PERTH AMBOY – First it was the Housing Authority problems that became the focal point at previous Council Meetings. Now, it is problems within the BID that is overtaking the Council Meetings.
There is one thing that the BID and the Housing Authority have in common. One member in each group questions the operations taking place in each group.
BID Board Member Virginia Lugo read a statement at a City Council Meeting
(See 2/19/14 issue of Amboy Guardian – “BID Under Fire”)
In that statement, Ms. Lugo started out by saying that she is not speaking as a representative of the BID Board but as a business owner. She is representing the businesses and people that do not have a voice. She gave a punch-list of what she viewed as violations and discrepancies of the BID by-laws.
A few of the items listed are: 1.) Elections of Board Members; 2.) Taxes that BID Members are charged which they are not aware of; 3.) What she perceives as BID funds not being used properly.
After Ms. Lugo’s statements were read, this caused concern of the Council. Some Coucil Members agreed that the BID Chair (Barry Rosengarten) should appear at a future meeting to respond to Lugo’s charges.
At the 2/26/14 City Council Meeting, BID Chair Barry Rosengarten read a four and a half page statement to answer Lugo’s accusations.
Rosengarten’s letter started out stating, “I’m standing before you tonight to respond to the Council’s request to address the public statements made to this Council by Virginia Lugo, who as you know is a member of the BID Board of Directors.”
Rosengarten continued, “Ms. Lugo correctly stated in her letter that there have been inconsistencies in the operations of the Business Improvement District (BID). She failed to state that operating as an “Advisory Council” caused an inability to strictly conform to the BID by-laws. She also failed to state that the SID/BID by-laws were written to create the regulatory elements for operations as a Semi Autonomous self governing entity. They were not written to address operations as an “Advisory Council.” Sometime in 2008, the BID converted from self governance to governance under the authority of the Administration and Council. Although the change did not impact our ability to service our area of responsibility. It changed the operations and procedures for selection of members, Board of Directors and election of Officers from election by the BID Membership to “Appointment by the Mayor.”
“Recently and with the intent to more closely conform to the still existing by-laws, we have once again transitioned to a Semi Autonomous Business Board.”
“In that transition, Ms. Lugo has brought to our attention certain procedural differences between our operating as an “Advisory Council” and the operations of the BID as a Semi Autonomous Board.”
“As Chairman of the By-Laws Special Committee, Ms. Lugo knows, we are in the process of addressing and updating the areas which have been identified. The Board has adopted to the transitions without losing any contact of the taxpaying members and has consistently maintained the programs, initiatives and performance standards that it is charged to accomplish.”
[ed. note: This was taken from the first page of Mr. Rosengarten’s statement to the Council. Read the statement in its entirety here.]
The clock was set at five minutes which is the allotted time given for a speaker for that portion of the meeting. When the time ran out, Rosengarten continued to talk until he was interrupted by Council President Joel Pabon who told Rosengarten his time was up.
Rosengarten asked for additional time, (which he stated he would need about five more minutes) the Council was none too happy. Rosengarten was granted an additional five minutes when he told the Council, “You’re the one who requested that I respond to Lugo’s accusations. The only way I can do that is if you let me finish this statement. This will answer all of your questions.”
Some of the statements made by Lugo that Rosengarten challenged included:
1.) How the Board Members are selected.
2.) That Business Owners don’t have a voice and are not aware of special assessments that they may be charged with.
3.) How the BID’s operating budget is handled.
Rosengarten gave a detailed explanation of these items in his statement. He also gave Lugo credit for pointing out some of the inaccuracies in the BID guidelines.
Rosengarten ended his statements by giving kudos to his fellow BID Board Members and Administrator. He touted the accomplishments of what the BID has done for its members and the community. “Our meetings are open to the public. We are constantly meeting with the BID Members, letting them know what grants and programs they are eligible for. We are constantly running programs, seminars and recreational activities to benefit our members and the City.
Read complete statement from Barry Rosengarten.
There were other BID Board Members present at the 2/26/14 Council Meeting. The Council asked if any of them were going to make any statements. There was an “affirmative” on that.
Lugo said she wanted to respond to what Rosengarten said, but after all the other BID Board Members spoke.
When those BID Board Members were asked to come forward to make any comments, none came up to the mic.
When Virginia Lugo came up to the mic. to speak, she distributed two letters to the City Clerk. One letter had to do with the correspondence from the City Attorney Mark J. Blunda to Barry Rosengarten. It was Mr. Blunda’s legal opinion on the interplay of City Ordinance 776-95 and 1451-2008 as they relate to the Special Improvement District and Downtown Perth Amboy Business Improvement District. (See Copy of Letter on Page 10.)
Lugo responded to Rosengarten’s statements made at the 2/26/14 Council Meeting.
See Lugo’s response to Barry Rosengarten’s statement.
Former Council President Kenneth Balut has made it known that he is not a big fan of the BID operations. Balut again brought up the issue of how unattractive the entrance to Smith Street looks. “Those bricks lining the street were part an investigation. Joe Vas has left, but you have the same cast of characters on all of these Boards. $300,000 in loans have not been recovered. We’re ripping up brand new sidewalks. The gum-busting machine is missing. How many lawsuits have there been because of these sidewalks (pavers)? You’re getting worse than Joe’s (Vas) administration. At least Vas showed all the meetings on TV (Council, PARA, BID/UEZ, etc.) Even the meetings involving the Dekalb Avenue case.”
Resident Alan Silber chimed in, “Nobody goes to the UEZ/BID Meetings. You’re supposed to have oversight. There was a $468,000 loan line and the Jewish Renaissance got more than half of it. (Which was paid back) Five out of six businesses defaulted on loans. One of those defaults was a $42,000 line item for a company that made banana pudding. In 2008, Vas was given money for his reelection and Diaz was given money by that same person after her election.”
Speaking to the Council, Silber said, “Some of you got Rosengarten’s money.”
Silber continued, “As far as Ms. Lugo going to see a lawyer on her own. (In reference to possibly needing to hire one to help the BID on legal matters) – It’s no big deal. I think Ms. Lugo should get one of those Proclamations for taking her job seriously. There are Councilmen who got money from six people who worked for Dynamic Claims Company. Three of them are now in jail as well as Gartland. (for insurance fraud)”
Business Administrator Greg Fehrenbach was not present at the Meeting but Assistant B.A. Jillian Barrick read a letter from him in reference to the BID Board.
Fehrenbach concluded his statement that was read at the Meeting. It said: “The BID’s collective objection has been only to have a Business Improvement District that advances the best interest of businesses in the district. Once the disruptive conduct of a few can be controlled, this objective can be achieved.”
Read Greg Fehrenbach’s complete statement.
