Private-sector fix eyed for A.C.

As Atlantic City continues to suffer an economic free fall, state officials are contemplating turning to the private sector to jump-start development there.

One proposal being reviewed by Gov. Christie and legislative leaders is the creation of a nonprofit development corporation that would help decide what projects to build. That could involve demolishing the shuttered Trump Plaza to create walkable retail and restaurant space and open sight lines, officials said.

The nonprofit Atlantic City Development Corp. would be designed to exist in perpetuity, rather than as a short-term fix. That would ensure its freedom from the political will of individual leaders.

"You can't have transient politicians, or folks who are basically not experienced, going ahead and creating this model," said Finn Wentworth, one of four members of the Governor's Advisory Commission on New Jersey Gaming, Sports and Entertainment.

Government entities have failed to stanch the bleeding in an urban area that has lost 10,000 jobs in the last year, according to recent estimates from the U.S. Bureau of Labor Statistics. By contrast, commission members point to New Brunswick, which has experienced decades of successful urban renewal, anchored by a nonprofit there.

The New Brunswick Development Corp. is the model for the Atlantic City company.

"The gentrification in New Brunswick is the best of any city in the state of New Jersey, so why not model off of a winner?" Jon F. Hanson, chair of the commission, said.

Successful projects include building a new Middlesex County administration building, renovating the county courthouse, and building housing for Rutgers students, officials said.

New Brunswick's group had vital backing from the pharmaceutical giant Johnson & Johnson and Rutgers University. In Atlantic City, a nonprofit would need to work with multiple smaller benefactors to succeed, officials said.

In some cases, Atlantic City's group would work with the Casino Reinvestment Development Authority (CRDA), a state entity that uses casino gaming revenue for development.

In such cases, the public authority could use eminent-domain power to acquire property and then hand it over to the private development group.

The commission also recommends installing an emergency manager with "extraordinary supervisory powers." That person - who would have broad authority to sidestep Mayor Don Guardian and the City Council - could work with the new group.

That would cut through bureaucracy that hampered previous attempts to develop the city, commission members said.

The group is in a "unique position to do it because we are not a government organization," Hanson said.

"We are people in the private sector who have spent our careers doing similar things. We're bringing expertise to the table in how to do it."

CRDA is already negotiating to buy an undisclosed property in Atlantic City and may have to use eminent domain, Hanson said. That property could later be transferred to the Atlantic City Development Corp., which would also function as a land bank, Hanson said.

"We're not out to own the world. We're out to change what's there, so that you can have more and more non-gaming facilities," he said.

That has been a point of emphasis among state leaders such as Christie and Senate President Stephen Sweeney (D., Gloucester).

"An organization like this can introduce a new philosophy on helping to redefine Atlantic City as a real urban space, as opposed to exclusively a resort," said Chris Paladino, a commission member and president of the New Brunswick Development Corp.

Commission members cited Stockton College's plans to take over the property formerly occupied by Showboat as evidence of continued demand for development.

Some private companies have expressed interest in relocating to the city, Hanson and others said.

To get the development group off the ground, the commission calls for seed money to come from funds previously allocated to the struggling marketing organization, the Atlantic City Alliance. That would provide $10 million annually for the first three years, at which point officials hope the organization would be self-sustaining, officials said.

At least one top state official, Sweeney, has indicated support for the private-sector approach.

Sweeney has proposed expanding casinos to North Jersey, as long as they share revenue with Atlantic City. Under his plan, a nonprofit board composed of business leaders would reinvest that money in Atlantic City.

"I just don't want to give money to government, because I know what they do with it," Sweeney told The Inquirer's editorial board in July. "They make government bigger."

Spokesmen for Sweeney did not respond to messages seeking comment Friday.

Kevin Roberts, a spokesman for Christie, said the proposal would be "thoroughly considered for action in the coming months."

State leaders, who have twice convened this fall to discuss Atlantic City's future, are expected to meet again in January to review this and other proposals.

"There's no reason that Atlantic City can't - it may not be Brooklyn, but it could be what's happening in Queens," Paladino said. "Or some parts of Philadelphia."

Source: Philly.com