NJ Takes Over Operations In Financially Strapped Atlantic City
TRENTON, N.J. (CBS) — New Jersey is now in charge of Atlantic City.
A state panel unanimously voted to invest power in one person to help turn the city's financial fortunes around.
The Local Finance Board heard impassioned pleas from the city and its residents to use those powers with great care. They voted unanimously in favor of the takeover, triggered after the Department of Community Affairs rejected Atlantic City's five year financial recovery plan last week.
The new manager could decide on whether to sell city assets, the future of labor accords, even how much power elected officials have for the next five years.
Tim Cunningham, chair of the board and Director of the Division of Local Government Services, has issues to address short term, like cash flow and tax payments from casinos.
"If those agreements are not executed, the city could hit a cash flow crisis as early as January or February," Cunningham told KYW Newsradio. "So we're going to have to work in the next coming days and weeks to get that under control."
Cunningham could take on that manager's role, or find someone else, in or out of state government.
"The only thing we're assured of from the meeting is that they were not granted the authority for bankruptcy for the city," Atlantic City Mayor Don Guardian said after the meeting. "However, all of the other authority given to the Director, we don't know what he'll enact."
And until they do, they won't decide if they'll appeal the takeover to Superior Court.
