One of the major supporters of expanding casino outside of Atlantic City in New Jersey—and the mayor of the city where one of the biggest proposals for a new casino has been made—has suddenly become hesitant about the idea.
Apparently, all it took was a trip to Atlantic City to raise some doubts in his mind.
Jersey City Mayor Steve Fulop recently toured Atlantic City—which is facing a major fiscal crisis due in part to its shrinking casino industry—and also met with Atlantic City Council President Marty Small, which included discussions with city residents.
After a day discussing the history of casino gambling in the resort and its impact on the community, Fulop is now balking about the possibility of bringing a new casino to his city.
“I’m not so sure today that this is in the best interest of our city,” he told The Jersey Journal.
Venture capitalist Paul Fireman has proposed building a $4.6 million casino in Jersey city, a proposal considered one of the leading contenders for a new casino in the state. A referendum is set to go before state voters in November to allow for two new casinos to be built in the state—the first permitted outside of Atlantic City.
Though the referendum does not name the sites for the casinos, the Jersey City proposal as well as a proposal to build a casino project at The Meadowlands Racetrack are considered the leading contenders.
But after touring Atlantic City with Small, Fulop clearly began backing off his support for the referendum. Fulop said it’s no longer clear that casinos can truly bring economic development to Jersey City.
Fulop said he is reconsidering his stance on the ballot question, but will announce before November whether he still supports casino expansion. If he comes out against the referendum, he told reporters he will campaign against the referendum.
“I’m not reluctant to say that sometimes I make a mistake and my position can change based on new information,” he told The Jersey Journal.
Fulop called his tour of Atlantic City “eye-opening.”
“So much vacant waterfront property,” he told reporters after the tour. “It begs the question: What did the casinos end up accomplishing in the community?”
Fulop also said that his discussions with residents and the impact of casinos on the city also echoed some of the concerns he has heard from Jersey City residents about the effect a casino would have on his city.
However, the sudden change in tone clearly caught many supporters of Northern New Jersey casinos off guard, especially since Fulop has been such a strong supporter of expansion.
William T. Mullen, the president of the New Jersey State Building & Construction Trades Council, released a statement criticizing Fulop for possibly jeopardizing projects that could create thousands of jobs.
“I am extremely disturbed by Mayor Fulop’s stated willingness to ‘kill’ the plan to expand the state’s casino industry to North Jersey if he decides he doesn’t want it located in Jersey City,” said Mullen, whose organization represents more than 150,000 workers. “While the mayor might be willing to sacrifice that opportunity for Jersey City, it shouldn’t be lost to other cities that would be grateful to be home to the economic benefits of a new casino.”
And representatives for several other areas of the state said they would be more than willing to house a new casino project.
Meadowlands Regional Chamber President Jim Kirkos and Rick Sabato, the president of the Bergen County Building and Trade Councils, also stressing that The Meadowlands was an “ideal location” for a new casino.
“While we want to see Atlantic City recover and its gaming sector succeed, we can’t lose focus or momentum on our long-fought efforts,” Kirkos and Sabato said in their statement.
Meanwhile, Jeff Gural, owner of the Meadowlands Racetrack, continued to push for locating a casino at the facility.
“This is the only hope Atlantic City has,” Gural told Real Estate Weekly. “The reality is, anyone who has visited Atlantic City will tell you that the city needs to be rebuilt. We’re basically going to give them a significant amount of money over the next fifteen years and they can then use that to rebuild the town.”
Though not specifically outlined in the referendum, proposed plans for allowing casino to be built include directing significant revenue from the property’s taxes—which could be as high as 55 percent—towards redeveloping Atlantic City.
State Senator Raymond Lesniak—another major supporter of the expansion—also took a shot at Fulop for his comments.
“If Mayor Fulop doesn’t want a new casino for Jersey City we will take it for Elizabeth, and we will take the jobs, the economic growth, the private-sector investment and the property tax relief that will come with it,” Lesniak said in a Tweet.
The whole situation also belies how Fulop has become embroiled in Atlantic City’s future. Fulop is seen as a likely candidate for governor in 2017.
Current Governor Chris Christie has accused Fulop as being behind a plan proposed by state Assembly leader that would delay a state takeover of Atlantic City’s finances. Christie supports a competing plan from State Senator Stephen Sweeney, seen as a likely opponent for Fulop in the state’s Democratic gubernatorial primary.
Fulop has denied having anything to do with Prieto’s plan, but the timing of his visit did arouse suspicions that he was seeking support in southern New Jersey, which is Sweeney’s base.
Fulop’s comments also come after the release of another public opinion poll showing state residents are divided on whether to approve new casino construction.
A Rutgers-Eagleton poll released April 13 had 49 percent of respondents saying casinos should be limited to Atlantic City and only 44 percent in favor of expansion. Most recent polls have shown that close to half of voters favor keeping casinos only in Atlantic City.
