Barry Rosengarten, BID Chairman
I am 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.
[Read Virginia Lugo’s statement from Feb. 19, 2014 Amboy Guardian.]
Ms. Lugo correctly states that there have been inconsistencies and discrepancies in the operations of the Business Improvement District. She failed to state that operating as an “Advisory Council” caused an inability to strictly conform to the BID By-Laws. She 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 Bylaws Special Committee, Ms. Lugo knows, we are in the process of addressing and updating the areas which have been identified.
As an aside, the Board has adopted to the transitions without losing any contact with the Tax Paying ‘Members’ and has consistently maintained the programs, initiatives and performance standards that it is charged to accomplish.
As a member of the SID/BID Board since the inception for twenty plus years of service, and Chairman of the BID “Advisory Council for the past six years, I am proud to serve with the members of the Board of Directors who truly exemplify persons of great character, who consistently endeavor to accomplish the many objectives the Board has established to initiate enhancements in appearance, maintain a litter free environment, attract customers, and generally continue to create a safe, friendly, welcome and attractive business community.
It is interesting to note that the BID Board of Directors represents a diverse and balanced membership with close to 50% of its participants directly involved as taxpaying BID entities. All other members of the Board are members at large representing the entire community. The BID has been operating under the present By-Laws and Municipal Ordinances that created and approved the operations of the SID/BID. The financial books, annual audits and programmatic reports are open and transparent for all to review. In addition, budgets, audits and financial reports are annually filechwith the City Council and the NJ Division of Local Government Services.
Virginia Lugo, as a member of the Board, has chosen to unjustifiably attack others as she attempts to monopolize the discussion on subject matters with her personal concerns regarding projects which results in her obstructing and derailing projects. Unfortunately, her conduct at meetings is disruptive and upsetting to those Board members who are desirous of carrying on business in an efficient positive manner. Rather than suggesting constructive improvements, Ms. Lugo chooses to batter and demean those who she disagrees with constantly and unfairly bashes our Executive Director who performs her work in an exemplary manner.
The BID is a corporation with a Board of Directors consisting of business owners and professionals who serve voluntarily; not a private business where an individual can make unilateral decisions. Ms. Lugo has independently attempted to usurp authority and has represented herself to outside entities as the official authority in seeking proposals for services or materials. Her representations are completely unfounded and were not requested by the Board or authorized by the Chairman of the Board.
As the Chair I have several times, reminded Ms Lugo, that as a member of the BID Board she is a member of our team and not an independent authority. We urge her to work collaboratively with the Board and to share her ideas with the Board in a positive and non threatening manner.
Ms. Lugo inaccurately claims that all board members were selected by the Mayor, Chairman, and the Business Administrator, the Chairman and board members may recommend potential members that could serve on the Board of Directors and would most likely be viable candidates for Board membership. As an “Advisory Council” the actual appointments are made by the Mayor. (The fact is that the City Administration and the City Council are involved in this process.)
For the record, I remind Ms. Lugo that she and all others who serve were ‘appointed’ to the Board and accepted the position. Although she accused the Chairman of an imbalance on the board and committees, she was included as a member of the Special Committee for review and recommendation for the selection of Legal Representation for matters concerning the BID and was also selected as Chair of the special committee appointed to review, recommend and update the existing and in effect, By-Laws.
Ms. Lugo continues to step out of the bounds of her assignment and solicited proposals from two law firms, representing herselfas ‘officially appointed’ to request those proposals, In so doing she possibly violated the State Statutes, misled those firms and caused the BID to unduly delay the process of selections. As a consequence of her delaying and improper actions the BID was required to issue Requests for Proposals. Her only input was constantly complaining that the Board and committee was wasting time in its quest to select counsel. Ms. Lugo’s orchestrated presentation before this City Council with the objective to undermine the work of the staff and Board members includes much misinformation and half truths about the election of officers and selection of the Executive Board.
Ms Lugo is correct as she refers to not holding “Annual Meetings”. In my recall, The BID has not – since its inception, held an annual meeting inclusive of all property owners located in the BID. 1 agree with Ms Lugo and believe the practice of inclusion as called for in the By-Laws should commence coincidental with the next election of officers.
