“These new laws will ultimately accomplish my mission to reform Atlantic City’s overblown municipal government, and in turn protect local and state taxpayers from being perpetually abused by the special political interests who admit to owning this city’s elected officials”, Christie said.
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If the city can’t meet those goals, the Christie administration can move to take over the operations of city government – a power Christie had sought immediately in legislation that was passed by the Senate but hit a wall in the Assembly.
GIannantonio’s “doomsday” Atlantic City forecast caught the ire of Jeff Gural, the owner of Meadowlands Racetrack who wants to build a casino there, for “stupidly opposing” the referendum as the latter dismissed Resorts’ studies as “meaningless”. Officials have until about then to craft a five-year plan to restore fiscal stability for a community where the tax base has tumbled by more than two thirds since 2010 as gaming competition increased in nearby states. Locations are not specified, but the two leading contenders are at the Meadowlands Racetrack in East Rutherford, where the NFL’s New York Jets and Giants play, and in Jersey City, where Reebok magnate Paul Fireman proposes a casino resort worth about $5 billion.
Assembly Speaker Vincent Prieto considered the bills an improvement over the earlier bill that was backed by the Senate and Gov. Christie, which provided for an immediate takeover.
“I feel that we got into a place that this is something everybody could live with”, Prieto said. “I think when you compromise it makes it a better bill”. Criticizing the delay, Senate President Steve Sweeney said last summer he tried unsuccessfully to encourage the city to reorganize its finances.
On Friday, Sweeney said in a statement that the onus is now on Atlantic City’s government. He said, “This was very, very unnecessary”, and, “We’re coming up to Memorial Day”.
New Jersey voters will decide in November whether to authorize two new casinos in the northern part of the state.
Atlantic City will get temporary loans of $30 million for the remainder of this year, $30 million to be applied to leftover debt from last year and another $15 million for next year.
The second measure – known as the PILOT bill – will bring the city at least $120 million each year for 10 years by having casinos make payments in lieu of taxes.
If the commissioner of the DCA determines that the plan will fall short of this goal, the state will intervene and manage the city, the release stated.
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Should the state take over, it could, among other things, terminate collective bargaining agreements, dissolve city departments, file a municipal bankruptcy, reject city council measures, and sell or lease municipal assets.
