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Sweeney: No one wants to take over Atlantic City

ATLANTIC CITY - It was only this May that State Senate President Stephen Sweeney was arguing for a sweeping state takeover of Atlantic City, saying it was the only way to get the seaside resort out of its fiscal jam.

Atlantic City Councilmen Marty Small (from left) and William Marsh and Mayor Don Guardian speak to reporters after a state Assembly hearing in Trenton N.J., on Wednesday, Oct. 26, 2016.
Atlantic City Councilmen Marty Small (from left) and William Marsh and Mayor Don Guardian speak to reporters after a state Assembly hearing in Trenton N.J., on Wednesday, Oct. 26, 2016.Read moreAP Photo/Wayne Parry

ATLANTIC CITY - It was only this May that State Senate President Stephen Sweeney was arguing for a sweeping state takeover of Atlantic City, saying it was the only way to get the seaside resort out of its fiscal jam.

But on Wednesday, on the Boardwalk to tout the start of construction of a beachfront campus for Stockton University and an innovative apprentice program created by the Joseph Jingoli & Sons Construction Co., Sweeney said, "No one wants to take over Atlantic City."

"They really don't," said Sweeney, until recently thought to be a candidate for governor.

Mayor Don Guardian and City Council President Marty Small were not there to hear him say that. No city officials were, though Fire Chief Scott Evans stopped by to talk to Joseph Jingoli.

Guardian and Small were in Trenton, accompanied by their fiscal consultants, describing their five-year, 123-page recovery plan to the Assembly Judiciary Committee, which had hatched the legislation to give the city a 150-day reprieve to come up with a plan to prevent a takeover.

Committee Chairman John McKeon said he saw "no reason why the Department of Community Affairs would reject this plan." He called the plan "a sober and responsible approach that creates a much-needed level of stability."

In Atlantic City, Sweeney said he had not reviewed the plan, but noted that despite the recent history of both himself and Gov. Christie calling for the Atlantic City takeover, the current decision was in the hands of department Commissioner Charles Richman.

Sweeney denied that a takeover once seemed inevitable, or that state officials were intent on seizing assets like the city's water authority for private investors or special interests. He also said the goal was not to break union contracts, though the takeover bill would give the state the right to do that. All but two city unions have settled contracts with steep concessions.

"The desire was to get them to get their house in order," he said. "They weren't being responsible. Why did they have to have a gun put to their head?

"The most important thing is getting people confident in the city again," Sweeney said. "I'm hoping for them."

Sweeney noted that the state is providing the early retirement incentives that are helping trim Atlantic City's budget and payroll. He wondered why the city took so long to do things like shared services, even as taxes doubled in recent years.

State Sen. Jim Whelan, who also at one point was calling for a takeover, said he had concerns about the proposed deal for Bader Field, the city's defunct airstrip, which would be sold for $110 million to the Municipal Water Authority, which would sell bonds to finance the deal. The $110 million would go toward paying down some of the city's $500 million debt.

City officials were also questioned in Trenton on the Bader Field plan, and assured Assembly members that the plan was legal and would have the advantage of keeping valuable assets in public hands and out of the hands of special interests.

Atlantic City bond consultant Joe Baumann, testifying in Trenton, described the Bader-MUA deal - an admittedly out-of-the-box idea hatched by the consultants, not anyone from the city or MUA - as a "win-win."

"That makes tremendous sense," Baumann said. "It allows the water system to remain in public hands," which will keep rates among the lowest in the state.

"It allows Bader Field to be monetized in the future after Atlantic City has recovered," he said. "In the meantime, from the perspective of the MUA, there's an opportunity to use that land to further its mission in the area of renewable energy," such as creating a solar field or wind farm. "It played the role of satisfying both missions."

In Trenton, at the end of the 21/2-hour hearing. McKeon noted that "when this process started, takeover was nearly preordained."

"Those who felt that was not equitable, fair, and reasonable put together a Herculean effort to present an alternative," he said. "It has since enabled the city to preserve collective bargaining while negotiating a fair compromise with the unions, and enabled the city to keep crucial assets in its portfolio for the benefit of the people."

At the DCA, spokeswoman Tammori Petty said only, "We are still within the five-day review period."

arosenberg@phillynews.com 609-823-0453

@amysrosenberg www.philly.com/downashore