Atlantic City is almost certain to default on a $73 million bridge loan from the state of New Jersey, the city council president says.
Marty Small said he tried to convince his colleagues that they had to approve one of the key conditions of the loan, making the Municipal Utilities Authority collateral. But a majority of the council refused to do so, and the deadline for doing so is today, September 15.
Atlantic City, a fading beach resort in the 1970s, became a casino town when the state legalized gambling there. But competition from casinos in Connecticut, New York, and, most recently, Pennsylvania, has hit it hard.
The loan conditions also require city officials to develop a five-year financial plan by November. Gov. Chris Christie has said failure to meet the loan conditions means a state takeover.
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