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Atlantic City: Building A Foundation For A Shared Prosperity

The document provides a report on recommendations for revitalizing Atlantic City, NJ. It summarizes the history that led to the city's current state and recommends focusing on strengthening local government, diversifying the economy, improving quality of life, engaging civic groups, and addressing social issues to build a sustainable future with shared prosperity.

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0% found this document useful (0 votes)
106 views64 pages

Atlantic City: Building A Foundation For A Shared Prosperity

The document provides a report on recommendations for revitalizing Atlantic City, NJ. It summarizes the history that led to the city's current state and recommends focusing on strengthening local government, diversifying the economy, improving quality of life, engaging civic groups, and addressing social issues to build a sustainable future with shared prosperity.

Uploaded by

Swastik Grover
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ATLANTIC CITY

Building A Foundation For A Shared Prosperity

Report to Governor Phil Murphy

James E. Johnson
Special Counsel

Braxton Plummer
Katherine Brennan
McKenzie Wilson
Atlantic City:
Building a Foundation for Shared Prosperity

Introduction
Atlantic City is in a moment of economic opportunity Affairs, to investigate key facts about Atlantic City’s
and promise signaled by the opening of the progress and provide strategic advice for the path
Atlantic City campus of Stockton University, the forward (the Review). The Administration later
arrival of South Jersey Industries and smaller new expanded the team to include Katherine Brennan,
businesses, and the reopening of two shuttered Chief of Staff of the New Jersey Housing Mortgage
casino properties rebranded as the Hard Rock and Finance Agency (NJHMFA), and McKenzie
Wilson, Associate Counsel to the
Governor.1
This report provides the framework
This report is the result of more
for sustainable, shared prosperity. than five months of fact finding,
consultation and analysis. It has
several goals: to give an account of
Hotel & Casino and Ocean Resort Casino. These some of the history that has led to this moment;
opportunities should be nurtured with a care to recommend steps for continuing progress; to
informed both by the hard lessons of the past and address chronic challenges that have faced the City;
by the experience of other legacy cities striving and to provide a framework for sustainable, shared
for renewal. Atlantic City was undone, in part, by prosperity.
economic trends that were beyond its capacity to
control. Continuing recovery will involve learning
from past missteps and working with developing
trends. The City should respond to demographic
and economic trends to plan and invest with the
future in mind. It should not hope to recreate a past
which relied on a monopoly in the gaming market
1
The Review Team was assisted tremendously by personnel
throughout State Government, particularly Charles Richman,
and on policy choices that have not, in 40 years,
the Director of New Jersey Housing Mortgage and Finance
lived up to their original billing. Atlantic City must Agency who lent his staff and his insight to this effort. The
chart a new course, which involves strengthening following National experts on urban policy, planning and
the fundamentals of local government, investing public health were generous with their time and insights:
in a broader economy with jobs with high earning Alan Mallach, an expert on Urban Policy and Affordable
Housing whose works include Divided City; William Morrish
potential and addressing longstanding social
and Mindy Fullilove, professors at the New School for Social
challenges. The strategy must seek to build people, Research; Maurice Cox, Director of Planning of the City of
particularly the youth, not just places. Detroit and Harriet Newburger, PhD, former Community
Development Research Advisor at the Federal Reserve Bank
Governor Murphy directed the Review Team of of Philadelphia. Dr. Newburger was particularly helpful in
updating data from earlier reports and providing charts used
Jim Johnson, Special Counsel to the Governor,
throughout this report. Finally, Marc Pfeiffer of the Bloustein
and Braxton Plummer, Senior Advisor to the School of Planning and Public Policy was an invaluable subject
Commissioner in the Department of Community matter expert on municipal government.

1
Summary of effort should be on developing jobs that create
pathways to higher wages.
Recommendations
The Review Team spoke with Atlantic City • Improve the amenities that affect the quality
stakeholders that included casino owners and of life for current community members and
parents of children in Head Start, public employees can attract new residents. Many Atlantic City
and business leaders, union members and young residents have limited access to a regular
entrepreneurs, elected leaders and civic activists. provider of high quality food, no access to
The Review Team had the benefit of national a movie theatre outside of the casinos and
experts who had studied the path of legacy cities limited options for their children after school
as well as scholars who had studied Atlantic City or during the summer. DCA, CRDA and the
over many decades. Applying lessons from the City have commenced efforts to address some
successes and failures of other legacy cities, the of these issues. They are pivotal to rebuilding
Review Team recommends a six-point strategy. community life and some are essential to the
Taken together, these steps represent a pivot away health and safety of residents.
from strategies trapped in silos and based on silver
bullets to establish a comprehensive approach with • Build on Atlantic City’s Strengths. Communities
one critical goal: one city with one shared vision that have made significant steps toward recovery
moving forward. have put citizen engagement at the center of their
efforts. Atlantic City has civic associations that
• Focus on fundamentals of government. Working were first organized more than a century ago
with City leadership, the State should strengthen and still drive change in their neighborhoods.
the capacity of local government to execute Collectively known as Atlantic City United,
essential functions at a much higher level: these associations act independently to protect
delivering services, planning and development, and beautify their neighborhoods by raising
coordinating with other government agencies, funds and applying for grants. They have also
responding to citizens’ concerns and collecting come together to marshal forces in opposition
much needed revenue. Otherwise, municipal to initiatives where the community voice has
government itself will be a drag on progress. not been included from the start. Their voice,
The Review team found no case where a legacy insight and energy are some of the strengths
city enjoyed sustained progress without effective that will help propel Atlantic City forward. In
municipal government as a partner and, where a city that has become one of the most diverse
appropriate, manager of critical initiatives. in the State, they can build a sense of inclusion
among communities.
• Build a diverse economy based on the principle of
shared prosperity. Serious efforts at diversifying • Address social challenges and create pathways
Atlantic City’s local and regional economy to opportunity. Atlantic City is considered by
are under way. Since the beginning of the the DCA as one of the State’s most distressed
Review, the local chamber of commerce has cities. More than a third of its citizens, including
been working with labor representatives and 10,000 children, live below the poverty line,
the State to develop a jobs council that would and it has among the highest rates of infant
link community members to jobs that are mortality in the State. It is among the cities hit
expected as old businesses expand and new most severely by the national foreclosure crisis
businesses arrive. The focus of the job creation and by some accounts has suffered the worst. It

2
is both right and smart to take these issues on. most recent challenges. Section 2, the largest part
Prosperity cannot be penned in at the line of the of the report, raises issues addressed during the
Tourism District and urban challenges cannot be course of the review and makes recommendations
completely walled off. Legacy cities that recover on steps to manage if not remediate them. Section
include social concerns as part of the agenda for 3 is devoted to how to get it done and provides a
change. Atlantic City must do that also. mechanism for establishing mutual accountability
for executing key initiatives.
• Build Effective Partnerships Between Government,
Philanthropic and Nongovernment Anchor
Institutions. In addition to city and county
government, twelve government agencies play,
or could play, a significant role in Atlantic
City: the Department of Community Affairs,
the Department of Law and Public Safety,
the Casino Reinvestment and Development
Authority (CRDA), the Economic Development
Authority and the NJ Departments of
Children and Families, Education, Labor and
Workforce Development, Health, Agriculture,
Transportation and the Housing Mortgage
and Finance Agency. In addition, the casinos,
South Jersey Industries, Stockton University,
Atlanticare and ACDEVCO, the not-for-profit
development company, all have an important
role in the life of the City, as employers, sources
of intellectual capital and problem solvers.
Most legacy cities of the size of Atlantic City
would be envious of this array of resources. A
core issue is breaking down silos, developing
collaborative solutions and aligning resources
and effort so that they are mutually reinforcing.
Nearly a decade ago, the Federal Reserve Bank
of Philadelphia conducted a study of economic
development and chronic poverty in Atlantic
City in which it found that poor coordination
among government agencies hurt the city and
frustrated efforts to bring about positive change.

Other cities have used these core elements to


guide their strategy for renewal. Atlantic City’s
path forward should be shaped by them as well.

This report is divided into three sections. Section


1 provides a brief history of Atlantic City and its

3
I. A Brief Economic and Social History of
Atlantic City

A. Growth and Decline


For more than a century and a half, Atlantic City 1956, there were 15 theatres with segregated seating
has been among New Jersey’s most notable, and that could accommodate 20,000 theatre goers. By
notorious, shore towns. Atlantic City thrived as a the early 1970s, there were none.
beach resort from its founding in 1854 through the
middle of the 20th Century. By 1910, it welcomed 3 In 1977, with the passage of the Casino Control Act
million visitors each year. That number swelled to (CCA), the State of New Jersey and Atlantic City
16 million in 1939 when the City welcomed upper, began an alliance with the Casino and Gaming
middle and working-class visitors from throughout Industry on the premise that gambling would be, in
the region. By 1915, its population was 56,000 and the words of the Act, a “unique tool” to foster urban
peaked in 1947 with 69,000 residents. redevelopment. NJSA 5:12-1b(4). Resorts was the
first casino to open in 1978. By 1987, the number of
By the end of World War II, Atlantic City’s fortunes casinos rose to 12, retreated to 11 and then peaked
began a decades-long slide, as automobile and at 13 in 2010. The initial promise of the “unique
airplane travel made other destinations like Miami tool” was only partially fulfilled. Casino jobs
more attractive and the suburbanization of middle brought employment to some city residents and,
class city dwellers removed even more of Atlantic by 1988, according to the Urban Land Institute,
City’s appeal to residents of Philadelphia and other more than 27 million people visited Atlantic City
nearby cities. By the 1960s, Atlantic City found annually. Urban Land Institute Advisory Services,
itself with a fate that differed little from that of many Atlantic City New Jersey (2014), p. 12. The “CCA
other small to mid-size cities across the Northeast. required casinos to reinvest part of their revenues
Population and economic health plummeted, white in projects that would improve the health and well-
residents and black middle-class residents fled the being of the city”, but this requirement was largely
city and unemployment and poverty increased. ignored from the start. Newburger, H., Atlantic
Segregation of housing and opportunity were City: Past As Prologue, Federal Reserve Bank of
such that Judge Nelson Johnson referred to it as a Philadelphia (2009), at __ (The Fed Report). The
“plantation by the sea,” in his critically-acclaimed CCA was subsequently amended to create the
history of Atlantic City, Boardwalk Empire. If Casino Reinvestment Development Authority
anything, some of the obstacles to the progress of (CRDA). The mission of CRDA was to redevelop
all of its citizens were worse in Atlantic City than blighted areas of the City with a focus on low and
in other New Jersey cities that erupted in protest in moderate-income areas. Decades after its founding,
the late sixties. blight remains a problem throughout the city and
many of its social ills remain.
Atlantic City’s decline and the role of race relations
in it are described with particular care by historian For almost three decades, the casinos prospered
Bryant Simon in Boardwalk of Dreams. Almost as and the fortunes of many in the city and the region
much as the statistics about the decline of the city, a rose with those of the industry. As new casinos
single fact may encapsulate the story of decline. In came on line between 1978 and 1987, the number of

4
private-sector jobs in the city jumped sharply. The economic and social health of the City and region.
Federal Reserve reports that for about two decades Figures 1 through 4 graphically illustrate some
after 1987, the casinos typically provided jobs for of the data underlying the Fed’s analysis. Taken
more than 10,000 Atlantic City residents. Id. at together, these charts tell a sobering story. Atlantic
13. Many households had two or more earners City’s poverty rate has exceeded that of the State
who received paychecks from the casinos and the for decades (Figure 1) and has skyrocketed in
casinos provided new revenues for the City. By recent years.3 Indeed, although the casinos were
2000, the municipal budget drew about 80% of its intended to bring about significant change, the
revenues directly from taxes on Casino properties. data suggests that the poverty rate in the City never
saw a significant decrease. Figures 2 and 3 provide
Even as some moved forward, prosperity left many information on the incidence of poverty in Atlantic
behind. With the coming of the casinos, small City neighborhoods in 1999 and for the 2012-
business owners, who had formed a significant 2016 period. The number of neighborhoods with
part of the economic lifeblood of the City, saw their very high poverty rates is markedly higher in the
businesses whither as visitors entered casinos and latter period, the years following the creation of the
rarely ventured into the rest of the City. The Fed Tourism District, than in 1999. Figure 4 shows that
noted both anecdotal and statistical evidence that Atlantic City’s unemployment rarely approaches
the casino industry reduced the viability of some the level enjoyed throughout the State in good times
businesses which were direct competitors offering and is far worse in periods of economic downturn.
similar goods and services.2 And continuing
high levels of poverty and unemployment among
Atlantic City residents, along with blight in its
housing stock, led the Fed to conclude that the
casino industry had not lived up to its promise of
urban transformation.

