In the past, the Bayonne Local Redevelopment Authority focused primarily on finding a way to get the former Military Ocean Terminal developed into residential housing. Because the BLRA’s operations were self-sustaining for the most part, relying on revenue it received from land sales, leases, and federal and other grants – and not local tax dollars – officials there were less worried about cutting back spending than they were about getting the job done.
But with the current economic situation in Bayonne as well as beyond, the BLRA has developed a new philosophy.
“We’re reducing spending wherever we can,” said Chris Patella, BLRA executive director, during the agency’s Sept. 18 meeting. “We’ve capped professional service contracts at $185 per hour.”
In many cases in the past, professional service hourly fees often exceeded $200 per hour, and while Patella said these professionals provided good service, the BLRA has negotiated with them to settle for the lower salaries. This will be particularly helpful in some areas where the BLRA may be using these firms more as more development starts on MOTBY.
“We’re reducing spending wherever we can.” – Chris Patella
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“For the first time in the Authority’s history, we have paid down some of our debt,” Patella said. “Last month, we showed we have paid down $7 million.”
Because the BLRA had to prepare MOTBY for development before the land could be sold – such as installing new sewers, roads, electrical, and other infrastructure – the authority had to issue bonds that it hoped would be paid back once development was under way.
Because of development on the base – including the sale of the Maritime District to PortsAmerica and the development of luxury rental units by Trammell Crow – the BLRA now has revenue to begin paying off some of these bonds.
But because there is still work to do on MOBTY, the BLRA is seeking to contain costs so that revenue can be used to continue work and get out of debt at the same time.
“We’re hoping to get the same level of service at the reduced cost,” Patella said. “We’ve even seen a reduction in our staff so that we are doing more with less. Our staff was reduced by five or six people.”
He said cuts would continue, but when it came to staff, it would be done with compassion, and that the BLRA would continue seek additional revenue sources.
Stan Marko, who is a candidate for City Council, said he appreciated the 20 percent reduction in professional service costs to LGA Engineering. LGA oversees all of the projects that have been authorized by the BLRA and determines if they are doing the work correctly, and deals with unexpected problems such as the recent appearance of sinkholes at one construction site.
Other contracts
Among the professional service and other contracts authorized at the Sept. 18 meeting, the BLRA voted to approve a one-year contract to Excel Environmental Resources Inc. for environmental engineering services for a fee not to exceed $165,000 a year,
Others included: LGA Engineering, at $1.35 million, Suplee & Clooney accounting services for the annual BLRA audit at $27,100, Clarke Caton Hintz for planning and architectural services at $150,000, and Jacob Engineering Group for additional engineering and planning services at $100,000.
Patella said recommended not cutting back the contract for Krivit and Krivit, since the federal lobbying firm, in conjunction with U.S. Sen. Robert Menendez and Rep. Albio Sires, had brought the authority more than $35 million in federal grants since being hired several years ago, and most recently helped bring in a $4.5 million federal grant to MOTBY. The firm’s contract is not to exceed $86,500 for the year.
A significant change in professional services this year involves legal counsel for development. Patella said Paul S. Wether, whose firm represents the New York Giants, NJ Transit, and Donald Trump, will take over duties from McManimon & Scotland at an annual fee of $300,000. The BLRA will retain McManimon & Scotland at a reduced capacity as bond counsel at a fee not to exceed $250,000.
The changes in legal services, Patella said, result in annual savings of $275,000.
More money to finish early?
In other business, Marko questioned several items on the monthly bill list, in particularly a $290,000 incentive payment for a contractor to conclude work early. Patella said the BLRA had authorized the contractor to speed up a portion of the work to accommodate new development on MOTBY. This meant increasing the crew size to get roads and other things finished in time for residents to begin moving in last June. This fee is part of a $35 million construction contract.
Debra Noble, also a candidate for council, questioned some of the road work currently ongoing north of the entrance to MOTBY. Noble, well before she declared her candidacy, had lobbied the City Council to remove a sound barrier along a section of Route 440 that caused sound to increase in the area along Avenue E rather than decrease it.
“Each time I brought up to the City Council, I was told that the city could do nothing because it was a state highway,” Noble said. “Now I see sections of it are coming down.”
With the construction of the new entrance, the state has required Route 440 to be widened, and thus,k a portion of the wall is being removed. Noble asked if the BLRA could petition the state to have the rest of the wall removed in order to reduce the noise along Route 440.