors.

Its published framework generally requires a financing gap, municipal support, contributed equity, public access, prevailing wages, environmental standards, and continued operation after construction.

For Lucy, the public-interest connection is straightforward: preserving a historic attraction and improving the visitor experience.

Whether the project produces particular attendance or economic results will depend on what is built and how it operates.

Lucy's surprising connection to Margate real estate

Long before becoming a beloved landmark, Lucy was an attention-getting real estate promotion.

According to Lucy's official history, James Lafferty built the elephant-shaped structure in 1881 to draw visitors and prospective buyers to his property in South Atlantic City, the community now known as Margate.

Originally called Elephant Bazaar, the building helped bring attention to land near the beach.

Lucy's story later became one of community preservation. She was moved to safety in 1970 and designated a National Historic Landmark in 1976.

That history makes Lucy more than a recognizable photo stop. Her story connects the growth of a seaside community with the residents who worked to preserve its character.

When could construction happen?

The Press of Atlantic City article reports an expected start in February 2028 and completion by January 2029, citing NJEDA materials.

Those are anticipated dates rather than a guaranteed opening schedule. Readers should check Lucy's official announcements for changes, visitor access, and construction updates.

Why this matters to people who love Margate

A community's character comes from its public places, local businesses, shared history, and familiar landmarks as well as its homes.

Lucy is part of that identity. Preserving her and improving the grounds can give residents and visitors new opportunities to experience a piece of Jersey Shore history.

As a South Jersey real estate professional, I enjoy helping people understand the places surrounding the properties they are considering. Lucy's story is a reminder that learning about a community includes discovering how it grew—and what its residents chose to save.