3/30/22 Council Meeting
By: Carolyn Maxwell & Katherine Massopust
PERTH AMBOY – All Council Members were present in person except for Councilwoman Rose Morales who participated in the meeting via Zoom.
Resident Ken Balut spoke on Ordinance No. 1 which had to do with an amendment to a bond ordinance. He questioned, “What is the difference between Tennessee and New Jersey? The federal money they receive could be used on lowering their taxes. We are sitting on $8 million and so far, the only expense I’ve seen were for the new parking meters. How much are the legal fees when for the amendment to the bonds?
Business Administrator Michael Green replied, “$1,200 for each bond. Since there were two bonds, it was $2,400 for this ordinance.”
Council President Bill Petrick responded, “These amended bonds are to save interest.”
Balut continued, “That’s a lot of funding for bonds. When our former Business Administrator Greg Fehrenbach was here, he applied a different method to save money.” Balut asked a question regarding Ordinance No. 3. “What is the difference between full taxes and having a PILOT?”
Green explained that for Sayre Avenue land, which is underdeveloped, the city’s share would be $22,000 a year and at the end of the 25 years, the city would only get $700,000. The lender will not give a contract with any money under a certain amount.”
Ordinances No. 1 and No. 2 were passed unanimously.
Ordinance No. 3 – Ordinance of the city of Perth Amboy, County of Middlesex, New Jersey approving the application for a long-term tax exemption and authorizing the execution of a financial agreement with 585 Sayre Avenue Urban Renewal, LLC for the property located at Block 183 Lot 29.01 and Block 189.03. lot 24 on the tax map of the city of Perth Amboy.
Ordinance No. 4 – Ordinance of the City of Perth Amboy, County of Middlesex, New Jersey approving the application for a long term tax exemption and authorizing the execution of a financial agreement with Victory Center Urban Renewal, LLC for the property located at Block 38, Lot 1, Block 77, Lot 72.03 Block 83, Lots 14, 15 and 30, Block 84, Lots 14, 15, 29 and 30, Block 85, Lots 14, 15, 29 and 30 on the tax maps of the city of Perth Amboy.
Council President Bill Petrick noted that the agreement is for 25 years – not 30 years for both Ordinances No. 3 and No. 4. A chart was put up on the screen in Zoom for both Ordinances No. 3 and No. 4 for the hypothetical tax money that would be returned if the land stayed as is if and there was no PILOT and if there was a PILOT. The chart stated what the tax revenue would be after 25 years in all three scenarios. It was noted on the chart that both projects would not be possible without the PILOT. Business Administrator Michael Green gave the numbers off the chart that appeared on the screen.
First, he explained the Sayre Avenue. “If it stayed an empty lot, the projected tax revenue would be $700,000. With the PILOT, the city will wind up getting in total after 25 years, $9,743,081.”
Comments were open to the public on Ordinance No. 3.
The first person to speak was Ken Balut. He was concerned about the PILOTS. “I remember when a guy went to jail (over illegal dealings). Who is watching the henhouse? I believe that Eddie Trujillo will give us what he says. Kushner has the mafia on his side. When Vas was Mayor, he would give detailed speeches on PILOTS. Were PILOTS mentioned during the State of the City Address?”
Green then recalled that PARA gave a presentation regarding these PILOTS at a previous council meeting.
Balut ended by telling Green, “You are taking a lot of heat (for things that happened before you came here).”
B.A. Green stated that if the lot stays undeveloped, the city will collect $700,000 in tax revenue versus $9,743,081 with the development and PILOT. With an empty lot, the city would only collect after 25 years, $2 million.
Maria Garcia spoke via Zoom. “If we receive $700,000 for an empty lot, it would be without any more services, people, schools. Those $9 million over years are nothing compared to when to we have more people with more schools. Right now, we have a debt. Someone that already has a lot of properties in town is good at building. If a bank states that if you don’t get a PILOT, we will not service you – I don’t know what bank is asking for this. It’s dubious if a builder needs a PILOT to get a bank loan. If you put in the numbers, again it is not a good idea.”
Sharon Hubberman spoke via Zoom, “Rather than just assess land value, we need to assess the following with no PILOT. A land worth $10 million or more? What is the projected ratable? We have a developer who has stated that he is about people. We are a highly dense area. If a developer is about serving the community, then why not donate the land to the city for the residents to use for open space instead? We have an obligation to our pension plans which are not fully funded. It offsets a deficit of in terms of our pension plan. I am surprised there are no union (reps) speaking on this topic. We have to fund the pensions. Whoever negotiated this, if you are going to collect the fee, why were we not collecting the land tax. I am not for any of these PILOTS unless there are studies with terms of value. There are other avenues we can create to enhance our town. There are various ways of the tax assessor to assess the land. Say there is no PILOT. That is calculating by gross revenue. The land and property value, if we were not going give a PILOT, what is the projected value? The benefits do not outweigh the costs.”
