City's past is marked with political corruption, crime, gambling competition from other states
Clik here to view.
The plan, conceived more than three decades ago, had the backing of governors and multiple consultants, said Nicholas Amato, a former director of the state Casino Reinvestment Development Authority.
But the powerful jitney drivers union opposed the change.
"Every time it made it to the city council, it died," Amato said. "If you can’t get that done, how do you do other things that need to get done?"
The plan’s failure is but one small example of how problems go unsolved in Atlantic City. For years, officials, residents and tourists have bemoaned the blight, lack of family-friendly attractions, crime and rampant corruption. Bruce Springsteen pondered the city’s decline and possible rebirth in 1982 when he sang "everything dies, baby, that’s a fact, but maybe everything that dies someday comes back."
But a parade of politicians has failed to deliver change, making the city an enduring symbol of incredible potential and unmet expectations.
Now, with the recession and out-of-state gambling competition pushing the resort to the brink, Gov. Chris Christie is wresting control of the gaming and entertainment district from poor municipal management.
Christie’s announcement last week prompted more soul-searching over what Atlantic City needs to succeed.
One idea is to extend the boardwalk and add attractions like amusement park rides.
Kenneth LeFevre, a former Atlantic County Republican freeholder and state assemblyman, said the resort also needs amenities like movie theaters to appeal to families.
Noting Christie’s plan involves keeping casino reinvestment money in the city — rather than continuing to fund projects there and across the state — LeFevre said the state can give casinos immediate relief by cutting its take. Alternatively, it could redirect funds to marketing.
"We need to reinvent ourselves," said Michael Diamond, associate editor at Gaming Observer. "We spend $4 million a year on marketing. Las Vegas spends over $100 million."
Many people said Christie’s plan is necessary to bypass parochial interests that have stymied reform.
"You need vision, you need courage and you need strength," said Steven Perskie, a former state senator who wrote the constitutional amendment that permitted gambling in Atlantic City. "That combination has been missing at the local level."
Atlantic City Mayor Lorenzo Langford, who defended the traffic decision as responding to the community, agrees the state should intervene as long as it collaborates with the city.
"The direction the governor wants to go in is the right course," he said. "We’ve all gotten our arms around the concept and agreed it’s what we need."
Not everyone thinks Christie’s plan is a good idea. Seth Grossman, a former Atlantic City councilman, said more state involvement is not what the city needs. He also said rules have to favor everyone — not just behemoth companies.
"There is no place for the middle-class business owners who used to be the backbone of Atlantic City," Grossman said.
MISSED OPPORTUNITIES
From bootlegging during Prohibition to pre-casino gambling dens and brothels, Atlantic City has been a haven for illicit activities. When casinos arrived, Pacific Avenue became the muster zone for prostitutes, while those seeking drugs quickly learned where to go. Government corruption was the constant. By 2007, five of the previous nine mayors had faced various charges.
But Christie’s commission tasked with assessing the city’s prospects focused on ineffective management as a major reason for the decline.
When gambling was legalized in 1976, speculators snatched up land in hopes of making big profits by selling to casino developers, said Walter Murphy, director of the Atlantic City Chamber of Commerce from 1974 to 1977. Some developers refused to pay the high prices and found other places to build. Today, barren lots and dilapidated buildings fill the spaces between gaudy casinos.
"Someone said the Atlantic City skyline is like an old man’s mouth," longtime casino consultant Carl Zeitz said. "There’s lots of gaps."
The city has been unable to harness the revenue-generating power of casinos, which pay $175 million a year in property taxes. It’s so bad that municipal officials said 750 employees — almost half its work force — may be laid off, unless they can raise taxes another $9.5 million to balance a proposed $211 million budget.
Bryant Simon, a Temple University historian and author of the book Boardwalk of Dreams, said gaming revenue skips city neighborhoods.
"The past has shown the trickle down has leaped over the city to the suburbs," he said. "It’s all good, but it’s not rebuilding Atlantic City."
The city’s shabby condition was a massive embarrassment back in 1964 when the Democratic National Convention was held there.
"The city had really fallen upon hard times," Murphy said.
Legal gambling was pitched as the city’s salvation, and casinos were supposed to be fountains that spilled money. When the first casino opened in 1978, only Las Vegas also had legal gambling. Some say the near-monopoly made the industry complacent.
"It’s incredible. This is the golden goose. They killed it," said Assemblyman Ralph Caputo (D-Essex), a former casino executive. "It’s a combination of the business community and government that’s failed."
Now most states, including neighboring Pennsylvania and New York, have legal gambling, giving potential Atlantic City visitors somewhere else to go. Revenue dropped 24.2 percent to $3.91 billion from 2006 to 2009. Visitors are down 11.9 percent, to 30.4 million, for the same period.
Zeitz said Atlantic City can still be a regional powerhouse but not the "world-class resort" some envision because it simply lacks the investment and cachet. "We have to be honest about what it is and what it can be," he said. "The prospect of saving Atlantic City as a major gaming destination is up in the air."
A NEW PLAN
Christie’s proposal is seen as both bold and last-ditch.
"It’s the only way you’re going to save Atlantic City," Amato said. "This is the second most important event next to the advent of gaming."
Clik here to view.
Gov. Chris Christie (left); Jon F. Hanson, chairman of the Governor's Advisory Commission on NJ Gaming, Sports and Entertainment and Lt. Gov. Kim Guadagno; during a press conference announcing the results of the report of the Governor's Advisory Commission on NJ Gaming, Sports and Entertainment Economic Recovery Plan, held at Giants Stadium in East Rutherford. Caputo said he likes the plan but wants more detail.
"I don’t see the kind of intense analysis you need to deal with the problems," he said.
The Legislature is holding a gaming summit next month to review Christie’s proposals.
LeFevre said regional interests could be a problem if politicians balk at the proposal to keep all casino reinvestment funds in Atlantic City.
Ultimately, many view the governor’s plan as an investment in the city’s future.
"We can’t even begin to say how thrilled we are," Casino Association of New Jersey president Mark Juliano said. "The state is not willing to let Atlantic City fail."
By MaryAnn Spoto/The Star-Ledger and Chris Megerian/Statehouse Bureau Staff
Staff writers Peggy Ackermann and Ted Sherman contributed to this report.