Gov. Christie Set To Appoint Emergency Manager For Struggling Atlantic City
Last year saw four of the twelve casinos in Atlantic City close down with others in serious danger of following suit. Atlantic City is heavily dependent on the success of the casino industry as they have in their heyday accounted for about 75 percent of the city’s property taxes. Competition from neighboring states has led to serious declines in gaming revenues and is forcing Governor Chris Christie to take urgent measures to stop the bleeding.
A report in the Wall Street journal states that Gov. Christie will appointing an emergency manger to assume control in the beleaguered Atlantic City. While there has been no confirmation from the Christie camp, insiders say that corporate restructuring attorney Kevin Lavin will be the man tasked with getting a grip on the difficult financial state of affairs that AC finds itself in.
In addition to Lavin sources at the WSJ also say that the restructuring lawyer who was brought in to handle Detroit’s bankruptcy crisis, Kevyn Orr will also be involved on in a consultancy position.
This latest move comes despite Atlantic City lawmakers rejecting a state appointed emergency manger earlier this month. They did however endorse steep budget cuts. Gov. Christie is under increasing pressure to ensure that the Garden State stabilizes their budget. Christie himself has a lot to lose if the financial situation in New Jersey does not improve. He has tied his political aspirations to the success or failure of the Garden State. He was and is still one of the biggest proponents for expanding gambling in New Jersey as he believes it would result in massive economic growth.