Christie Administration Takes Control Over Struggling Atlantic City
TRENTON, N.J. (CBSNewYork) -- New Jersey Gov. Chris Christie's administration took over control of Atlantic City on Wednesday.
The state now has the power to renegotiate contracts, sell city assets -- like the former Bader Field airport property and the much-coveted water utility -- and hire or fire employees to help pay off a $500 million debt.
Police, firefighters and other city employees went to Trenton on Wednesday to ask for restraint by the state Local Finance Board, which unanimously agreed to give Director Tim Cunningham control of the struggling seaside gambling resort, CBS2's Cleve Bryan reported.
"I'm still kind of absorbing the magnitude of the responsibility that's been leveled upon me today," Cunningham said. "I think my great preference is to work with the city as much as I possibly can."
The takeover comes as state regulators say they don't believe Atlantic City can lead itself out of a half billion dollar debt. Casino closures and decreased property values have left the city without enough money to cover its bills.
In June, state lawmakers approved a takeover if city officials couldn't submit a suitable five-year budget within 150 days. The city complied, but the state rejected its plan.
"We brought the best people that we could find to put together the plan, and for the plan to be rejected is what's devastating to us," Mayor Don Guardian said.
Community leaders pleaded with state officials not to forget the people's right to self-rule.
"I'm just asking you on behalf of the residents of Atlantic City that you please consider us," Charles Goodman, with Atlantic City's NAACP, said.
No city labor contracts are safe, Bryan reported.
"It's been numb up until this point. I think just getting some sort of final resolution is somewhat calming, but now it's just waiting to see what they plan to do with us," Police Union President Matt Rogers said.
The Local Finance Board decision hands all powers over to the director, but the board agreed not to declare bankruptcy.
