By Bob Walsh
If it wasn't for the whole country watching the Roller Derby finals or some such nonsense yesterday this probably would have been big news. Atlantic City is about $500 million in the hole. The Local Finance Board voted yesterday to take over the day-to-day operations of the city after the state rejected their proposed five-year reorganization plan.
This gives the state to dissolve union contracts unilaterally and sell city property. It is expect that the Bader Field airport property and the municipal water supply operation may be sold off for ready cash.
Five of the 12 major resort casinos in Atlantic City have gone tits-up in the last two years. The city tax base has declined by 2/3 and taxes have doubled in the last six years.
Being a one industry town has its issues. If you are the buggy whip capital of the world and nobody buys buggy whips any more, you are pretty well screwed.
1 comment:
This is what some people wanted for Galveston. It doesn't work. Gambling doesn't make an economy. It makes casino owners rich and the rest of the businesses in town suffer because they can't compete. Select businesses thrive because of kick backs and brother in law arrangements. Diners, bakers, and bars shut down. Pawn shops and pay day loan businesses thrive.
A lot of cities brought in Gambling and saturated the country. Most people can drive less than 50 miles to a casino. Except in Texas.
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