In a continuing probe by the U.S. Army into the use of funds obtained by Bayonne from the sale of portions of the former Military Ocean Terminal, Joseph Calcara, deputy assistant secretary of the Army for Installations and Housing, said the city’s Bayonne Local Redevelopment Authority (BLRA) has still failed to provide relevant financial data as requested in early July.
The Army gave the land from its former terminal on the Bayonne waterfront to the city nearly a decade ago so the city could have it developed. Under a Memorandum of Agreement between the city of Bayonne and the Army signed in 2001, all money obtained from the sale or leasing of land on the MOTBY must be reinvested into preparing the site for redevelopment for at least seven years. For several years, the city borrowed sale money from the BLRA to help balance the budget. But last year, assuming20that the grace period had ended, the BLRA simply transferred the funds to the city for budget use.
In a letter issued to BLRA Executive Director Chris Patella on July 29, Calcara said that the city has failed to supply key financial documents.
“Although we have received the financial statements and an accompanying audit report, these documents by themselves do not support proper reinvestment of proceeds from either the sale or residual exchanges,” Calcara wrote.
The Army said the money from the sale of land to PortsAmerica earlier this year was still bound by the previous restrictions, and the Army is seeking to know how $55 million has been spent from the last exchange of the city, as well as $23 million, $20 million and $25 million from previous years.
The Army has given the city until Aug. 3 to provide the information.
“Based on information received to date, my office is missing accounting data for $70 million in proceeds from the BLRA,” Calcara said in his letter. -Al Sullivan