NJ Gov, lawmakers to review sports, gaming, entertainment authorities, facilities

Lawmakers order major reviews of NJ sports, gaming

TRENTON, N.J. — Gov. Chris Christie created a seven-member commission Wednesday to find ways to fix New Jersey’s troubled gaming, sports and entertainment industries.

Under an executive order by Christie, the New Jersey Gaming, Sports and Entertainment Advisory Commission must deliver its recommendations to the governor by June 30 — the end of the fiscal year.

In announcing the commission, Christie said the industries have significant problems and a major impact on the state’s economy.

The panel will examine what to do with the New Jersey Sports and Exposition Authority, the Meadowlands and Xanadu retail and entertainment complex and the state’s horse racing industry. Christie also wants suggestions on how to promote Atlantic City as a resort destination.

“The bottom line for success is to exploit to the greatest degree possible the assets that New Jersey has in order to benefit the taxpayers and the citizens of the state,” Christie said. “I don’t think anyone could argue at the moment that that’s not happening.”

Christie noted the NJSEA’s $38 million deficit for 2010, how the state had already spent $160 million in rent prepayments at Xanadu, a horse racing industry projected to lose $22 million this year and continual declining revenue at Atlantic City casinos, which last month posted their worst financial returns since 1997.

Meanwhile, lawmakers will also undertake their own examination of the NJSEA, starting with a Feb. 25 hearing.

A report by Christie’s transition team suggests that the NJEA should be seriously looked into and possible disbanded.

“With a $38 million dollar budget shortfall that will have to be made up by the state’s taxpayers in 2010, it is important that the entire mission, structure and even very existence of the NJSEA be questioned,” the report said.

The NJSEA, created in 1971, operates the Meadowlands, which including the stalled Xanadu retail and entertainment project and the new Giants and Jets football stadium, as well as the nearby Izod Center, the Monmouth Park Racetrack in Oceanport, and the new and historic Atlantic City Convention Centers.

Leading the governor’s commission will be Jon Hanson, a former NJSEA chairman who was also the chairman of the Christie’s transition team on gaming, sports and entertainment — an indication that the commission recommendations may not divert far from the teams’ conclusions.

Among the major problems the commission will be tasked with solving:

— Xanadu: The stalled giant retail and entertainment complex next to the Izod Center and across a highway from Giants Stadium was slated to open in 2007. A new opening date for the sprawling $2 billion complex has not been set and the viability of the project is in question.

— Izod Center: A deal to move the New Jersey Nets from the arena to Newark’s Prudential Center for two years while a new arena is being built in Brooklyn is on hold. At issue is whether the Nets will pay $7.5 million in penalty fees for breaking the team’s lease at the Meadowlands. The Nets are planning to move to Brooklyn by 2012.

— Horse Racing: With the industry projected to lose millions in 2010, the transition team suggests forcing horse racing to become self-sufficient; having Monmouth Park consider moving to a 50-day summer meet with high purses; and letting the NJSEA oversee all off-track wagering and video.

Other suggestions by the transition team include studying whether the Meadowlands can be redeveloped for NASCAR racing, creating a public-private venture to market Atlantic City as a destination resort, and privatizing the state lottery.

State Sen. Barbara Buono, D-Edison, who chairs the committee that ordered the exam, said her legislative hearings will examine the overall fiscal operations of the NJSEA. She has not said whether the committee will issue a report or suggestions.

Christie’s new commission will consider input from former Gov. Jon Corzine’s horse racing commission, which was expanded to include the casino industries because Atlantic City casinos supplement track purses with $30 million annually. That commission will then be dissolved by April 1.

(This version CORRECTS UPDATES with Christie comment; RESTORES background; corrects per administration officials that deadline is June 30 for report. ADDS AP Photo link. Moving on general news, financial and sports services.)