Atlantic City: New Jersey's abused whore

[eldondre]

Projects meant to bolster struggling Newark, New Jersey's largest city, have received millions of dollars from an unlikely source: the casinos 100 miles south.

Atlantic City gambling halls in recent years have chipped in $1.5 million to expand housing at Seton Hall Law School, $2.8 million to open a preschool in the North Ward, and $500,000 to add space at a nonprofit environmental and ecological center.

How the money got there has its origins in a political deal struck in the 1980s - a deal that Gov. Christie not only wants to undo, but whose unraveling would require the support of Democratic Assembly Speaker Sheila Oliver. Her home turf of Newark's Essex County has received $27 million in all from the casinos.

Following the release of sweeping recommendations from a gaming report he commissioned, Christie last month called for allowing Atlantic City to keep all money from the Casino Reinvestment Development Authority, an agency created in 1984 to invest in economic development statewide using a 1.25 percent tax on gaming revenues...And over the last 26 years the CRDA did that, channeling $189 million to North Jersey counties, $164 million to South Jersey outside of Atlantic City, and $1.5 billion to the resort itself...In Camden, the CRDA spent $8 million for the Victor apartments, $2.5 million for the aquarium expansion, and $6.2 million for the Boys and Girls Club...Based on a staggered funding schedule that depended on when a casino opened, casinos eventually would fund nothing in the resort and split their CRDA revenues evenly between North and South Jersey

Christie's Atlantic City plan would stop flow of money to rest of New Jersey | Philadelphia Inquirer | 08/05/2010

[desolate]

SO what's the issue.

Tax Money used to benefit the state?

Isn't that what we are doing in PA?

[eldondre]

I believe this is in addition to their state taxes. it's basically the same as DRPA being used as a slush fund. seems obviously what the issue is. how do you think fishtown neighbors will like it if "community" contributions are being spent in chestnut hill?

[desolate]

I believe this is in addition to their state taxes. it's basically the same as DRPA being used as a slush fund. seems obviously what the issue is. how do you think fishtown neighbors will like it if "community" contributions are being spent in chestnut hill?

Kinda like the rest of the state that has casinos? (We benefit from them without having one, and our mayor is a reason why we don't)

Yeah I get the overall complaint.

But even in Philly, Chestnut Hill most likely gets funding that's supposed to go somewhere else due to politics.

It's like, what happens.

[eldondre]

Kinda like the rest of the state that has casinos? (We benefit from them without having one, and our mayor is a reason why we don't)

Yeah I get the overall complaint.

But even in Philly, Chestnut Hill most likely gets funding that's supposed to go somewhere else due to politics.

It's like, what happens.

it's like, stupid.

[johnnie]

I could see a small percentage, maybe up to 5 to 10%, leaving AC for other projects such as transportation, that would benefit both the casinos and other residents. To date 79% has stayed in AC. The funding allocation schedule is completely arbitrary for that graph in the article.

[mixiboi]

Here comes the fat man:

N.J. Senate approves casino district, oversight bills | Philadelphia Inquirer | 12/20/2010

With Atlantic City's uncertain future in mind, the New Jersey Senate approved by wide margins Monday legislation that would create a state-run casino and entertainment district and loosen casino regulations.

Passage of the measures virtually gives Gov. Christie the green light to begin an unprecedented takeover of Atlantic City and its struggling gaming industry.

Approved by a vote of 24-9 was the first bill, S-11, which would create a special Atlantic City Tourism District and expand marketing of the resort. The second bill, S-12, which would revise casino regulations and shift regulatory authority from the state Casino Control Commission to the New Jersey Division of Gaming Enforcement, was approved, 22-13.

The measures represent significant changes to the way the nation's second largest gambling market has done business for more than three decades, and they mirror recommendations announced by Christie on July 21, when he unveiled his plan for a sweeping overhaul of Atlantic City.

They now head to the state Assembly for final consideration on Jan. 6 and, if approved, to the governor's desk to be signed into law.

Among other things, Griffin said, the new state-run casino and entertainment district could:

Address the safety and cleanliness of Atlantic City's streets and the Boardwalk;

Improve investment in joint marketing to boost tourism;

Attract more convention activities and visitors;

Attract more tourists and families by making Atlantic City more of a destination resort, and

Spur investment in more non-gaming amenities.

"If this legislation is passed, it will create an environment that will allow New Jersey's casino resorts to continue to be a net positive for the state of New Jersey," said Griffin, whose company owns the three Trump casinos in Atlantic City, all of which reported revenue declines last month.

[bryson662001]

I haven't been to AC in two years. Is it still on life support? or already dead maybe?

[mixiboi]

I haven't been to AC in two years. Is it still on life support? or already dead maybe?

Its not doing as great as they like it to be, but they are doing better then a couple months ago..

[billy ross]

I haven't been to AC in two years. Is it still on life support? or already dead maybe?

There was an article in yesterday's New York Times which mentioned one of the casinos in Atlantic City (Resorts?). Anyway, the hotel hasn't paid any payments on a loan for $175 million for years, and just this week the syndicate controlling the loan just wrote off a loss of $176+ million on that $175 million loan. That should tell you how hurting Atlantic City is.

