New York Governor to hold second Atlantic City summit in November

Calling the summit a “work in progress,” Hanson said the second meeting should bring Atlantic City’s rescue plan into much sharper focus. It is scheduled Nov. 12 at the office of the Casino Reinvestment Development Authority, the state agency that oversees the city’s tourism and redevelopment.

Hanson shared few details about the ideas submitted so far for reviving the town but said two major themes have emerged — the cost of running the city’s municipal government and rising property taxes.

“I think the primary effort is that the cost of government in Atlantic City is not sustainable from the revenue sources from property taxes. That seems to be on the government side as well as the taxpayers’ side,” he said in an interview Friday with The Press of Atlantic City.

Atlantic City property owners were hit with a 29 percent tax increase this year, mostly due to successful tax appeals from several casinos. Property owners have been forced to pay more as casino real estate values continue to plummet in the slumping gaming market.

Mayor Don Guardian said the city’s tax base was once US$ 20 billion but will sink to US$ 9 billion in 2015 and is eventually expected to settle at US$ 7 billion. He believes the tax base won’t stabilize until 2016, 2017 or 2018.

Looking to cut the cost of government, Guardian has proposed reducing the municipal work force by 200 to 300 positions through layoffs or attrition out of a potential pool of about 1,200 positions. Guardian said he plans to lobby for a state or county takeover of some municipal services - but not the police department - during the second summit.

“I think we have started off by realizing that with the assessed value of casinos going down, the cost of city government is no longer sustainable,” Guardian said. “We want to partner with the state or county to reduce the cost of government in Atlantic City. The concept of regionalization or shared services is an excellent one.”

Hanson also said the second summit will explore the possibility of placing city services under a state or county umbrella. “Consolidation in general, or shared services, is something we’re looking at,” Hanson said.

While he has indicated his support for cost-cutting and consolidation of most municipal departments, Guardian opposes a county-run police force to oversee Atlantic City’s public safety. A county force similar to the one in Camden was one of the ideas discussed in last month’s summit held by the governor. “I don’t think it applies to the Police Department, but it could be done for other departments,” Guardian said.

Atlantic County Executive Dennis Levinson said he is willing to consider having the county oversee some of the city’s municipal services but stressed that there would still be a cost to the city.

“The fact that Atlantic County takes over services does not mean Atlantic City will not be paying for them,” Levinson said. “I believe some of these services can be done. I think that our services could help the city, but they would still have to pay.”

Levinson mentioned the county library system, nutrition sites and health programs as examples of regional services the city could join and share the cost. Atlantic City is the only one of the county’s 23 municipalities that is not part of the county health program, Levinson noted.

Levinson was among the political leaders who participated in the first summit. He expressed confidence that the second summit will underscore “the sense of urgency” the Republican governor and Senate President Stephen Sweeney, a Democrat, have toward saving Atlantic City.

“They don’t agree on much in Trenton or much in Washington, but we do have the two most powerful men in New Jersey coming together to make sure Atlantic City not only survives but prevails,” Levinson said.

Christie emerged from the first summit - which was held behind closed doors for more than two hours - to tell the media that “everything is on the table” for rejuvenating Atlantic City. He offered no specific proposals at that time. Overall, the governor wants to craft a strategy that will allow the city to transition from a struggling casino-centric economy to one having more retail, dining and entertainment attractions.

Atlantic City hopes to diversify into a broader-based tourist destination now that its East Coast casino monopoly is gone. The Atlantic Club, Showboat, Revel and Trump Plaza have closed this year amid intense gaming competition from neighboring states. About 8,000 casino workers have lost their jobs. The bankrupt Trump Taj Mahal Casino Resort has threatened to shut its doors unless it can restructure its finances and secure state aid.

More conventions, air service and nongambling entertainment attractions are all viewed as crucial for the city’s growth. Medical and education facilities are also highly coveted. Levinson said his top priority is getting The Richard Stockton College of New Jersey to establish an Atlantic City campus. Earlier this week, Guardian disclosed that Stockton has been negotiating to buy either the closed Atlantic Club or Showboat casinos to use for a new Atlantic City campus.

Both Levinson and Guardian are looking at the redevelopment of Historic Gardner’s Basin, the city’s maritime park overlooking Absecon Inlet, as another catalyst for growth. The mayor has floated the idea of attracting cruise ships to Gardner’s Basin as part of a broader redevelopment plan.

Gardner’s Basin is popular among local residents for boating and fishing, but its location away from the Boardwalk makes it a challenge to draw tourists. Still, the waterfront setting creates prime property for developers, Levinson said.

“We don’t have to have it on the scale of the South Street Seaport (in New York) or Baltimore’s Inner Harbor, but that is an area of great potential for restaurants, shops and family-friendly entertainment,” Levinson said. “Certainly, it is an untapped jewel.”