Christie said Thursday that city officials were trying to negotiate the loan – something that apparently irked the Republican governor.
Advertisement
A wall street firm says, the city is likely to default on a debt payment on Monday unless the state comes through with a $74 million dollar loan it promised back in May.
If that doesn’t happen, the state is poised to seize control of the city’s finances and major decision-making power.
The City Council has called an emergency 4 p.m. meeting Thursday to vote to accept the $74 million loan to help the almost broke city get through the rest of the year.
Atlantic City’s government is again in danger of defaulting on a debt payment, as local officials and Gov. Chris Christie’s administration have yet to come to terms on a key bridge loan from the state.
The firm said the loan would help the city avoid the default date and make payments on the additional $18.6 million owed in debt service for the remainder of 2016.
The city’s finances have crumbled as its main employer, the casino industry, has contracted. “We’re still a long way from done, but I am more than 100 percent confident we will come up with a financial plan that will be acceptable to the state”. Four of the resort’s 12 casinos have closed in recent years, costing the city thousands of jobs.
“We anticipate that the bridge loan agreement with the state will be completed in short order and the funding required by the act will be put in place to cover operational expenses of the city”, Guardian said. Earlier in the week, the mayor told city residents, according to a story published by The Press of Atlantic City, that the city didn’t receive a first draft of the loan documents until just two weeks ago.
Advertisement
A takeover would let the state sell off city assets, including land and utilities; unilaterally cancel union contracts; dissolve boards and agencies; and assume most of the city’s major decision-making power.
