Will Housing Authority Get a Piece of the Pie?
In Competition With Other Towns for $19 Million Grant
PERTH AMBOY — Arguments were heard – pro’s and con’s at the May 20, 2013 Caucus and the 5/22/13 Council Meeting. This had to do with an ordinance adopting amendments to the Focus 2000 Plan pertaining to the Redevelopment Project of Area 3 Pursuant to the local redevelopment and housing law regarding Delaney Homes. Those who spoke included the attorney for the Housing Authority, Housing Authority Commissioners, concerned residents and non-residents and those involved in the project.
Councilman Bill Petrick and Councilwoman Lisa Nanton both were concerned about the small payment of $27,000 a year revenue to the City because of this being a PILOT (payment in lieu of taxes) program.
Petrick said, “Is it worth it for Perth Amboy to have this project? I am thinking about the future cost to the City (police, fire departments, the schools, etc.) This Delaney Homes project will be burdening our overtaxed residents. There is no time line or any promise that other parts of the Delaney land will be built.”
Resident Ronald L. Ray who is an alternate on the Zoning Board of Adjustment had a strong opinion on why he was against this proposed project. “These units are supposed to be 2 or 4 stories. Look at what we have to put into it. This is an impact project. I saw the 70 units, but there’s a lot more coming. Why do we keep getting low income housing?”
Resident Reinaldo Aviles said that the Council should look at having someone do a CBA (Community Benefits Agreement). “All of these developers say the same thing. ‘Don’t let them put your feet to the fire. Put everything in writing.’ This is prime real estate. When the economy improves another developer may look into it.”
Chair of the Housing Authority Dot Daniel commented that some people said that we did our fair share in the City building low income housing. “Back in the 1960’s when Sofield & Gilber Apartments were built they were 72 units and 126 units respectively. When they were torn down, they were replaced with other units that had less occupancy. Daniel continued, “We have placed many families in affordable housing and very few are on welfare. We work with families to get them to move upward.”
Fellow Housing Commissioner Fernando Gonzalez said, “The Landings were built to attract rich people. We have given other developers a shot. A lot of the Landings residents are in foreclosure. You have to take a first step to get that property on Delaney Homes developed. This will help improve our City. This is not the projects. But some of you have lived in the projects. We have a list in the Housing Authority of people looking for affordable housing. We have a responsibility to help these people.
Housing Authority Attorney Edward Testino addressed the Council. Testina summed up why he would like the Council to approve the ordinance and public filing for the Delaney Homes Project. “It is the right thing to do to approve this project. It would be smart to start the revitalization of this property. The tax credits follows the HUD guidelines. There will be mixed income families living on this property. This also makes good use of state and federal funds. It will fulfill the needs of working families. There will be integrated incomes, mixed use and commercial funds. It would give the City more oversight and control of the property.”
Resident Stanley Sierakowski was taken aback when he found out that there would be no elevators in this three story building. “No one thought about the occupants having to carry packages and groceries up three floors.”
Sierakowski also wanted to know, “Who is the designated builder/developer and why was this project not put out for bid?”
Councilman Bill Petrick answered, “It was the same developer who built Parkview.”
Sierakowski continued, “We need corporate office buildings – not strip malls and pizza parlors and dry cleaners. Look into what the developers have done to improve New Brunswick.”
A builder from Edison said he showed Perth Amboy Housing Director Doug Dzema a plan to bring $50 million to the City. “If most of the units go to welfare clients you will not bring in revenue. My plan called for a 4 story building. They would have a beautiful view of the City. There would be a commercial building in front of Convery Boulevard with between 600 to 700 units.”
Resident Sharon Hubberman was concerned if there would be parking violations. “1.8 to 2.1 parking spaces would be needed for the Delaney Homes project that was presented before the Council by the Housing Authority. There may be a violation of the municipal land use law. This project was not open to bid.”
City Engineer Ernest Feist said that the parking lot for this project would be in compliance.
Testino added, “State and Federal guidelines were followed and the bids for this project were sent out. There were two responses. The architect was hired by the contractor and the City and State inspectors signed off. 5 years ago the Housing Authority met with developers in reference to the Delaney Homes property. We were not looking at high rise buildings. We did not think the City would want that. Different appraisals were done on the property which are now outdated.”
Paul Santelle who owns a business at 895 Convery Blvd. said he has been there for 25 years. “My concern is that at its prime, this property was worth $15 million. The City might be missing out on an opportunity by piece-mealing this property by starting out with low income and then bringing in rateable’s last.”
