Sweeney eyes state takeover of Atlantic City

TRENTON - New Jersey Senate President Stephen Sweeney is considering legislation that would authorize a state takeover of Atlantic City's government, just days after he declared that the resort town had a "serious government problem" that needed to be addressed.

If state officials determine the city is in financial distress, the bill would transfer Atlantic City's governing duties and powers to the state Local Finance Board over a 15-year period that could not be extended or renewed.

A person familiar with the matter said late Monday that Sweeney (D., Gloucester) was discussing the measure with Gov. Christie, Assembly Speaker Vincent Prieto, and members of the Senate Democratic caucus.

Under the bill, the state would be able to dissolve contracts, eliminate municipal authorities or boards, and sell city-owned assets such as water, sewer, wastewater utilities, and property.

The proposed bill, called the Municipal Stabilization and Recovery Act, does not mention Atlantic City by name. But the only city eligible for a takeover under the bill is one "in which casino gaming is authorized by the voters of the state." Atlantic City is the only such city.

It also defines a "municipality in need of stabilization and recovery" as one that has "experienced a decrease of more than 50 percent in its total assessed property values during the immediately preceding five-year period," according to a statement accompanying the measure.

Atlantic City's property-tax base shrunk 64 percent between 2010 and 2015, from $20.5 billion to $7.3 billion.

Sweeney could not be reached late Monday. Last week he noted that Atlantic City, population 40,000, has a $262 million budget, comparing it to the $55 million budget of Piscataway Township, population 60,000. "Something is wrong," he told reporters.

State Sen. Jim Whalen (D., Atlantic), a former mayor of Atlantic City, said in a statement that a state takeover would be a "disaster."

"Given its abysmal 30-year track record in taking over school districts, I seriously doubt the State of New Jersey will be the white knight to save Atlantic City," he said.

Chris Filiciello, chief of staff to Mayor Don Guardian, said he had not reviewed the proposed bill, but said, "The Guardian administration has been working nonstop for two years straight to dig out of a financial deficit that no municipal government has ever seen before."

Assembly Majority Leader Louis D. Greenwald (D., Camden) confirmed that lawmakers had just begun to discuss the issue. The bill has not yet been introduced, he said. "The focus is making sure Atlantic City's redevelopment is successful," he said.

"There's no doubt the government is struggling down there," Greenwald said, adding that much of that is outside the city's control.

The potential legislation comes as Atlantic County legislators are pushing back against another bill in Trenton - one that would ask voters to expand gaming to North Jersey, though the bill would also dedicate some revenues to the Shore resort.

The Legislature has also concurred with recommendations made by Gov. Christie on legislation that would allow Atlantic City's eight casinos collectively to pay $150 million annually in lieu of property taxes for two years, then $120 million each of the next 13 years.

Source: Philly.com