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No Can Do! (Bridge PILOT Agreement)

7/10/17 Caucus

Councilman Fernando Gonzalez

PERTH AMBOY – When it came to the Bridge PILOT once again, the Council butted heads, but this time Councilman Fernando Gonzalez was the odd man out. At the 7/10/17 Caucus Meeting, Gonzalez mentioned that he had requested that he Council get an independent auditor to look at the PILOT agreement between Bridge and the City. “It looks like in the first 3 years, the City will not be getting any money paid by this large company. We should get a unanimous decision by the Council.”

Gonzalez continued, “Some statements in the revision bother me, such as some projects may not be undertaken. It’s already here and done. This document is obsolete. The old document gave a payment after one year. Who is negotiating this contract? I’m making a motion to table this ordinance until August.”

The motion was seconded by Council President Bill Petrick.

Councilman Joel Pabon  then  held up a piece of paper that he had in his hand with a chart  on it that showed that the City will receive money in the first year.

Councilman Fernando Irizarry spoke up next stating, “When Gonzalez is asking for a unanimous vote, it is asking to change procedures of the Council. This must be the fourth change for this chart. It started as a 30 year PILOT (for Bridge), and every chart that we received said that there would be a payment of $2.2 million each year. The City Council asked to approve a 5 year contract.”

At this point, Bob Benecke, the financial expert who spoke on PILOTs at previous Council Meetings came up to speak.  “It’s a 5 year agreement. There will be no service charge and there are 2 more buildings coming. We’re looking at $1.25 per square foot. This is ongoing so the City can start generating revenue. As far as other developers coming in asking for a PILOT, each PILOT is a case by case basis. At 1.2 million square feet, the rent for the tenant coming in will be $7.25 per square foot.”

Council President Bill Petrick had a question, “Why is there hypothetical language in a contract in here such as employment? Are some of these items irrelevant?”

Benecke answered, “Some items are, and some you can take out.”

After the smoke settled, Ordinance No.1 pertaining to the financial agreement between the City and Bridge was not tabled. All voted “No” to table except for Councilman Fernando Gonzalez.

Council President
Bill Petrick

Another item that drew a lot of attention was R-273-7/17 granting a waiver for residency to Mark J. Cintron as Assistant Municipal Prosecutor.

Business Administrator Adam Cruz said, “Cintron had a history of 6 years as a Prosecutor in New Brunswick.”

Councilman Fernando Gonzalez questioned, “Why can’t we find an in town attorney? We give waivers to everybody.”

Council President Petrick asked, “Did the City reach out to local lawyers?”

Cruz responded, “We have, but he (Cintron) was the best. We were not required to advertise this position. It’s the Mayor’s appointment.”

Councilman Fernando Irizarry said, “One of our Ordinances says that it has to be advertised.”

R-274-7/17 – Granting a waiver of residency to Carmine Muccio as Manager of Public Property.

B.A. Adam Cruz told the Council that Muccio will be responsible for the Public Safety Complex. “This will be a full time job and the salary will be in the Ordinance for approval. (Ordinance No. 1 –   Management and Non-Union Additional Titles) This is not a new title. We are just bringing him in-house as opposed to him being an outside contractor.”

Frank Hoffman, Director of DPW came up to speak about Muccio’s qualifications. “Not only has Carmine been a help to our department, but also to the Police and Fire Departments.”

Councilman Fernando Gonzalez said, “This man (Muccio) has been doing a great job for 7 years.”

Cruz then stated, “Muccio has a license in Fire Safety, Fire Drills and Black Sealant.

Councilman
Fernando Irizarry

Acting Fire Chief Ed Mullen  came up to speak and told how priceless Muccio is to the Fire Department. “He’s top notch.”

Councilman Fernando Gonzalez had a question about R-278. Involving extending the Professional Services Agreement with the DeCotiis Firm for continued legal representation in the Buckeye Matter which was previously assigned and is still pending in the amount not to exceed $75,000.

Gonzalez felt that Buckeye should pay for this cost.

B.A. Cruz answered,”You are correct. Buckeye put money in a trust. This is for DeCotiis to continue the work that they were doing on the Buckeye case. Buckeye will put more money in that trust account to cover this cost.”

