There has been much commentary in the media and throughout local communities surrounding potential major investments in housing at Bader Field in Atlantic City. These should be applauded — all investment in the city is a good investment.
Housing opportunities can create a sense of pride and success the city is desperately searching for and are the building blocks of long-term economic development success. If handled correctly, the initial $3 billion investment from developer Bart Blatstein could result in a tenfold return for the community. This is a tremendous opportunity that we must support.
However, while the focus is primarily on luxury and affordable housing units, middle-class residents face the very real prospect of being left out in the cold. The most recent census tells us that the median household income in Atlantic County is $63,680 — nearly $22,000 below the average household income for New Jersey. Without proper attention paid to housing opportunities, the middle class could be shut out entirely, for they can’t afford these luxury units, but make too much to qualify for public housing.
We need to grow the population of Atlantic City and expand its middle class, both by incentivizing people to move there and by lifting some current residents out of poverty. About 75% of Atlantic City residents are renters, an unsustainable statistic for long-term growth. While the Small administration, to its credit, has continued to lower property taxes in the city, there is still a lack of quality, reasonably priced housing stock for middle-class residents in Atlantic City.
In seeking potential solutions to the quandary we are facing, I have hosted several meetings with residents and business owners throughout the county and will continue to bring diverse thinkers together to tackle these issues. These fruitful discussions have brought up the idea of publicly funded housing incubator zones to encourage middle-class investment. While this is not a one-size-fits-all solution, it represents a bottom-up approach to the revitalization of Atlantic City.
Incubator zones
Given the current interest by developers, Bader Field and other similar opportunities should certainly be one of these incubator zones, but it’s equally important that we focus on building up neighborhoods in the city and not simply the tourist areas. Perhaps another could be in Ducktown, while another could be in Chelsea Heights. Even Back Maryland, which for far too long elected officials have shrugged off as ridden with crime, could be a vibrant neighborhood with quality housing stock.
These incubator zones should involve tax abatements to incentivize developers to build middle-class housing units, mainland families to move into the city or renters to become homeowners. We also need to assist current Atlantic City residents by both converting renters to owners as well as assisting residential property owners in modernizing their housing. Long-term residential owners in these zones should receive some sort of benefit which can be used for necessary modernization or repair of their homes. Obviously, there should be an income cap so that only middle- and working-class residents qualify. Quite frankly, the rich are doing fine in Atlantic County.
To pay for these incubator zones, I am proposing a 0.5% tax on casino gaming revenue for four years. This slight increase would raise approximately $12 million a year. In 2027, when the investment alternative tax (IAT) that the casinos pay is no longer deferred to Atlantic City for debt service, the 0.5% tax will sunset and $12 million of IAT revenue should be used for the housing incubator zones. As good neighbors in Atlantic City who wish to see the city succeed, casino operators should have no problem with paying a tiny tax for four years.
As we continue to see our economy recover following two years of pandemic-related slowdowns and with the largest federal infrastructure investment since President Roosevelt’s New Deal, now is the time to think big about Atlantic City’s future. The days of quick, sloppy fixes for Atlantic City’s ailments are over. We need a fundamental transformation of Atlantic City so that all its current and future residents, regardless of where in the city they live, can prosper.