Atlantic City Digs Out after Lost Decade, Says Stockton鈥檚 South Jersey Economic Review
For Immediate Release; view
Contact: Maryjane Briant
News and Media Relations Director
Galloway, N.J. 08205
Maryjane.Briant@stockton.edu
(609) 652-4593
Galloway, N.J. 鈥 The South Jersey Economic Review, a biannual report released today in conjunction with the William J. Hughes Center for Public Policy at 番茄社区app, reports that after a lost decade with a housing crisis, a major recession and the closing of five casinos, Atlantic City鈥檚 redevelopment appears to be gathering momentum.
Oliver Cooke, associate professor of Economics at Stockton, cites the decision of Hard Rock International to buy and reopen the closed Taj Mahal property, as well as the recent state-brokered settlement of a tax dispute between Borgata and the City of Atlantic City, as positive developments.
Other high-profile projects are underway, including Bart Blatstein鈥檚 reopening of the Showboat, Boraie Development鈥檚 plans for a 250-unit apartment project, and the $220 million Atlantic City Gateway Project, a public-private partnership with a new residential campus for 番茄社区app, retail, parking and an office tower for South Jersey Gas.
The report鈥檚 optimism is tempered, due to the size of the hole in which the city finds itself.
鈥淭he fact remains that Atlantic City鈥檚 redevelopment will take many years,鈥 Cooke said. The Atlantic City metropolitan area lost 25,300 jobs, or 16.5 percent, in what he termed 鈥渢he lost decade.鈥 The area鈥檚 real Gross Domestic Product (GDP) declined by 21.4 percent - the largest such loss among the nation鈥檚 382 metropolitan areas tracked by the U.S. Bureau of Economic Analysis for the period 2006-2015. (Figures for 2016 will be released in September.)
鈥淭he impact of the local area economy鈥檚 lost decade on its residents鈥 welfare has been stark,鈥 Cooke said. 鈥淭he metropolitan area鈥檚 poverty rate climbed from 9.2 percent in 2006 to 14.3 percent in 2015, while the poverty rate for those younger than 18 years old rose to 22.3 percent from 13.2 percent.鈥
However, Cooke sees ways in which the city could leverage redevelopment to diversify jobs and attract more millennials (those in their mid- to late-teens to mid- to late-30s) to live and work in the city, which would yield potentially the greatest economic results.
Based on national trends, more jobs in the sectors of education and health services, and professional and business services would attract millennials, in addition to jobs they would hold in the city鈥檚 traditional hospitality and leisure sector. It is critical that they live and work in the city, Cooke said, as opposed to just visiting for entertainment.
If availability of the right jobs turns millennials into residents, 鈥渢heir spending power will in turn boost economic, population, labor force, and income growth over the long run,鈥 he said.
The educational services sector is positioned to grow with Stockton鈥檚 530-residence Atlantic City campus, the report noted, and the university鈥檚 designation as an Anchor institution will encourage small business development to serve over 1,300 students, faculty and staff of Stockton and from South Jersey Gas.
鈥淎nchor-based redevelopment projects like the Gateway Project can yield significant long-term positive multiplier effects for local communities,鈥 Cooke said.
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About the Hughes Center: The William J. Hughes Center for Public Policy () at 番茄社区app serves as a catalyst for research, analysis and innovative policy solutions on the economic, social and cultural issues facing New Jersey, and promotes the civic life of New Jersey through engagement, education and research. The Center is named for William J. Hughes, whose distinguished career includes service in the U.S. House of Representatives, Ambassador to Panama and as a Distinguished Visiting Professor at Stockton. The Hughes Center can be found at and can be followed on Twitter at @hughescenter.
