Will State Let Atlantic City Play Games with Bader & Water Company? VIDEO

VIDEO > Atlantic City to sell Bader Field to the water company, a.k.a. the MUA? That’s crazy talk. It’s just moving money from one pocket…to another.

Hard to imagine the State being OK with this Bader / water company shell game. But, we do appreciate the interesting but ultimately flawed ‘poison pill’ strategy that the Mayor supports in the hope of avoiding increased State intervention.

On Oct. 19, City Council of Atlantic City approved the first reading of a potential sale of Bader Field to the MUA; the Municipal Utilities Authority, aka the AC Water Company. The price tag is double what the current market value is: $110 million. But let’s not get ahead of ourselves. Council still must approve a second reading before it’s adopted, and the deal is ultimately subject to state approval.

What is a ‘Poison Pill’ ?

A poison pill is a tactic utilized by companies to prevent or discourage hostile takeovers. A company targeted for a takeover uses a poison pill strategy to make shares of the companys stock look unattractive or less desirable to the acquiring firm.

In the unlikely event the MUA does buy Bader? Well, MUA Chief Bruce Ward says he might build a so-called ‘waterscape’ to beautify the entrance to Atlantic City. Yup, a waterscape.

Ward says he also might run some events on the old airfield named after a former mayor. Quite impressive for Mr. Ward, a guy appointed to run a company that sells a commodity, has no competition, and enjoys a hostage customer base.

Note to self: managing a monopoly does not require great entrepreneurial skill, something Atlantic City desperately needs more of.

The MUA is, on paper… financially disconnected from the City of Atlantic City. In the real world, the MUA is simply a renamed AC water company. It makes 99% of it’s revenue from Atlantic City taxpayers.

VOTED YES to Sell Bader to MUA

  • Marty Small
  • Kaleem Shabazz
  • William Marsh
  • Jesse Kurtz
  • Aaron Randolph (MUA/Water Company employee)

VOTED NO to Sell Bader to MUA

  • Frank Gilliam
  • George Tibbitt
  • Moisse Delgado
  • Chuen “Jimmy” Cheng

Note: Aaron Randolph is a MUA/Water Company employee.

The MUA / AC Water Company would need to borrow in order to buy Bader Field.

Mayor Don Guardian likes this “poison pill” strategy. Guardian believes  it could scare off investors / buyers.