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Flint warnings as Atlantic City may be forced into state takeover of water
Source: The Guardian
Flint warnings as Atlantic City may be forced into state takeover of water
The near-bankruptcy of the financially ailing resort town was
caused in part by the failures of casinos such as those previously
owned by Donald Trump
Jessica Glenza in New York
Thursday 6 October 2016 11.00 BST
Atlantic City may be forced by New Jersey into an unprecedented state takeover of its water as the result of a bailout, something experts have warned has worrying echoes of the ongoing water crisis in Flint, Michigan, and could result in price hikes.
The near-bankruptcy of the financially ailing resort town was caused in part by the failures of casinos such as those previously owned by Republican presidential nominee Donald Trump.
Casino closures over the past five years opened a cavern in Atlantic City’s budget, as property values plummeted and tax revenues plunged. However, Governor Chris Christie – now also chair of Trump’s White House transition team – refused earlier this year to allow Atlantic City to formally go bankrupt to shed or restructure debt.
Instead, a harsh $73m bailout loan was signed by the city and state, which required Atlantic City to dissolve its independent water utility and hold the infrastructure as collateral for the bailout loan. Christie, a water privatization proponent, has said he would “sell” the city’s assets if Atlantic City failed to meet its loan obligations, a promise that could result in a private company owning or leasing the city’s infrastructure.
Separately, the Guardian can reveal that while two of Trump’s Atlantic City casinos were under his control, the mogul failed to pay more than $146,000 in water bills between 2012 and 2014 until March this year.
[font size=1]-snip-[/font]
The near-bankruptcy of the financially ailing resort town was
caused in part by the failures of casinos such as those previously
owned by Donald Trump
Jessica Glenza in New York
Thursday 6 October 2016 11.00 BST
Atlantic City may be forced by New Jersey into an unprecedented state takeover of its water as the result of a bailout, something experts have warned has worrying echoes of the ongoing water crisis in Flint, Michigan, and could result in price hikes.
The near-bankruptcy of the financially ailing resort town was caused in part by the failures of casinos such as those previously owned by Republican presidential nominee Donald Trump.
Casino closures over the past five years opened a cavern in Atlantic City’s budget, as property values plummeted and tax revenues plunged. However, Governor Chris Christie – now also chair of Trump’s White House transition team – refused earlier this year to allow Atlantic City to formally go bankrupt to shed or restructure debt.
Instead, a harsh $73m bailout loan was signed by the city and state, which required Atlantic City to dissolve its independent water utility and hold the infrastructure as collateral for the bailout loan. Christie, a water privatization proponent, has said he would “sell” the city’s assets if Atlantic City failed to meet its loan obligations, a promise that could result in a private company owning or leasing the city’s infrastructure.
Separately, the Guardian can reveal that while two of Trump’s Atlantic City casinos were under his control, the mogul failed to pay more than $146,000 in water bills between 2012 and 2014 until March this year.
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Read more: https://www.theguardian.com/us-news/2016/oct/06/atlantic-city-bankruptcy-bailout-private-water-flint-trump
