The NJ State Assembly passed a set of bills on JUNE 11, that could go a long way to boosting the financial well being of Atlantic City.
The primary focus of the bill is focused on Casinos and their taxes.
- Casinos are barred from appealing their taxes.
- PILOT (Payment in lieu of taxes) will collectively make $120 million payment to Atlantic City for the next 15 years.
- Atlantic City schools would get less in casino tax money, but state aid could help fill that gap.
- Mandate health insurance and retirement benefits for casino workers
- Use large portion of casino 1.25% tax (‘CRDA cash’) to help pay down AC’s debt
- Eliminate Atlantic City Alliance and use their $30 million to pay down debt
While the CRDA is somewhat crippled financially by these actions, recent state initiatives like the ERG program could go a long way in back-filling some decreased CRDA activity. Ex: fund/seed/finance local projects.
The New Jersey Economic Development Authority (EDA) is an independent State agency that finances small and mid-sized businesses, administers tax incentives to retain and grow jobs, revitalizes communities through redevelopment initiatives, and supports entrepreneurial development by providing access to training and mentoring programs.
SEE MORE:http://www.njeda.com/large_business/economic_redevelopment_growth
Economic Redevelopment and Growth (ERG) Program
The bills now goes to the Senate for a vote on June 25. Senator Steve Sweeney will green light the bill, but it’s still unknown if NJ Gov. Christie will sign off.