By Real Estate NJ
A state authority that redirects casino tax revenue into Atlantic City development projects is set to lose what has been a lucrative funding source for more than 30 years, raising questions about what its mission will be going forward.
A report Sunday by The Press of Atlantic City said the agency, the Casino Reinvestment Development Authority, will no longer receive the casino alternative investment tax starting Jan. 1. Under a state law aimed at shoring up the resort town’s finances, the funds will be redirected toward helping the city government pay off more than $500 million in debt.
The authority’s board chairman told the newspaper that the lost revenue would amount to some $20 million a year. And the report noted that the shift comes amid a leadership change at CRDA, with Executive Director John Palmieri announcing that he would step down at year’s end.
He will be replaced by Deputy Director Christopher Howard, a pick that critics have said is politically motivated, according to the report. The newspaper said CRDA is now reassessing its longtime mission amid the leadership change and the change to its finances.
For more, see Sunday’s story by The Press of Atlantic City.
More New Jersey real estate headlines
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N.J. lawmakers to punish owner of former Taj Mahal for shutting down (Associated Press)
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Editor’s note: The Rundown is a regular feature by Real Estate NJ in which we recap commercial real estate stories and headlines from across the state.