Casino PILOT settlement done after eight years, Levinson says

Atlantic County Executive Dennis Levinson.

It all started with a discussion on the homeless issue in Atlantic City.

That is what got the state and Atlantic County to finally sit down and come to a settlement in the eight-year-long PILOT battle, Atlantic County Commissioner Ernest Coursey told BreakingAC on Tuesday.

“I believe these discussions would not have happened without the intervention of Ernest Coursey,” Atlantic County Executive Dennis Levinson said in announcing the $15 million settlement.

Levinson estimated the county will have received close to $59 million more than it would have if it had not challenged the 2016 PILOT —payment‐in‐lieu‐of‐taxes legislation — and the 2021 amendments.

The issue was that the casinos and Atlantic City paid less in taxes as a result of the PILOT, which left the other 22 municipalities to pay more to make up the difference, Levinson explained.

“Ernest was able to initiate a dialogue that led to settlement negotiations and a final agreement,” he said of Coursey facilitating a meeting with Department of Community Affairs Commissioner Jacqueline Suarez, who works closely with Atlantic City.

As Atlantic City Mayor Marty Small’s chief of staff, Coursey is part of that working relationship.

“As Marty Small often tells us, relationships matter,” Coursey said.

    Ernest Coursey
  

He said he asked Suarez for a meeting with Levinson on the homeless issue and how the state and county can partner. 

With Levinson and Suarez at the table — and Coursey sitting on the Budget Committee — the transition into the PILOT issue came naturally.

“She went back to the front office and started the conversation,” Coursey said of Suarez. “The county made their point. The state made their point, and they came to an agreement. The rest, as they say, is history.”

The agreement was reached April 2, Levinson said, but he was asked to withhold the information until all affected parties could be notified.

“This was a group effort. It wasn’t a ‘me’ thing, it was a ‘we’ thing ,” Coursey said. “At the end of day, it was taxpayer’s money just being wasted (on litigation).”

He called Levinson “a tough bargainer” who “fought tooth and nail” to get the issue resolved for the county.

“I am elated with this settlement and extremely grateful for the efforts of our legal counsel,” Levinson said. “It was a hard‐fought battle.”

Outside counsel Ronald Riccio credited Levinson for the settlement agreement.

“In all the cases which I have been involved, I have never witnessed such personal tenacity, determination and courage as that displayed by county Executive Dennis Levinson. He deserves much credit for this positive outcome.”

Atlantic County first brought a lawsuit in 2017 that challenged the 2016 Casino Property Tax Stabilization Act.

Years of litigation followed with multiple decisions in favor of the county and subsequent appeals by the state. The county was due to receive millions from the 2018 Consent Order, but stood to lose a portion of that as a result of the 2021 PILOT amendments.  

Coursey, who announced in January that he would not be seeking re-election after 34 years in public office, said getting the settlement “across the finish line was a nice tick off the box.”

“This has been a long and expensive battle for both sides,” Levinson said. “Past and present county commissioners and municipal officials stood by me throughout this arduous process. Their enduring support helped bring this settlement to fruition. 

“They shared my commitment to make our taxpayers whole,” he added. “Together we accomplished our goal.”