The Fed pointed to several factors that may have


played a role in the limited progress in improving
the economic prospects of Atlantic City’s residents,
even before the dual pressure on the casino
industry from external competition and a deep
recession: Casino jobs were often low skill and low
wage; CRDA had not lived up to its potential; and
social service and other initiatives were ineffective 2
“Any tendency toward increased economic activity provided
because of silos that led to poor coordination by purchases from city businesses by the casino industry or
among government agencies, residents and other its employees appears to have been more than offset by the
supplanting of private sector activity by the casino sector itself
stakeholders. An argument can be made that things
or because of other factors unrelated to the industry.
may have been worse in the absence of casinos. And
to be clear, many in Atlantic City and throughout Both anecdotal and statistical information support the
the region benefited from the casino industry and conclusion that the casino industry has reduced the number of
will continue to do so. The Federal Reserve simply retail establishments in Atlantic City.” Fed Report at 19
cautioned that the story was more complex and that 3
The sharp increase in the poverty rate likely reflects both
policy makers going forward should engage with the the external completion Atlantic City’s casinos have faced in
hard questions about the impact of casinos on the recent years and fallout from the deep national recession

5
Figure 1 Poverty Rates: New Jersey and Atlantic City
40
37.6
36.9

35

30
Percent of persons in poverty

24.9 25.0 25.3


25 23.6
22.5

20

15

10.8
10.4
9.5 9.1
10 8.1 8.5
7.6

New Jersey Poverty Rate Atlantic City Poverty Rate

Sources: 1970, 198 ,1990, 2000 decennial censuses; American Community Survey (ACS) 5-year estimates—2006-2010, 2011-2015; ACS 1-year estimates,
2016 (US); ACS 1-yearsupplemental estimate, 2016 (Atlantic City)
Note: The U.S. Census Bureau classifies a person as poor if he or she lives in a household whose pre-tax cash income lies below the poverty threshold for
the relevant household type. The poverty threshold for a household of any given type is set at 3 times the inflation-adjusted cost of a minimally adequate
diet for such a household in 1963.

Figure 2 Poverty Rate by Census Tract


2000 Decennial Census Summary Files

87

Tract 14
30
187
Tract 25

! Tract 13

Tract 12
Tract 15

Tract 11

40

Tract 19

L
K 692

Tract 24

Tract 1 Tract 5

Poverty Rate 2000


L
K
629 Tract 3
Tract 23

Less than 15.0


Tract 4
15.0 to 19.9
20.0 to 29.9 Tract 13 includes Venice Park and
Tract 2 the islands and marshes in the north
30.0 to 39.9 and west. The population of Tract
13 is almost entirely in Venice Park.
40.0 or Greater

±
0 0.5 1

Miles

Data Sources: NJ-OGIS, NJDCA, U.S. Census Bureau Date Prepared: September 2018

6
Figure 3 Poverty Rate by Census Tract
American Community Survey 5 year estimates, 2012-2016

87

Tract 14
30
187
Tract 25

! Tract 13

Tract 12
Tract 15

Tract 11

40

Tract 19

L
K692

Tract 24

Tract 1 Tract 5

L
K
629

Poverty Rate 2012-2016


Tract 3
Tract 23

Less than 15.0


Tract 4
15.0 to 19.9
20.0 to 29.9 Tract 13 includes Venice Park and
Tract 2 the islands and marshes in the north
30.0 to 39.9 and west. The population of Tract
13 is almost entirely in Venice Park.
40.0 or Greater

±
0 0.5 1

Miles

Data Sources: NJ-OGIS, NJDCA, U.S. Census Bureau Date Prepared: September 2018

Figure 4 Unemployment Rates over Time


US, New Jersey, Atlantic County, Atlantic City
(Annual rates, not seasonally adjusted)
20

18

16

14
Unemployment Rate

12

10

US NJ Atlantic County Atlantic City

Sources: U.S. Bureau of Labor Statistics (BLS), Local Area Unemployment Statistics: New Jersey, 1977-2018, Atlantic City and Atlantic City, 1990-2018; BLS
statistics for Atlantic City, 1977-1989, as reported in Newburger et al, Atlantic City: Past as Prologue, Figure 4; Current Population Survey, unemployment rate
for those 16 years or older: US, 1977-2018.
Notes: 1) For 2018, the July unemployment rate is provided. 2) Atlantic County data not available before 1990.

7
For years, Atlantic City Casinos enjoyed a near 2006 and the jobs created during the recent upswing
monopoly on the East Coast. Indian gaming and the are likely to be somewhat different from those
entry of other states into the market cut sharply into created earlier. As Figure 6 shows, the introduction
the revenues earned by Atlantic City, a decline that of internet gaming in recent years has been a
was likely exacerbated by the coincidental timing significant factor in the recent increase in casino
of a deep national recession. Figure 5, reflecting revenue. This business, as it develops, is much more
revenues in dollars adjusted for inflation, shows the likely to generate jobs in information technology
dramatic decline in revenue. As shown in Figure 6, than jobs in housekeeping or hospitality.
the casino industry has played an outsized role in
Atlantic City’s possibilities for employment, and the In Atlantic City: Past as Prologue, the Federal Reserve
problems faced by the casinos led to a sharp decline was unequivocal about certain observations. Casinos
not only in the number of casino jobs, but in the would continue to be central to Atlantic City. Their
overall number of private sector jobs in Atlantic City. downturn could have a devastating impact on the
local economy. As a result, Atlantic City had to
In the recent past, however, Atlantic City’s casino improve its ability to compete with new entrants
industry has been on the upswing. The Review Team to the market. If it could not compete effectively, it
is aware of no forecast that anticipates that Atlantic would lose its position behind only Nevada as the
City will recover the market share it enjoyed until nation’s favored destination for gambling. The Fed

Figure 5
Atlantic City Casinos: Gross Revenues Adjusted for Inflation*
(millions of dollars)
3000
Revenues in constant dollars (millions)

2500

2000

1500

1000

500

0
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017

Axis Title

*CPI-U, US City Average (base 1982-84) used to adjust for inflation.

Sources: Casino Control Commission, annual reports; BLS Consumer Price Inex databases

8
Figure 6
Atlantic City Private-sector Covered Employment and Casino Employment (000s)
70

60

50
Number of jobs (000s)

40

30

20

10

Axis Title

All private covered jobs Casino jobs

Sources: New Jersey Department of Labor and Workforce (NJDLW), Quarterly Census of Employment and Wages (Private-sector covered
employment); NJDLW, Non-Farm Payroll Employment Time Series (Casino employment). (Also see Table 5 in Newburger et al, Atlantic City:
Past as Prologue.)
Note: All numbers provided for September of the relevant year except in 2018, where number is provided for July.

also made it clear that Atlantic City had to coordinate roads and highways; development of a Tourism
much better than it had been in order to serve the District Master Plan; Tourism District development
community and meet core economic objectives. and design guidelines; variances; redevelopment;
restrictions on city code enforcement; planning and
The Federal Report reads like a dire warning that zoning; penalties for violations of code, zoning and
was ignored. In 2011, Governor Christie signed development and design guidelines.
amendments to the Casino Control Act in Senate
Bill No. 11 (commonly referred to as S-11) with the Where the Fed recommended greater coordination,
assurance that the amendments would transform CRDA and the City have exercised authority
Atlantic City and the gaming industry. Rather separately. Property owners, real estate developers
than providing mechanisms to better coordinate all and small businesses have had to contend with two
government resources, S-11 arguably contributed sets of planners and regulators which, by 2018, were
to greater fragmentation. The bill significantly in two separate buildings. Applying for permits in
expanded the powers of CRDA and created the Atlantic City, developers, entrepreneurs, homeowners
Tourism District, an area that includes approximately and other property owners often started at City Hall
one third of the City, including all of the casino and, if they were unfamiliar with Atlantic City, were
hotels, the boardwalk, all major commercial given a map to help them find CRDA.
districts, CRDA-owned properties and Bader Field,
a former general aviation airport.4 Within that 4
Office of the State Auditor, Casino Reinvestment Development
area, CRDA exercises broad authority over various Authority: January 1, 2014 to December 31, 2017, (September
issues, including: land use control; oversight over 2018), p. 3 (CRDA Audit).

9
Figure 7. This palm card is provided by the Atlantic City Department of Planning and Development to permit
seekers who must leave City Hall to obtain approvals, permits and variances from CRDA for projects in the
Tourism District.

The lack of coordination extends to the basics of vulnerability of the casinos to competition in
planning. The City has battled blight for decades other states. While steps were taken to strengthen
and, as mentioned above, now has one of the worst Atlantic City as a destination – the most notable
foreclosure rates in the nation. Managing these of which was a $30 million marketing campaign
twin problems requires multiple tools, the most “DO AC” – the casinos struggled and, in between
fundamental of which may be a map reflecting 2014 and 2016, five shuttered their doors. The wave
the status of property owned in the city. At the of collapses starting in 2014 brought a tsunami of
start of this review, neither CRDA nor the City pain to the city and region; it also set the stage for
could produce a single map that showed all of the the municipal fiscal crisis. The persistent effects
property that was either (i) abandoned, (ii) in bank of Super Storm Sandy only made matters more
or tax foreclosure, (iii) condemned, or (iv) owned challenging. Chronically listed at or near the top of
by CRDA, the city or some other state agency. the list of the state’s most distressed cities, Atlantic
DCA has recently built a web-based map prototype City was primed for bankruptcy.
that can house land use data and can be modified to
include public health and public safety data as well. Given any one of these events, even the best of
This tool can be a boon to policy makers looking to municipal leadership would have been under
understand problems, and develop solutions, at the tremendous strain to develop an effective response.
neighborhood level. A hard copy of the new map is This Review is largely forward- looking, and its
attached as Appendix A. scope does not include a performance assessment
of particular municipal leaders. That said, elected
The Federal Reserve warned about the heavy and unelected state and local policy makers had,
reliance of the City on the casinos and the for decades, made policy choices that made the city

10
more vulnerable: they ballooned municipal payroll; bonds. A further consequence of the appeals is that
they continued the substantial reliance on Casino the assessment of taxable property of the City, the
gaming; CRDA made investment choices that often ratable base, declined by 64% from $20.5 billion in
had little to do with the core interests of the city; 2010 to $7.3 billion by 2015.This collapse was made
and they implemented planning approaches that worse when the Trump Taj Mahal shuttered its
degraded the already poor interagency coordination doors in 2016.
identified by the Fed. The effect of the decisions
left the City unprepared for the market shift. Many The combination of plummeting property tax
interviewed during this review suggested that the revenues, rising costs of debt service and the City’s
size of the budget was not the only problem where structural expenses brought the City closer to
municipal leadership mattered. Others included bankruptcy. The City balanced its 2015 budget by
the lack of responsiveness to citizen concerns, poor taking two extraordinary measures: relying on a
service delivery and ineffective stewardship of significant increase in State aid; and deferring payment
city assets and revenue streams. There is a strong to the State’s pension and health benefit plans.
historical sense that municipal officials often acted
in their own self-interest rather than the interests In May 2016, the State legislature stepped in and
of the community. That perception affects views of passed the Municipal Stabilization and Recovery
the City and its prospects today. The Review Team Act (MSRA), NJSA 52:27BBBB-1, et seq., which
concluded that building an effective government sets forth a comprehensive procedure to assist
that earned the trust of all stakeholders must be an municipalities facing short and long term fiscal
essential strategic goal. instability. MSRA empowers, under certain
circumstances, the Local Finance Board “to develop
a comprehensive rehabilitation plan for local
B. Fiscal Collapse governments experiencing severe fiscal distress, and
The City’s financial struggles began in approximately
2006 when the gross gaming revenues (“GGR”) of to act on behalf of local government units to remedy
the distress.” Id. Following a process outlined in
the City’s casinos began to decline significantly.
MSRA, the Commissioner of the Department of
From 2006 to 2014, the GGR declined at an annual
Community Affairs (DCA), undertook a multi-step
rate of 7.5%, which reduced casino values and, in
review and then determined that Atlantic City was
some cases, caused several casino properties and
a city in need of stabilization. This determination
operations to close (Atlantic Club, Revel, Showboat
triggered the State exercise of its authority to
and Trump Plaza all closed during this period).
appoint a Designee “to take any steps to stabilize
The decline in value led the casinos to appeal their
the finances, restructure the debts, or assist in the
ratable base assessments, which is the basis for the
financial rehabilitation of ” Atlantic City.
largest source of city revenue, property taxes.
In November 2016, the Director of Local
The casinos were generally successful in their
Government Services appointed former United
appeals and were awarded reductions to their
States Senator and New Jersey Attorney General
ratable base that often covered numerous tax years.
Jeff Chiesa to be the Designee for purposes of
Consequently, the City incurred massive liabilities
stabilizing Atlantic City. The Designee, supported
for accumulated tax refunds that it attempted to
by his law firm, undertook many tasks, though his
repay via the issuance of tax refunding bonds. By
primary efforts were concentrated in three areas:
2015, tax refunds totaled $370 million, with only
half of those being repaid through tax refunding (1) tax liabilities related to the Borgata Judgment
and tax appeals, the tax appeals of other casinos

11
and the Atlantic City Payment In Lieu Of Taxes suspension of civil service rules. Although the
(PILOT) program; (2) reducing the City budget, City passed a balanced budget for 2018 without
with a particular focus on substantially reducing a property tax increase, the average Atlantic City
personnel expenditures related to the total number taxpayer has nevertheless seen School and County
of employees and salary and benefit packages tax rates increase 10.7% and 15.4% respectively.
for the remaining employees; and (3) reducing PILOT revenues have increased $6.2 million over
administrative obstacles to development.5 2017. Although the state continues to support
the City through various aid programs, the need
Since MSRA went into effect, the combined efforts of for state transitional aid decreased by $9.1 million
the Designee and the Director of Local Government between 2017 and 2018.
Services brought about: a 15% reduction in the
municipal budget; two years without property tax Appendix B provides a brief summary of the City’s
increases; the elimination of potentially massive budgets from 2010 through 2018. Figure 8 shows
liabilities due to tax revaluations; and a reduction the ratable base of the City as it declined from 2010.
in personnel costs made possible in part by the

Figure 8. Atlantic City Ratable Base FY 2010 through FY 2021 (Projected).