Ms. Lugo asserts improprieties in the BID election for officers held at her insistence in July 2013. The BID Board as its first action in its transition back to the original status held an election of officers. As a member of the BID Board, Mayor Diaz made a motion to hold the election of officers as scheduled. The motion was seconded and carried. The election of officers was held after legal advertising for the special meeting was announced and publicized. Ms. Lugo, in the properly vetted election process accepted a nomination for Chair, voted for herself and when defeated by vote accepted a second nomination for Vice Chair which also culminated in her defeat.
Ms. Lugo says; Business owners “do not have a voice.” A blatantly false statement. Some of our continuing services include that
1) Business owners always have a voice. We are always ‘Open For Business’
A) The BID Monthly meetings are open to the public.
B) In interim periods the BID office is open during normal business hours and the telephone 732 442 6421 receives several inquiries daily. (Everyone receives a response and follow up)
C) We pride ourselves with “feet on the street” consistently reaching out to our business community.
D) The BID provides our businesses with grants and other special assistance programs and funds.
E) We regularly bring our meetings to the business neighborhoods together with the Mayor and Department Heads.
The BID provides MANY other programs, seminars, educational formats, downtown fun and entertainment, too many to mention here.
2) Virginia Lugo incorrectly states that:
A) “Most of the Businesses within the BID are not even aware that they are paying the special improvement tax.
FACT, ALL PROPERTY OWNERS WITHIN THE DISTRICT ARE PRESENTED WITH AND KNOWLEDGABLE OF THE SPECIAL ASSESSMENT CHARGES WHICH ARE CLEARLY INDICATED IN THEIR TAX BILL The Business’s that are situated as tenants may or may not have the BID assessed portion of the owners tax bill charged as part of their annual rent. Perhaps our Board should consider mandating Property Owners to identify and notify their respective tenants regarding the inclusion of BID taxes as part of their rental payment.
B) The BID operating budget is completely vetted, voted on and presented to the Perth Amboy City Council as created by the BID Board of Directors. The Income for its operations are extremely limited and based on a ‘special assessment’ included and charged to the commercial property owners situated in the BID district as part of the real estate tax. The gross total amount charged annually is $232,130.00. The BID reimburses the City of Perth Amboy for a portion of administrative expenses. The assessment has not changed in the past 15 years causing the operation to prudently and with a ‘tight fist’ operate in a deficit condition.
C) Virginia Lugo asserts that… “millions of dollars from BID funds and other sources have been under the control of City Hall when they should have been under the control of businesses within the BID”.
She clearly doesn’t understand the difference between the millions of dollars budgeted to operate the City of Perth Amboy which is ‘under the control’ of the City Council, and the BID annual $232,130.00 budgeted to pay for the full services, including $89,000.00 reimbursement to Perth Amboy for administrative costs provided to the BID by Perth Amboy.
As an aside, Virginia Lugo also fails to account for the projected increase costs of operations which she suggests should occur by ‘moving the BID’ out of City Hall. She further makes an allegation that BID funds are used to “pay city employees” and says “This needs to be investigated.”
D) Ms. Lugo has persisted in utilizing OPRA requests for historic documents including video copies of meetings dating as far back as ten years. The only thing that needs to be investigated is how a Member of the BID Board of directors could make so many accusations while lacking knowledge and purposely attempting to mislead the public.
As Chairman of the Board I represent all of us and can proudly proclaim that we direct ourselves to serving the tax payers in the district and the citizens of Perth Amboy to the best of our abilities. We seek constant improvement, invite the community to be engaged with us and are always receptive to suggestions as our ‘door’ is always open.
A Person who volunteers their time, intellect and energy to work tirelessly to contribute for the betterment of OUR City of Perth Amboy is truly to be admired and thanked. An inscription on the plaque of the “Bill Of Rights Commemorative Arch” states; “A Person Who Gives Their Nation, Their Labor As Their Love, Is A True Patriot”…
I AM PROUD OF OUR BOARD MEMBERS, THEY EXEMPLIFY THE BEST OF THE BEST.
I want to thank you for giving me this opportunity to speak on behalf of the Perth Amboy.
Business Improvement District Board of Directors.
On an exceptional positive note;
I am pleased to announce that we will shortly be kicking off our 2014 Celebrate the Amboys Fireworks Fund Raising Campaign. Our entire Committee hopes that everyone in our communities will contribute to this outstanding July 3rd Extravaganza. We’re counting on you to lead the way.
Sincerely,
Barry Rosengarten
BID Chairman of the Board
