Glen Stock (R) from Stock Development Group gives a presentation on the Amersteel Property
*Photo by Carolyn Maxwell
4/24/19 Council Meeting
By: Carolyn Maxwell
PERTH AMBOY – During the public portion on agenda items only, Resident Ken Balut came up to speak. He continued to hammer away on how PILOTS are not benefiting the City, especially when it comes to the schools and the City losses.
James Fearon from Gluck Walrah LL9 argued, “If a PILOT is approved, in 22 years the City will net $46 million. Without the PILOT, the City and Board of Education will lose $12 million over the 22-year period.”
Balut continued, “The last PILOT that the City gave to a company was not negotiated correctly. The School Board raised taxes which caused our taxes to go up. Target got a PILOT and they already had warehouses up at the time. We have the best dynamics in the City, but we keep getting sold down the road.”
Businesswoman Sharon Hubberman came up next and asked the Council if they were the ones that appointed the PARA Members.
Council President Bill Petrick replied, “We did not.” He also asked if the City will net $43 million during the PILOTS 22-year contract.”
Hubberman then continued, “The Mayor appointed her own people without the Council’s consent. It’s not a Republican or Democrat issue (who is approving PILOT contracts). We have to look at the 22 years and above. Let’s look at past administrations. You (the Council) have the power to correct the situation without having to go to court. We don’t have the legal entity (PARA) to operate PILOTS. You need a financial consultant who is not part of the City. If there is a business out there who wants to share in our prosperity, we are for that. I urge you to table the resolution. R-193-4/19 because the Mayor violated the ordinance (appointment of PARA Members).”
B.A. Frederick Carr then made a couple of comments regarding R-193. “This is not a Resolution from PARA, but it’s for the Council making an application to the Finance Board.”
Glen Stock from Stock Development Group came forward to give an update on the project at 225 Elm St. He stated, “The project began in July 2016 and the developer is adamant that he will not do this project without a PILOT. Everything has been done except for a cap of the property. The developer paid close attention to environmental cleanup. Our group has done environmental cleanups in Elizabeth, Woodbridge, and Teterboro. $7 million of project investments have been made on and off site. Of the 90 acres, 3.6 acres of water and road improvement have been made. 91 acres were sold by Amersteel. 7.7 acres which is 10% will be for public space. 3.6 acres will be put aside for an amphitheater. $1.6 million has been budgeted for the 36 acres. $375,000 has been set aside for a lab and public restrooms. We do the cleanups.” Stock then began to speak about Riverview Drive and the Elm Street expansion. “The proposal is to build sidewalks and a walking trial to the Senior Center. This will cost about $600,000. From Riverview Drive thru Grant Street and Rte. 35, we’re looking to mill and regrade the streets. An offsite traffic signal will be added. We’re looking to make improvements on Riverview Drive and Grant Street for pedestrian safety improvement. We’re looking to upgrade the water and sewer systems on Patterson, Sheridan, Grant, and Elm Streets. $6.6 million in amenities will be added. It took 2.5 years of negotiating with PARA. You should be proud of the end results of PARA’s work.” Stock then talked about a failing retaining wall located west of the Cornucopia. We did a preliminary study with Geotech Engineers and the City’s Engineers that cost $2.2 million to see how to proceed (how to fix this problem). It’s a City road and it’s for both of our benefits. The Cornucopia suggested that we start working on this problem in October because that is the start of their slow season. We told the Cornucopia we will start in November. The tenant coming into the 225 Elm St. location wants two buildings by the end of next year. Without the PILOT, they will not come. It’s a Fortune 500 Company. The retaining wall work will take between 3 to 6 months to repair. Depending on whether if the PILOT is approved, we hope to start work on the project in October 2019. Three Quarters of an acre are owned by PARA. A $300,000 check was written to PARA (to buy this land). We spent a lot of time with Kenny Ortiz (Direction of the Recreation Department) talking about the amphitheater. We also talked about a great lawn and a pavilion to have a sitting area, and a spot for barbecuing.”
Councilman Fernando Irizarry spoke up saying he was comfortable with passing R-193 now and introducing it later.
During the last public portion, Resident Ken Balut came up to speak, “Who owns the property at 950 High St. It is across from the Target Distribution Center.”
Carr didn’t mention the owner but stated there was a mess there and the owner will clean it up.
Balut continued, “This company, who wants to have a PILOT (225 Elm St.) – they’ve started the cleanup in 2016. Out-ot-towners are doing this. This is a Fortune 500 Company and the estimate for Fortune 500 Company profits are up, and so are the stock market. When the President gives tax breaks to rich companies, people complain that he is bad. When the Mayor does the same thing, it’s considered good.” Balut then questioned, “How long does it take cops to answer calls at night? We’re not hiring more cops. They have received 38,000 calls. I had to OPRA the stat. They are not telling us about shootings that are happening.” Balut then told the Council they need to ask for a call log and how long it takes the police to go out when the calls are received. That’s what you (the Council) need. You had nothing to do with the PILOT thrown at you.”
