Union wants voters to have say on NJ tax breaks

By WAYNE PARRY

ATLANTIC CITY, N.J.

The battle over whether an Atlantic City casino construction project should get a $300 million tax break escalates next week with legislation that would prevent voters from having a say on many projects across the state.

Lawmakers are scheduled to vote Monday on a bill that would prohibit residents from voting, through local referendums, on projects using state stimulus money. A sponsor says the bill is designed to prevent delays on needed economic development projects.

"It's about being able to get economic development projects approved and jobs created," said Assemblyman Vincent Polistina, R-Atlantic. "What we're talking about now is you should not have a local referendum on a state application."

Prompting the legislation is an application by the Revel casino to a state program. If approved, the casino would be reimbursed three-fourths of its sales and room taxes for 20 years.

The casino project is widely viewed as the most important in Atlantic City's effort to counter ever-increasing competition from casinos in neighboring states, many of which will soon offer table games that will directly compete with the shore resort.

But Local 54 of the Unite-HERE union, conservative former gubernatorial candidate Steve Lonegan, the Sierra Club, the New Jersey Environmental Federation and others say the measure is anti-democratic. The union, which represents many casino hotel workers, is particularly upset that Revel's partner in the casino venture is the Wall Street investment firm Morgan Stanley, and has filed a lawsuit asking for a public referendum in Atlantic City.

"At a time when legislators are going to vote on a budget that will likely contain massive cuts to education, aid to municipalities and property tax rebate checks, these legislators are going to vote to deny people the right to vote on this matter in order to grease tax rebates for Morgan Stanley," said Bob McDevitt, president of the 15,000-member union. "This is another example of Trenton ignoring the voice of the people. We believe that this is a vote that will haunt legislators."

The union fears that Revel's opening could draw so much business away from the existing 11 casinos that two of them might have to close, costing thousands of jobs. The state should not be subsidizing that process through tax incentives, they argue.

Earlier this year, the union organized a petition drive that called for a public vote to rescind the City Council's approval of the tax incentive. Days after the petitions were submitted, a state Senate bill was introduced that would prevent referendums from being used to overturn stimulus-related spending.

The union and six other groups wrote to state senators and assemblymen on Friday, asking that the bill be scrapped.

Polistina predicted the bill has enough support to pass.