5
Last Spring, the Review Team recommended that the State replace Senator Chiesa with a new Designee already on the State payroll
and tasked with overseeing a new strategy of engagement with the City.

12
C. Atlantic City Snapshot governed by a mayor elected city-wide and eight
city council members, six representing each of the
1. By the numbers six wards and two elected at large. In 2016, MSRA
With two new entrants, Atlantic City is now home dramatically changed city governance. MSRA gave
to nine casinos. Industry net revenues in 2017 were broad budgetary and management authority to the
$3.5 billion. As of August 2018, the casinos employ Director of Local Government Services, a division
approximately 30,000 people, most of whom of the Department of Community Affairs. As a
come from Atlantic County. Layoffs of seasonal result, the DCA has authority over City finances,
employees began after Labor Day. Because of as well as many operations of the City, including
the entertainment and gaming industries, the Planning and Development, Human Resources,
municipality welcomes between 27 and 30 million Public Health and Public Safety. As described
visitors each year. In addition to the casinos, in just above, CRDA exercises broad authority over
48 blocks, Atlantic City is home to a college campus the Tourism District. It reinvests its revenues in
and some of the largest social service providers in businesses, property and amenities in the Tourism
the State. That makes for a tremendous range of District and, to a surprising degree in the past,
activities in a small space. Median family income around the State.
is $27,000, more than 33% of its children live in
poverty and the community faces significant public CRDA is intended to be guided by policy choices
health challenges. Developing a comprehensive of the Executive Branch, particularly since the
strategy to address a multitude of challenges carries Governor can veto minutes of the CRDA Board
with it more than a moral challenge. It is a key of Directors. Since 2010, CRDA has made the
element on the critical path to long-term success. following investments that are at odds with the policy
priorities proposed by this report: $14,000,000 for
Atlantic City is one of the State’s most diverse cities an observation wheel on the Steel Pier; $6,000,000
with no single group comprising a majority. Census for an art installation on the vacant lot formerly
reports approximately 34.9% of the residents occupied by the Sands Casino and $174,000 to have
are white; 38% are African American; 16.8% are that art installation removed; and an average of
Asian and 27.6% are Hispanic or Latino of any $4,000,000 per year for the Miss America Beauty
race. During the review, residents reported both a Pageant. In the third section of this report, the
longstanding history of both cross-racial friendships Review Team recommends a reorientation of
and bitterness across racial and ethnic divides, CRDA’s focus to better serve community needs and
particularly when segregation was an Atlantic City make disciplined, strategic investments to bolster
norm. New immigrants raised concerns about the local economy.
their treatment by native-born African Americans
and whites. Given that diversity is one of Atlantic Front line governance of Atlantic City is provided
City’s defining characteristics, building bridges by the Mayor and the City Council. Subject
across racial divides will be an important task for ultimately to the approval of DCA, appointments
the entire community to take on. of senior city officials are made by the Mayor with
the advice and consent of the City Council. While
2. Governing Atlantic City the Mayor and the Council may develop budgets
Governance in Atlantic City is among the most and vote on them, the budget is also subject to
complex in the state. Organized under the approval by DCA. During the first two years of
Faulkner Act, Atlantic City is, in ordinary times, the takeover, the number of fulltime employees

13
of the City was substantially reduced, promotions Much of public policy in and about Atlantic City
were delayed or postponed and responsibilities for has been hampered by two things: one, a lack of
certain functions were outsourced. For example, coordination, particularly between CRDA and the
the headcount in the Department of Health was City, and, two a single-minded focus on bold, even
singular solutions. In
other words, the city
has been hamstrung by
Atlantic City must reject approaches based silos and silver bullets.
in silos and relying on silver bullets. It must Real progress will
involve collaboration
move forward in a broad, inclusive and and a longer-term
comprehensive way. commitment to deeper
understanding chronic
problems of poverty.
Major stakeholders
cut by 80% and its budget was reduced to 20% of must be enlisted to work toward a common vision.
its 2014 level. Code enforcement was cut and in This vision must have two goals: broadening the
the office of the Department of Planning, critical economic base of the City to increase stability and
to the forward motion of any city in recovery, staff providing more jobs that pay well enough to lift
was reduced from 8 to just one professional and people out of poverty. In addition to improving the
one clerical support staff. lives of those who currently live in Atlantic City,
an important goal should be to make Atlantic City
The first Designee did much to address the fiscal sufficiently attractive to potential new residents.
challenges that were the immediate cause of
the crisis. Going forward, the Administration’s
approach should tackle longstanding issues and
better prepare the city for the opportunities and
challenges to come.

The challenges Atlantic City faces are interrelated


and achieving the goal of a vibrant and resilient
community calls for a variety of actors, including the
public and private sectors, colleges and universities
and civil society, to do many things well, though
not all of them need to be done at once. The areas
of strategic focus involve the following: (1) the
economy and job development; (2) land use issues
and development; (3) public safety; (4) public
health; (5) youth and the creation of pathways
to opportunity; and (6) building governmental
capacity and enhancing coordination. A core
principle of the Review is that the revitalization
effort must be inclusive and carried forward with a
view toward benefiting all residents of Atlantic City.

14
II. The Issues and Recommendations

A. A New Strategic Id. at 8. Atlantic City is better positioned than many


legacy cities, because its main industry appears
Approach: The Lessons of to have stabilized rather than suffered a complete
Legacy Cities collapse. Moreover, Atlantic City has within it a
strong set anchoring institutions, including civic
associations, that can provide a foundation for
1. Twenty-Four Smaller building an economically balanced and healthy
Legacy Cities community.
Legacy cities have been defined as cities that
both relied on manufacturing as the core of their Revitalizing America’s Smaller Legacy Cities contains
case studies of 24 representative cities in seven states.
employment base and economic output and lost 30%
It reports the key factors for success that provide a
or more of their population since the 1950s. Small to framework for viewing the challenges and potential
medium sized legacy cities have between 30,000 and strategies for moving Atlantic City forward:
200,000 residents. Hollingsworth, T. and Goebel, A.,
Revitalizing America’s Smaller Legacy Cities: Strategies • Build Municipal Capacity and Talent.
for Postindustrial Success from Gary to Lowell • Encourage a Shared Public- and Private-Sector
(Lincoln Land Institute) (2017). While Atlantic Vision.
City was never a manufacturing city, Atlantic City • Expand Opportunities for Low-income
has relied on a dominant industry, casino gambling. Workers.
The severe contraction of that industry makes the • Build an Authentic Sense of Place.
experience of other cities of similar size relevant to • Focus Regional Efforts on Rebuilding a Strong
any prescription for next steps. Their experience also Downtown.
provides reason for hope. • Engage in Community and Strategic Planning.
• Stabilize Distressed Neighborhoods.
[[T]he story of smaller industrial cities is not • Strategically Leverage State Policies.
simply one of loss. While some of these places
have indeed experienced overwhelming Building Government Capacity and Talent: Cities
poverty, property abandonment, and that have made promising redevelopment efforts
economic decline, others have become strengthen their governments by taking full
the gateways for new immigrants or have advantage of local expertise, but also often recruit
reinvented themselves as tourist destinations outside talent to enhance local government
or as useful spokes in their regional expertise. To ensure that progress is sustainable,
economies. Though all of these cities are still successful cities are intentional about developing
experiencing significant challenges, some are the next generation of leaders to carry changes
finding ways to reorient their economics and forward as future city managers and civic leaders.
land use for the 21st century….The strongest
of these cities recognize that they cannot re- Encouraging a Shared Public- and Private-Sector
create the past. Instead, they’re finding ways Vision: The best results occur with collaboration
to embody a different narrative…. between the public, private, non-profit and
philanthropic sectors in service of a common set

15
of goals and values. In most re-emerging cities, from state supervision and has had significant
resources are sufficiently challenged that more is success in attacking blight. Detroit’s progress
accomplished through broad alignment rather than was based heavily on planning with an emphasis
individual, single minded initiatives. on community engagement. Researchers have
noted that such planning has been key to many
Expanding Opportunities for Low-income Workers: redevelopment efforts. Mallach, A. and Brachman,
The most successful reinvention efforts couple L, Regenerating America’s Legacy Cities (2013)
two things: growth in strategic industries and (Lincoln Land Institute).
efforts to train low-income workers for the new
opportunities. Smaller Legacy Cities underscores Stabilizing Distressed Neighborhoods: Neighborhood
the importance of an employment component in blight has an impact on many aspects of city life.
ensuring prosperity is widespread. These efforts Among other things, it can worsen public health,
must be closely connected to the developing needs aggravate safety challenges and erode home
of local employers. The economic vision should values. Subsidies from either the public or private
embrace a goal of creating jobs that will enable sector can provide short term market support,
families to increase their standard of living. but long-term stability requires efforts to rebuild
the market and encourage the return of private
Building an Authentic Sense of Place: Improving the capital. In practical terms, the initiatives should
quality of life in a place makes it easier to attract include demolition of blighted buildings, enabling
new businesses and new residents. Placemaking community members to take ownership of some
speaks to the character and style and aspirations of a property, dealing with squatters and restoring
community. Bethlehem, Pennsylvania, for example, population well below peak levels.
took a shuttered steel mill and has transformed it
into the anchor of a growing arts district. Strategically Leveraging State Policies: Cities that
have been more successful have used a variety of
Focusing Regional Efforts on Rebuilding a Strong resources, including state resources, to assist in their
Downtown: Successful and promising efforts at turnaround. Legacy cities sometimes face a choice,
revitalization do not ignore their center cities. collaborate or collapse. No city moves forward
Rather they build a strong downtown as part of a without significant partnership with the state.
regional strategy. The central core of the city should
have a mix of uses. The case studies in Smaller Taken together, these strategic steps will enable
Legacy Cities caution that: Atlantic City to build one City with a common
vision and widespread opportunity.
“downtown revitalization may happen slowly
or in leaps and bounds. Cities should take
advantage of opportunities for catalytic projects
B. Building the fundamentals:
but should move forward incrementally when Retooling and Reorienting
those projects are not available.” Municipal Government
No city has moved forward without intentionally
Engaging in Community and Strategic Planning: rebuilding an effective municipal government as a
An inclusive approach to planning enhances both core of its strategy. It is a necessary but insufficient
community engagement and the quality of the factor in rebirth. The Review Team focused on
end result. Detroit is the largest American city to five aspects of municipal government critical to
have declared bankruptcy. It recently emerged

16
the mission of renewal: Overall Accountability and noted that four of the previous eight mayors had
Effectiveness; Planning and Development; Public landed in prison, while many members of City
Health; Tax Assessment; and Public Safety. Each Council had faced a similar fate. While sometimes
will be discussed below. glamorized in popular entertainment, the history
and perception of corruption in Atlantic City is a
1. Municipal Capacity drag on its turnaround.
The residents of Atlantic City are entitled to a
government that functions at a high level and MSRA suspended civil service rules, which enabled
is worthy of their trust and support. At its best, cost cutting measures to move quickly, but the
government service is a calling and the best of absence of civil service disciplinary protections
public servants frequently go above and beyond the have left employees questioning the transparency
call of duty. Many of the public servants in City Hall of the system and the fairness of decisions.
demonstrate this in taking on tasks that are out of
title, working with antiquated systems and working The Review Team raised these concerns with the
with members of the public who are as frustrated as Mayor, the Business Administrator and the various
they are with the quality of life in the City. Indeed, department directors in a candid conversation
when faced with an imminent government shut about the future direction of the City. Rather than
down because of the fiscal crisis, some current city collapsing into a defense of the current state of affairs,
employees offered to work without pay rather than the discussion turned quickly to how City Hall can
close the doors of the City. be retooled and reoriented. Many of the senior
managers expressed an interest in specific ideas
When the general public discusses the performance to strengthen performance. They were interested
of Atlantic City municipal workers it rarely in additional training for themselves and their
highlights this serious level of dedication. The subordinates. Several have expressed an interest in
citizens and stakeholders consulted during this technology that would enable them to keep better
review were no different. Whether or not asked, track of city data. They noted that their staff could
many of the Atlantic City residents and stakeholders benefit from having a better sense of career ladders
raised serious concerns about the capacity and the and few in City Hall have received evaluations,
willingness of City Hall to serve the needs of the including the managers themselves. In subsequent
community. Longtime residents raised concern conversations, present and former city managers
about basic services and poor enforcement of have highlighted efforts to recapture revenue lost
housing and other regulations. Some complained because of poor controls of expenditures, including
of how they were treated when they had conducted payroll. They also point out that fees are often set
business at City Hall. Large and small business at below market rates, whether for major events
owners expressed strong dissatisfaction about the or items as simple as billboards and abandoned
level of assistance provided when they attempted to property. They also highlighted their ongoing efforts
build businesses and they were routinely critical of to develop a rigorous and proactive capital plan.
the coordination between City Hall and CRDA.
The recent CRDA audit also noted significant
Concerns about integrity at City Hall were pointed issues with internal financial controls. Although
and had a long historical precedent. Indeed, the CRDA disagreed with some of the findings, there
Federal Reserve devoted an entire section of its are lessons to be learned at both CRDA and in
report to criminality of leadership and shady City Hall that could inform State oversight going
ethics at the very top. In 2009, the Federal Reserve forward.

