Atlantic City used to be one of the most popular gambling destinations in the United States. However, over the past few years, the city has suffered from a decline in gaming activity with five casinos having shut down in the past two years. The city was actually facing a state takeover and have now come up with a recovery plan that was recently approved by officials.
Officials in Atlantic City would like to see the town remain under their watch and a financial recovery plan was recently approved in the hopes of staying out of the state’s hands. A hearing was held just last week within the Assembly Judiciary Committee in which the plan was approved.
Facing around $500 million in debt, Atlantic City must find a way to bring in revenues and pay their debt. With the plan, over 100 public employees will be laid off and a tax issue with the Borgata Casino will finally be over. The Borgata is supposed to be paid $150 million for refunds in taxes, with the city wanting to pay only $100 million. Reportedly, the city offered the lower amount but the Borgata does not want to agree to the lower payment.
Other steps in the plan is to sell Bader Field for $110 million. The former airport site could bring in a great deal of cash for the city. Bonds are also to be issued for $105 million in total. The goal is to be able to reduce the budget of the city by 2021 by an amount of around 20%.
Lawmakers in the state have until tomorrow to decide if they will be approving the proposal. If the measure is not approved, then the state may end up taking over the finances of Atlantic City and would continue to be in control for a five year time frame.