Atlantic City’s home county is preparing to challenge the state’s payment in lieu of taxes plan for city casinos saying it is not receiving its fair share of casino taxes.
Atlantic County’s governing body voted to give County Executive Dennis Levinson authority to find a legal team to sue the state, challenging the constitutionality of the payment program and the state’s financial takeover of thee resort, according to the Press of Atlantic City.
No suit has been filed as of yet.
The payment plan allows Atlantic City casinos to make fixed payments to the city instead of property taxes for the next 10 years.
The county and state have been butting heads over the PILOT plan since it was first proposed as the plan does not make clear the county’s share of the revenue. County officials say they were initially promised 13.5 percent of the funds. It is also unclear if the casinos will remain on the county’s tax base.
Atlantic City officials have said they only want to give the county 10.3 percent of the PILOT money, which would result in a $40 million difference in what the county would get over 10 years, the Press reported.
In some other Atlantic City notes:
An ethics complaint has been filed against the state’s hiring of Atlantic City’s former business administrator to help administer the state’s oversight of city finances.
The complaint was filed by Tom Forkin, chairman of the Atlantic City Alcohol Beverage Control Board, challenging the hiring of former Atlantic City Administrator Jason Holt by the state, the Press reported.
“It simply smacks of conflict,” Forkin said at the Atlantic City Council meeting. “Best-case scenario is that it is clear appearance of impropriety. Worst-case scenario is that this is an ethical conflict and as an attorney, Mr. Holt may be barred from working for the state in this takeover.”
Holt has worked with Local Government Services Director Tim Cunningham and former U.S. Sen. Jeffrey Chiesa since the state took over the city in November. Holt, however, was widely seen representing the city as it lobbied against the takeover.
The resort’s City Council also approved a resolution allowing for a “microgrid study” that would help stabilize the city’s power infrastructure in case of a natural disaster. The proposed microgrid would provide electricity, heating and cooling to as many as 20,000 people during an emergency as well as Boardwalk casinos, Boardwalk Hall and the hospital through a separate power circuit.
The study was prompted by the potential of the demolition of the closed Trump Plaza casino adjacent to Boardwalk Hall. The Hall’s heating a cooling pumps run through the Plaza.
Owner Carl Icahn has been exploring tearing down the structure as he’s been unable to find a buyer for the former casino to date.
Also, the state Casino Control Commission has recognized March as Problem Gambling Awareness Month. The designation is a grass roots campaign by the National Council on Problem Gambling.