17
The State should work with the City to support functions. As mentioned above, the City lacked
the initiatives under way and implement the new a mapping tool that would enable it to have a
recommendations, particularly since they have the better understanding of areas of blight. The
support of city managers. Review Team recommends that DCA and the
City continue to refine the
prototype developed by DCA
and build into it relevant
We must do many things well, but we public health and safety
should not try to do them all at once. information. In addition, the
Review Team recommends
that the City invest in Citistat
or similar software to manage
In order to address the most serious concerns data about city services. Citistat can enhance
raised about city government, the Review Team the ability of departments to analyze and share
recommends that the City and State implement the data and, most importantly, analyze results.
following:
• Enhance Controls Over Expenditures and
• Training of Senior Managers: In support of Exercise Robust Stewardship of City Assets.
efforts by the Office of the Mayor, former Atlantic City should continue efforts to ensure
employees of the DCA and Rutgers University, appropriate oversight of payroll expenditures,
the Review Team recommends that the State price fees at appropriate levels and strategically
support enrolling senior managers at City Hall plan to gain maximum benefit from special
along with counterparts at CRDA in a joint events.
cross-functional training program specifically
designed for municipal managers. The Review • Build career ladders and reinstitute routine
Team believes that the State should offer this evaluations. Currently, a city employee will
training to county managers who routinely not know what performance levels or skills are
work with city managers on key issues. There required to get a promotion. It should be the
are three goals to this training: ensure that case that a new hire understands from the start
managers are trained to perform their jobs at of her employment what it would take to move
a high level; encourage team-building across up the ladder in municipal government. That
government agencies that are key to Atlantic employee should also receive regular feedback
City’s redevelopment; and foster a culture of in order to improve performance and to
problem-solving emphasizing the achieving of advance. It is dispiriting and counterproductive
key results as a top priority for all in leadership to work without such standards, yet some city
at City Hall. employees reported that they have never had an
evaluation and that there is no clear standard
• Measure what matters: Set outcome-based goals for advancement.
for each City Department, announce those
goals to the public and provide the public with • Provide a pathway back to Civil Service. To
an opportunity for input into those goals. reduce costs and increase the flexibility of
management, MSRA stripped city employees
• Computer systems and use of data. Obsolete of civil service benefits and protections. It is
information technology systems hurt city unlikely that civil service will be restored while

18
the City remains under state supervision absent doing business with the city. The Review Team
a clear signal from the legislature through an recommends that the system of investigating
amendment of MSRA. Nevertheless, DCA and and punishing ethics violations avoid the
the City should work to ensure that the system appearance of conflicts and be subject to close
is fair and transparent about opportunity and state oversight.
provides a forum for the fair adjudication of
disciplinary and other disputed issues. • Transparency of Reform. The DCA and the
Office of the Mayor should report on the status
• Continuing Education for all employees. All of the foregoing reforms on a quarterly basis as
employees could benefit from opportunities part of the implementation structure discussed
to enhance their skills. The Department of in detail in the last part of this report.
Human Relations should develop an ongoing
menu of learning opportunities for non- 2. Planning and Development
managerial employees. Training should include A strong Planning and Development initiative is one
periodic presentations on public management of the hallmarks of a successful revitalization effort.
issues facing the city. They should also include The Planning and Development Department in the
information that employees can apply in City has withered and the neighborhoods outside
their personal lives, such as presentations on of the Tourism District reflect the fact that there has
wellness and financial literacy. All employees been little energy devoted to their revitalization.
should be given training that would empower CRDA has developed a master plan only for the
them to be focused on the needs of the citizen Tourism District; the City has not created a master
as customer and partner in the city’s rebirth. In plan since Super Storm Sandy.6
an increasingly diverse city, with as many as 36
languages spoken in the public schools, implicit Since the state takeover, the Department of
bias training and conflict de-escalation training Planning and Development has dwindled in size,
are nearly as essential to a clerk in city hall as and the Planning office has decreased from 8 in
they are to the officer on the street. 2014 to 2 in 2018. It is poorly equipped to launch
a broad-gauged planning effort necessary for the
• Ethics Training and Enforcement. Given the City to grow coherently and meet a broad variety
history of criminal prosecution that has stained of challenges. The task requires an approach to
City Hall and lingering concerns about how one planning that is tailored to Atlantic City’s particular
gets things done in Atlantic City, DCA and the challenges and demonstrates a willingness to learn
City should work to develop a strong program lessons from other cities with similar challenges.
of ethics training and enforcement in order
to send a clear signal that the City intends to Rebuilding the planning function will require
build a bond of trust between city leaders and personnel who have a broad range of skills and
the community that they serve. The Attorney
General has agreed to have personnel from the 6
CRDA’s Master Plan is found at https://njcrda.com/wp-
Office of the Attorney General work with DCA content/uploads/2012/12/TOURISM-DISTRICT-Master-
to provide ethics training to city employees. Plan-VOL.-4-ADOPTED-APRIL-18-2017.pdf Under section
The Review Team strongly recommends that 40:55D-28 of the New Jersey Municipal Land Use Law (MLUL),
Master Plans generally consist of a report or statement and
the City pass an ethics ordinance that makes
land use development proposals including, at a minimum, a
it clear that no city employee, including an Statement of Goals and Objectives, a Land Use Element, and a
elected official, may receive a gift from anyone Housing Element.

19
a reasonable portion of
Detroit was the largest American city to declare the population lost since
the 1960s. Once on the
bankruptcy and has had significant problems with ground, the new Director
urban blight. Detroit has a land mass large enough to may decide that an outside
embrace three large cities, many acres of which include group, acting under the
Director’s supervision
abandoned property and empty lots. Detroit invested and control, is best suited
heavily in planning after reviewing the business to develop the plan, while
city employees may be
case for increased staffing. It hired a planner with a hired to carry forward
national reputation for community engagement and and facilitate planning
created interdisciplinary teams to better understand functions once the Master
Plan is completed. This
the problems and engage in what became hundreds of approach would give the
community forums. It has made substantial progress City additional short-
term capacity to manage
dealing with a problem many considered hopeless.
the significant increase
in workload at the first
phase of the effort without
will likely require a departure from the traditional committing scarce resources to a large staff with
recruitment channels. Atlantic City could borrow heavy annual recurring costs.
from Detroit’s model by building a multi-disciplinary
team that can tackle: the issues of building from As noted above, the fact that the City and CRDA
the ground up in some areas; the challenges of share planning responsibilities for some parts of the
refurbishing old housing with sound bones; the City has led to duplication of effort, inefficiency for
opportunity for creating vibrant community space property owners and developers and the failure to
throughout the city; and the need to take into develop an overarching vision of the City’s future.
account the planning challenges climate change As an important step to address these issues, City
poses to a barrier island. The Planning Department and CRDA planners should be located in the same
should also look to the future with a focus on office rather than blocks away.
expanding digital access and ensuring that the new
infrastructure is resilient. Without waiting for the efforts to develop a plan,
the State should build on steps already under way
One of the first tasks of the new Director of the to address the immediate foreclosure crisis. During
Department of Planning and Development should the Review, NJHMFA launched a series of initiatives
be to develop a city-wide Master Plan, preferably designed to provide foreclosure relief for Atlantic
by the end of the second quarter of 2019. Such a County residents. Those efforts included a housing
planning effort should start with the City’s assets, fair in which foreclosure counseling was offered
which include the Atlantic Ocean and the beach The Review Team also met with the foreclosure
front, the boardwalk, the rich history and diversity judge for Atlantic County and the Administrative
of the communities and civic engagement in the Office of Courts. All agreed to work together to
neighborhoods. The Master Plan should include deal with the imbalance between homeowner and
a target for City growth with a goal of replacing lender as a result of current procedures.

20
Recommendations: on community development as well as the
The Review Team recommends that DCA work impact of the built environment on wellness.
with the City to take the following steps to rebuild The Review Team recommends that the board
the planning function in Atlantic City: consist of nationally renowned authorities on
design, community development, public health
• Hire personnel with a multi-disciplinary skill set. and urban policy and human-centered design.
The City has recently launched a search for a new
planning director. The Review Team worked • Develop catalytic strategic projects, including a
with the Director of Human Relations to make food market. Big, strategically sound projects
sure that the search was anchored to capacities can help transform legacy cities. The Gateway
and skills that would lay the foundation for a project, which brings both a new Stockton
multi-disciplinary team that had high technical campus and office space for South Jersey
skills, had an appetite for innovation and Industries, and the opening of the first market
could manage a planning process that gave rate rental housing to come to Atlantic City are
high priority to community engagement. That example of bold projects with strategic potential.
Director should be tasked immediately with The $14 million dollar observation wheel
developing a Master Plan for the City by the erected by CRDA reflects a large investment in
end of the second quarter of 2019. The Director a project that in hindsight seems strategically
should be given discretion to determine the questionable, at best, and a stunning waste of
most cost-effective way to achieve that goal. resources, at worst. CRDA, the City and the State
are now examining options for bringing a core
• Co-locate City and CRDA Planners. Currently, amenity back to Atlantic City: a robust merchant
CRDA and the City run two separate planning of good quality food. Current efforts are
offices about a half mile apart. While the City focused on developing two alternative options:
has most of the key data, CRDA is core to a commercial for-profit market on the one hand
planning in the tourism district. The City and and a food co-op run by citizens on the other.
CRDA planners should occupy one space and As discussed below, it could have a key impact
should consider developing client service teams on the health of residents and would make the
so that large matters, at the very least, have one city more attractive to potential newcomers.
point of contact to shepherd them through the
planning and development process. • Conduct focus groups with potential new
residents. During the review, the Review Team
• Overhaul Permitting and Other Processes That met with casino employees, members of Local
Impede Progress. City Hall employees reported 54, who did not live in Atlantic City but might
that some parts of the building code are more consider moving to the City. The meetings were
than 40 years old and should be brought up to a source of important insight. All who work in
date. The Review Team recommends that the Atlantic City but do not live here should also
City consult with the public and developers be considered constituents of the Planning
to develop an efficient and relevant system of Department.
regulations.
• Provide additional support for families facing
• Create a Planning Innovation Advisory Board. foreclosure. A borrower on the cusp of losing
The Planning Team should take advantage of her home may have a better outcome if she is
the best thinking about the impact of design identified earlier in the process, given access to

21
relief fund such as a NJ Home Saver grant and The demographic wave that produced suburban
has the benefit of a mortgage counselor early in lifestyles is receding. At this point, the two
the process and legal counsel as matters move demographic groups that compose the majority
toward litigation. NJ Housing and Mortgage of the U.S. population—the millennials (now
Finance Agency has already launched a 20 to 30 years old) and the baby boomers—
counseling program and has provided grants are both looking for similar characteristics in
to distressed home owners. Strengthening the residential location. According to research
system to yield better judicial outcomes will that was published in the Wall Street Journal
require coordination among the Administrative and was conducted by RCLCO, an Orlando,
Office of the Courts, the Office of the Attorney Florida, research firm, 88 percent of millennials
General and the local trial court. The work want the following:”
already under way should not lose momentum
while the planning strategy is developed. ºº Walkable, bikeable neighborhoods and streets
ºº Amenities and work within walking radius
• Rebuild Neighborhoods. Atlantic City has ºº Smaller houses or smaller units at lower cost
many vacant and abandoned properties in need ºº An urban street environment
of repair. In order to stabilize communities, ºº Access to transit
build the property tax base, and increase the ºº Access to nature and recreation.
population of the City, there must be safe and
attractive housing options. Working together, 3. Tax Assessor
the City and CRDA can take control of vacant The Tax Assessor determines and maintains
and abandoned homes and CRDA can provide the ratable base of the municipality, which is
the funding necessary for rehabilitation. Once instrumental in shaping the overall tax rate for
the vacant homes are repaired, New Jersey the City. The City’s ratable base has a direct
Housing and Mortgage Finance Agency may impact on the Atlantic County budget and tax
provide first-time homebuyer mortgages rate. Moreover, the Atlantic City ratable base is
as well as down payment and closing cost the largest in Atlantic County and continues to be
assistance. Strategic, neighborhood based one of the economic drivers of the region. The Tax
investment can build wealth of existing Assessor preserves a fair and equitable ratable base
residents and attract new neighbors. As the through a number of means, including: property
economy diversifies, assuming even moderate inspection; removing demolished structures from
success of the jobs council described below, the tax list and adjusting the assessments; adding
so will the job base and resident income. The new construction, additions and renovations;
market should recognize the broadening and conducting field inspections. The Assessor
economy and respond accordingly. As market defends tax appeals at the Atlantic County Board of
rate development increases, the need for deeply Taxation filed by Atlantic City property owners and
subsidized housing will decrease. This pathway there may be several thousand tax appeals heard by
is one promising approach to restoring a market the Board of Taxation annually.
that has suffered from persistent decline.
A key factor in the municipal fiscal crisis was the
• Build a Sense of Place. The Urban Land Institute fact that tax assessments of casino properties had
noted that “demographic trends for bringing been delayed, in some cases for decades, and appeals
the population back to Atlantic City are more were taken when the market was depressed. Had
favorable than at any time in the past 50 years. the capacity of the Tax Assessor been stronger and

22
assessments managed in an effective way, the fiscal and add a further strain to both public health and
crisis could have been either mitigated or avoided. law enforcement functions in the City.

