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ATLANTIC CITY - City Council reluctantly passed three measures Wednesday that could lead to watered-down infrastructure improvements around Revel Entertainment Group's casino project after learning the state cut the funding by $100 million.

Council members voted 7-1 to approve Revel's application for $50 million in state bonds, which would be financed through five years' worth of city and county property taxes obtained from Revel.

The original plan was to acquire about $150 million in state bonds made possible through the New Jersey Economic Stimulus Act of 2009, signed by outgoing Gov. Jon S. Corzine in July. The money was also initially scheduled to be provided by the state in increments over 20 years, however, under the new plan the $50 million will be infused over a five-year period.

Revel attorney Nicholas Talvacchia said the reduction came from a decision by the state Attorney General's Office. He did not immediately elaborate.

The ordinances, which are still subject to a second-reading vote, will now be reviewed by the state's Local Finance Board at its meeting Dec. 9. Revel attorneys say more changes could be made by the state before the next reading.

Under the new plan, Revel would receive $50,660,855.59 for infrastructure improvements that would include reconstruction of Inlet Boardwalk sections and renovations at Garden Pier.

According to documents distributed at the meeting, the city would lose about $12 million in property tax revenue from Revel's casino, which is scheduled to open in 2011. That money, along with additional revenues normally accepted by the county and the city's school board, would fund more than $50 million in infrastructure projects.

Councilman Timothy Mancuso was the council's lone vote against the project, insisting the city could not afford to lose money as it faces a multi-million budget deficit next year.

Revel attorneys lobbied hard for council to pass the measures, telling council it could send developers a "powerful message."

"If you don't do this, I think it will send the wrong message to the development community," Talvacchia told council before the vote. The mayor had a big meeting about what we can do to improve (Atlantic City's situation). Well, this is something you can do."

Contact Michael Clark:

609-272-7204

Michael.Clark@pressofac.com

1 comment:

• BernieSchwartz (646) posts 5:30 pm

  Shouldn't my taxes be paying for infrastructure needs? With all the money the Casinos and City peed away the last thirty years we could have paved the city with gold bars (of course these would have been stolen by our upstandindg citizens)! Now they want to use MY money to loan to a developer? And our esteemed city council is the ruling party on this? I think I need to go to a rape clinic for some counseling.

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