Atlantic City - Winners and Losers

The. 18. 15. 13. 15. That. I want to have people coming here to. Good. Or are they come from. I want to feel a little. Way.

They gave. My version I think. I think that in five years time. Thank you. Yeah. And I. Know you like. To say no gambling was to be the salvation of Atlantic City. Powerful tool to generate millions in state revenues and rebuild the decaying resort of Atlantic City urban renewal without government subsidy. It was the classic gamblers dream of something for nothing. I think the promises are enunciated in the preamble of the Casino Control Act itself namely that he again will provide a unique tool for urban redevelopment of a metropolitan area within the state namely the city of Atlanta City.

The decline of Atlantic City paralleled the failure of other large cities of the northeast. Its major industry tourism left town. Unemployment rose to 25 percent. Public housing comprise 35 percent of the community and taxes soared to support the dying city. Casinos were legalized to rebuild the economy of Atlantic City to attract investment and to create new jobs. When we found out that the market projections that were being passed around at that time were modest. And after we investigated the situation ourselves. So we always felt that it would be a great success. During the first year I guess our prophet ran at about eight maybe a million a month or something like that. So you know one Resorts International opened in May of 1970 8 and it was an

instant success far exceeding anything anybody in the industry ever dreamed of. Caesars boardwalk Regency opened it believe it was in June of 1979 and their impact had virtually no impact upon the business at Resorts International Valley's Park Place opened in the summer 29 of 1979. And fortunately from the time we've opened our doors until the present time we're doing a capacity business. And I do not believe we will impact any of the other two casinos. This excess of Atlantic City's casinos has far outdistanced even the wildest predictions of its planners. The first three operating casinos have won over one half a billion dollars outperforming any other casinos in the world. This tremendous potential for profit has brought on the speculation of up to 40 additional casino proposals. There seems to be no limit to the potential casino development in Atlantic City.

The market studies show a greater number of casinos being able to operate viably in this area than I think the land can handle. The reason for that is the tremendous number of people that live within a very short distance of Atlantic City. So I think the functioning market is not going to limit it as far as the number of people who gamble. Atlanta City is a tiny island of only five point five square miles of buildable land yielding to the pressures for casino development. The areas of the city originally zoned for casinos have been greatly expanded. This expansion has encouraged tremendous economic forces. Now there's been a lot of speculation. I think it's a healthy sign. I think that the speculators who have come in from the outside have caused property values to soar. And that's valuable after all increases the tax base of the way tax city puts money in the pockets of people who are rather destitute before. And I have no objection to someone coming in from out of town and earns a profit as long as the people in Atlantic City aren't fleeced because

of it. This house was 40 years ago and 1930 knowing and we bought it for its taxes which was really only thirty three hundred dollars. We are very very comfortable here for the family for my brother and sister and for the rest of the family that come down to spend their vacation. The offer today of course is 500000 600000 because we have two lots here. Mr. Sperling is an 80 year old retired teacher. She lives with her sister Minnie and her brother Meyer. The promises were that our taxes would go down. That we we would we would gain quite a bit by the casino gambling that we would not be forced out under any condition. And they have not lived up to promises their taxes have gone up so terrific a lie from about sixteen hundred

to now 4000. You are so rich has gone up where one time it was. It started at 45. We're up to four hundred seventy nine dollars and then we expect another increase with the utilities going up. They are pricing is right out of Atlantic City. In my own case they reassessed my land a property that my house sits upon and just the land alone. Eight hundred and forty six percent more than it was prior to the gambling come in. Nelson Johnson is an attorney who has represented Atlantic City residents in their fight to protect their homes from Casino development in the area. At the present time there exists a mentality in this city on X city that the more casinos the better and let's develop every square inch of this island for commercial uses. We're booking a lot of conventions for the future of 1980 to 1983.

Most of the. Big conventions want to come back to Atlantic City because it's a new attraction. But we'll have to have more facilities for them we certainly have to have more first class rooms and improved convention facilities but if we are able to accomplish this certainly we're going to have more combustion business. But we don't want to build a gambling town. We want to build a resort and convention city that has gambling. And that difference is a very substantial although. Sort of subtle kind of a distinction. Birch Saber is a businessman with years of experience booking large conventions into Atlantic City L.A. City at this point has plans for what they call a mega structure. That is a four block convention hall which is in excess of 700000 square foot. In addition to the existing dimension facilities a 500000 square foot. We think that the amount of area that they are using is far in

excess of what is required. And this convention city is a city of 40000 people we cannot yet every convention in the country. If you get a large convention in town the convention requires. Let's say if you get 15000 people you're talking in terms of 10 to 15000 rooms right there. And that's just not a great big convention that's more of a medium sized convention. So our problem is not so much the convention space that is required as it is rooms. Casino corporations must by state law build 500 room hotels in order to qualify for their gambling licenses. This was intended to rebuild the convention business along with the birth of the gambling casinos. But most of the casinos are building only the legal minimum of 500 room hotels. Thus Atlantic City may still fall far short of the number of hotel rooms it needs to compete as a full convention resort and not just a gambling town.

