Officials will meet next week to decide whether to use a two-tiered assessment structure for Atlantic City’s Special Improvement District.
The Casino Reinvestment Development Authority’s Special Improvement District committee will vote on a proposal that would call for Marina District properties, including the district’s three casinos, to pay 75 percent of their full assessments owed to SID based on property value. If approved, it would be the first time a multitiered system has been used in the district.
The proposal was made in part due to litigation filed by Borgata Hotel Casino & Spa, contesting the casino’s inclusion in the district, which the casino said is primarily focused on the Boardwalk. Suggested modifications to the assessment process are part of a settlement proposal, CRDA Chief Legal Officer Paul Weiss said.
The committee meets at 1 p.m. Tuesday at the CRDA’s offices and will listen to public comment prior to its vote. CRDA’s full board also must vote on the recommendation of the committee.
Until April 2011, the SID was a nonprofit organization working to improve the city’s business community with a zone that included major areas along the Boardwalk, Atlantic and Pacific avenues. With the inception of the Tourism District, however, SID was absorbed by the CRDA, and its boundaries were changed to reflect the boundaries of the Tourism District.
Commercial and business properties pay $38 per $100,000 of assessed value — a rate that has been in place prior to SID’s absorption by CRDA. Under the new proposal, Marina District properties would pay $28.50 per $100,000 of assessed value. If approved, the new rate would take effect for the remainder of the year, Weiss said.
CRDA would fund the estimated $300,000 gap in SID’s $6.9 million budget for 2013.
While assessments paid by property owners remained the same from 2012 to 2013, CRDA more than doubled the subsidy provided to the district. In 2012, CRDA supported SID with $760,000; in 2013 the subsidy increased to nearly $1.6 million.
The amount brought in by properties in the district has decreased as the city’s assessed value of Tourism District properties has dropped by $1 billion in the past year.
Contact Jennifer Bogdan:
Follow @ACPressJennifer on Twitter