5/8/19 Council Meeting
By: Carolyn Maxwell
PERTH AMBOY – Comments were made regarding Ordinance No. 1 – Financial Agreement with NCP Perth Amboy Urban Renewal LLC (225 Elm St.) and other applicable documents related to the authorization and issuance by the City of Perth Amboy not to exceed $2,800,000 redevelopment area bonds and determining various other matters in connection therewith.
Resident Stanley Sierakowski came up to speak first. “This was negotiated by PARA and the City Attorney. Any amendments that the Council wants should be discussed. The Council can even table it if they want. The Mayor is making you (the Council) look weak by not having people here who can answer your questions. You especially need the CFO here.”
Resident Ken Balut came up next. “I can’t believe how disgusting that road (Elm Street) is. We are subsidizing Fortune 500 Companies and there’s no money for schools. We’re giving away $70 million to companies. How much will the bond make our taxes go up? How many people will work in those buildings? No one is working together. Rich companies abandon the projects after the buildings were built by those who did not request a PILOT. Lawyers and developers from North Jersey develop political PACS. We need to have public hearings (regarding those who want PILOTS). Buckeye had public hearings. Any competent mayor and business administrator should have known PILOTS were bad.”
James Fearon from Gluck Walrah LL9 who spoke at both at the 4/22/19 and 4/24/19 Meetings regarding 225 Elm Street was present. He stated, “The PARA lawyer negotiated the financial agreement and it was drafted by myself, and reflected the developers tax abatement which PARA had no part of.”
Council President Bill Petrick responded to Balut’s statement about not having public hearings regarding 225 Elm Street, “If more people were here, they could have spoken about this. I applaud those who show up.”
Councilman Helmin Caba also responded, “We will receive a larger payment with the PILOT and the money should help our taxpayers.”
Business Administrator Frederick Carr responded, “$1.1 million of the PILOT that will be paid to the City will go into the general revenue. We have to show good faith to the DCA Board. The financial and City Agreement Draft will be sent to the Council for approval or to be amended. The Council will decide if they want to give any money to the schools from the first PILOT payment.”
Councilman Fernando Irizarry spoke up and stated, “Everyone needs to understand the financial situation of this City. Usually Ms. Goldy (CFO) is here on Mondays, but not always on Wednesdays.”
Fearon spoke up again, “For the first 3 years of the PILOT (2020-2022), the governing body will have a say how the monies are spent.”
This prompted Council President Petrick to state, “So, you can lock future governing bodies into debt.”
Fearon responded, “I have been involved in about 20 PILOTS over about a 12-year period. Under current law, you can’t do a dedication (of monies) of a rider.”
Sierakowski then came up again to talk about Ordinance No. 2 Adopting redevelopment plan for 319, 320, & 322 McGuire Place. He stated, “This a half acre property and it’s not a hardship case. It doesn’t say how many townhouses are to be built. What is the density?”
Councilman Petrick responded, “I think it’s 7 or 8 townhouses. A Developer is trying to get as many in as possible.”
Sierakowski continued, “There was a report done about 5 or 6 years ago about PILOT abuses in Jersey City. I’m in favor of PILOTS if they aren’t abused.”
Resident Ken Balut came up and talked about the Council’s amended Budget. “If you cut the Budget now, we’ll be in the same situation next year. We (some residents) told you the Mayor’s Budget was getting loaded. The CFO had made adjustments after I found out some information.”
Balut then talked about R-213-15/19 A memorandum of agreement between JRF and the City of Perth Amboy Recreation Department for the administration of a 2019 summer employment program.
He asked, “How did a City Employee get a First-time Homebuyer Grant that had to be changed a year later? Cruz (former B.A.) said it was grant money (through another agency). The First-time Homebuyers was supposed to be for the poor. The paperwork was done by the person who got the First-time Homebuyers house.”
Councilman Fernando Irizarry responded to Balut, “Everything was done by the books.”
Former Councilman Fernando Gonzalez came up to speak about R-214-5/19 – Authorizing execution and delivery of a Quit Claim Deed to Block 347, Lot 17, 25 & 26 to Cortlandt Apartments LLC.
