Christie still bullish on A.C., but changes may be ahead for resort

Gov. Christie on Monday said the closing of multiple casinos in Atlantic City was "inevitable" given increased competition, but sought to blunt talk of the demise of this struggling resort town.

Yet, big changes could come, including an expansion of gaming into North Jersey and greater state involvement in Atlantic City's government.

Christie didn't share many details from the meeting, but when asked about those two ideas, which have been brought up by a key lawmaker, he responded: "Everything is on the table."

"Atlantic City has begun the necessary transition" from a gambling hub to a "diverse, exciting tourism district," Christie said in his opening remarks at a summit he convened at the Casino Reinvestment Development Authority. After the governor's opening remarks, the meeting was closed to the public.

The summit came a week after the closings of the Showboat and Revel casinos. Trump Plaza is set to close next week, and Trump Taj Mahal is considering bankruptcy. The Atlantic Club casino shut its doors early this year.

The closings - amid casino tax appeals that have severely trimmed the city's revenues - have resulted in 6,000 layoffs, forcing Atlantic City and the region to gird for an economic catastrophe.

Also Monday, the Christie administration issued a directive allowing for sports betting at casinos and racetracks. The governor said the timing of the directive was a coincidence and directed questions about it to the Attorney General's Office.

At the meeting, Christie said, he assigned tasks to the 30 or so participating legislative leaders, casino executives, and union and other officials, saying they would meet again in 45 days. He didn't elaborate on the tasks.

"This was a city that was built on a gaming model when it was a monopoly east of the Mississippi," Christie told reporters after the meeting. "Now over 40 states have it. This was an inevitable thing to occur. While there are lots of people out there declaring the demise of the city, that is far from true."

The casino market shrank from $5.2 billion in 2006 to $2.9 billion last year. Still, "any state would love to take that asset," Christie said.

Pointing to increased investment in and revenue from nongaming activities, he said "there is reason for real hope here."

Nevertheless, the contraction has upended the Republican governor's five-year plan, announced in 2010, to revitalize the city. The plan included the hopes for success of Revel, whose construction was completed only after it got $261 million in state tax credits. Christie administration officials say the credits were tied to the casino's profits and have cost taxpayers nothing.

Across the street from the gathering, dozens of protesters chanted, calling on the governor to "Save our city." As casinos have won large tax appeals, the city has increased property taxes. Residents said they are worried the casino closings will only make things worse.

"Before the casinos came here, this was a thriving city," said Audrey L. Williams, 66, a lifelong resident. "Casinos took all our mom-and-pop businesses away. Now they're gone, little businesses are gone, and people are gone."

State leaders are considering allowing casinos to open in North Jersey, a move that would end Atlantic City's 36-year monopoly on the industry in the Garden State.

Senate President Stephen Sweeney (D., Gloucester) laid out a plan in July to allow for casinos to open in North Jersey, if they shared revenue with Atlantic City.

One lawmaker not enthusiastic about the idea is Assemblyman Chris A. Brown (R., Atlantic).

"Simply discussing this idea scares away private investment, making it harder to find buyers for Revel, Showboat, and Trump Plaza while making it more difficult for Atlantic City to transition into a destination resort," Brown said after the summit.

Sweeney has also called for a "restructuring" of the city's government. "Atlantic City's government has to be much more efficient and much more effective," Sweeney said in an interview last week.

Asked if that might entail a state takeover, he said, "There are no limits on this."

On Monday, Christie wouldn't elaborate on his thinking on the idea, saying only, "I'm happy to consider everything. I'm not committed to any particular course."

State Sen. Jim Whelan (D., Atlantic), a former mayor of Atlantic City, said after the meeting that Christie went around the room and asked participants what they believed were the most pressing issues facing the resort.

"The request by the governor was to submit ideas ahead of time and come back with a meaningful discussion on them," Whelan said.

"I think no one expected magic answers or solutions to come out today."

As for a state takeover, he said: "If the governor said everything's on the table, then everything's on the table. I won't prejudge any ideas until I get details on the ideas.

"My understanding was that everything that was said in the room would be kept in the room, and I am going to honor that," Whelan said.

Atlantic City's current mayor, Don Guardian, did not have an immediate comment on the matter.

The meeting followed Christie's three-day trade trip to Mexico, where he was met by cheering schoolchildren. Back home, he was greeted by uneasy headlines and political opponents.

Debbie Wasserman Schultz, chairwoman of the Democratic National Committee, held a news conference in Fort Lee, Bergen County, on Monday to mark one year since the George Washington Bridge lane closures.

Christie brushed off the event as "nakedly partisan."

On Friday, Fitch Ratings downgraded New Jersey's general obligation bonds, citing the "absence of long-term, fiscally sustainable solutions to close identified budget gaps in fiscal years 2014 and 2015."

Christie dismissed ratings agencies, saying they were being "significantly overaggressive" after being "such bums" in 2008, before the financial crisis.

While he was bullish on Atlantic City's future, Christie declined to speculate on the biggest mistake made here.

"When I write my book I'll let you know," he said with a grin. "I don't give that stuff away for free."