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A historic tourist attraction in Margate City, New Jersey, is moving forward with a major renovation project following approval of state economic development assistance. The New Jersey Economic Development Authority announced October 30, 2026, that its board approved up to $5.4 million in tax credits to support improvements to Lucy the Elephant. The project will restore portions of the historic structure and establish a new visitor interpretive center. State officials identified the investment as part of a broader effort to support tourism, historic preservation, and commercial activity in Atlantic County. Historic Landmark Will Receive Interior Improvements Lucy the Elephant is a six-story landmark originally constructed in 1881. The unusual building was developed to attract visitors and promote real estate activity along the New Jersey coast. Today, the structure operates as a historic attraction and museum. The newly approved project will address several maintenance and preservation needs within the building. Planned improvements include repairing water-damaged plaster, restoring deteriorated wood, replacing heating and air conditioning equipment, and improving insulation and ventilation. Additional work will involve drainage and fire suppression systems. The improvements are part of a longer preservation effort intended to maintain the historic structure while improving visitor access. New Visitor Center Planned The project also includes construction of an interpretive visitor center. The new facility will provide additional space for educational activities and programs related to the landmark's history. It will also improve accessibility for visitors with mobility limitations. Other planned improvements include landscaping, lighting, fencing, and accessible walkways. The Save Lucy Committee, which oversees the landmark, expects the new facility to provide opportunities for programs involving local artists and performers. However, the October 30 announcement does not establish a construction completion date or identify a schedule for opening the new visitor center. State Approves Cultural Arts Tax Credits The New Jersey Economic Development Authority approved up to $5.4 million through its Cultural Arts Facilities Expansion Program. Known as CAFE, the program provides tax credits supporting qualifying cultural facilities and related development projects. The Lucy the Elephant project also involves financial support from the City of Margate, the New Jersey Historic Trust, and a federal Congressionally Directed Spending Grant. The approved tax credits are associated with this specific preservation project. They are not unrestricted cash grants available to unrelated businesses. Tourism Investment Has Local Business Relevance Tourism attractions can contribute to commercial activity by bringing visitors into nearby business districts. Restaurants, retailers, accommodations, and other local services may serve customers visiting historic destinations. New Jersey officials identified the potential benefits to Atlantic County businesses as one reason for supporting the project. However, the announcement does not provide an estimate of additional visitor spending, new employment, or revenue for individual businesses. Those economic effects will depend on future visitation and local commercial activity. Additional Development Milestones Ahead The October 30 approval represents a financing milestone rather than the completion of construction. Future developments to monitor include project planning, renovation work, construction of the visitor center, and announcements concerning public access. For Margate City and surrounding Atlantic County communities, the investment represents another effort to preserve an established tourism destination while supporting the region's visitor economy.