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‘Deep-seated racial bias’: Atlantic City officials blast effort to change form of government

"This move reflects a mindset that believes African Americans and other races can't govern," Atlantic City Council President Marty Small said of the petition drive, which calls for a special election as early as Aug. 13, to change the city's form of government.

Atlantic City Council President Marty Small Sr. addresses the media and community members about an effort to change the form of government that he described as a plan to usurp the authority of local government. He is flanked by City Council members and community representatives.
Atlantic City Council President Marty Small Sr. addresses the media and community members about an effort to change the form of government that he described as a plan to usurp the authority of local government. He is flanked by City Council members and community representatives.Read moreAmy Rosenberg

ATLANTIC CITY — City Council President Marty Small Sr. on Thursday called a newly announced effort to change the form of city government “an ongoing attempt to humiliate” the people of Atlantic City, one that represents “a deep-seated racial bias and animus … that reflects a mind-set that believes African Americans and other races can’t govern.”

The sharp words were delivered in council chambers as Small stood alongside other members of the council, clergy, business owners, community leaders, officials from the police and fire unions, and the president of Teamsters Local 331, which represents blue-collar city employees.

“This feels invasive; this feels very disrespectful,” said Sheila Hull-Freeman of Bungalow Park, who was representing neighborhood civic associations. “It feels like another effort is rearing its ugly head against elected officials. This is not what we want to have taken away from our citizens in Atlantic City.”

The effort to change the form of the city’s government, which is under state control and includes a mayor under FBI investigation, to a council-manager form was disclosed Wednesday by The Inquirer. It is being spearheaded by Bob McDevitt, president of Unite Here Local 54, former State Sen. Raymond Lesniak, and Resorts owner Morris Bailey.

Small also announced that he had asked New Jersey Attorney General Gurbir S. Grewal to investigate whether the involvement of Bailey and Resorts CEO Mark Giannantonio in the petition drive violated ethical or legal regulations prohibiting certain political activity by casino employees.

“Wake up, Atlantic City,” Small said. “We cannot take lightly a plot to gain control of this city by nefarious means.”

Small released an email he had obtained, written by Lesniak, that laid out a timetable calling for a referendum election as soon as Aug. 13. If it was successful, new council elections would be held Sept. 24, according to the email, dated May 13. The six November ward council elections would then be canceled.

Not attending was Mayor Frank Gilliam, who remains under investigation for possible campaign finance violations following a December raid at his house by the FBI and IRS.

The criticism from City Hall came as the petition drive officially announced itself as “Atlantic City Residents for Good Government,” seeking to change the mayor-and-council government to a form that would have a five-member council that appoints a city manager to run the day-to-day operations.

The state control comes under powers granted by the Legislature in 2016 as a way to stabilize the financial state of the city, which was near bankruptcy and suffering from the fallout of five casino closures.

Those powers give Lt. Gov. Sheila Oliver the right to essentially veto any referendum. Small said Thursday that he had spoken with Oliver and that she supported the current form of government.

Gina Trish, a spokesperson for Oliver at the Department of Community Affairs, which Oliver heads, said Oliver “has expressed no opinion or position on this matter and that we will stay focused on the work that DCA is responsible for doing in Atlantic City.”

The news conference echoed familiar themes in Atlantic City: concern over the city’s coveted Municipal Utilities Authority (Water Works, in Monopoly parlance), and the fear of a countywide police force replacing the city department or an Absecon Island-wide fire company replacing Atlantic City’s.

Several speakers also said they worried about possible involvement by South Jersey Democratic power broker George E. Norcross III, who was involved in the beginnings of the state takeover and whose brother Philip has lobbied on behalf of a private water company, New Jersey American Water, as well as on behalf of the Casino Association.

Dan Fee, a spokesperson for George Norcross, said Norcross was neither involved in nor supporting the effort to change the form of government. He also answered no when asked if Norcross was looking at this as a way to install a city manager who would advance his interests in Atlantic City on assets like the MUA or installing a county police department, as was done in Camden.