Petrick asked, “Should the land assessment be separate?”
Hubbemran said, “The growth revenue which is the land and property value need to have separate calculations.”
B.A. Green said, “For the record, there is not a deficit in pensions in the City of Perth Amboy. The pension is expenditures, and we have $9 million for our pensions. There are no deficits. It is important to say what would be if there is no PILOT: $721,000. If we get a PILOT, it will be $9,743,000 over 25 years. If we do not grant the PILOT, the lender will not fund the project.”
One of the developers said, “What Green said was correct. This project will have to pay land tax. When it comes to the land tax, 60% goes to the city; 26% goes to the schools; and 14% goes to the county. The land is totally undeveloped”
When it came to vote, all council members voted, “Yes.”
For Ordinance No. 4. Ken Balut spoke in person: “In 2012 I talked to a developer who wanted to build a marijuana factory in town. This building would have been well guarded.” Balut then asked about what kind of money they would receive from the Victory Center Project.
B.A. Green answered, “The developer would pay $44,000 a year and the city would get $26,000. With the 25-year PILOT, the city would wind up getting $49 million. Without developing the land, the city would only receive after 25 years would be $851,846.
Sharon Hubberman spoke via Zoom. “I want to object to the PILOT for the same reasons I reject the first one.”
Maria Garcia spoke via Zoom. “I have to reject the PILOT for the same reasons. As of today, how many PILOTS does the city have in place?”
B.A. Green answered, “Home Depot has a PILOT. That land was not developed. We received $1 million. It was undeveloped property.”
Garcia asked, “How many jobs will this project bring in?”
Green answered, “It is not really a job generator.”
Garcia said, “The development is generating money and is it saving us money in taxes? How much are we getting? How much are we losing? The new High School they are building – they are going to be packed by the time we are finished. The more people we are bringing in, the more schools that need to be funded. We don’t have enough spaces. I don’t understand what we are planning. We are not thinking about how we should widen the roads and building schools. With residential projects it affects everything. We keep losing open land. We are supposed to think about the environment, and we keep building.”
When it came to vote, Rose Morales, Joel Pabon, Milady Tejeda, and Bill Petrick voted “Yes”. B.J. Torres stated that he had issues with a development of this magnitude and the work should be union driven and they should create career opportunities and apprenticeship programs. Therefore, B.J. Torres voted, “No.” Although Bill Petrick agreed with him, he voted, “Yes.”
Public Comments on Agenda Items Only:
Ken Balut spoke in person. “We got money from T-Mobile. You can use this money to help Veterans and set up mental health programs and housing for Veterans. There is a church up for sale and you can use that church for the homeless and as a satellite for psychiatric services. Each year, we get money, and you have the power to allocate that money. Someone else always benefits. Each year, you get a lot of money for grants. You should meet with the administration on how to use those funds. I wish we had the $8 million when I was in office. You need a 10-year plan. If the school money is taken away, our taxes will go up. After I left the city, it got changed. It’s never transparent – somebody’s getting the kickbacks. It’s time we got a lot of money here.”
Sharon Hubberman spoke next via Zoom. “There was a comment made regarding the land tax. The land will be by taxation. In the financial agreement, there is a land exemption, and this has been misrepresented. The information presented by the card is misrepresentation by the city. This is falling on deaf ears. Yes, in Code Enforcement, there are some good and bad aspects. I feel we are in for a disappointment down the road. You have voted to approve a project. If you listen carefully, there are areas we need to approve land tax. Councilman B.J. Torres is practical. Look at Section 4.0.9. When the project is completed, that land tax will not be effective.”
Resident Denise Miranda who lives at Central Place spoke next via Zoom. “I am addressing the festivals being moved to Rudyk Park. Why are residents not being told that the festivals are being moved to the part of town where the poorer people live? I found out from a friend. By the way, I am not poor; I have a modest house. We don’t want to deal with the festivals. It’s hard enough for one festival that lasts for 3 days which means I can’t leave my house for 3 days. We should have a say to the area. It’s okay that rich people from the waterfront area don’t want a festival. Why do we have to bring thousands of people who start traffic problems, drunks, and drug addicts and loud music for 3 days? This is not a festival – it’s a 3-day concert. They should put flyers out. I live on a dead-end street. God forbid there is a fire. It is not fair to us. It is bad enough. And now you want to bring all these festivals here. You should give all of all of us a voice.”