Resident Reinaldo Aviles made a comment that a time line for proposals should be sent to the Council to give you enough time to discuss them. “This is prime real estate, which is why a lot of businesses locate there. It is more suited for commercial use. This is your issue (not an inherited one). You (the Council) have more information than we have. If you have a doubt, you shouldn’t vote for it. It’s going to affect all of us. Maybe the commercial/senior building should be developed first.
Resident Karen Kubulak (who is a Planning Board Member) said, “This ordinance allows for over 200 units. The Planning Board can’t protect your decision. It was not a redevelopment project that came before the Planning Board. I’m if concerned that the Council can be sued if they try to change or make amendments to the plan. You as the Council could have asked to change the concept that was presented by the Housing Authority on the Delaney homes project.”
Fernando Gonzalez said, “We had 3 meetings with residents for five years. We would have been happy with the High School. At the 3 community neighborhood meetings (Delaney Homes area) the residents definitely did not want a high school built there. We did not do a rush job. Many developers wanted us to give up the property. In the last year and a half we got it together. It will be a shot in the arm.”
Edward Testino (the Housing Authority Attorney) said, “ The $19 million that the Authority is vying for will be coming in from different sources.”
Another speaker involved in the project said that the PILOT program would be for the first 70 units – not for the Senior building.
Councilwoman Nanton asked the Housing Attorney, “If this money was supposed to be used to replace low income housing because of Hurricane Sandy, where on the Waterfront was the low income housing?
Housing Attorney Edward Testino mentioned Keansburg, New Jersey where someone brought to his attention that is in Monmouth County. And the damaged homes in Sayreville were single family homes.
Another speaker involved in this project said if it is approved there are flood plans for housing for the low income in these areas. This money is for construction for low income housing in 9 counties.
Testino also said, “Monies collected from the Parkview were used to take down some of the Delaney Homes buildings. Funds are given back to the Federal Government if they are not used within a certain time frame.
Businessman Joe B. Vas gave his reasons for opposing the Delaney Homes Project. Vas said he was born and raised here. “This site has been vacant since Hurricane Katrina. You have to hear out the community on this project and there should be an open bid on this property. Services for this project will cost the taxpayers. You have to take a look at this project and step back. The schools are overcrowded and this would be doing a disservice to the students. About six years ago there were 132 cops on the force. Now there is 100. What about the fire department? We’ll need more personnel. I am all about rateable’s.”
Dorothy Daniel reminded those in attendance, “This is federal property (not owned by the City). Our job is to house people. I have been a commissioner since 1984. The mandate of the oath of office which I took very seriously was to house people. We hire the director and staff. We don’t know who will be living in these apartments. Only a very small percentage of people we have in public housing are on welfare. We have a 1 strike and your out law. We have to follow HUD guidelines to receive money. We have to make sure developers take care of residents in those buildings.”
Police Chaplain Gregory Pabon agreed with what Fernando Gonzalez said. He also made a comment about how many police and fireman were there when Delaney Homes was still standing.
City Engineer Ernest Feist told the Council that the ordinance before you is for the entire track of land associated with Delaney Homes.
City Attorney Mark Blunda said, “The Housing Authority should understand that the Council can make amendments to this ordinance and publish a public notice if the City Council passes this ordinance tonight.”
Blunda told the Council, “You may want to incorporate some of the plans or suggestions by other Boards later down the road.”
Council President Joel Pabon was very definitive on why he voted “yes” on the ordinance for the redevelopment project for Delaney Homes. “I was born and raised here and I applaud the Housing Authority on the projects they built here. There have been no complaints. I think once they start to build on the Delaney Homes Property it will bring in rateable’s.
At prior meetings Councilman Fernando Irizarry was concerned that there would not be enough revenue coming into the City from low income units and why there is a need for more Senior Housing vs. One Family Units.
Irizarry based his decision on what was said at the Caucus and Council Meetings. He was now in favor of the project. “The Housing Authority has an obligation to supply housing. 60 years ago a family came here with 8 kids. I grew up in the Stockton and Delaney Homes Buildings. This City invested in me and my family and we gave back. My kids went through the school system here. I believe that some of the people living in these units will eventually become taxpaying homeowners.”
Resident Reinaldo Aviles said, “Look at legislation to get a policy maker to hold developers to their promises. Not everyone wants to buy a home. The Housing Authority has programs to help people become homeowners, but the City only getting $25,000 a year just doesn’t sound right.”
The Council voted on the ordinance as follows: Voting “yes” was Councilmen Kenneth Gonzalez, Fernando Irizarry and Council President Joel Pabon. Voting “no” was Councilwoman Lisa Nanton, Councilman William Petrick. The ordinance passed.
The only hurdle left for the Housing Authority is if they will beat out other cities applying for the grant.
