1) Borgata’s 400 layoffs. Yeshiva World News reports:
Atlantic City’s Borgata Hotel Casino Lays Off 400 Workers
November 6, 2008 <!–
The Borgata Hotel Casino and Spa, Atlantic City’s newest and most successful casino, has laid off 400 workers due to the worsening economy. The cuts, which were carried out on Wednesday, eliminated 5 percent of the Borgata’s work force.
2) Pinnacle’s casino development is postponed indefinitely. NBC Philadelphia reports:
It seems that the Pinnacle casino won’t be opening in Atlantic City anytime soon — company officials announced today that the project is on “indefinite hold.”
It seems to be a sign of the times as another major company deals with the current market downturn.
Pinnacle Entertainment, Inc. reported an $11.8 million loss in their quarterly report for the third quarter.
The reasons for putting the AC project goes beyond stock losses. The company stated that competition in surrounding areas and the current credit market crisis have led to putting the project on hold.
Some of the competition that led to this includes on election day Maryland voters approved a plan to permit 15,000 slot machines in their state and the three additional gaming locations that are planned or under construction in Eastern Pa. and Philadelphia.
There is also competition from within as there are proposals for one or more casinos to be built on Atlantic city’s Bader Field.
The Pinnacle Group casino was to be built at the former Sands Casino site. […]
The questions remains whether officials will roll the dice and continue the project.
Customarily, government grows in good and bad economic times alike. Good government thinking recognizes that Atlantic City is experiencing an unprecedented economic downturn. When revenues decrease, tax revenues also decrease. Budgetary spending, in turn, should also be decreased.
(Photo credit – http://blog.kievukraine.info/uploaded_images/5434-770079.jpg)
Newly-elected Mayor Lorenzo Langford has a golden opportunity to prove his critics wrong. Mayor Langford will soon submit a budget for the 2009 fiscal year. This budget should be bare bones. Atlantic City’s economy needs to be relieved of much of its tax burden. If Mayor Langford drastically reduces the size and scope of city government, he will break the trend of previous administrations. If the upcoming Langford budget is not drastically reduced, he will join a long litany of Mayoral administrations that are oblivious to actual market conditions.