Atlantic City rescue bills approved by legislature

New Jersey’s legislature approved two bills that would pull Atlantic City from the brink of bankruptcy and give the troubled gambling hub about five months to right its finances — a task that if unmet would result in an unprecedented state takeover.

If signed by Gov. Chris Christie, the measures infuse the resort town with enough cash to pay bills and workers for the rest of the year. Officials have until about then to craft a five-year plan to restore fiscal stability for a community where the tax base has tumbled by more than two thirds since 2010 as gaming competition increased in nearby states.

If they fail, the city would fall under the control of the state, which could sell its assets and void or change labor contracts through expansive powers awarded by the legislation.

Under the agreement, the state would provide Atlantic City a bridge loan. Some gambling proceeds that go toward marketing would flow to the city, which would also receive fixed payments from casinos instead of property taxes to prevent assessment appeals that strain its finances.