Maria Garcia spoke next via Zoom. I think these festivals have gotten out of hand. I live on Kearny Avenue, and I am not rich. When they have the Greek Festival, we don’t have noise or issues, or people urinating on property. When we have Concerts by the Bay, people come and there is no problem. When there is Family Day at the waterfront – no problem. We have a lot of festivals at the waterfront. These are normal festivals and concerts. You are putting a concert in a residential area. There are so many people for 3 days. If they move festivals to the other side of town, it’s ridiculous. You make life miserable for 3 days. They destroy our property. We have drunks fighting. You have Rte. 440 if you want to get out. In the waterfront area, if you want to get out in case of an emergency, you can’t get out. All roads except High Street are very narrow. What kinds of festivals are we going to have for people who live in this area? I don’t think festivals have to go on for 3 days. Back when Joe Vas was Mayor, the police had a machine that measured decibel levels (during the festival).”
Acting Police Chief Larry Cattano spoke via Zoom, “You cannot enforce noise for decibel levels. I have been on the force for years and I don’t remember anything like that.”
Madison Avenue Resident Maria Vera spoke next, “As for the PILOT, I agree with Maria and Sharon – our town is so overcrowded and now over 50 teachers quit. I agree with Denise (Miranda) and Maria (Garcia). Festivals are a nightmare. We can’t get out of our house. We are stuck for 3 days. It is not a festival – it is a concert. Festivals should be small and one-day. We can’t get in and out. Only two streets – Madison Avenue and Lewis Street are clogged. Sometimes the traffic doesn’t move. It is not safe, not healthy – a nuisance. I feel it is very detrimental to the environment. They should go someplace else if they want concerts.”
For Ordinances No. 1, No. 2 (First Reading) passed unanimously.
Ordinance No.3 – An Ordinance to amend an Ordinance entitled “Public Entertainment” (Ordinance No. 830-96 and Amendments, adopted April 2, 1996) Also known as Chapter 343 et seq of the code of the city of Perth Amboy. Re: Public entertainment limited to certain locations.
Rose Morales, Joel Pabon, Milady Tejeda voted, “No.” B.J. Torres, William Petrick voted “Yes.” Motion does not pass. Council President Petrick stated that amendments needed to be made regarding these types of events. Only two festivals exceed the multiple days and large crowds: the Dominican Festival and the Puerto Rican Festival.
For the consent agenda, Resolutions R-145 thru R-171 and R-173 thru R-175; R-151 was voided, the consent agenda passed.
R-172-3/22 – Authorizing settlement in the matters of Ivette Rios vs. City of Perth Amboy, et als, United States District Court, District of New Jersey Case No. 2-19-cv-19336-SDW/ESK in an amount not to exceed $75,000.
Rose Morales, Joel Pabon, Milady Tejeda, B.J. Torres voted, “Yes,” Bill Petrick Abstained.
Public Portion:
Ken Balut spoke first in person. “I could not make it to the State of the City yesterday. Did they mention anything about the Recovery Act Funds? We normally get a copy of the speech. Right now, I still get calls about illegal housing and Code Enforcement says I call in the complaints. Code Enforcement is dysfunctional. They should be seen. They drive around. Nothing ever happens when it comes to improper behavior. Something is wrong here with some of these lawsuits The interest of taxpayers is lacking. There are serious problems here. Nobody is protecting the taxpayer. This has to stop.
Sharon Hubberman said, “I read the entire context in the program. Look at section 4.0.9. I am correct. Look at the legal jargon as a whole. The municipal operating cost and schools – they need more detail and clarity. Does the council know of a nearby power plant in Keasbey with pollutants? Our air quality has deteriorated. What have we done regarding our air quality? There is no phone number to call to report these problems. I would appreciate if the council and B.A. will look into this matter. This will cause respiratory problems and maybe will be harmful to our children. Our air quality is not good.”
Petrick stated that maybe the DEP should come out and sample the air quality. Green stated that he wrote down the problems that Hubberman spoke about.
Petrick stated, “It depends on the way the wind blows. I don’t know where the bad air comes from.”
City Clerk Victoria Kupsch stated, “It’s Keasbey.”
Acting Police Chief Larry Cattano spoke via Zoom. “There was a plant located in Keasbey which was handled by the Middlesex County Health Department. They used to have petroleum products burned there, but that plant is no longer there.”
Maria Garcia spoke next. “I am very disappointed on how the Council voted on the PILOTS. I hope I am wrong, and taxes will not go up for 25 years. If I am right, it will be on the taxpayers. I don’t understand how Milady Tejeda can vote because she is on the Dominican Festival Committee. When Peter Jimenez was on the council, he did not vote on the Puerto Rican Festival. He abstained.”