Recommendation: As demand for a strong public health team has


The State should evaluate and, where necessary, risen, however, staffing at the City Department of
strengthen the office of the Tax Assessor. Health has been reduced to one. As a result, many
of the services are provided by either the County or
4. Public Health Atlanticare.
Cities that successfully move forward are able
to make progress because they face their social After Rutgers completed its study, the Review Team
challenges. Atlantic City residents are facing severe shared the results with the Mayor, the County, the
public health challenges. The State, the County, and State Department of Health and Atlanticare. After
key stakeholders must combine forces to understand several meetings, all agreed to form a working
the depth of the problems, identify solutions and group that would: conduct a needs assessment for
implement programs that will address the issues. Atlantic City residents; develop a strategy to address
those needs; and tackle two big issues in the first
Because the State typically reports public health year to demonstrate to a besieged community that
data at the County level, Rutgers University School progress can be made. Because these problems,
of Public Health volunteered to assist the Review in particular, are regional, collaboration across
Team in cataloguing public health data for Atlantic jurisdictions is essential.
City. Led by Dr. Leslie Kantor, the Rutgers study
showed that Atlantic City has some of the worst Recommendations:
public health outcomes in the State. See Key • Create a cross-jurisdictional team. The State,
Indicators of Public Health in Atlantic City NJ, County, City and Atlanticare should form a
attached as Appendix C. For example, a child born core of a team of key stakeholders that would
to an Atlantic City family is nearly twice as likely build on the Rutgers study and develop and
as a child born in Newark to die before her first implement a strategy to tackle the severe public
birthday. Atlantic City children suffer from the health outcomes facing Atlantic City and
state’s highest exposures to lead and the death rates the region. The regional team should have a
of all Atlantic City residents from cancer, diabetes, particular focus on the opioid crisis.
heart disease, and kidney disease are among the
worst in the State. The Rutgers study also showed • Conduct a needs assessment. The Rutgers study
a significant gap, as well, between the health of highlighted the severity of the public health
African American residents and white residents of challenges in Atlantic City. That snapshot did
the City. Remedial steps should explore the reasons not have the benefit of a deeper inquiry which
behind the results as the key stakeholders move to calls for an assessment of the current strategies
improve overall outcomes. and could include more fact gathering through
tools like community surveys. The State should
To complicate matters further, Atlantic City conduct a needs assessment and might consider
handles health care for many citizens who live using retired public health officers from other
outside the City. It operates South Jersey’s only New Jersey cities to conduct the work.
needle exchange and, as a result, receives many
individuals addicted to opioids. Their numbers • Marshal Existing Resources. Once the needs
have skyrocketed since the opioid crisis first broke assessment is completed, the public health

23
working group should decide whether a tracking of key issues. The need to address these
response can be developed using existing continuing concerns about the perception of safety
resources with a new strategy. The group should would be important in any city. They gain even
also work to identify new resources to meet a greater importance because they undercut Atlantic
significant need. It is more than likely that the City’s ability to present itself as a hospitable resort
City will need at least one full time employee to destination.
coordinate responses and ensure the City has a
consistent voice at the table. Atlantic City has been working to improve public
safety with a variety of tools and resources. The
• Tackle Two Big Issues. The public health Atlantic County Prosecutor is the Chief Law
working group should tackle two big issues Enforcement Officer in the County while ACPD
during the first year of effort. The Review Team is the lead enforcement agency with a force of
recommends that infant mortality and obesity approximately 250. They are joined in public safety
should be among the very first issues that the efforts by other law enforcement, including the
Task Force works to address. county sheriff, the Atlantic City Task Force run by
the NJ Attorney General and the State Troopers,
5. Public Safety Stockton University Police Department and the
a. Law Enforcement and Crime security officers for the casinos. Progress has been
A vibrant community is a safe community. A broadly made to better coordinate efforts and Stockton has
successful resort town provides an environment in recently signed a memorandum of understanding
which visitors feel safe to explore. Atlantic City has with Atlantic City. The Review Team has discussed
made progress reducing crime. Both violent crime with the Chief of Police whether more could be done
(down by more than 11%) and property crime with existing resources and has recommended that
(down by more than 4%) have decreased in the last the DCA consider recalculating staffing levels should
two years. The Atlantic City Police Department funds become available. ACPD has been employing a
(ACPD) has put in place a variety of mechanisms community policing strategy, but faces staffing limits
to be more proactive in combating crime through that inhibit a robust community policing strategy.
community engagement, the use of technology and
predictive policing. As discussed at length below, the Review Team
believes the State, the County and the City should
Nevertheless, crime rates are not as low as the work together to improve the lives of the youth
leaders would like to see. Gangs remain a prominent of Atlantic City. Police and policing have a
concern. Few in the community or visitors report significant role to play. Atlantic City has an active
a sense of safety and order in many neighborhoods Police Athletic League program and, if adequately
as well as parts of the main commercial avenues. resourced, could develop a more robust community
For example, Atlantic Avenue north of the main policing program. These are important steps in
entrance to the City often shows the human impact preventing young people from becoming caught up
of the opioid crisis. Many community members, in the criminal justice system. They can provide a
including those most supportive of police, question foundation for a more robust system that prevents
whether more could be done to deploy police in a crime and keeps young lives on a constructive track
way that gives a visually reassuring sense of police by identifying issues early, putting in place a strong
presence. While appreciative of ACPD outreach system of station house adjustment and developing
efforts, members of the public would like to meet alternatives to incarceration. Intervening before a
police officials in a regular forum that permits young person has a felony conviction is particularly

24
important in Atlantic City; a felony conviction can enforcement needs. In addition, abandoned
bar the door to a job in the most significant industry houses, apartments and rooming houses
in the region. that are frequently out of compliance with
the housing code have been exploited by
Recommendations: gangs and often add to the law enforcement
• Establish A Citizens Advisory Board. To address workload. For example, until it was recently
the importance of regular communications and closed, Fox Manor, a rooming house on Pacific
collaborative problem-solving between law Avenue, averaged approximately two calls for
enforcement and the community it serves, the service a day. Managing public safety requires
City and the ACPD should establish a citizen’s coordination among mental health and drug
advisory board whose core membership is addiction professionals as well as strong code
drawn from the civic associations in each enforcement. The interagency working group
neighborhood. Each civic association should should develop a strategic response to these
select a member. The Mayor and the City problems and monitor ongoing progress in
Council should each name three members addressing them.
and the Board of Education should select
one member. The youth of the city should be • Revisit Staffing Levels to Ensure the ACPD
represented on the board. The board should Can Meet the Needs of Community Policing.
determine how youth members should be Calls for service are the typical workforce
selected and decide on whether and how to unit used to measure a police department’s
include other members of the community. The workload. Such calls include responses to
Review Team recommends that the CAB meet 911 calls, assignments from superior officers
at least monthly in executive session and have and other requests for assistance. They do
a quarterly meeting that is open to the public. not always reflect the full range of proactive
The board should decide minimum terms activities typically associated with community
of service of each member. The CAB would policing, such as getting to know residents
provide a regular channel for communicating and merchants on the beat or responding to
with the ACPD Chief and his leadership team questions from community members. These
and could be a strong partner in collaborative actions are important uses of an officer’s time.
problem-solving, which is essential to effective The staffing model employed by the DCA in
community policing strategies. While it litigation established a floor for staffing, not
would not be an adjudicating board, it should a ceiling. The Review Team believes that the
be a place for a candid resolution of potential staffing level could be revisited, should there
disagreements between ACPD and the be funding for it, to allow even more time to
community that it serves. enhance community policing activities.

• Formalize an Interagency Public Safety • Training: Implicit Bias and De-Escalation. The
Council. Members of the Atlantic City law Attorney General has ordered that all police
enforcement community meet regularly departments undertake implicit bias training.
to discuss intelligence and plan for major The Review Team recommends that the
events. These meetings are largely between Attorney General’s order should be treated as
law enforcement agencies. The public health a baseline and that additional steps should be
challenges posed by the opioid crisis, however, undertaken to continue to build trust between
have compounded Atlantic City’s law law enforcement and the community that it

25
serves. The Review Team recommends that the about the reliability of their personal safety
ACPD should include escalation training for equipment, the disrepair of firefighting apparatus
each officer as well. and the deteriorating condition of many firehouses.
The Review Team learned that the City did not
• Standardize Internal Affairs Investigations and have a capital plan to replace aging equipment
Penalties. Few institutions can successfully and recommends that going forward, subject
discharge their missions when their public face to the availability of funding, budgets provide
seems at odds with their internal practices. for maintaining and replacing the equipment,
Law enforcement officers are required to apparatus and buildings that enable firefighters to
treat the public with respect and fairness. do a dangerous and critical job.
Community members and complaints of
individual members of ACPD suggest that
both community members and officers do not
C. The Economy
Successful revitalization efforts have a broadly
trust internal discipline processes. Part of the
shared regional economic vision which builds on
challenge has been the result of the suspension
the city’s comparative economic strengths. They
of civil service protections. The Review Team
focus on the economy of the future rather than
recommends that the County Prosecutor, the
attempting to rekindle successes of the past. Atlantic
City and the Police Chief work together, and
City has many comparative advantages: the Atlantic
with the Attorney General as appropriate,
Ocean and the boardwalk, the gaming industry
to ensure that internal affairs processes are
and a civic tradition of involvement by long time
rigorous and that the disciplinary penalties
community members. It is particularly attractive
conform to a fixed set of standards.
to millennials because it is a walkable city with
easy access to a variety of recreation and it offers a
• Develop Early Intervention Programs and
diverse community drawn from all over the world.
Alternatives to Incarceration. Law Enforcement
Leaders to Reduce Crime and Incarceration is
Its potential is reflected in recent events: the
a bipartisan group comprised of current and
opening of two casinos on June 28, the new Stockton
former senior law enforcement officials from
University Campus, the North Beach development
across the nation. Led by Ron Serpas, the
and new infill businesses provide serious signals of
former Chief of Police of New Orleans and an
a rebound. The arrival of South Jersey Industries
honorary chair of the International Association
and the Danish wind power company Orsted
of Chiefs of Police, the group has identified contributes to the optimism. Nevertheless, Atlantic
early intervention efforts and alternatives to City has lagged much of the rest of the State in
incarceration, like curb-side adjustments, as recovering from the Great Recession of 2008.
effective tools in helping youth avoid jail and
have better outcomes in life. Atlantic City’s fortunes remain closely tied to the
health of the Casino industry. Going forward, an
6. Fire Department economic strategy should have three aims in mind:
The Firefighters Union is currently in litigation supporting the stability of the casino and gaming
with the City over work place and staffing issues. industry; broadening the economic base of the
Accordingly, this Review did not involve a detailed City and region and ensuring that the residents
analysis of many issues relevant to the vital city of Atlantic City participate in renewed growth by
function. Nevertheless, the Review Team met with providing jobs industries with significant potential
union representatives and listened to their concerns

26
for growth and by working with the casinos and most of the years before the collapse and sank in
labor to build career ladders within the casino each of the years after 2008. Competition and
industry. In 2014, the Urban Land Institute also the great recession led five casinos to close their
noted that a gaming-driven strategy for urban doors between 2013 and the end of 2017. Figure
renewal had not yielded the advertised benefits. 9 contains a chart reflecting casino openings and
closings over the last 15 years.
Since the advent of gaming…the hope for
higher income and economic stability for Those failures hit Atlantic City in much the same
residents of the city has failed to reach its way that the collapse of the steel industry and
promise. Median income for Atlantic City other manufacturing hit cities across the northeast
was $25,340 in 1979, rising to $32,408 in and Midwest. It was devastating. Loss of jobs and
1989 and falling again to $29,886 by 2012 incomes sharply curtailed the ability of many to pay
[and less than $28,000 by the end of 2018.] In mortgages. As a result, Atlantic City became ground
inflation adjusted dollars, the 1989 median zero in the nation’s foreclosure crisis. Throughout
income would be equivalent to about $60,000 the City, all property, including casino properties,
in 2012 dollars, so the 2012 median is a 50% lost value and that collapse in property values
decline in purchasing power for residents.7 became a major factor in the city’s fiscal distress.