Gonzalez wanted to know what was going on.
Law Director Peter King answered, “It was through a government grant for low market rent rate. The owners is trying to refinance. The City put a lien on the property.”
Gonzalez asked, “Was the grant paid off?”
King responded, “The person who got the grant had to fit the criteria what was in the grant and the City had to do their part within a 10-year timeframe. The City did not do their part.”
Former Councilwoman Lisa Nanton came up to speak next. “Did you (the Council) receive any information from Frank Hoffman (DPW Director) regarding Resolution R-219-R-223 requesting purchase of equipment?”
Council President Petrick responded, “No.”
Nanton then asked, “Will you be tabling those resolutions?”
Petrick responded, “We will have to vote on it first.”
Nanton then questioned R-226-5/19 – regarding 225 Elm Street – execution of a Relocation Sanitary Easement Agreement. “There will be a $2.8 million cost to the City. The dedicated funds should have been discussed before voting. PILOTS are to evade taxes. We increase taxes on homeowners who do improvements.”
After the discussion on the Ordinances and Resolutions, the Council had a vote on the Consent Agenda. On R-202; R-204 thru R-214; R-216 thru R-218; R-224 thru R-228 was moved by Councilman Fernando Irizarry and Seconded by Councilman Helmin Caba.
R-203 (Amending the CY 2019 Budget) was pulled for further discussion by Councilman Helmin Caba. Caba was not comfortable with the increase.
During the discussion, Councilman Joel Pabon spoke next. “800,000 disappeared from the documents we had at the Monday Caucus. Where are the line items that we requested?”
B.A. Carr responded, “It was in the line that said Municipal Council. The salary increase was built into there. There was the 1% Budget Amendment recommended by the Council. I don’t know where you got the $800,000 increase. With the Council’s salaries and other expenses were put in with the professional services that the Council requested. The surplus number has been changed by the Council that will be presented to the Department of Consumer Affairs.”
Pabon spoke next and reminded Carr, “We (the Council) all work and may not be able to attend possible meetings with the Department of Consumer Affairs.”
When it came to R-203 everyone voted “Yes,” except for Fernando Irizarry who voted, “No.”
For R-219 thru R-223, Councilwoman Tejeda asked for those resolutions to be voted on separately. The Council voted unanimously to table the resolutions that were put on the Agenda by the Department of Public Works to purchase equipment.
During the last public portion, Resident Ken Balut came up to speak. He questioned a long term PILOT that was given to a property across the street from City Hall. “How much money came in from that?” Grants are for poor people – not rich people. Everyone should be treated fairly. What are Irving Lozada’s (Acting Director of Code Enforcement) qualifications to be Code Enforcement Director?”
Petrick responded, “He has none.”
Balut continued, “You have money in the YMCA that should be coming in the City’s coffers. Audit the Mayor’s and the YMCA’s books. I gave 13 items pertaining to the Y to be checked on before I left the Council.”
Resident Stanley Sierakowski came up next, “The Mayor got a 5-year PILOT on her house. Vas had 2 real estate indictments and one was on a fraudulent lottery. Someone on the Mayor’s staff got a first-time homebuyer’s grant. What about the school that was turned into a Senior Citizen’s building? Were there violations?”
Councilman Petrick responded to the property on Johnstone Street, “We need an investigation and all documentation (including a title search) on this property.”
Former Councilman and High Street Resident Fernando Gonzalez came up next. He thanked the Council for putting the citizens first and tabling 3 resolutions totaling around $300,000 worth of items. He then mentioned the YMCA costing the City $24,000 a month to maintain. “What is the status of the contract?”
Law Director Peter King responded, “There will be a meeting being set up to meet with the Y and the auditor is waiting to go.”
Petrick then made a few comments, “We have already set aside funds for the audit.”
King responded, “I want to see what they (the auditor) says first.”
Petrick spoke again, “The bill is huge to fill the pool with chlorinated water.”
