Bill to give Atlantic City Convention Center Operating Rights Passes Senate
Tuesday, June 24, 2008

MEMORANDUM

TO: Members of the New Jersey Senate

FROM: Christina M. Genovese, Manager, Government Relations

RE: A-2011 (Burzichelli) / S-1393 (Sarlo/Whelan)

DATE: June 23, 2008

The Chamber of Commerce Southern New Jersey supports A-2011 (Burzichelli) / S-1393 (Sarlo/Whelan), which authorizes the transfer of the Atlantic City Convention Center to the Atlantic City Convention and Visitors Authority and renames that authority.

The Atlantic City Convention Center Authority (ACCCA) was established in 1981 to promote the tourist, resort, convention and casino industries of Atlantic City and to maintain and operate Boardwalk Hall and a yet to be constructed convention center. At the time, the ACCCA did not have the expertise to develop a large-scale project and did not have bonding authority to raise funds for the project. As a result, the ACCCA was placed under the oversight of the New Jersey Sports and Exposition Authority (NJSEA), which financed and developed the projects. The role of the ACCCA was to operate and manage both Boardwalk Hall and the Convention Center.

Through the NJSEA, Boardwalk Hall’s renovation and construction of the Convention Center were successful projects. The bonds that were issued by the NJSEA to finance these projects continue to be paid through a portion of the Atlantic City Luxury tax, with the remainder of the tax forwarded by the State Treasurer to the NJSEA for reserves and operating expenses.

The Chamber believes that the original purpose of the NJSEA oversight is no longer necessary and places an unnecessary administrative burden on the operations of the ACCCA. Both ACCCA and NJSEA report to the Governor’s Authorities Unit, subjecting both to the same level of oversight by the Governor. However, the ACCCA must also report to the NJSEA which subjects its meeting minutes to a 45-day veto period, in addition to the Governor’s veto period. This added layer hinders the ACCCA’s ability to conduct business, especially on time sensitive matters.

Additionally, the annual $350,000 management fee that the ACCCA pays to NJSEA could be better used in a variety of more productive ways to benefit the Convention Center, Boardwalk Hall, and most importantly the visitors and tourists that keep New Jersey’s economy thriving. Finally, the Chamber believes that the ACCCA is best equipped to operate and maximize revenue from the Convention Center and Boardwalk Hall. The Authority, which is a member of our Chamber, is very involved with our regional business community and is viewed as the entity most responsible for the success of the Convention Center and Boardwalk Hall.

Clearly, NJSEA played a key role in the success of developing these two projects. However, now that that role has been fulfilled, we believe that the ACCCA will be able operate more efficiently and effectively independent of an additional level of bureaucracy. For these reasons, the Chamber urges you vote “yes” on A-2011 (Burzichelli) / S-1393 (Sarlo/Whelan).