Low wages and high unemployment are among With five out of twelve casinos closing in a two-year
the key issues at the root of Atlantic City’s current period and competition on the rise, the Review
challenge. They are both cause and effect of persistent Team asked whether the State should reexamine
poverty. As Ellen Mutari and Deborah Figart argue both its approach to permitting new entrants to the
in Just One More Hand, casino employment can be market and its method for regulating the industry.
precarious and yet such employment accounts for a We received a range of responses that included:
disproportionate share of the jobs for Atlantic City (a) setting a legislative or regulatory cap on either
residents. Going forward, that must change. the number of casinos or their collective capacity;
(b) making the regulatory process more nimble
1. Casinos: Industry Losses and so that Atlantic City casinos can better compete
Regulatory Review against other states for business and events; and
The Federal Reserve Report warned that Atlantic (c) maintaining the current approach and simply
City’s economic health faced threats from competing letting the market decide issues such as the right
states that were developing casinos of their own. number of casinos in Atlantic City. Very few of
Chief among these rivals was Pennsylvania. Now, those interviewed suggested that the path forward
Maryland, Delaware and New York also have in Atlantic City would be to increase the number
casinos and Atlantic City casinos have slipped from of casinos dramatically. None of those responding
second to third in gaming revenue behind Nevada offered a forecast that would justify continuing
and Pennsylvania. In 2017, the Atlantic City the regulatory approach or warrant expanding
Casino industry had net revenue of $2.17 billion investment in more casinos. Nevertheless, this
dollars, which represents a modest increase over range of views and the large number of failures
the previous two years, but is down substantially should compel policy makers to take a hard look
from a high of $4.52 billion in 2006. When inflation at the current regulatory framework and how
is taken into account, casino revenues were flat for regulatory authority has been exercised.

7
Atlantic City New Jersey, Urban Land Institute Report, p.10.

27
Figure 9. Atlantic City Ratable Base FY 2010 through FY 2021 (Projected).

Currently, there are two overarching requirements and competitive conditions of Atlantic City and the
that must be met in order to acquire a casino license. State of New Jersey. N.J.S.A. 5:12-84(e).
The first category is largely related to the financial
health of the prospective casino operators. The The second standard an applicant must meet is
applicants (i) must be financially stable, N.J.S.A. the question of suitability. A prospective casino
5:12-84(a), (ii) must demonstrate that they have operator must demonstrate his or her integrity and
the business ability and experience to successfully business sense. N.J.S.A. 5:12-84(a). Additionally,
manage a casino, N.J.S.A. 5:12-84(d), and (iii) must they must establish his good character, honesty,
conduct studies to assure that the proposed casino’s and integrity. N.J.S.A. 5:12-84(c).
location will not negatively affect its operations,
N.J.S.A 5:12-84(e). As part of these studies, It is often the case in times of market failure that
applicants must submit an impact statement that regulatory and oversight authorities conduct a
includes: a market impact study which analyzes (a) review to see how the failure could have been
the adequacy of the patron market; (b) the effect avoided and propose reforms that take into account
of the proposal on the overall market and on the changes in the regulated industry. For example,
existing casino facilities licensed under the act; and after the stock market crashed in 2008, federal
(c) the effect of the proposal on the overall economic authorities undertook a thorough review of the

28
reasons for it and re-examined regulations designed 2. Balanced economic development
to ensure the health of the market. a. Developing A Shared Economic Vision
Legacy cities that have moved forward have
Now that the period of crisis has passed, the Review marshaled resources and perspectives to create a
Team recommends that policy makers undertake shared economic vision. The recent surge in hiring
a similar review to determine whether regulatory in Atlantic City is cause for hope, but Bureau of Labor
reform is necessary to ensure the stability of an Statistics data also provides concern. Atlantic City
industry that, as a result of both market shocks and the surrounding counties have seen a decrease
and the decisions of individual corporations, in the number of jobs even as the employment rate
devastated a region that is working hard to recover. has dropped, suggesting slowed regional growth. To
The industry review should explore the question combat this, most economic stakeholders agree that
whether the State should cap either the number of it would be an error to rely as heavily on gaming
casinos or the total capacity of casinos in Atlantic going forward as the region has in the past. There
City. To avoid an operator taking advantage of a is widespread agreement that Atlantic City and the
strong position within a closed market, such a cap region must strengthen and expand the diversity of
could be coupled with a requirement that licenses its economic base. There are several leaders who
could be pulled and purchased by other potential have assumed prominent roles in the crafting of such
operators under certain limited circumstances. a strategy, described in summary below. They have
Such circumstances would include an operator’s not yet achieved a broad, overarching vision.
failure to reinvest in the casino to maintain a high-
quality entertainment and gaming environment. The Atlantic County Economic Alliance has
The regulatory review should also consider how developed a regional economic plan that has a broad,
current regulations and the exercise of regulatory countywide perspective (The ACEA Plan). The
authority can be amended to make the industry ACEA Plan starts from the proposition that Atlantic
more nimble in response to competition. County’s economic position is precarious because
of two issues: over reliance on tourism and gaming
The shuttered casinos now haunting the boardwalk and the lack of a regional economic development
are powerful reminders that while there can be organization to brand and market the area and
a significant benefit from learning lessons from aggressively recruit new companies. The ACEA
failure, there can also be devastating costs to forging Plan recommends the formation of a private sector
ahead without heeding those lessons. driven regional economic development corporation.
The ACEA Plan recommends four industries that
Recommendations: should be targeted for economic development:
• Review of the regulatory framework. The State aerospace and avionics, life sciences, tourism, and
should form a task force to review casino specialty manufacturing. This approach, with its
closings from 2014 t2016 to determine whether heavy focus on technology, seems particularly
there are lessons to be learned about the sound given that those industries are forecast to
effectiveness of regulatory oversight experience significant growth and they bring jobs
that have a higher growth potential for individual
• Promote Atlantic City as a Destination. Expand employees than many in the hospitality industry
upon efforts to promote the Atlantic City that now dominates the region. Encouragingly, the
casino industry as a whole and Atlantic City as ACEA participants have committed to a process
a destination. that sets targets and holds members accountable to
each other for achieving shared goals.

29
One of the promising areas of work has been periodically to develop legislative initiatives
the creation of an Aviation District that extends intended to make the region more business friendly
one mile from the outermost boundaries of the with a focus on developing the potential at the
William J. Hughes Tech Center, and the Atlantic Atlantic City International Airport and generating
City International Airport which is operated by jobs for the chronically unemployed.
the SJTA. The current plan is for the district to
include air cargo operations, aircraft Maintenance In his State of the City address, Mayor Gilliam
Repair and Overhaul operations, an aviation announced a vision of rebirth that hinged on
maintenance training academy, and the National development of a more balanced economy that
Aviation Research and Technology Park (NARTP). brought back tourism, highlighted the culture of
ACEA believes that all the elements necessary for Atlantic City and sought to exploit the advent of a
a successful aviation innovation hub in Atlantic nascent hub anchored by the opening of Stockton’s
County are being moved into place. State support Atlantic City Campus and the expansion of
for this initiative could be key to its success. In Atlanticare’s facilities in Atlantic City.
order to strengthen this initiative, the Review Team
recommends that the State pursue mechanisms to Various commercial developers, large and small, have
reduce the cost of doing business in the area. The visions for the City ranging from the redevelopment
State should also renew efforts to create a major of Tennessee Avenue with offerings for millennials,
airline hub at Atlantic City International. to an expansion of retail stores and restaurants near
the first new market rate rentals in the City in two
CRDA has broad reach within Atlantic City and was blocks on the north end of Atlantic Avenue. As
conceived to drive economic development, support the economy expands, the housing market should
the community and reshape land use in much of recognize the economy’s new strength and respond
the City. It is the largest landholder and has an accordingly. Assuming even modest success in the
annual budget of approximately $100 million. Its jobs program, more residents will be able to pay
efforts to develop East Bay housing have been higher rents or purchase homes. This chain of events
touted by some as a significant achievement that would reduce the need for subsidized housing and
should be replicated; its full potential as an engine will increase the City’s ratable base.
for change has yet to be realized. There has been
no clear strategy for CRDA’s activities within recent Any overarching strategy must take into account
memory, but it could be a major contributor to a the Opportunity Zones recently designated by
comprehensive plan. Governor Murphy. The City’s four selected zones
are amongst the poorest neighborhoods in Atlantic
ACDEVCO, led by Jon Hanson, Chris Paladino County and the State, with a combined poverty rate
and Robert Holmes, has propelled the Atlantic City of 39%, over two times the County average and
Gateway project anchored by the Stockton Campus over three times the State average. The incomes
and the new South Jersey Industries office building. of the residents in the Opportunity Zones have
In addition to property development, ACDEVCO declined by over 4% since 2011 and unemployment
has been an advocate for Atlantic City, working to has soared. At the same time, home values in the
secure or retain significant merchants to add to the Opportunity Zones dropped by nearly 20%.
life of the City.
All of these efforts would be enhanced with
Senator Chris Brown has convened a bipartisan greater alignment and coordination. Most of these
economic development group that meets efforts lack a particular focus on start-ups, young

30
entrepreneurs or small businesses. The State can and placed a priority on opening a new training facility
should foster regular meetings of the stakeholders within Atlantic City. The State should support
with a view toward developing an economic vision the development of that facility and Stockton’s
that would create greater alignment of effort, guide engagement with it. In addition, the State should
decisions for years to come and attract investors take steps to ensure that Atlantic Cape Community
seeking well-thought out and broadly supported College is involved in helping to develop an
projects. A detailed analysis of local and regional employment pipeline into a broad range of roles
economics as well as a review of effective practices within the medical field.
of other beachside and tourist city economies
would no doubt be helpful. This review would Shift focus to millennials and young entrepreneurs.
require engagement with current community With population growth as a strategic goal, the
members, property holders and investors and could State should work with the City and Stockton to
serve to incorporate the Administration’s view that understand and address the needs of Stockton
developing the fundamentals of green technology students and transplanted entrepreneurs so that
and energy production is a promising path forward they engage in the community and see Atlantic City
for Atlantic City and Atlantic County. as a place to launch both career and family.

Even as plans are being made to bring in new Support the health and growth of small business.
businesses, the City must address concerns of small Smaller businesses have the potential to bring
businesses. As mentioned above, the arrival of the vibrant infill to vacant and dilapidated parts of the
Casinos led to the failure of many small businesses city or contribute to their blight when they fail.
throughout the City. Those that remain have Supporting the health of Main Street in Atlantic
endured the boom and bust periods of the economy City thus becomes a key element in efforts not to
and the casinos. They are part of the fabric of the city lose ground. It could be a driver of change in efforts
beyond the Tourism District and are essential to the to make progress. These efforts should be inclusive
City’s identity. Meeting with about a dozen small and seek to catalyze the potential of Minority
business owners, the Review Team heard an echo and Women Owned Businesses contributing to
of concerns raised elsewhere that City regulatory economic growth.
processes can be an unnecessary challenge to their
businesses and that the city could do a better job Develop Strategies to Enhance Access to Atlantic City.
providing the services that help contribute to a Atlantic City can become a vibrant place to live
pleasant environment for their customers. work and play. It currently has limited train and air
service. The City and region could prosper if the
Recommendations: train ride between Atlantic City and Philadelphia
Regional Economic Initiative. Build on current took less time and local commuters had a richer set
efforts to create a regional business initiative to of options. Addressing the transit issue would make
ensure alignment between State, City, County and the City more attractive as a home for commuters
developer initiatives. The airport is a strategic and a much more likely option for customers
advantage for the region. The State should work seeking entertainment.
with the County to maximize its strategic potential
and remove barriers to growth. b. Expanding Opportunity: Getting People to Work
Employment initiatives that are not closely tied to
Support Efforts to Develop Collaboration between economic and employer initiatives are much less
Atlanticare and Stockton University. Atlanticare has likely to succeed than initiatives that are coordinated

31
with the vision of employers. Development facilitate the formation of a not-for-profit with
initiatives that fail to target jobs with high wage and the sole purpose of being the central coordination
growth potential are not likely to yield the types of point of training and retention efforts.
jobs that will lift people out of poverty. These are
two strategic considerations that must rank high in • Set goals for employment in Atlantic City. Hard
policy makers’ thinking because Atlantic City has Rock has become a leader in aggressively
an unemployment rate that was at 9.3% as compared offering jobs for Atlantic City residents. The
to 4.7% statewide on March 30, median income is Council should look for broader engagement
less than $28,000 and homeownership is only 27%, across the industry.
well-below the state average. Any comprehensive
strategy for development must call for a significant • Enlist key agencies for training potential
effort recruiting, training and retaining people in employees. Not all agencies offering placement
jobs as the economy expands. services operate at the same level of
effectiveness. The jobs council should work
The Review Team has supported the creation with the Department of Labor to ensure that
of an employment roundtable hosted by the agencies offering to do the work offer best
Greater Atlantic City Chamber of Commerce in class training and work closely with local
with membership from industry. The participants employers to remain current on their needs.
to date include the City, several local unions,
Casino representatives and the County workforce • Engage the NJ Department of Labor in the effort.
development board. In the absence of a Department The Department of Labor has many tools that
of Labor within the city, the council will likely need should be used in support of transforming
to form a 501(c)(3) to provide structure and ensure opportunities of Atlantic City residents to get
accountability for efforts going forward. good jobs, including data analysis and training
grants.
Last Spring, in preparing for its launch, the Hard
Rock Hotel and Casino began a robust and effective • Establish career pathways starting in high
effort to hire Atlantic City residents for jobs at the school. The jobs council should work with
new venue. Working closely with Local 54, the the Superintendent of Schools to establish
Hard Rock has developed an ambitious training internships for juniors and seniors.
program designed to prepare even the chronically
unemployed for work at the property. Hard Rock • Codify and, as appropriate, expand efforts to
has become a proponent of hiring citizens with employee individuals with felony convictions.
imperfect criminal records. Hard Rock seems well The bar against employing individuals with
on its way to its goal of giving many Atlantic City felony convictions is overbroad and is believed
job seekers an opportunity. by some to have outlived its usefulness.