Fernando Gonzalez continued, “We have an agreement (with the Y) and we have a right to audit them. We keep sitting on things and the homeowners pay for it. Look at the properties at the corner of High and Fayette. It’s ugly and losing tax dollars every day. The City owns the property and it’s in a redevelopment area. Do an RFP. Nothing is getting done.”
Attorney Billy Delgado came up next. He wanted to know why there were changes in the court system.
Petrick responded, “In the Budget, it was decided to eliminate one judge and one prosecutor. We did it based on what other Cities do.”
Delgado continued, “We (Perth Amboy) have a much bigger caseload and we are way behind. Other towns were laughing at us. We were able to do more when one judge and one prosecutor were added. I should have been called before you (the Council) decided to do this decrease. We made money for the City and we could have found cuts ourselves. I’m not into the politics of this. It’s the administration of justice. We had made a lot of progress which now will come to a halt.”
Resident Alfredo Soto came up and stated, “The Fire Department, Police Department, and Public Works should not be cut. No one wants a tax increase, but why didn’t they raise taxes slowly instead of one big shot?”
Petrick responded, “We have to ask the Mayor these questions.”
Soto again repeated, “Raising the taxes should have been done in small increments over the years. The surplus should be used for emergencies only.”
Petrick again responded, “These are questions for the Mayor and Administration.”
Soto finished, “Working together is best. God bless you all.”
Former Councilwoman and Resident Lisa Nanton came up. She wanted all to know there is a property tax form for people 65+ to get a tax break. She also wanted to thank the Council for tabling some of the Resolutions and passing the amended Budget. She also said, “There is a proposed fracking pipeline that is coming through Middlesex County. We need to get the information about this and protest it (the pipeline).”
Council Comments:
Helmin Caba responded to Soto’s comments about tax increase in one large lump sum, “Why taxes didn’t increase slowly? You answered correctly – ask the Mayor. There are a lot of questions regarding hiring and spending. The ball is in the Mayor’s court. They know where to make necessary cuts. People were hired for political reasons. The Fire Department, Police Department, and DPW should be untouchable. We know where certain cuts need to be made. Let’s see what happens. The Administration needs to make sure those hired are necessary.”
Fernando Irizarry spoke next. He questioned the number of fires we had recently. He asked for a report on these fires, the cause, and how many people were affected. He also wanted a report on the fire that happened a couple of months ago at the El Boy Restaurant on the corner of State Street and Dekalb Avenue. “Amboy Avenue – the streets are much better. A trench on Grove Street which goes to Alpine Street was taken care of as well.” He asked who did the trenches initially. He was also glad to see other road repairs taken place. “I don’t see anything regarding Rector Street and State Street. It’s time for us to start doing those streets. I don’t want to have to wait another year.”
B.A. Carr answered, “I will send an update.”
Irizarry continued, “I want to congratulate the Community Theater on the recent show, “Hairspray” they did at the YMCA. I encourage all to go see them. The only thing is at their last performance, there was also a Special Olympics at the Y and not much parking was available. I know the Community Center books their shows a year in advance and why was the Special Olympics held the same day?”
Joel Pabon spoke next, “We do care about people losing their jobs and I don’t know the number losing their jobs or their circumstances.” He then asked for a status on the streetlights that were out.
Carr responded, “There is no info on the lights as of yet.”
Pabon continued, “It’s a shame with the lack of lights, especially at the train station. Businesses on Amboy Avenue were concerned because cleanups by the mini-vacs have not been going on, especially on the streets between Washington Street and New Brunswick Avenue. Looks like the Tennis Courts are up and running.”
Councilwoman Milady Tejeda asked to look at fencing to be put up on New Brunswick Avenue at Washington Park to protect our children (especially when the food or ice cream trucks come by). She also wanted to thank those who came to the Budget Meetings. “We are listening to the residents.”
Council President William Petrick thanked all for coming to the Meetings. He also wanted to congratulate his son who enlisted in the Navy and he wished his father a happy 97th birthday. He also thanked the Council for all the work they did on the Budget.
All the Council Members wished all the mothers a Happy Mother’s Day.
Joel Pabon added that fathers sometimes are left to raise the kids and a shout out to them, as well.