Now the casinos are self-contained in that they have like 12 or 14 restaurants. They have all the facilities that are necessary for people to shop. They have clothing stores men's clothing women's clothing gift whereas souvenir shops and all of the other things associated with it people come into these places and they're there like every other mass major hotel in the country they become basically resorts self-contained resorts. And their point is really not to have further the city's business district it's to be and. Competition with the city's business district nomination and Iowa City. What happened. They are being squeezed out. And I don't and I know Id been Ishaq people of Venice small business in this case how I've got the rent going up. People don't have a land on the sound of buildings and I thought a man named two big money making that way and they turned him down a lot of static. Yes often down I can no

ball walk I kavanah. In a small businessman go have a lot of problems. Willie Gaynor made those remarks in 1978 by 1980 he was proved to be a prophet as he was forced to close a shop. Dozens of other businesses also closed in Atlantic City. Of the three hundred shops along the Boardwalk before casinos only a handful remain today. In stark contrast to the casino wealth the traditional business community is failing. Atlantic City's Chamber of Commerce is nearly bankrupt from the loss of members in the short term transition and Atlantic City has been. Basically. Has heard a lot of small business people. I it's an adjustment of the market place of the type of economy of the type of clientele who are coming here that has caused that to a great extent. Our membership has dropped 35 percent. Evidence saying and reflecting the fact that many small businesses who had been on the boardwalk either have lost their

leases or have sold their property to casino developers as news properties new properties are built will replace that. If the vote were to be taken over again today I think you'd see a significant growth in those opposed to casino gambling because it did not meet their expectations for a 78 year old Louis status. Expectations have not been met. One promise of gambling was to provide enough jobs to reduce crime. Yet violent assaults in Atlantic City are up nearly 40 percent. Louis status was severely beaten in front of his home one morning not robbed just beaten. Month of November I told you that I went out to buy a newspaper. Two guys got me and and beat the hell out of me. And no it isn't they didn't look for the money and I'm not in the only thing I know because we don't want to sell. We resent to sell him any property. So when you put them up somebody must have bought them

because they're not going to be what I never done nothing. I don't nobody in it though. I never bought anything. If I had something to spend my time but about a month from anybody never did. I told you the reason I'm home. We know when we don't we don't want to move. But like we said before we want to see if you want you out there is going to get you out anyhow so. Who you want to fight with who's going to fight for you. Louis and his wife Olga live in the area the city had planned to use for the new convention hall. But the history of the city of Atlantic City as a developer has caused suspicion and anger among the residents. We have determined that that if they grab these four blocks of land that they will do nothing with it really for maybe two or three years at that point of time and the property has increased so much in value then I can go out and borrow big money as far as that's concerned. Look what happened to Lennox city

to the urban renewal area uptown. They took over 10 city blocks that was supposed to be developed for housing and public use. What I ended up with a property that ended up being sold in resorts and National Hotel was going to be casino. What happened to the present Convention Hall urban renewal section has taken over and the front section of it at the Boardwalk was eventually turned over to Playboy as a casino hotel. Now what's to stop the city from doing the same thing in this four block area that's done in every other area that is grabbed up to this point it's a proven fact that this is the way this city works. And they'd want to push all the poor people that were here 60 years now 60 years in the neighborhood. Been for 60 years. They want to push us out. Don't want the cool people in Bali you know what you name. Oh nice Polly. Bobby said that

no more poor people in Atlantic City. Push them all out and you wouldn't expect the people who operate Disney land to live in Disney Land. The land is too scarce. A casino hotel takes 8 to 10 acres. And we simply don't have the acreage. Some of the older people have made sacrifices. Knowing that the young people were going to do better and that's our future. I'm a lifetime resident of the lank city my father was a lifetime resident of lank city and my grandfather lived most of his life. We've been here as long as the boardwalks been out there he says now the house I thought he tells me that they're taking my land from me to pay $70000 for and they're going to give me 28. They told me I have twenty eight thousand dollars in escrow and I do not own my land my land today is valued at a half a million dollars. Our approach in light of our newfound prosperity brought on by the

advent of casino gambling is to of to effect a very viable housing program to insure the development of middle income housing. It would be one of the one of the prongs on our approach to our housing problem. I was at a mega struction meeting which the people were complaining about them stealing the land. Same Housing Authority coming in taken the whole center city and given them so much for these people been frightened for so I went up to the mega street structure meeting to help them in a cause. I found out the mega structure I mean they said they're taking your land to Mr.. I said taking my land so the housing authority is right in the back of the commish the meeting so I went back to him. I says My name is Mr I can only own land on a G1 block I said I would you have taken my land. He says Mr eigenvalue we took your land. I said How did you take my land. I bought it I pay for it I got it. He

says Mister I can Elly. We took your land you have twenty eight thousand dollars in escrow. He says you don't own any land Mister I can only elected to purchase the property. From then the form over and we merely picked it up in our tracking of the various transactions real estate transactions and notified him as a matter of courtesy. That we were in the process of taking that particular. Property. Unfortunately the address of record for Mr. I can only was not his current mailing address and the notices came back to us and they were unanswered. That did that in no way stops the process because we are we are not policeman. We attempt to find the person by using their tax bill billing address the county clerk's office. Address that that