[plyfreak]

Here comes the fat man:

N.J. Senate approves casino district, oversight bills | Philadelphia Inquirer | 12/20/2010

That's great news! AC might still have a chance.

[mixiboi]

That's great news! AC might still have a chance.

NJ future income relies on them saving Vegas East....

[bryson662001]

Its not doing as great as they like it to be, but they are doing better then a couple months ago..

Like I said I haven't been in years but someone who knows the town told me things were really bad on his last visit which was over a weekend including Friday and Saturday nights. Basicly the problem seemed to be a lack of people spending money in casinos and resturants although the beach was crowded (It was August, before Sugerhouse opened))

[thoth]

Dunno, place was crowded as **** when I was there on a few different weekends in july/august. I'm one of the wieners that uses the beach but not the casinos, but I did go through a bunch of them and there still were tons of people dumping their cash. Surely less than before the Pennsy casinos opened, but it was scarcely empty.

[phillyaggie]

so basically, the "fat man of NJ" is upping the ante and prettying up the state's whore so that she can attract more/new business, since the neighborhood is getting more crowded with other street walkers moving in on the corners...

PA thankfully has allowed table games in its casinos; the ones in eastern part of the state better figure out how to sell themselves and the second Philly casino should also have a plan on being a destination hotel/casino or else AC will just lure more folks back across the state border...

[billy ross]

so basically, the "fat man of NJ" is upping the ante and prettying up the state's whore so that she can attract more/new business, since the neighborhood is getting more crowded with other street walkers moving in on the corners...

PA thankfully has allowed table games in its casinos; the ones in eastern part of the state better figure out how to sell themselves and the second Philly casino should also have a plan on being a destination hotel/casino or else AC will just lure more folks back across the state border...

I disagree with your last statement. Unless and until Atlantic City develops more of a sense of place than any old ghetto USA it will continue to suffer and to be a very weak destination.

[mixiboi]

Happy New Year Atlantic City:

Big changes possible for Atlantic City in 2011 | AP | 01/02/2011

By the end of the year, construction could be under way on two new casinos, gamblers could be allowed to place bets online and voters will have weighed in on whether they want New Jersey to offer legalized sports betting.

A new state-run tourism district is expected to be up and running, taking responsibility for making the area around the casinos and boardwalk safer, cleaner and better-run. The 11 casinos themselves could be subject to much less regulation and oversight by the state.

One or more of the casinos could be in new hands , at a much cheaper price , before the ball drops in Times Square again.

A measure that already has passed the Legislature and is awaiting the signature of Gov. Chris Christie would authorize two new casinos with as few as 200 hotel rooms. Current law requires casinos to have at least 500 hotel rooms, and the most successful ones have 2,000 or more.

But the going price for building that kind of resort has topped $2 billion. The smaller casinos could be done for several hundred million dollars. In return for not having to make as great an investment as their predecessors, the two new casinos would be taxed at a higher rate.

Hard Rock International has said it wants to build one of the smaller casinos on the southern end of the boardwalk and is prepared to draw up blueprints soon after Christie signs the law.

so in 2011, The Walk, Atlantic City's popular retail shopping district, is scheduled for a $15 million, 45,000-square-foot addition. And ground was broken last week for a new parking garage for the shopping and convention center area.

"For the first time in a long time, we've got all the interested parties pulling in the same direction: the casinos, the city and the state government," said Griffin, the Trump CEO. "The overall experience in Atlantic City is going to be much better in the next 12 to 18 months."

[ArcticSplash]

AC has relied a lot on drive-in/drive-out folks who now have a reason to just stay at home.

The blue hairs on oxygen tanks don't need to load up on a bus at 7-8 in the morning, chewing on a bagel barreling through the Pine Barrens. That's what was keeping AC humming all these years. Now you can just go to Parx and get the same thing.


So it looks like Christie has the right idea. Stop the freeloading of the casino contributions and pour it back to make AC bigger and more of a destination to attract New Yorkers and out of staters who want a hotel room and stay the night and see a show and shop there. You already have NY and PA and MD residents opting to just fly to Las Vegas to see what a real resort town looks like. AC has always been sad and second rate, so they want to sparkle it up. Can't see the harm in that.

It's not a coinkidink that AC International is also seeing better air traffic. Nobody used that airport until AirTran started running flights there. If more people start going to AC, then Southwest Airlines will want to run flights there. Southwest Airlines is the gambler's airline of choice, with heavy volume going to Las Vegas.

Vegas is already getting out maneuvered by Macau. Asian gamblers who used to fly to Vegas and unload tons of money are opting for the cheap flights to Macau. Singapore and Malaysia are now offering high-end gaming too.

[hausfrau]

AC has relied a lot on drive-in/drive-out folks who now have a reason to just stay at home.

The blue hairs on oxygen tanks don't need to load up on a bus at 7-8 in the morning, chewing on a bagel barreling through the Pine Barrens.

I have read this 3 times now, and each time I laugh a little louder

[phillyaggie]

I disagree with your last statement. Unless and until Atlantic City develops more of a sense of place than any old ghetto USA it will continue to suffer and to be a very weak destination.

which is what, I believe, they're working on. They are finally realizing that AC is their one cow they've milked pretty dry, and they better let it plump back up or they're screwed, especially with new competition springing up nearby.

AC remade itself in the past, and it's about to do so again.