Dear Editor: I was raised in Union City, New Jersey and have worked as a Realtor in my hometown for the past 48 years. My sister still lives in the family homestead on 20th St. I am inexorably connected to the city.
I have watched and participated in the slow yet steady transformation of my town. In 1961, as a 19-year-old real estate salesman, I saw an inner city that was slowly decaying. The lifeblood of a city is its people. The exodus of the homeowners to the suburbs and points north was rapid. The heartbeat of the city, Bergenline Ave. had a multitude of vacant stores. Property values were declining. Then a miracle happened. The Cubans began to arrive in droves. The Latino culture was added to our polyglot of nationalities. It’s said that the Chinese symbol for crisis also means opportunity. The Cubans, among others, seized that opportunity because they brought their hard work ethics and their culture to enliven and revive the city. They started buying property and opening businesses on Bergenline Ave. New two-family homes began to spring up. The tax base was getting stabilized.
I remember selling a two-family home to a middle aged Cuban couple. He worked in a bodega and she worked in a box factory. I discovered that in Cuba he was a Dean at the University and she was a dentist. He went on to become an entrepreneur, and she eventually got her license to practice here. Stories like this repeated themselves over and over again.
Fast forward to the 1970’s. The advent of the condominium came into play. Many pre-war buildings came to be owned by former tenants. Older, dilapidated buildings with no central heat, bath tubs in the kitchen and shared toilets were bought and renovated making way for decent, affordable housing. New condos started to be built. In the 1980’s our industrial and manufacturing base began to disappear across the country. The embroidery factories, sewing factories and yarn companies (that we were so famous for), were having a crisis with competitors off shore and in China, and one shop after another closed. The large industrial tax base disappeared, rent control on apartment buildings forced landlords to continually file tax appeals, thereby lowering the tax base even further. The most redeeming value the owners had was their real estate. Old factories, loft buildings, garages and warehouses became attractive to people with vision who were willing to take a risk, transforming those structures into residential and office units. Older apartments buildings and garden apartments were converted into condos. This increased the tax ratables even more. Remember, taxes pay for our services: firemen, police, sanitation, parks, education, etc.
Now let’s focus on the present. Union City has the good fortune to have a government that looks favorably on development. They know that the lifeblood of a city is its strong tax base, which means strong real estate values. The taxes derived from properties support our entire infrastructure and the quality of our lives. I have watched men and women of courage stake their fortunes on project after project, certainly with the hope of making a return on their investments, yet also providing jobs and creating home ownership and new, clean rental apartments. Stop and think about how many people are employed when new construction occurs. I am not only talking about the craftsmen who do the actual building but also all the goods, services, products and manufacturers that benefit from these jobs. It numbers in the thousands. Think of how many local people benefit, like the shop owners and merchants.
Look at the economic state the country is in now. Due to what? The slowing and devaluation of America’s real estate. Housing starts are great for our entire economy. Foreclosures are occurring at a rapid rate due to the sub-prime mortgage debacle. This all adds up to lower values and uncollected taxes!
An interesting phenomena has occurred. Some projects have been challenged with lawsuits to stop development. Why? Some challengers are only in for the money. They will take a settlement to “go away”, a form of legal extortion! Others may be well meaning citizens who simply don’t like development, or change, or height, or traffic. These are usually folks who never built anything.
Their forte is to collect and obstruct. So what is the result? Several projects have gone bust, wasting resources on legal fees and losing mortgage commitments, ultimately losing their property and their investment. This leaves the project valued only on its land, not the improvements. Some people get headlines as well-meaning vigilantes. What has really occurred, though, is that they have thwarted progress and taken much needed jobs away from honest, hard working folks who need their jobs to support their families. They have created a recession in development. They have undermined our tax base!
The current administration under Mayor Brian Stack’s tenure has helped create $60,000,000 in ratables for Union City! He has transformed our parks and built a new high school and stadium. This all adds to the quality of our lives. We are an inner city. If you don’t like traffic, go to Kansas. I will make a prediction. Progress can’t be stopped. The only thing constant is change. Like it or not, everything changes. I predict that what is going to happen is a new master plan for the city that will allow for redevelopment areas, where builders are guaranteed to build their visions without being harassed with lawsuits by well meaning, but in my opinion, misguided people or lawyers with clients who are just out to make a quick buck.
As a Realtor, I pledged myself to uphold private property rights, and I just cannot remain silent any longer. I believe in the American dream of home ownership and a government that looks after the well being of its citizens. Do you?
Sincerely,
Robert De Ruggiero, Inc., Realtors
Bob De Ruggiero, President