Recommendations: D. Youth and


• Establish an institutional home for the Employment
Council. Currently, the employment council is a Pathways to success
disciplined, but informal gathering of stakeholders The most effective strategies plan for future
convened by the Chamber of Commerce. For its generations. They develop future leaders and they
work to get traction, it will need an institutional address the current problems facing youth. Atlantic
home. The Team recommends that the State City is home to 10,000 people aged 18 and younger.

32
Many who graduate from Atlantic City High School recommends that the city partner with the Board
find jobs in the casino industry. Others make their of Education to assess the quality of life of the
way forward by enrolling in Stockton, Atlantic community and its impact on children. One
Cape Community College and other institutions assessment tool that has been used around the
of higher learning around the country. Small country is the Developmental Assets Profile. This
programs for STEM students exist. The Review survey tool was designed and is administered by
Team spent a morning at the Connecting the Dots the Search Institute. It measures young people’s
(CTD) program which introduced young people internal strengths and external supports, and their
to computers, robotics and application design. growth in these key areas over time. The results of
After school and during the summer, children find the test would be shared with the school but, most
ways to enrich their lives at the Boys and Girls significantly, would enable families and community
Club and at the Police Athletic League. They are organizations to understand children’s needs more
full of promise. That said, there remains much clearly. After the test is administered, consultants
potential that can only be realized if the children from the Search Institute would work to help the
are given broader opportunities. More than a community develop programmatic responses to
third of the children live below the poverty level any deficits that the survey identifies.
and children throughout the
city must confront crime and
deprivation that has settled in
some neighborhoods. Some Forgotten Citizens: Shortly after Governor Murphy
live with family members with launched this effort, the Review Team learned
a sporadic or non-existent
work history. In sum, for too
that an eleven-year-old child in the community
many there is an opportunity had committed suicide. Community support for
deficit. the family was tremendous. Special arrangements
The Review Team met with were made for the young man’s friends to attend
leadership of both the Boys the service and view their friend separately. One of
and Girls Club and PAL. The
Team also met with parents
the child’s friends looked at the flowers, the pictures
of young children at the Head and the support and simply marveled at everything
Start program. During these that was being done to celebrate the child. His
visits, the ten thousand were
referred to as “the forgotten reaction stunned one of the service providers that a
citizens” and “the invisible child could lack so much in life that a celebration of
citizens.” We learned that after
his friend’s young life would leave him amazed and
school programs had been cut
as a result of the fiscal crisis and envious. The Superintendent of Schools has agreed
that summer jobs, too, were to work with the State to conduct a community-
hard or impossible to land.
wide assessment of the needs of the children in the
In light of the levels of poverty hours outside the school day.
and the manifestations of
trauma, the Review Team

33
Internships and mentors focus on careers in technology and could have
Legacy Cities that are able to sustain progress broad impact if most, if not all, of Atlantic City’s
develop the next set of leaders. Atlantic City can anchor institutions, including the casinos, become
no doubt do more to develop its next generation involved. The Superintendent hopes to launch
of leaders in civic and commercial life. Many the program in the fall. In addition, the County
communities use after school programs and has worked with the Tech Center to develop an
summer jobs to develop young talent. They provide apprentice program for aviation maintenance
internships into jobs with growth potential and in partnership with Embry-Riddle. A proposal
pass knowledge from one generation to the next. supporting that program has been submitted to the
The millennials with whom we spoke, and those NJ Economic Development Authority. The Review
that serve them, universally believed that more can Team believes this proposal should be given serious
be done. The sense of despair at a young age, even consideration.
if not widespread, compels action.
The Review Team recognizes that the EDA gets
The Review Team has been working with many requests and strongly supports funding this
stakeholders throughout the community to find initiative. It would clearly create opportunity at a
support for youth programs. When it became time when it is sorely needed and is completely in
clear that there was greater capacity for summer line with regional strategic goals.
enrichment at PAL and at the Connecting the Dots
program, the Review Team worked with the DCA The Review Team believes that local officials could
in an effort to find funding for 300 additional PAL entertain expanding their internship offerings to
members and scholarships for more children to create opportunities for students to understand the
enroll in the CTD. CRDA is prepared to support workings of government.
youth programs, such as PAL, and several civic
associations agreed to underwrite young scientists Recommendations
who were part of the CTD program. Much more • Conduct A Needs Survey of Atlantic City Youth.
can, and should, be done. The Review Team recommends that the State
work with the Board of Education to administer
Atlantic City is home to a large concentration of the Developmental Assets Profile survey and
businesses with substantial information technology form a multi-disciplinary working group,
operations. The casinos and the Division of composed of representatives of the school,
Gaming Enforcement are on the leading edge community groups and youth organizations,
of cybersecurity technology and the FAA Tech among others, to work with the Search Institute,
Center is the national center for developing and or similar group, to address identified needs.
testing aeronautics industry technology. This
concentration makes Atlantic City and Atlantic • Set a Goal of Providing High Quality After School and
County an attractive and promising launching pad Summer Programs for All Atlantic City Youth. Even
for a tech career. As a result, the Review Team has without the results of the Developmental Assets
been working with the Superintendent of Schools, Profile survey, it is clear that Atlantic City youth have
Liberty Science Center, Hard Rock and Borgata, been deprived of opportunity. As a companionto
the Division of Gaming Enforcement, Stockton and the need for early intervention programs as a
Atlanticare to develop an internship program for matter of criminal justice improvement, the State
those Atlantic City High School students currently and City should support programs that promote
enrolled in its STEM initiative. This program would positive youth development.

34
• Redirect CRDA to invest in Atlantic City Youth. community input. These associations, along with
Consistent with its broad mission, CRDA arts organizations and smaller groups focused on
should regularly provide some funding and providing services, are key avenues of community
other resources for efforts to support youth engagement. They can be asked to play a larger
programming within Atlantic City. Community role, particularly as the City continues to grapple
development initiatives must go beyond with issues of racial justice and inclusion, while
investments in brick and mortar to investments simultaneously becoming a much more diverse city
in people. In addition to developing funding where no single ethnic group is in the majority.
streams for youth programs, CRDA has
potentially underutilized building space There are five civic associations that line up roughly
that could be used to support training and with the main neighborhoods in Atlantic City.
recreational opportunities for youth. They are led by long-time residents and have taken
it upon themselves to police homeowners who
• Identify State Grant Programs to Support Atlantic fail to keep up their property, clean up abandoned
City Youth. DCA and other state agencies should lots and hold elected officials accountable. For
be canvassed to see whether there are resources example, the Bungalow Park Civic Association has
to provide additional support for after school launched a beautification initiative by researching
and summer programs. and securing federal grants to help with signage
and painting.
• Build a Foundation for Future Success. The
State should work with the City and other Other initiatives include the first ward’s vigilance in
stakeholders to launch and expand internship working with homeowners to ensure their property
programs to create pathways to jobs with high is well-maintained and the third ward’s efforts
growth potential. to clean abandoned lots. The associations can be
nimble in responding to needs. For example, in June,
E. Civic Infrastructure: the Review Team was invited to observe a Science,
Technology, Engineering, and Math program run
Neighborhood Associations in collaboration with the Police Athletics League.
and Arts Organizations The program introduced budding young scholars
Community engagement is a core element of to robotics and computer coding. Although the
legacy city revitalization. Atlantic City is fortunate program had capacity for 50 students, only 30
in having neighborhood civic associations, social children were enrolled. When the leaders of the
entrepreneurs and arts organizations that bring civic associations learned of the need for scholarship
valuable energy to community life. For more than a support, they decided each would provide tuition
century, the City has benefited from neighborhood for two to three students for the summer.
civic associations that raise neighborhood concerns,
organize community events, and play leading roles Civic associations have also proved to provide
in neighborhood improvement projects. Together powerful voices in larger matters as well. When the
the civic associations form an umbrella group State Designee, working with a variety of interests,
called Atlantic City United and they often provide developed a plan to sell the assets of the Municipal
meaningful forums for public officials to address Utilities Authority, the civic associations came
constituents. They also provide a rallying point together to oppose the privatization of an important
for community members to oppose initiatives city asset. Over the course of four months, they
that have moved forward without significant conducted Town Hall meetings and went door-to-

35
door to gather signatures to compel the Designee Outside of the civic associations, the other citizen-
and the State to reverse course. led efforts sometimes operate in isolation. One of
many of Atlantic City’s anchor institutions should
Civic Associations’ work in Atlantic City, in addition support new digital tools for spreading the word
to that of other groups around the State, provide about community resources and opportunities to
strong support for the idea that citizen-led efforts serve that may be otherwise hidden. In Trenton,
have a strong role to play going forward in Atlantic citizens came together to develop a community
City as they have in other cities. The Citizens web page that provides a wealth of information
Campaign provides tools for no-blame problem- about community services and events. Called
solving that have been implemented in Newark, collaborationtrenton.org, it is a single stop, free
Perth Amboy and Trenton. The results of these civic digital library of resources and services available to
trusts have included changes in local ordinances, community members. A screen shot of its landing
community-led forums on policing and the first no- page is found in Figure 10.
blame debate among gubernatorial candidates.
Atlantic City also has a largely untapped source of
Arts and cultural institutions within the City have civic strength: casino employees. In most legacy
provided needed vision for enriching city cultural cities, supervisors, managers and executives in
life and providing opportunities for the City’s public and private anchor institutions can play a
children. The Arts Council
sponsors a weekend arts
festival called 48 Blocks. Civic Trusts: A civic trust is a community-based
That festival has grown opportunity for all citizens to engage in public
in popularity and impact
over the course of just
service. Considered to be new “intermediary
three years. Chicken democratic institutions” they have been successfully
Bone Beach Foundation piloted in several cities in New Jersey. They enable
has brought jazz training
and performance to the citizens to research and advance practical solutions
city for decades. The Arts to better their neighborhoods and communities.
Commission, appointed In Newark, for example, the Civic Trust, hosted a
by municipal leaders,
sponsors a variety of no-blame gubernatorial debate, pushed for the
community events. This adoption of an extreme weather protection master
civic energy can bring plan policy, advanced a cost-effective program to
more hope to the project of
revitalizing the city, because reduce homelessness and promoted solution civics
they enable community in the Newark High School curriculum.
members to feel pride in
their own work as well as
the efforts of their neighbors. These, and other, significant role in civic affairs, including running for
arts programs could provide important support for local office. The CCA prohibits casino employees
efforts at place making. Finally, often without much from holding elected office. In practice casino
funding, there are social entrepreneurs who see a employees tend to steer clear of any engagement
need and move to fill it. with local government or politics. The officeholders

36
bar was put in place to ensure that the city was not as the City steers a new course. In addition, the
overrun by the casinos. It may have had the effect Review Team was told that some casino managers
of making it more likely that the casinos and their discourage employees from becoming involved in
employees would view themselves as having no local government because of the risks of corruption.
legitimate path for a voice in City matters. That Taken together, law and practice drive an additional
bar deprives the City of a potential pool of citizen wedge between the city and its major institutions.
support, including citizens with management and It may be time for the bar to be lifted. It is certainly
executive training, who could be of great assistance time for it to be reexamined.

Figure 10. Landing page of collaborationtrenton.org.

