Atlantic City Takeover Plan Approved In NJ Senate Committee
By David Madden
TRENTON, NJ (CBS) -- A New Jersey State Senate committee has approved a controversial plan that would allow the state to take over day to day operations in Atlantic City.
"This legislation is one sided surrender of our responsibilities as local leaders to the Governor and his administration." Atlantic City Mayor Don Guardian told the committee.
He was joined by local elected officials, civil leaders and heads of various municipal labor unions. But there was support expressed for the idea from one major player in Atlantic City, Local 54, the casino workers union.
"Mayor Guardian is a good man. Council President Small is a good man. This isn't about them," said union president Bob McDevitt. "I believe the fiscal situation in Atlantic City is structurally unsound and that we cannot delay the inevitable."
The pain proponent of the plan, Senate President Steve Sweeney, stressed the takeover is the only way to ensure against Atlantic City falling into bankruptcy in as little as a few weeks.
Amendments to the bill would reduce the length of a takeover to five years and hold off a sale of the city's water utility for one year. The plan passed by a 9 to 1 vote with three abstentions. The full senate takes up the plan next.
The committee also approved a plan to allow Atlantic City's 8 casinos to make payments in lieu of real estate taxes that will produce 120 million dollars a year for the next 10 years.