Resolution R-277 – Asking the Governor and Legislature to pass common sense affordable housing rules that direct affordable housing to those locations with existing infrastructure, transportation networks, mass transit and employment opportunities was questioned.

Councilman Joel Pabon said, “I don’t like this resolution because we (the City) will get a lot dumped on us.”

Councilman Fernando Irizarry agreed with Pabon stating, ” It’s a way of other towns skirting their responsibility to build affordable housing.”

Acting Police Chief Roman McKeon came up to speak about R-281 – A Community Policing Grant for $10,000. “This money will be earmarked for Drug Awareness Week to educate school kids, parents and seniors.”

Communication No. 6 – There was a question in regards to painting a mural on a designated portion of the Fayatte Street Garage for the Gateway Neighborhood Collaborative Project.

Councilman Irizarry questioned if this was approved by the Art’s Council.

Councilman Jelmin Caba, who is a member of the Art’s Council said that it was on the agenda for the Art’s Council next Meeting.

Councilman Irizarry asked for clarification on Communication No. 14. Mayor Wilda Diaz appointing Billy E. Delgado as Asst. Municipal Prosecutor, serving as the Chief Prosecutor and Mark J. Cintron as Assistant Municipal Prosecutor.

Acting Law Director Peter King answered, “Delgado is really the Chief Prosecutor.  Because you can’t have two Assistant Prosecutors. We had a full time Prosecutor who was getting benefits who just retired.”

During the Public Comments, Resident Stanley Sierakowski suggested that the Council call the Department of  Personnel in Trenton in reference to Communication No. 14. “Most of the time Delgado is out of the Country. See if the way this communication is worded and if this appointment is legal.” Sierakowski continued. He questioned the financial agreement for the Bridge PILOT. “No one knows what kind of money will be coming in and when. Now everything is based on their lease agreements which is open-ended. This is all real estate legalese. There are 3 assessments. You need expertise and a new set of eyes that are not beholding to anyone. You can postpone this until you get a real estate expert.”

Resident Jeremy Baratta also had comments to make about Communication No. 14. He questioned, “Why can’t it just be a retired Prosecutor being replaced? Now, we have waivers, etc. with nothing straight forward anymore.” He then talked about PILOTs, “It’s a tax break. PILOT’s are to spur  development. This town needs education and education on our infrastructure. All these deals shift the burden to taxpayers. We don’t need low skill jobs that lead to nowhere. I was not impressed with Benecke (the PILOT expert). The City has all the risk, and none to the developers. It’s taking away from poor brown people and giving to rich white people.”

Resident Ken Balut came up to speak, “It’s always about the money. Millions of dollars can go to the school kids. I hope the Mayor writes to the President about the voter fraud investigation. What about the Parking Authority not doing their books correctly according to the audits? What experience does Billy Delgado have to be a Prosecutor? The guy that has the experience is going to be the Assistant Prosecutor. Where is the information one the lost file (from Code Enforcement) that I requested?”

Acting Law Director King responded, “We should have the information in about 2 weeks.”

Cruz responded to Balut’s questions about the Parking Authority, “The audit was not a finding. They just made a comment about how the Parking Authority can make improvements. There is accountability for everything in the Parking Authority’s Department.”

Resident David Caba came up to speak, “I went to a Meeting in Eatontown, and it was  packed because the developer (Kushner) tried to pull the same deal on them as he did in Perth Amboy. Where is our redevelopment attorney and can the developer (Kushner) be evicted? We have not seen Rector Street cleaned up. Enough is enough. We know Kushner will ask for a PILOT. He makes promises that he doesn’t deliver. Have our redevelopment attorney here so that you can ask questions.”

Councilman Joel Pabon spoke next and agreed with David Caba. “We need to see if that property (the Old Police Department/Court House/First Aid Squad Buildings in areas of Rector, Fayette and High Streets) is still ours. If it is, we need to move on it.”

Council President Bill Petrick said, “That property is still ours. We should also ask that the Redevelopment Agency be here to speak about the Bridge PILOT.”

Acting Law Director Peter King told Petrick that the Council could have monthly meetings with the Redevelopment Agency.

Councilman Fernando Gonzalez reminded his fellow members that the PILOT allows the Council to designate where the money goes. “It should be used as a tax break to the citizens of Perth Amboy and we can we add this to the PILOT Agreement through a resolution or an ordinance?”

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