TRENTON, NJ–New Jersey Senate President Steve Sweeney on Monday announced a plan he said would bring financial stability to Atlantic City and position the city for future economic opportunities.

The proposal comes in advance of a summit scheduled for Wednesday that will bring together government officials, community leaders, business and labor to follow through on the first meeting held in the wake of multiple casino closings.

Sweeney's plan calls for:

• Stabilizing casino property taxes with a two-year “Payments In Lieu Of Taxes (PILOT)” in the amount of $150 million, followed by guaranteed tax payments, indexed on Gross Gaming Revenues, over the next 15 years;
• Redirecting the Investment Alternative Tax (IAT) to pay Atlantic City's debt at an amount of approximately $25 million to $30 million annually:The IAT is a 1.25% tax on gross gaming revenues and a 2.5% tax on internet gaming revenues. Sweeney says redirecting these revenues will save residents $25 million - $30 million each year.
• Reevaluating the Atlantic City Alliance (ACA)to determine whether it is fulfilling its original purpose.
• Reduce Municipal Administrative Costs and ensure financial stability for the school system.The state can require these cost savings through its Transitional Aid powers, and a memorandum of understanding with the city. Sweeney says the state will have to take a pro-active role to ensure financial stability for the school system, including proper oversight.
• Casinos will be required to provide a baseline health care and retirement package for its employees.

Sweeney says the proposal would bring immediate economic stability to Atlantic City and its casinos and lay the foundation for future economic growth that includes a financially-healthy gaming industry as well as other attractions as a “destination” resort city.