It’s my opinion that city officials in Atlantic City, New Jersey are definitely concerned about the closing of the casinos in their area because they’re planning to ask the state for permission to lay-off some city workers.
I’m sad to hear this bad luck for Atlantic City and for the workers who have been there for so many years. I cannot imagine the impact this is having on the entire surrounding areas. I’m hoping the business will have a comeback and bring back the success the Atlantic City area has had for more than 27 plus years.
I watched as the city grew from the first casino’s inception; and I must admit I feel terrible about the situation for the city and the workers.
The city did not give a quote as to the number of city workers who may be targeted for lay-offs. City officials want to re-open most of the union contracts for the city workers to achieve salary and benefit reductions.
It was reported by the Press of Atlantic City that the administration of Mayor Don Guardian sent letters to city workers on Tuesday, which warned that the city plans to file a layoff pan with the state on Oct. 1, 2014.
“We understand that the union representatives of your respective unions have attempted to convey to you the seriousness of the city’s economic problems and it is not an understatement that severe financial issues are affecting the city.” City Business Administrator Arch Liston wrote.
It also advised the police contract has another year left and it will not be re-opened.
The news of the lay-off plan came a day after Standard & Poor’s downgrade Atlantic City’s credit rating dropped from A-minus to BBB-plus; citing the close of four of its 12 casinos this year as the reason.
There have been a series of casino tax appeals since 2007 to lower property taxes due to a reported decline in the casinos gambling income; this resulted in more than $350 million in tax refunds being repaid by the city from largely borrowed money, according to a Philadelphia Inquirer report.
The Revel casino in Atlantic City whose original cost to build was quoted as $2.4 billion dollars and had to close its doors on September 2, 2014 after going out of business.
A bankruptcy court auction for the Revel is stated to resume after the Rosh Hashanah holiday.
A lone bid made public thus far is $90 million from a Florida developer, Glenn Straub, who envisions a place for “geniuses” to gather to tackle numerous problems, with or without a casino.
Barbara Kasey Smith is the writer of this article and it’s based on news reports heard on NBC Philadelphia.com/news and ABC News.com.
Source:
NBC News.Com
ABC News. Com