Gov. Christie’s Strange Takeover of Atlantic City

It’s been a couple of weeks since New Jersey Republican Governor Christie called for a state takeover of Atlantic City. The news came as a shock. Take that Tea Party! Was this the same guy who campaigned for lower taxes and less government, just a few months ago? Takeover, the word used in the press, is too strong a word. Actually, Christie called for a takeover of just the casino district and adjoining boardwalk. The so-called takeover would enable such municipal services like trash collecting etc. to be better facilitated, in addition to financing some revitalization projects by public/private partnerships. What would drive Christie to take such drastic action? "Atlantic City is dying," Christie said. The facts are sadder than the empty pockets of a gambling addict after last call. Here are some facts taken from an article in Atlantic City’s Casino City Times: “Gaming revenues fell to $3.9 billion in 2009, the lowest levels since 1997. Atlantic City has lost 12,000 jobs. The Republican called current and past Atlantic City elected leaders "corrupt and ineffective." Christie believes the state can shore up the city's existing 11 hotel-casinos. A revitalized Atlantic City could attract investment and improve visitation and convention business.” Development is drying up: “Pinnacle Entertainment

killed plans for a 19.5 acre site on the Boardwalk and is selling the land, most likely at a 70 percent discount from its original $340 million acquisition cost. Christie wants to salvage the $2.5 billion Revel project, which shut down construction in April after financing dried up and lead investor Morgan Stanley bailed. Deutsche Bank gaming analyst Andrew Zarnett doesn't think saving Revel is a good idea, especially for Borgata. The resort and the market will suffer when Philadelphia's Sugar House Casino opens in the fall. "On a long-term basis, we believe that (cash flow) at the Borgata

will continue to trend down as the competitive landscape is expected to intensify," Zarnett told investors. "Atlantic City revenues, especially Borgata, will plummet if Revel Casino is fully built." Atlantic City’s problems stem from the recent legalization of gambling in Pennsylvania. I rode past Philadelphia Park, the site of the recently opened Parx casino, at the race track in the Philadelphia suburbs, last week. The new casino looked like a booming metropolis from my perch along Street Rd in Bensalem. Apparently business is booming. ‘Fahgettabout’ a lot of folks coming to Atlantic City from NYC. There are closer Indian casinos to NYC. Pushing Christie to act is the diminishing tax revenue the state gets from the casinos. As usual, everybody in the Philly South Jersey area has an opinion on the so-called takeover. But nobody seems to know much about it. The governor’s plan was the result of a recently released study commissioned by New Jersey. One of the study’s authors was recently on Marty Moss Coane’s NPR, radio show and even he didn’t provide much info. The uncharismatic panel member had the stage presence of a 90 year old man dying of boredom. Help for Atlantic City may come from an unlikely source. HBO is releasing a new TV series called, Boardwalk Empire: The Birth, High Times, and Corruption of Atlantic City, starring Steve Buscemi. The show will feature Atlantic City at the height of its glamour in the 1920’s. The audiobook by Nelson Johnson, is being featured today on Audible.com. If the show is a hit, the publicity could help drive traffic. If state sponsored investment in Atlantic City is to pay off, the city will have to bring back some of the history and glamour of the past. Presently, there is little to do outside of the casinos. There is a wonderful city run museum on the far side of the boardwalk near Resorts that gets little traffic and publicity. There are wonderful pictorials there of men clad in the iconic one piece bathing suits of the the 1920’s and 30’s and parasol carrying women. That type of connection to Atlantic City’s past may be critical to future development Gone from the boardwalk are great attractions like the old Steel Pier. When I was a kid in the 1960’s I used to spend the entire day at Steel Pier. You could see a concert there, view an aquarium, watch a motion picture, and catch dozens of other attractions, all for one admission price. I saw the original Jersey boys in concert there – The Four Seasons, and viewed the then, recently released Beatles film Help. I lost my innocence when my buddy told me that the famous diving horse was pushed. The diving horse exhibition that was part theater, part carnival was so emblematic of Atlantic City in the 60's. If Atlantic City is to be a family friendly destination, the boardwalk will have to offer the modern equivalent of the original Steel Pier. Presently the boardwalk offers a pittance of amusement parks, and 2nd rate dollar type stores. The promised revitalization of the city, outside of the casinos, has been a cynical failure. I’ve always believed that public/private partnerships can work effectively, under good leadership, so I’m hoping that New Jersey’s tough talking governor Christie can pull this off. Everyone here agrees that it will be close to a miracle if he does.