The governor will announce privatization of horse racing industry, state takeover of casino district on the 50-yard line at the New Meadowlands Stadium today
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Today, Gov. Chris Christie will tell New Jerseyans a special commission he appointed has found that crime, incompetent local government and ferocious competition leave him no choice but to take over the Atlantic City casino and entertainment district in order to save it.
And he really means takeover.
Almost all municipal powers, everything from policing to garbage pickup, would be run by the state.
But first, he will step to the 50-yard line of the New Meadowlands Stadium, where he will say the state will not take the same gamble on its moribund horse racing industry. The same commission that wants to save Atlantic City says the state should privatize horse racing and turn the once formidable New Jersey Sports and Exposition Authority into a mere landlord.
Details of the commission’s findings were first reported Wednesday by The Star-Ledger on NJ.com, its on-line website for news.
Reaction to the unprecedented plan was swift.
"It certainly is bold, and I give him marks for that, because we really need to do something," said state Sen. Jeff Van Drew (D-Cape May). "We can’t just let Atlantic City die a slow death."
But Sen. Raymond Lesniak (D-Union) was stunned, and said New Jersey was not adequately fighting back against competition from surrounding states.
"It’s been nothing short of devastating," he said. "We haven’t done anything ... other than to circle the wagons and just allow the revenue base to Atlantic City to continually erode."
A spokesman for the governor declined comment Wednesday, but a statement from his office Wednesday night said Christie will spell out a "blueprint for a strong sport and entertainment industry."
Among the recommendations contained in the report, which was reviewed by the newspaper:
• The state would seek to transform Atlantic City into a convention and family friendly resort, including a major expansion of the boardwalk that would include amusement rides. The entertainment areas would be placed under the control of a new state authority, essentially turning it into an independent city within a city.
• Money from the Casino Reinvestment Development Authority, now shared throughout the state, would stay in Atlantic City for projects and improvements there.
• The Meadowlands Racetrack could be sold for a token $1, or turned into an off-track wagering facility without live horse racing.
• The New Jersey Sports and Exposition Authority would be all but disbanded, becoming simply a landlord for the facilities it now operates. The Izod Center arena in the Meadowlands could be privatized or sold.
• The state would help re-finance the long-stalled Xanadu project in the Meadowlands, enabling a new developer to take control of the garish, high-visibility retail and entertainment complex alongside the New Jersey Turnpike that many consider an embarrassment.
Atlantic City and the Meadowlands Racetrack have steadily been losing market share to out-of-state competition as gamblers are lured by places far closer to spend their money. In recent years, Yonkers Raceway in New York added slot machines, becoming a "racino." Foxwoods in Connecticut continues to attract players from New York and northern New Jersey. And just last week, casinos in eastern Pennsylvania began operating table games once exclusive to Atlantic City, including poker and blackjack.
At stake are thousands of jobs and hundreds of millions of dollars which flow from Atlantic City’s 11 casinos.
Some legislators have long pushed to turn the Meadowlands — only about eight miles from Times Square and now served by a new rail line — into the new Atlantic City. There has been legislation introduced that would allow slots or video lottery terminals at the racetrack, as well as serious discussions about turning Xanadu, which was never competed, into a casino serving the metropolitan area.
But the report rejects any expansion of gambling at the Meadowlands. Casinos and the 38,000 jobs they provide remain an economic engine for southeastern New Jersey, and the report argues Atlantic City be given a chance to get better before consideration is given to gaming anywhere else in the state.
Instead, the play is being made to keep Atlantic City as a destination resort and expand its entertainment and amusement offerings.
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Senate President Stephen Sweeney (D-Gloucester) would not immediately endorse or reject Christie’s plans, saying only that the Legislature will study them during a "gaming summit" next month.
"It’s not about moving quickly, it’s about moving intelligently. If we can do both things at the same time, it’ll be wonderful," Sweeney said.
The only hope Christie has for getting Hanson’s recommendations enacted is keeping casino gambling in Atlantic City alone. Any move to put gambling in the Meadowlands would result in certain opposition from Sweeney, who could unilaterally kill any of the legislation needed. Sweeney and the rest of the South Jersey legislative contingent oppose gaming licenses being issued outside of Atlantic City.
However, Assembly Speaker Oliver (D-Essex), the other part of the equation in getting the proposals through the Legislature, said what she has read of the plan was "extremely dramatic," and did not believe the governor was going to see overwhelming support.
"I don’t think we can (any) longer say that Atlantic City has to be the only venue in the state," she said.
Sen. Richard Codey (D-Essex) was opposed to the plan. "It’s mind boggling that we would let hundreds of millions of dollars go to other states," he said. "Because once the Aqueduct (racetrack in New York) opens, there will no one in Jersey who can’t take a short ride to another state to play slot machines."
Separately, the Hanson report calls for revival of Atlantic City’s convention business. Criticizing a generation of underinvestment in non-gaming activities, it suggests adding family type amusement rides on an expanded boardwalk, and possibly the addition of a NASCAR track.
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Chris Christie shakes hands with one of his supporters as he is leaving from Monmouth Park Racetrack in Oceanport.The report, though, expresses no confidence in Atlantic City’s leadership. According to the report, developers, businesses and casino companies are now wary of investing there while visitors are reluctant to come because of a perception it is not safe. In February, a state audit of the city found $23 million in government waste.
Under the proposals before the governor, the new state authority would take control of security, planning and traffic in the district. Boardwalk Hall and the convention center would be taken over, while the Atlantic City Convention and Visitors Authority would be shuttered.
The report also calls for sweeping changes and updates in the state’s gaming regulations, mirroring them more closely on Nevada. Rules and laws need to be updated and eased based on changes in technology since the casino rules in New Jersey were first drafted a generation ago before the explosion of computers and prior to the gaming industry being taken over by multi-national conglomerates based in far-flung locales, the report says.
Under the Hanson commission plan, the sports authority — which operates the Meadowlands Racetrack and Izod Center, Monmouth Park Racetrack, the Atlantic City Convention Center, Atlantic City Boardwalk Hall and the Wildwood Convention Center — would essentially be out of business. All of its operations would be privatized.
By Josh Margolin and Ted Sherman/The Star-Ledger
Staff writer Claire Heininger contributed to this report .
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• N.J. Sports Authority audit is sought by lawmakers amid mounting debt
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