Special meeting called to discuss Atlantic City bankruptcy

Atlantic City officials are entertaining the idea of declaring bankruptcy a day after  several pieces of legislation that would help provide funding to the city failed to be signed into law by Gov. Chris Christie.

During a private meeting at the Statehouse today, Atlantic City Mayor Don Guardian and Atlantic City Council President Marty Small met with Assembly Speaker Vinnie Prieto (D-Secaucus). The men emerged from the meeting and said they presented Prieto with the true story of Atlantic City’s finances.

“I’m going to ask the mayor for special meeting to discuss bankruptcy for Atlantic City,” declared Small. “The mayor, per law has to call the special meeting and we will entertain bankruptcy.”

Mayor Guardian said he would call for that meeting, which requires 72-hour public notice.

“We’ll have the meeting sometime next week,” Guardian said.

The city would save money immediately by filing for bankruptcy because debt would be slashed, Guardian explained, but he also said it would set a bad precedent for other towns who might be considering it. He and Small hoped the state would step in and provide financial help.

In the early 1990s Camden filed for bankrupt, but the state thwarted it by pouring money into the city.

A request seeking comment from Christie’s office was not immediately returned.

Kevin McArdle has covered the State House for New Jersey 101.5 news since 2002. Contact him at kevin.mcardle@townsquaremedia.com. Follow him on twitter at @kevinmcardle1.