New Jersey yesterday rejected Atlantic City's recovery plan, saying that it was unlikely to achieve financial stability, setting the stage for a possible state takeover of the cash-strapped gambling hub, Reuters reported. The plan, which would cut costs, borrow money and raise $110 million through a land sale, did not go far enough, New Jersey Department of Community Affairs Commissioner Charles Richman said in his decision. The blueprint failed to meet several necessary requirements, and city leadership "has had ample time to improve the city's financial condition yet has avoided doing so in any meaningful way," Richman wrote. The city's property tax base plummeted over the last several years as increased gambling competition in neighboring states cut into the city's casino industry. In a joint statement with City Council President Marty Small, Mayor Don Guardian called on the state to reconsider its decision. Earlier yesterday, Atlantic City met its $9.4 million debt service payment but still owes another $7.1 million through the end of the year.