Bill Petrick then answered, “I believe we have 5 PILOTS.”
Garcia said, “Our property values are low, and our taxes are high. In other areas, the property values are high, and the taxes are low.”
Milady Tejeda responded to Maria Garcia, “This is not about the Dominican Festival and I was advised by our lawyer. It is nonprofit and I do not get a penny.”
Resident Maria Peralta came up in person. She spoke in Spanish and Councilman Pabon translated. “I have nothing against Tejeda. You never voted for the festival before and you have created controversy with the festival. I am not against the Dominican Festival, but I have concerns about the pandemic. The day of the flag raising, we were disrespected. There should not be speakers from any other groups to speak at our flag raising. It was disrespectful for the mayor not being there. Many things have been done to me. I was removed from the festival committee because I took down names of vendors, but this was to help the community.”
Council Comments:
Rose Morales said, “I want to thank all the people last night who came to the State of the City and see all the accomplishments. Congratulations to the mayor, the administrators, and the progress made to help the city move forward.
Joel Pabon said, “I’ve had things stolen from my back yard and mattresses thrown in my back yard. It happens to all of us. As for Rudyk Park, until adjustments are made down there, I just can’t see both the Puerto Rican and Dominican Festivals being down there and they are not getting smaller. If we do improvements to Rudyk Park, it will be bigger. And will the festivals get bigger? More than half of the people who come to the festivals are from out of town. Even when sports are being played at Rudyk Park, parking is hard. There are 3 dead-end streets, and we need to talk to the festival organizers. What area of Sadowski Parkway are designated for festivals?”
Larry Cattano answered, “Between Madison Avenue and the promenade at the end of High Street.”
Pabon turned his attention to the topic of bullying in the Perth Amboy Schools. “This is out of control. I’ve seen 5 of these videos (of kids being attacked by other kids). In one video, there was a kid that was kind of husky on the floor and being beaten on. That is unacceptable. One lady intervened to try to cover the boy. The school is responsible for school to home and home to school. At another time, the lady got the student in her car (to protect him). Other cars drove by but ignored the problem. This broke my heart. There was an incident at Shull School. I said talk to me. I encourage the 9 members of the School Board to address why this behavior is happening. Something has to be done. They are our kids. We cannot wait until a kid is seriously hurt, dies, or commits suicide to bring attention to this problem.”
Milady Tejeda said, “Councilman Pabon, I feel the same way. It’s time to do something. When we live in a community, the way we are, we need to respect ourselves. When the Mayor’s Aid came to our flag raising, that’s acceptable. One of the main things are kids respecting one another. Each ethnicity in the town needs to live, play, in this town. We need to respect each other.”
B.J. Torres said, “I echo off of what Councilman Pabon says. There has been an increase in violence. After 2 years of Covid and lockdown. One video is of a kid being assaulted by other kids. That video was shared by adults. The issues in our school are nothing new. Our teachers have been working without a contract for a year. We are losing teachers left and right. Parents have to wait hours at Board Meetings to speak while the Board goes into closed session. These parents work and don’t have time to wait this long to be heard. These are our children and are the responsibility of the entire community. These kids need help. They don’t need to be sent home.”
Bill Petrick mentioned that at the April 11th and 13th Meetings that some of the Department Heads come in and present their budgets. City Clerk Kupsch stated that there is supposed to be a public hearing on the budget on April 13th. Petrick requested that remaining departments come on April 25th and 27th to present their budgets.
Petrick then stated, “I saw the video of the students in Shull School being beaten and there should be changes. The school system is only responsible for actions on school property and not the public streets. There should be criminal charges. Things are happening on public streets. They need to keep the public schools safe.”
B.A. Green said that there were arrests made.
Petrick then said, “Consequences need to be made for juvenile crimes. Criminal behavior is criminal behavior. There has to be repercussions. They are going to grow up and think there are no consequences. I don’t remember issues like this when I went to school. How can you have learning going on when you have children attacking children? Things need to be addressed by the School Administration and the Public Administration. Things need to change. People need to consider the feelings of the victims and not the criminals.”
B.J. Torres stated, “They are children, not criminals. They need intervention.”
Pabon then said, “I don’t want to hear Covid as an excuse anymore. The School Board has money to rectify the situation.”
Petrick said, “They are supposed to be an institute of learning. Children should not fear going to school. Those children with issues in school should be placed in a different environment.” Petrick then thanked the Marines and Police who conducted the services for his father who recently passed away. “Good night, be well, and hope we see changes soon.”
The meeting adjourned at 9:03 p.m.
