The Mayor of Atlantic City, Don Guardian, couldn’t get it done. So the State of NJ had to step in.
Due to crazy tax assessments, dysfunctional leadership & questionable legal skills, Atlantic City got in deep with Borgata. Real deep. $165 million’s worth of deep. Borgata really knew how to win those tax appeal cases over the years.
Mayor Guardian and the City of Atlantic City was unable to resolve this issue on it’s own, so NJ Governor Christie & U.S. Sen. Jeffrey Chiesa stepped in. This Trenton tag team compelled Borgata/MGM to agree on a $72 million settlement. This will cover all judgments and claims from 2009 thru 2015.
The Borgata/ MGM deal was done by U.S. Sen. Jeffrey Chiesa, who was appointed by Gov Christie to run the virtually bankrupt City of Atlantic City.
Guardian was shooting for a $112 million settlement. Christie once again stomped the bow-tied Guardian by getting Borgata owners to accept a much better deal. $30 million better. The economy-saving, $72 million settlement deal by Team Christie/Chiesa was roundly applauded by all…even those who aren’t particularly fond of the Governor.
“Christie: This settlement has been one of my administration’s priorities since Atlantic City’s fiscal crisis forced us to assume control of operations there in November. The city administration, despite all the time and opportunity given to them, failed to accomplish this goal as they have with so many others,” Christie said. “This agreement saves $30 million more for taxpayers than what Atlantic City had anticipated settling for under its five-year plan.”
Chiesa thanked the Borgata casino owner MGM…..”working closely together to find common ground.”
A judge agreed that Borgata overpaid their taxes to the city by $165 million from 2009 to 2015. When AC couldn’t pay up, the court said Borgata could withhold current tax payments. With the new deal brokered by Chiesa, Borgata will start paying taxes again.
NOTE: MGM now has full control of Borgata. They paid BOYDS $900 million for their half of the property….the half MGM did not own. That values Borgata at $1.8 billion…..although for taxes purposes…they are under-assessed at just $900 mil.