Gov. Christie on Monday said the closing of multiple casinos
in Atlantic City was "inevitable" given increased competition, but
sought to blunt talk of the demise of this struggling resort town.
Yet, big changes could come, including an expansion of
gaming into North Jersey and greater state involvement in Atlantic City's
government.
Christie didn't share many details from the meeting, but
when asked about those two ideas, which have been brought up by a key lawmaker,
he responded: "Everything is on the table."
"Atlantic City has begun the necessary transition"
from a gambling hub to a "diverse, exciting tourism district,"
Christie said in his opening remarks at a summit he convened at the Casino
Reinvestment Development Authority. After the governor's opening remarks, the
meeting was closed to the public.
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The summit came a week after the closings of the Showboat
and Revel casinos. Trump Plaza is set to close next week, and Trump Taj Mahal
is considering bankruptcy. The Atlantic Club casino shut its doors early this
year.
The closings - amid casino tax appeals that have severely
trimmed the city's revenues - have resulted in 6,000 layoffs, forcing Atlantic
City and the region to gird for an economic catastrophe.
Also Monday, the Christie administration issued a directive
allowing for sports betting at casinos and racetracks. The governor said the
timing of the directive was a coincidence and directed questions about it to
the Attorney General's Office.
At the meeting, Christie said, he assigned tasks to the 30
or so participating legislative leaders, casino executives, and union and other
officials, saying they would meet again in 45 days. He didn't elaborate on the
tasks.
"This was a city that was built on a gaming model when
it was a monopoly east of the Mississippi," Christie told reporters after
the meeting. "Now over 40 states have it. This was an inevitable thing to
occur. While there are lots of people out there declaring the demise of the
city, that is far from true."
The casino market shrank from $5.2 billion in 2006 to $2.9
billion last year. Still, "any state would love to take that asset,"
Christie said.
Pointing to increased investment in and revenue from
nongaming activities, he said "there is reason for real hope here."
Nevertheless, the contraction has upended the Republican
governor's five-year plan, announced in 2010, to revitalize the city. The plan
included the hopes for success of Revel, whose construction was completed only
after it got $261 million in state tax credits. Christie administration
officials say the credits were tied to the casino's profits and have cost
taxpayers nothing.
Across the street from the gathering, dozens of protesters
chanted, calling on the governor to "Save our city." As casinos have
won large tax appeals, the city has increased property taxes. Residents said
they are worried the casino closings will only make things worse.
"Before the casinos came here, this was a thriving
city," said Audrey L. Williams, 66, a lifelong resident. "Casinos
took all our mom-and-pop businesses away. Now they're gone, little businesses
are gone, and people are gone."
State leaders are considering allowing casinos to open in
North Jersey, a move that would end Atlantic City's 36-year monopoly on the
industry in the Garden State.
Senate President Stephen Sweeney (D., Gloucester) laid out a
plan in July to allow for casinos to open in North Jersey, if they shared
revenue with Atlantic City.
One lawmaker not enthusiastic about the idea is Assemblyman
Chris A. Brown (R., Atlantic).
"Simply discussing this idea scares away private
investment, making it harder to find buyers for Revel, Showboat, and Trump
Plaza while making it more difficult for Atlantic City to transition into a
destination resort," Brown said after the summit.
Sweeney has also called for a "restructuring" of
the city's government. "Atlantic City's government has to be much more
efficient and much more effective," Sweeney said in an interview last
week.
Asked if that might entail a state takeover, he said,
"There are no limits on this."
On Monday, Christie wouldn't elaborate on his thinking on
the idea, saying only, "I'm happy to consider everything. I'm not
committed to any particular course."
State Sen. Jim Whelan (D., Atlantic), a former mayor of
Atlantic City, said after the meeting that Christie went around the room and
asked participants what they believed were the most pressing issues facing the
resort.
"The request by the governor was to submit ideas ahead
of time and come back with a meaningful discussion on them," Whelan said.
"I think no one expected magic answers or solutions to
come out today."
As for a state takeover, he said: "If the governor said
everything's on the table, then everything's on the table. I won't prejudge any
ideas until I get details on the ideas.
"My understanding was that everything that was said in
the room would be kept in the room, and I am going to honor that," Whelan
said.
Atlantic City's current mayor, Don Guardian, did not have an
immediate comment on the matter.
The meeting followed Christie's three-day trade trip to
Mexico, where he was met by cheering schoolchildren. Back home, he was greeted
by uneasy headlines and political opponents.
Debbie Wasserman Schultz, chairwoman of the Democratic
National Committee, held a news conference in Fort Lee, Bergen County, on
Monday to mark one year since the George Washington Bridge lane closures.
Christie brushed off the event as "nakedly
partisan."
On Friday, Fitch Ratings downgraded New Jersey's general
obligation bonds, citing the "absence of long-term, fiscally sustainable
solutions to close identified budget gaps in fiscal years 2014 and 2015."
Christie dismissed ratings agencies, saying they were being
"significantly overaggressive" after being "such bums" in
2008, before the financial crisis.
While he was bullish on Atlantic City's future, Christie
declined to speculate on the biggest mistake made here.
"When I write my book I'll let you know," he said
with a grin. "I don't give that stuff away for free."
Source: Philly.com
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