Atlantic City Plan Rejected

New Jersey Gov. Chris Christie’s administration has rejected a financial turnaround plan for Atlantic City that paves the way for a government takeover of the seaside gambling city’s assets and major decision-making power.

Photo: John Minchillo/AP Photo

Alongside U.S. Secretary of Homeland Security Janet Napolitano in Hoboken, New Jersey.

The city submitted a five-year turnaround plan to the state Department of Community Affairs but the plan was rejected Nov. 1. The city had suggested laying off 100 workers, cutting spending and selling its largest tract of vacant land to its water utility, with receipts helping to pay down a $500 million debt.

Commissioner Charles Richman said the plan didn’t bring enough stability to Atlantic City’s finances and relied on legally dubious asset transfers.

“I would have much preferred to leave management of the city’s recover in the hands of its municipal officials,” Richman wrote in his decision. “However, I am constrained by the plan the city has placed before me. The enormous problems confronting the city did not occur overnight. City leadership has had ample time to improve the city’s financial condition, yet has avoided doing so in any meaningful way.”

City Council President Marty Small questioned the decision of Christie’s administration, calling it “misinformed, misguided and biased.” “The fix was in, and it will be dealt with,” Small said. “This is far from over.”

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