Atlantic City Taxpayers Learn of MUA & Bader Field Shell Game

MUA Atlantic City — MUA’s Ward and AC Mayor Guardian Discuss Financial Shell Game.

A financial shell game to keep the State of New Jersey out of Atlantic City for a bit longer? That’s what most reasonable onlookers thought.

At a press conference today, Atlantic City Mayor Don Guardian giddily announced that the tax-payer subsidized MUA, aka ‘The Water Company’, will buy the taxpayer-funded and city-owned; Bader Field.

Whaaaaa?

Where will the MUA get the money to buy the old Bader Airfield property on Albany Ave? They’ll borrow / bond for about $110 million, using Atlantic City taxpayers/ratepayers as collateral.

The MUA, valued at about $100 million, will be the collateral. It’ll be backed up by the MUA owners, who happen to be the Atlantic City taxpayers.

Recently, Bader Field had an offer of $50 million from an interested buyer. Most would agree, that makes Bader’s real market value….to be about $50 mil.

Guardian and Ward want Atlantic City taxpayers to buy Bader Field for more than twice the market value.

Yup. You can’t make this stuff up. On this sunny, autumn morning, news media gathered waiting for a joyous announcement of fiscal responsibility. But no. Instead of dissolving the MUA as originally agreed to with the State, the Mayor and City Council President Marty Small said they’ll sell Bader Field to the water company (MUA). This will effectively move taxpayer money & liability from one pocket…. to another.

bruce ward mus atlantic city — Bruce Ward

Bruce Ward of the MUA, as well as Atlantic City Mayor Guardian, reminded everyone that our water is yummy. It has fluoride too.

But hold on. This idea can eventually end up all soggy and limp. The City Council of Atlantic City, along with the DCA/State, still must approve the sale. It’s a toss-up as to both of those entities voting yes. Even if the deal does go thru, the new operator of Bader Field will not pay taxes. The MUA; Municipal Utility Authority, is tax exempt.

Guardian called the proposal a “poison pill”. It could keep NJ state away from the MUA, which is collateral for that $73 million Atlantic City bridge loan.

The MUA utility would have to borrow approx. $100 million to buy Bader, which is something they likely can’t do as part of the MUA’s mission statement.

One more example of monkey business by small town cronies, no longer swimming in casino cash, looking to delay the much needed transformation of AC.

Note: Executive Director Ward said the MUA would try and create a ‘waterscape’ design for Bader Field. WTF? This would supposedly make the Rte 40/Albany Ave. entrance to the city more attractive. (much like the sunken ship concept at site of former Sands Casino)

Some have commented that this could be a ‘Poison Pill’ strategy for AC. ‘Load the MUA up with debt to buy Bader Field. These clowns are just going deeper into debt. It’s also making both Bader Field & the MUA, less viable as collateral’.

The Atlantic City Municipal Utilities Authority (ACMUA) came into existence on September 14, 1978 by action of the Board of Commissioners of the City of Atlantic City, who created it under the provisions of the New Jersey Municipal and County Utilities Law. On Jan 22, 1980, the ACMUA acquired the Atlantic City Water Utility and assumed operation and maintenance of the system.

MORE FEEDBACK:

mickeg > “Touting it as a “major” announcement, Mayor Don Guardian said the city’s Municipal Water Authority will buy Bader Field, a former airport owned by the city, for at least $100 million. Better known as ‘robbing from Peter to pay Paul’ this plan solves nothing but serves to convolute the immediacy of the bankruptcy of AC. In fact this is no plan just a shot at misdirection, after missing a Sept 15th date to authorize the dissolution of the MUA. AC officials should be led away as incompetent or just plain stupid.

guardian atlantic city — Atlantic City Mayor Don Guardian

jeepguy32 > Since my right pocket is empty, I’ll just take money from my left pocket and put it in there. Oh no, my left pocket is empty! I’ll just take the money from my right pocket. Look! I’ve doubled my money!

ACMUA Board of Directors

The ACMUA is governed by a five member Board of Directors who establish ACMUA policy.

MILTON L. SMITH is the Chairman of the Atlantic City Municipal Utilities Authority (MUA). He has served on the Board of Directors since February 2001. Mr. Smith graduated from the Camden Police Academy in 1960. He attended in service training at the State Police Academy in Sea Girt, New Jersey, receiving extensive training in crime solving, riot control, supervision, and other related subjects that would be effectively applied to his position. Mr. Smith has over 27 years of experience in the criminal system. Mr. Smith served on the Casino Control Commission for three and a half (3 ½) years from 1987-1990. He was also a member of the Landlord Tenants’ Board.

GARY L. HILL – In February 2010, the Board elected Mr. Hill to serve as Vice Chairman/Secretary of the Atlantic City Municipal Utilities Authority (MUA). He has served on the Board since February 2007. Mr. Hill was Board level of the American Federation of Teachers’ Union. He is presently employed by John Schultz Associates as Public & Community Relations Coordinator for 1616 PR, as well as Executive Director and Community Relations of the MBCA. Mr. Hill is also involved in numerous real estate and investment properties in Atlantic City. Mr. Hill sits on the Atlantic City Democratic Committee Board, Atlantic City First PAC Chairman Board, Borgata Jobs Training Board, Noyes Museum of Art Board. Mr. Hill is Co-Founder of the Schultz-Hill Foundation.

JOHN MC GETTIGAN In July of 2008, Mr. John McGettigan was elected to serve on the Board of the Atlantic City Municipal Utilities Authority (MUA). In February of 2010, the Board of Directors elected him as Treasurer.
EDMUND J. COLANZI In October of 1998, Mr. Edmund J. Colanzi was re-elected to the Board. Mr. Colanzi was one of the founders of the Atlantic City Municipal Utilities Authority (MUA) when it was formed in 1978, and served for five (5) years until January 1983.
WILLIAM “SONNY” LEA In February of 2009, Mr. William Lea was elected to serve as Board Member of the Atlantic City Municipal Utilities Authority (MUA).
PATRICIA BAILEY In February of 2015, Ms. Patricia Bailey was elected to serve on the Atlantic City Municipal Utilities Authority’s Board as an Alternate Board Member.
WILLIAM K. CHEATHAM In February of 2015, the Board of Directors elected Mr. William K. Cheatham to serve on the Atlantic City Municipal Utilities Authority’s Board as an Alternate Board Member.