Christie: Emergency manager needed in AC

ATLANTIC CITY, N.J. (AP) -- An emergency manager for Atlantic City and a public-private development corporation that would spur new business activity there are among the recommendations of New Jersey Gov. Chris Christie's panel on the struggling resort's future.

Christie unveiled the recommendations at the end of a second summit meeting he convened Wednesday, but said he has not decided on any of the recommendations that developed from a stakeholders' group he appointed in September.

"Everyone understands the situation is grave," Christie said. "The first thing you need to do is stop the bleeding."

The main recommendation is appointing an emergency manager for Atlantic City's municipal government, which would be an expansion of the fiscal oversight the state currently has over the city. But Christie would not elaborate on the proposal for such a manager, or what his or her powers would be.

An aide said details of the proposals would be released on Thursday. Atlantic City Mayor Don Guardian was not immediately available for comment, an aide said.

The governor also said another recommendation was creation of a new public-private development corporation for Atlantic City along the lines of a similar entity that helped turn around New Brunswick after decades of blight.

Christie said a third meeting will be held in January but predicted several steps would be enacted legislatively before then, in addition to executive actions he can take unilaterally.

The recommendations come as the city continues to struggle; four of its 12 casinos have closed so far this year and a fifth, the Trump Taj Mahal, could join them by the end of the month. The casino's parent company is looking for $175 million in state aid to stay afloat -- something Christie seemed decidedly cool toward.

"I don't have a position on that," Christie said. "There's a lot of complex issues involved in that."

But he did say that in general terms, state economic aid has not been available to help casino operations.

Atlantic City residents, gathered across the street from Wednesday's summit, expressed hope for their struggling town.

"I think they're on the right track," resident Al Garrett said of leaders and officials involved in the revitalization process. "They're eliminating the emphasis on the casinos, and they're going to turn around and bring in businesses."

Linda Steele, a resident of Galloway who was born and raised in Atlantic City, said real change is possible for the city if the politicians and stakeholders stop focusing only on casinos.

"We need to diversify, and we need to be smart in how we do it," Steele said. "I certainly think that Atlantic City can be saved, but you have to have a real heart for it, and a desire."

Earlier this week, state Senate President Steve Sweeney offered a plan to redirect some casino redevelopment payments toward paying down Atlantic City's debt, and letting casinos make $150 million in payments in lieu of taxes for two years before a different tax structure kicks in for the next 13 years. Christie would not offer an opinion on that plan.

Sweeney said he was encouraged by the discussion at Wednesday's closed-door meeting.

"What we have is unsustainable," he said. "There's a lot of positives in that meeting. I'm confident we can fix this thing."

Legislators from northern New Jersey and the state's horse racing industry are also pushing hard for the state to allow casinos outside of Atlantic City, but Christie said that topic was not discussed Wednesday.

Dino Flammia contributed to this report.

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