Dear Editor:
The Jersey City Council once again has shown what little integrity they have when it comes to the stewardship of Jersey City taxpayers’ money. Over the Thanksgiving holiday week the Council snuck in a bond obligation of $4.3 million for the purchase of 392 Central Avenue where the Parking Authority rents space.
First, why is the council spending this money at a time when they have failed to present a budget for 2009 which is already five months late? This budget will certainly contain furloughs, layoffs, reduced services and higher taxes. Second, why are they purchasing this building based on a year and half old appraisal from April 2008? The financial landscape of the world has changed drastically since September 2008. Just on the local level, Central Avenue has over two dozen vacant stores, the rents are coming down by 15 to 20 per cent otherwise the stores stay vacant. Sales of commercial properties have slowed to almost nothing. Even if an owner received a good offer, he couldn’t be sure that a bank would lend money for the purchase at the same terms as they did before 2008.
The foundations of the deal as stated by the Appraiser and Council Members are that the building has paying tenants, the US Postal Service and the JC Police Department and their rental income will offset the cost. But the US Postal service’s lease will expire in 2012. They have already closed one office on Pacific Avenue when their lease came up for renewal. Why would the City Council think that the US Government will be willing to pay the same high rent if they could reduce it or move to another location on Central Avenue? Did anyone talk to the Postal Service and request an extension of the lease to lock in the rental income? The Police Department rental is a bogus number since it is taxpayer money paying the Police Department to pay the Parking Authority. No different than taking money from your right pocket and putting it in your left pocket, you still haven’t gained anything. The Parking Authority has been in the building for at least 10 years, has anyone checked to see if they are overpaying on their rent?
I have been a commercial broker in Jersey City since 1987 and I have never seen a market as depressed as we have now and yet the Appraiser when asked stated that he hasn’t seen any negative impact on value with regards to this property. How could that be possible when we have witnessed the worst economic collapse since the 1930s? Yet the City Council was willing to accept this statement at face value and refused to have new appraisals done to make sure the taxpayers of Jersey City were not being cheated.
If the Jersey City Council could reduce abatements on Canco, Crystal Point and Harwood Journal Square because of the downtown in the market how is it possible that Central Avenue could be untouched by the downtown? Was this a personal favor to the owners of the building at the expense of the people? Only Council Members Fulop, Richardson and Flood stood up for the people of Jersey City by voting no on this sham. For this, I thank them.
With regard to allowing people to speak on the issue of how their money will be spent by our City Government, four members of the City Council voted against opening the public portion of the meeting. Shame on you, I believe you do not understand our system of government OF THE PEOPLE, BY THE PEOPLE AND FOR THE PEOPLE. As we have hundreds of thousands of Americans risking their lives around the world to defend our freedoms you have shown that you are unqualified to hold elected office. Finally as we enter the holiday season and the people of Jersey City face much hardship this year, I think the owners of 392 Central Avenue should give thanks to the Jersey City Council for the very generous Christmas gift they have received.
Jeff Kaplowitz,
Jersey City