A proposal to create two different assessment rates within the Atlantic City Special Improvement District was approved by a Casino Reinvestment Development Authority committee Tuesday.
Under the proposal passed by the SID committee, commercial and business properties in the Marina District will pay $28.50 per $100,0000 of assessed value, which all other properties will continue to pay $38 per $100,000 of assessed value. No public comment was made, CRDA spokeswoman Kim Butler said.
The full CRDA board will vote on the issue at its June 18 meeting. If approved, the two-tiered system will go into effect in July.
The reduction for Marina District properties will result in a $185,512 shortfall in SID’s budget for the remainder of 2013. A budget amendment also approved by the committee Tuesday would allow CRDA to fill that gap. If the same assessment system were to stay in place for a full year, the impact to the budget would be $370,000, Butler said.
The two-tiered system was proposed in part due to litigation brought by Borgata Hotel Casino & Spa, which has argued it has not received the same services in the Marina District as the properties in the rest of the Tourism District.