Gov. Christie Names Kevin Lavin Atlantic City Emergency Manager

Gov. Chris Christie has appointed Kevin Lavin to the newly created position of Emergency Manager for Atlantic City on Thursday.

Kevyn Orr will serve as Counsel to the Emergency Manager.

Lavin is a corporate-finance and business-restructuring lawyer, according to The Wall Street Journal. Orr guided Detroit through its bankruptcy proceedings as its emergency manager.

The announcement comes at the recommendation of the Governor’s Advisory Commission on New Jersey Sports, Gaming and Entertainment.

According to the executive order, Lavin will analyze and assess the financial condition of Atlantic City and recommend a plan to put Atlantic City’s finances in stable condition for a long-term basis. The recommendation can include the restructuring of municipal operations and the adjustment of Atlantic City’s debts.

Lavin will work with Mayor Don Guardian, Atlantic City Council, Atlantic County government and anyone else who may be affected by a restructuring during the process.

The initial recommendation is due within 60 days of Lavin’s appointment.

Christie reserved the right to take additional emergency actions necessary to “protect the health, safety and welfare of the people of Atlantic City and the state, and to ensure the continued provision of essential services in Atlantic City.”

Some officials fear the appointment of the Emergency Management Team is akin to a state takeover of Atlantic City.

Mayor Don Guardian said would like to study the executive orders to learn the legal powers of the Emergency Management Team, The Press of Atlantic City reports.

Some members of City Council oppose the idea because they’ve complied with everything the state has asked to this point and feel this move is an overreach of power on Christie’s part.

Galloway Mayor Don Purdy previously told The Press he hopes a state takeover brings stability to Atlantic City and be good for the rest of the county.

Assemblyman Vince Mazzeo (D-Atlantic) doesn’t support the appointment of an Emergency Manager for Atlantic City, but said he will work with him to fix and reform Atlantic City’s tax situation.

“Even with the appointment of an emergency manager - and some questions about his powers and what he’s going to be able to accomplish - the need to reform and stabilize the Atlantic City tax structure is still the most pressing fiscal issue facing our region,” Mazzeo said in a statement issued following the summit. “The PILOT program has bipartisan support from all levels of government here in Atlantic County and it is my hope that we will pass this legislation and that Gov. Christie will sign it into law. Massive cuts and restructuring in Atlantic City are more than necessary, but it’s meaningless if casinos are awarded tens of millions in tax appeals annually. The PILOT program is still necessary for Atlantic City, Atlantic County and every single person and business who pays taxes.”

Christie says Atlantic City is in danger of running out of cash and would not be able to maintain municipal services. He cited unsustainable bond issuances being used to make pension payments, a school system that pays significantly more per pupil than other districts and graduates less than 68 percent of its students, and the recently closed casinos as contributing factors to Atlantic City’s decline and the need for an Emergency Management Team.

On Thursday, Christie participated in the third summit on the future of Atlantic City, at which time he introduced his management team.

The summits have been held in response to the closing of the Revel, Atlantic Club, Showboat and Trump Plaza and the loss of thousands of jobs last year.

Glenn Straub has purchased the Revel, and said he will reopen it, in part, as a water park.

The Richard Stockton College of New Jersey will convert the Showboat into a branch campus in Atlantic City.

Carl Icahn and the Unite Here 54 union reached a deal in December to prevent the closing of the Trump Taj Mahal.