that is indicated on the deed. Other than that that's the best that we could possibly do it in an effort to locate someone. What followed from there was that we we the agency kwek kwek under our quick take process took title to the press to the project and deposited the twenty thousand eight hundred dollars with the clerk of the Superior Court of New Jersey. Now I feel very very bad because these people feel that you're going to take their land. You already say you took my son to die and you sent him a notice stating or somehow or other he got word of it that his money is an escrow that you have stole his land. The ordinance was not passed but you took his land like he's paying seventy thousand plus all the interest and you're going to give him twenty eight thousand twenty eight thousand you're going to get him for seventy thousand

that's a big profit. Now seventy thousand is only what it costs to man in court and what he's got to pay that in order to buy the land. Now sure now I feel bare and then you call him a speculator. I had nothing. I went to the super house when I was a child I had nothing been raised my children had nothing. Now my son has a chance to buy a little bit on land and make a few dollars and feel that you should come and take it away from him. I'm more so against you I think you're lying like you did before casino gambling. I think you're right about the herb and we know all the casinos got it right between organic and Pacific. Nobody else wanted. You. Yeah. Well that's what you're going to say that I. Am what you're using you want to say nobody else want to even lower carb get off of the land. When you make it let it lie there for a minute you're meant to do the same thing with these people's land on the

north side. You're going to take their land and you're going to resell it and make a profit. You see the cold in that ground. Yes you are a member of this self worth nothin till you people up there. Zone one area for casinos and you saw get five prices up there on the south side. But now we're sitting here waiting knowing that we're next to get it out of pick prices. And here he comes sneaking up in a winter cold winter freezer so cheap. I voted for you. Five men because I had faith in you and I want to have faith in you now. But when you take the end of that I know my home will be next. And especially with the housing and people involved. Now if we know in the next 15 years that none of us will be here full of people back and white will not be here because the casinos are going to take it invite over. But please give us the opportunity to get top value we don't want no. Value.

Nobody knows the value of that man exactly today. The value of casino hotels is employment. They have created thousands of new jobs. By 1985 the total workforce of Atlantic City will be more than double to over 200000. But these hopes of attracting thousands of job seekers to the area with the result that the unemployment rate has actually increased from seven and three quarters percent to over 10 percent. Many Atlantic City residents are still without jobs. I better tell. You. What you need a raise. What do you miss. Is that. The construction people that come here they don't bring their own people. And the people that live here. Throughout the day still think. They're going to come out in. Terms of job opportunities. I think that there are many job opportunities that did not exist in the past and I think that that's a very positive thing. But what people don't understand is that a very large percentage and something like one half of the people that work in casinos

are not earning very significant salaries and by that I mean not significant I mean in the neighborhood of ten to twelve thousand dollars a year your cocktail waitresses and you're in your chamber maids and your vending machine mechanics in your slot machine mechanics you know they're not making exorbitant salaries and it never will. Casinos and hotels are very labor intensive institutions and many of the people that work there are not going to make very large sums of money. One family has felt the profits and losses of the gambling boom and the profound and unique manner. I have children so I. Pick the swing shift because I want to spend time with them. And I wanted them to be slate when I was working. And I work like. 8:00 at night in the morning and I get off at 4 and I come home I could've been I get up at 8 and I get my kids off to school and do what I have to do my chores my cook my dinner and wash clothes run around doing errands and then I take a nap in the

afternoon and then I start again I work four days for the simple reason that it's. Working and working with the kids. I don't get that much rest and. Stars. Each casino that open so I'm not quite sure I can't quote the exact figures but it's like three 4000 stories. That's it's not you know that's needed to run a casino. And that's a lot of jobs a lot of people you know think Well well I'm going to go down a lot of city and get a job because there's so much money down there the money is. It's all right. It's not that great because the cost of living is so high. It's not all that glamorous like people think you know it's just a regular job but you really have to work for your money and you do work for your money. And this is your deal. Lloyd is undergoing treatment at a private clinic. You know after the stress of the job not having any way to ventilate it you find a lot of people go to

bars every night. You know on a regular basis and get really whacked out you know and then you know that's my job especially the guys who don't have families you know responsibilities making that kind of money they can afford to get smashed every night. So you know you have a lot of components to people you know gallon and you know they come to when they want to. And a lot of times they don't come with money they can stand to lose. So you know that's a that's a lot of stress between you and them again. I got into a thing of drinking just to relax. They say you know I was like you know I started drinking drinking more to get the same effect as to why I would drink was taking me. Matter of fact you know manage even told me. That the job wasn't that important for me to think about my life and my family which I think was really all right. Prior to the opening of the first casino in 1977 Atlantic County executive Chuck Worthington sounded the warning. That today seems prophetic. At our fingertips.

We only handle it properly. My major concern is. 20 years from now we can look back and say. If only we had done that. Now if we know in the next 15 years that none of us will be here

poor people black and white will not be here because the casinos are going to take it and ride over. But please give us the opportunity to get top value we don't want no value. Nobody knows the value of that man exactly today.