Three months after an interim report urged "shared sacrifice" to turn Atlantic City, N.J. around, a new spokesman for the city's emergency manager says all options remain on the table.
Bill Nowling began his role as spokesman for Atlantic City Emergency Manager Kevin Lavin in late June. Nowling was spokesman for Detroit emergency manager Kevyn Orr during that city's Chapter 9 bankruptcy.
Nowling said late Tuesday that a negotiated solution with Atlantic City stakeholders is most ideal way to stabilize finances. Nowling did not rule out a potential bankruptcy filing as the city grapples with a $101 million budget gap.
"The emergency manager is keeping all options on the table," said
Lavin's March 22 report included suggestions for bondholders such as extending maturities, exploring refinancing opportunities that may reduce interest rates, and rearranging the amortization schedule of bonds to delay principal repayments.
Lavin also appointed mediators to work with union leadership and casino representatives on possible solutions in an effort to cut city expenses by $10 million this year.
"The March plan the emergency manager put forward was crafted as the best way his team saw to reach a negotiated restructuring of Atlantic City's financial issues for 2015 and beyond," said Nowling, a senior partner at Detroit-based public relations firm Finn Partners. "A mutually agreed to resolution of the city's financial emergency is the surest and most efficient way to long-term financial stability."
The New Jersey Legislature approved a package of bills on June 25 aimed at stabilizing Atlantic City finances that authorizes casinos to make payments in lieu of taxes over the next 15 years. Gov. Chris Christie has not indicated if he will sign the legislation, which would reallocate the casino alternative tax to pay debt service on Atlantic City-issued municipal bonds.