Scott Flower from Scott’s Towing in Woodbridge Township came up to the podium next. “The City has two sets of rates for towing costs.”
Council President Petrick responded to Flowers, “There are two sets of rates for City Residents.”
Flowers continued, “When there’s heavy duty towing that has been requested, we do 90% of the work. On April 14, 2014, your Law Director (Peter King) signed an agreement with me. You did not meet with me within the 90-day period.” After Flowers’ time ran out, he sat down.
Tower Adele Tawfik came up to speak. He told the Council he had asked them to table the Ordinance for the Wreckers because it lacked certain language, especially regarding State laws. The storage rates are not accurate. Show me some of the applications. It must have language and the proper rates. Contact Garden State Contractors if you need more information. The Ordinance has not been updated in 20 years. All of the towers’ expenses have gone up except for the towers’ rates.”
Flowers shouted out to the Council from the Audience in agreement what Adele Tawfik was saying.
Council President Petrick told Flowers he was out of order.
Flowers then responded to Petrick and said, “Because of my company being left off the towers list, I will be seeing you (the City of Perth Amboy) in court.”
Tawfik continued talking, “We (the towers) need to have more meetings with the City to discuss the ordinance.”
Petrick responded, “We’ll make sure the ordinance is in compliance with the State law.”
Resident and Businesswoman Sharon Hubberman came up to speak, “What’s disconcerting is that elected officials aren’t protecting certain political parties. I don’t see Democrats taking action. We have over a $5 million funding cap. Employees are not being protected. Abatement means no taxes. Companies negotiate contracts with an illegal entity.”
After Hubberman spoke, the public comments were closed, and the Council Comments began.
Councilman Helmin Caba turned to Business Administrator Frederick Carr and asked him if he had relayed a message to the Mayor about the absence of Department Heads at the Meeting.
Carr replied, “I relayed the message to the Mayor, but she has not changed her mind.”
Caba spoke again and said, “That should not be a reason to punish the residents because we (the Council) questioned some of the Mayor’s hirees.” Caba requested that B.A. Carr talk to the Mayor again, “And maybe she will come to her senses and have the Department Heads come to the Meetings again. I feel that Republicans and Democrats are being discriminated against. The last election – we had a phenomenal turnout and the Administration did a good job promoting it. We should do the same thing to promote the June Primary.”
Councilman Fernando Irizarry spoke next, “I was concerned about an email regarding a DVD that was sent to us (the Council) and the email said that we had requested this DVD. I don’t know anything about this.”
Council President William Petrick responded, “One Council Member requested the information, so I asked for all of us to get it. It was something that was of concern in City Hall. I wanted to get everyone on the same page at the same time.”
Irizarry then requested that in the future it should state that a particular Council Member ask for the information. “It was not requested by all.”
Councilman Joel Pabon spoke next, “I’m glad about the road paving taking place on Amboy Avenue, but I thought it was ridiculous that some of the street lights haven’t been fixed since December. We need a contact person with the utility company to address this.” Pabon then requested to see all pending lawsuits from City Employees. “I don’t want to see it two years from now. I’m not talking about workers compensation, but other lawsuits.”
Councilwoman Milady Tejeda talked next. Her concern was that the problem is disconnection between us (the Council) and the Administration. “Putting employees against the City isn’t healthy. We have a lot of issues and need to come together to discuss a possible solution to make things better.”
Council President Bill Petrick spoke next. He was concerned because, “We don’t have a towers ordinance which is not law in our community. Our former B.A. (Adam Cruz) met with a group of towers along with Councilman Joel Pabon and Fernando Gonzalez and the Administration.”
Pabon then spoke up, “The meeting never occurred, because it had to be adjourned due to disagreements among the towers.”
Petrick then spoke again emphatically stating, “In any ordinance, we have to consider how it will impact all the residents: seniors to single mothers who are the most vulnerable and also City workers. I hope to get the consensus of everyone. I also want to help business owners, too. We can look at the tower’s ordinance. I’m requesting that all Department Heads be here at the Caucus Meeting or we don’t have a Caucus Meeting. I believe it is within our rights to request this.”
Attorney Roman B. Himiak said, “There may be a grey area depending on the form of government (if it is within the Council’s right to request this).”
Petrick replied, “I think legislatively we can request Department Heads to be here and the Administration’s cooperation.”
B.A. Frederick Carr spoke up and told the Council that the Administrators are working on the Council’s amendments to the budget. “The DCA (Department of Community Affairs) will have to review and approve those amendments. You may have to see or speak to the DCA in person. I suggest that it be myself, Council President Petrick, and the CFO (Jill Goldy).”
Petrick suggested, “Maybe we can do a conference call with the DCA. We may have to have legislation to grant permission for political parties to participate (have tables) at City events.”
For Resolutions R-184 thru R-191 and R-193- thru R-200 was moved by Councilman Fernando Irizarry and seconded by Councilman Helmin Caba. R-192 was moved by Councilman Joel Pabon and seconded by Councilman Fernando Irizarry and all voted, “No”.
