VIDEO > State Rejects Atlantic City Rescue Plan. Take-Over Soon?

Atlantic city
Small & Guardian

The State of NJ rejected Atlantic City’s 5 year, financial rescue plan. The Mayor’s office was notified just before 5p, on Tues, Nov. 1.

In the plan, the State sees no financial stability for Atlantic City, triggering what could be an imminent state takeover. The state will now determine next steps. How much of a take over? Mayor Guardian & City Council President Small said the city would appeal the decision. A takeover could, in effect, neuter the Mayor and City Council.

With the state rejection, NJ can seize city assets, take over municipal functions, hire and fire, and ignore union contracts.

What NJ State did NOT like about AC Rescue plan:

    • No balanced budget for 2017
    • Ambitious, but deficient & speculative
    • Underestimates debt service
    • Overstates property tax revenues
    • Proposed sale of Bader Field to MUA is pure speculation
    • City did not dissolve MUA (water company)
    • No plan to monetize and develop hidden jewel: Gardners Basin
    • MUA wants to borrow, in order to buy Bader Field. This makes city vulnerable to debt
    • City still has no agreement with Borgata. Casino assessed at $850 million, but worth $1.6 billion, still withholding quarterly tax payments. AC owes Borgata $150 mil from recent tax appeal

Press of Atlantic City: It may be a mistake to sell a valuable city property to an authority that doesn’t answer to voters and has no experience in redevelopment. The potential for the MUA to mishandle one of the city’s most valuable assets would be great.

Link to full decision from state.

Gary Hill, a board member of the MUA and the CRDA, believes the state is trying to micromanage Atlantic City issues and the local economy. Hill is also Director of the MBCA, co-founder of Schultz-Hill Foundation, and is employed by John Schultz Associates.

Read the Inquirer’s editorial here.

Read Amy Rosenberg coverage here.



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