37
Recommendations:
• Membership on the Executive Council. At
least one member of the Executive Council,
described below, should be drawn from the
leadership of the Civic Associations.

• Introduction to the Citizens Campaign. The


Citizens Campaign has developed non-partisan
community engagement tools that touch on
public health, safety, homelessness. These tools
are evidence-based and designed to create
blame-free collaborative involvement. The tools
may be of great value in Atlantic City.

• Build A Community Collaboration Database.


There are many citizen-led efforts at community
engagement in Atlantic City that operate
in isolation. One of Atlantic City’s anchor
institutions should work with the civic groups
to build a database of resources, events and
opportunities like collaborationtrenton.org.

• Support Opportunities for Citizens to Build a


Sense of Place. Civic associations have taken on
the task of improving signage and beautifying
their neighborhoods. Their insights should be
included in plans to enrich the look and feel of
Atlantic City.

• Take Steps to Increase Engagement Between


Casino Personnel and the Public Life of the
City. Casino employees are barred from
holding elective office and discouraged from
participating in local government. Policy
makers should reconsider that bar and look
for other ways, including internships described
above, or problem-focused task forces, to
increase engagement between the casinos and
the city.

38
III. Getting It Done

The strategic steps outlined above require the public The coordinating structure is informed by the
and private Atlantic City stakeholders to do many Promise Zone concept first used by the Obama
things well, but not all at the same time. The number of
Administration to coordinate federal assistance with
initiatives and the time they will take to execute make
the work of a collaborating team of local partners.
it necessary to break down silos between interested With Promise Zones, the Obama Administration
parties, establish a mechanism for sharing informationdeveloped a system for coordinating federal aid and
and resources and ensuring that the various initiatives
catalyzing local collaboration. The Promise Zone
are aligned and, where appropriate, coordinated. That concept was based on two insights: that limited
coordinating mechanism is described below. federal funds went further if they were spent in a
coordinated way and that federal initiatives in a
The Review team recommends that the State create Promise Zone would be much more effective if they
a coordinating structure that takes into account the were aligned. Not all communities were eligible for
responsibility that it has under MSRA, but gives ample Promise Zone classification. Only 25 were selected
space for coordination with and obtaining information initially and a key touchstone was whether there
from key stakeholders on the turnaround project. In was an effective local government partner and a
many instances, the proposed structure, particularly the strong tradition of local collaboration. The steps
Atlantic City Oversight: Draft 6/13/18: Contemplative Deliberative and Advisory
Project Office, provides an institutional infrastructure outlined in this Report are designed to build both.
and formality to replace the work of the Review Team,
Atlantic City Collaboration
which has been working to implement many proposals The coordinating structure appears below in figure 11.
even as it has continued its fact finding.

Semi­Annual Report To Governor
Lieutenant Governor Trenton Oversight

Deputy Commissioner
[Designee]

Statewide coordinating council including: DCA, AG, DOL, EDA, Health, DCF Education, NJHMFA, Agriculture

Facilitator/Coordinator
PROJECT OFFC

Quarterly Report To Public and LG ExecCouncil: DepComm DCA, Mayor, Council President, CRDA & other Public, Private, Labor and Not for profit stakeholders.
Atlantic City
Renaissance

Government
Land Use & Youth
Economic Dev Jobs Public Health Public Safety Effectiveness
Planning Pathways 
Accountability
AC Solutions at Stockton

Civic and Community Association Leadership
Accountability, Community Enrichment Activites
(Arts, Events, Collaborations)

Atlantic City Oversight­Draft 9/10/18
Figure 11. Atlantic City Coordination Process

39
Pursuant to the requirements of MSRA, the which can be engaged to develop a response to
overall strategic course of state oversight, for the needs assessment.
those matters where the state has responsibility,
is the responsibility of the Commissioner of the • The Department of Education, which oversees
Department of Community Affairs, who in this the monitor for Atlantic City schools and can
administration is the Lieutenant Governor. The channel resources for after school and other
Deputy Commissioner exercises direct oversight programs.
over City affairs as the “Designee” of the Department
as that term is defined in MSRA. • The Department of Health, which is assisting
the City as it develops a response to the severe
State and Local Councils public health challenges described above.
The Review Team recommends the creation of two
councils: a coordinating council at the State level • The Department of Labor and Workforce
and an executive council at the local level. Acting Development, which provides targeted support
under the supervision of the Lieutenant Governor, for jobs programs.
the state level coordinating council would consist
of state agencies which have played or could play • NJ Housing and Mortgage Finance Agency,
significant roles in Atlantic City, in addition to the which has already developed programs to
DCA. The member agencies should be responsible address the foreclosure crisis in Atlantic City
for developing a strategy for ensuring that state and will be an important partner to the efforts
efforts are aligned and identifying subject matter of the City Department of Planning and CRDA’s
experts, where appropriate, to provide technical Department of Planning as they address chronic
assistance to initiatives in the city. The Review problems of blight.
Team recommends that the State council should
consist of, at least, the following agencies: At the local level, the Review Team recommends
that DCA work with the City and local stakeholders
• The Department of Agriculture, which has to form an executive council of local stakeholders
significant resources to help shape and drive with operational authority over elements of Atlantic
the efforts to address the fact that Atlantic City City’s revitalization efforts. Both the Promise Zone
is a food desert. strategy and the Legacy City case studies make
clear that providing a formal structure for local
• The Office of the Attorney General, which has collaboration is critical and must rely on partnership
line authority over the County prosecutor, sets between government, private and philanthropic
law enforcement policy statewide and directs anchor institutions. The Federal Reserve, in fact,
the operations of the Atlantic City task force, identified the lack of such coordination as a direct
a significant police force within Atlantic City. threat to Atlantic City’s progress. The Review
Team recommends that the State, through DCA,
• The Economic Development Authority, which work with the City to identify members of the
provides grants and credits to support property executive committee. The Review Team believes
and business development within the city and that the Executive Council should be chaired by the
county and also has authority to provide grants Designee and should include the following:
for, among other things, apprenticeship programs.
• The Mayor
• The Department of Children and Families, • The City Council President

40
• CRDA • Land Use Planning and Development will be
• ACDEVCO, the principle developer of the the primary driver of a master plan for the city
Stockton campus project and will coordinate state and local efforts to
• The Atlantic County Economic Alliance combat blight. It would be led by the Director
• Atlanticare of Planning.
• Stockton University
• The Superintendent of Schools • Youth and Pathways to Success will be responsible
• The Public Housing Authority for improving outcomes for Atlantic City’s youth.
• Representation from the Civic Associations
• Representation from the Casino management • Government Effectiveness and Accountability
• Labor Representation will drive efforts at strengthening local
government, improving transparency and
Project Office and Working Groups responsiveness. It will be led by the Designee
Both councils would be staffed by a project office who will work closely with the Mayor and City
based in Atlantic City. In addition to supporting Council President.
the work of the councils, the project office would
replace the Review Team. The Project Office would Office of Atlantic City Solutions at Stockton University
develop an implementation plan and oversee in Stockton University has made a clear commitment
some cases and act as a liaison in others the day- to becoming a key anchor institution for Atlantic
to-day work of working groups. Some of these City. The new campus has brought more than 550
working groups are already developing initiatives resident students, an increase in the number of
to support revitalization: year-round rentals and an increase in activity of
nearby businesses.
• Economic Development would create one table
where all of the economic initiatives outlined In addition, Stockton University professors have
above would be represented and brought into launched dozens of projects in Atlantic City
alignment. and written extensively about its challenges and
solutions. The University has committed to forming
• Atlantic City Jobs Council has been meeting a Stockton Office of Atlantic City Solutions, which
since March and should proceed in close can help provide policy support for the initiatives
coordination with the Economic Development of the working group, expert testimony for the
working group. city council and graduate-led teams to help with
community-wide surveys. This office will also be
• Public Safety would be led by the Chief of Police responsible for ensuring that Stockton efforts are
in close coordination with the County Prosecutor closely coordinated with the work of members of
and other local law enforcement agencies. the Executive Council.

• Public Health will take shape after the needs Civic Associations and Local NGOs
assessment is completed. Initial efforts will be The Civic Associations are one of the strengths
coordinated by the project office. The Review of Atlantic City and are critical to ensuring that
Team recommends that its initial work focus on progress is sustainable. The Review Team believes
reducing infant mortality and tackling obesity that they should have two representatives on
and other nutrition-related issues. the Executive Council and should help identify
community members to work with the working

41
groups. In addition, the Executive Council should Funding
issue a quarterly report on progress and make Most of the initiatives described above focus on
representatives available to answer questions about realigning current resources rather than seeking
quarterly progress at meetings organized by the new sources of funding. Certain investments in
civic associations. training, software and infrastructure and the project
office will require additional funds, but those costs
Transparency and Accountability can be offset by two things: the reduction, going
The Review Team learned from many stakeholders forward, in contractor fees, including legal fees,
that a great many sound ideas had been discussed billed during the first two years of the state takeover
over time, but were not implemented because the and reprogramming some of the funds generated
City and State, as well as local stakeholders, did by CRDA to serve higher Atlantic City priorities.
not impose systems for keeping people on task and
accountable for results. The ultimate enforcer of The State paid more than $4.9 million in fees and
accountability, the public, was routinely excluded disbursements to the Designee and his law firm. In
from the process and goals were set with little addition, the State paid more than $4.4 million in
public discussion. Accordingly, the Review Team fees and disbursements to the forensic accounting
recommends that the Project Office work with the firm hired to support the efforts at turning Atlantic
Executive Council to produce quarterly progress City around. Special Counsel recommended that
reports. In addition, the State Council, acting under many of these functions should be managed with
the leadership of the Lieutenant Governor, should current government resources at a substantial saving
issue a semiannual report on the status of the Atlantic to the State Treasury. Some reasonable portion of
City initiatives. These reports should be regularly the savings should be reallocated to this effort.
included on the agenda of CRDA to ensure that There are many organizations serving functions
neither board nor staff of CRDA is unaware of the similar to CRDA’s across the country, particularly
quality of community
life in Atlantic City.
“Our programs must pivot to the people of
Benchmarks for Ending
State Supervision
Atlantic City even as we work to build new
The Review has made businesses.
clear that Atlantic
City has a set of fiscal,
operational, economic and social challenges that on tribal lands. They have spent gambling proceeds
will only be resolved with significant direction to underwrite scholarship for tribe members,
from, and partnership with, the State. The Review sometimes with the condition that those who receive
began with an implicit question: whether and under scholarships must return to their communities
what circumstances the State should end its strong to serve their communities for at least two years.
oversight. The work has made clear that the strong Tribes have used proceeds to establish community
State oversight established by MSRA should continue centers and fund after school programs. The
until the earlier of two conditions: the expiration Review Team does not propose a particular model
of the State’s authority in the City pursuant to the
MSRA; or municipal capacity is on strong footing
and the City’s reliance on State transitional aid has 8
Casino Redevelopment Authority Response to OLS Audit
been substantially reduced if not eliminated. Report of August 2, 2018 (August 2018), p. 2.

42
for CRDA to fulfill its mission, but believes CRDA
should take note of other examples of effectively
using gaming proceeds to have broader impact.

CRDA spending should, however, reflect State policy


priorities. CRDA leadership has reemphasized that
fact in its recent response to the CRDA Audit.8
In discussions with the Review Team, CRDA
leadership has expressed a desire to focus greater
attention on the challenges at its doorstep – the
wide range of needs of Atlantic City – and exercise
greater discipline in its investments intended to
drive economic development. Those investments
should be evidence-based and should have a strong
link to the Administration’s strategic and tactical
goals. In addition, the shift of focus should be
reflected in a robust commitment of time, talent
and treasure to the development of a vision for one
city with shared prosperity. The State should work
with CRDA to ensure that investments are made
with heavy weight given to the recommendations
in this report.

Conclusion
Atlantic City is in the midst of a promising renewal
and has many assets that can be brought to bear to
ensure that progress endures. Success will depend
on collaboration among stakeholders who should
have a willingness to understand and confront some
of the most chronic problems. That understanding
will help create a vision of shared opportunity. The
tasks outlined in this Report offer important steps
on this common journey.

September 20, 2018


43
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Appendix A

* RREM = Rehabilitation,
Reconstruction,
Elevation and Mitigation
Sources: Esri, HERE, DeLorme, USGS, Intermap, INCREMENT P, NRCan, Esri Japan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), MapmyIndia, NGCC, © OpenStreetMap contributors, and the GIS User Community
±
0 0.5 1
Miles
Sources: NJDCA, Atlantic City,
Date Prepared: June 2018 CRDA, Rutala Associates, NJOGIS

44
Appendix B

45
46
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48
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50
51
52
53
Appendix c

Key Indicators of Public


Health in Atlantic City, NJ
Leslie Kantor, PhD, MPH, Alexander Pugliese, Ohemaa Bohemaa, Laura Jones,
William Halperin, MD, MPH, DrPH
Rutgers School of Public Health
Updated July 13, 2018
(EXCERPTS)

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