There’s a lot of blame to go around for Atlantic City’s current problems, but the time to stop arguing about it is now and the focus should be on turning the resort around.
That was New Jersey Governor Chris Christie’s message at the start of a second state summit called to devise strategies to help Atlantic City.
“Let me be very clear about my view off the top,” Christie said. “There are opportunities here we need to take advantage of and there are challenges we need to confront in a much more aggressive way than these things have been confronted in the past. I don’t think we have any more time to waste, especially on political arguments.”
The meeting with casino, government and labor leaders is the second called by the governor to address plans for the resort.
Though not specifically mentioned by Christie, politicians in both the northern and southern parts of the state have been arguing vehemently about changing state law and allowing casinos outside of Atlantic City. Advocates would like to expand casinos into the Meadowlands and other northern New Jersey sites, while opponents feel new casinos will only further hurt Atlantic City.
Christie said before the meeting that mistakes have been were made by local government and the private sector that contributed to Atlantic City’s current struggles.
“The egos have to leave the room because we can certainly say that on any number of fronts that there has been significant governmental failure over time here,” Christie said. “That significant governmental failure is coming home to roost.”
The city’s fortunes have turned dramatically since competing casinos were built in neighboring states such as Pennsylvania. Four of the city’s 12 casinos have closed this year and a fifth—the Trump Taj Mahal—is expected to close next month. More than 8,000 casino workers have been laid off.
Wednesday’s closed meeting was expected to focus on potential relief from taxes and other costs for casinos, while making sure the city government and schools have enough money to function, according to the Associated Press.
Recommendations were also expected from a group studying the resort headed by Jon Hansen, who has often been Christie’s point man on gambling related issues.
Hanson told the Press of Atlantic City that he would make recommendations on ways to reinvigorate the city including creating new non-gambling attractions. But Hansen also said that property taxes in the resort are a major concern.
“I would say the No.1 theme in Atlantic City starts with property taxes,” Hanson told the paper. “I think we have to look at property taxes and how we can lessen the cost of government, which would therefore reduce property taxes on all of Atlantic City, not just the casinos.”
Whatever is proposed, Christie said he will not accept half-measures.
“Band-Aids have been put on in the past,” he said. “To the extent folks suggest larger Band-Aids, that’s not something I’m going to be interested in.
The summit came two days after state Senate President Stephen Sweeney—also a vocal advocate for the resort—introduced a plan to redirect some casino redevelopment payments toward paying down Atlantic City’s debt.
The plan would also let casinos make $150 million in payments in lieu of taxes for two years before a different tax structure kicks in for the next 13 years. The proposed plan would require schools and the city to make $72 million in unspecified cuts.
“One of the things we don’t want is for Atlantic City to become Detroit,” Sweeney said.
According to various reports, recommendations at the meeting included appointing an emergency manager to takeover operations in the city, establishing a public-private partnership modeled after one in New Brunswick and the consolidation of municipal services. Reforms will also be studied for taxes, the schools and pensions.
“I’m not committed at this time to any of these in particular, but I’m taking all of them into consideration and we’ll have announcements to make in the very near future,” Christie said after the meeting. “But some or all will be necessary if we’re serious about fixing and bettering Atlantic City. The current model is completely and utterly, and remarkably unsustainable. The fact is the first thing you need to do is stop the bleeding.”
