New concerns Mayor Elwell forced to defend recreation center costs a second time

Secaucus Town Councilman Mike Gonnelli has raised new questions regarding the municipality’s new recreation center, which is scheduled to open sometime this spring.

The as-yet-unnamed center, located at Koelle Blvd., is being built with funds from a number of sources. A $5 million “impact fee” is being paid to the town over time by the Transit Village developer Fraternity Meadows LLC, as a payback for the burden put on town services by the new residents of their future development. The town is also drawing from a $10 million bond that was passed late last year, and from revenue from a billboard.

Earlier this month, at the Jan. 8. Town Council meeting, three community activists raised questions regarding the construction and operating costs of the center. The Elwell administration has not given an exact amount that the center will cost. Elwell only reassured residents the recreation center will be able to operate with little or no money from taxpayers.

However, Councilman Gonnelli, who was on vacation on Jan. 8 and who did not attend the council meeting that night, is now flagging concerns about using the “impact fee” to construct the recreation center, when it theoretically should go to city services.

“I have a copy of the development agreement between Fraternity Meadows and the town,” Gonnelli said at the council meeting on Jan. 22. “It clearly states that the town is to be paid $5 million for ‘impact fees.’ ” Gonnelli noted that if the $5 million impact fee has been dedicated to construction costs of the recreation center, there will not be money to reimburse the town for the increased burden on town services required by the Transit Village.

“An impact fee is an impact fee,” Gonnelli continued, addressing the mayor. “There’s no other word for it. An impact fee is based on the impact that that is going to have on the municipality. And my question to you is, if you take the $5 million that we’re getting from Fraternity Meadows [to build the recreation center], how are we going to pay for the impact later?”

The mayor responded by saying, “There will be new tax ratables coming in that will offset that. They will add another $1 million, which we can use to pay our impact fees.”

But concerned residents are pressing for answers, fearful that Secaucus taxpayers may end up footing the bill for some of the fees associated with the center, which has been something of a pet project for Elwell.

The mayor has said that the recreation center will sell memberships in an effort to offset operating expenses. There will be individual and family memberships, although membership rates have not been worked out.

Memberships will only be open to Secaucus residents at first. If it appears that there aren’t enough residents joining, Elwell stated that the council might consider selling membership to Secaucus workers who live elsewhere.

Such a move would have to be approved by the Town Council.

The hours of operation also have not been finalized yet.

The Recreation Center received unanimous council support when it was approved in October 2006. Two councilmen, Gary Jeffas and Gonnelli, were not part of the 2006 council that approved the center. The remaining four – Deputy Mayor John Riley, John Shinnick, Richard Kane, and John Bueckner – were on the council.

Shinnick, Kane, and Bueckner all mention their involvement in coaching and youth athletics on their council biographies.

When finished, the center will have an Olympic-sized pool with a spectator section that will allow parents and families to watch swim meets; an indoor running track that will enable runner and power walkers to exercise even when the weather outdoors is bad; and a high school regulation gym big enough to accommodate two basketball games simultaneously.

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