When is a tax abatement necessary and when is it giving away too much?
That was the quandary for the City Council on April 22 when it considered an ordinance which sought to allow the building of 30-plus residential units at 304 Broadway.
When City Clerk Robert Sloan asked the council for someone to move the measure, no one responded, and the adoption was quashed.
Several council members said after the meeting that they denied the vote on the measure because of the long-term tax abatement that developer Mitchell Burakovsky was requesting as part of the agreement.
Councilmen Salvatore Gullace and Gary La Pelusa said they were not against the project, just Burakovsky’s request for the 20-year tax abatement for it.
“When this comes back, it’s not fair to residents; they pay twice,” La Pelusa said. “Unless there’s some huge economic benefit of jobs, I usually don’t like the abatements.”
Council President Sharon Nadrowski and Councilman Juan Perez agreed.
“I think it’s great to bring economic development to the area, but you have to think of the taxpayer first,” Perez said. “He was asking for a 20-year abatement, that’s too much. Anything less, like five or 10 years, I would consider.”
La Pelusa and Nadrowski had previously voted against an abatement for a project at Dodge Street and Broadway.
Prior to the ordinance’s consideration, Burakovsky had addressed the council. He had referenced his “approximately 100” projects throughout Bayonne in the last eight years, as well as what he said was an increase in $750,000 in annual ratables for the city from those projects, in seeking approval for his current one, at 304 Broadway at the corner of 14th Street.
At least 15 supporters of Burakovsky and the project attended the meeting at the Dorothy E. Harrington Chambers, with a few speaking out in favor of it, including Bayonne Chamber of Commerce Vice President Annette Rubin.
“I urge this council to bring this vision to creation,” she said.
A letter from a local businesswoman supporting the development was read aloud by City Clerk Robert Sloan.
“Unless there’s some huge economic benefit of jobs, I usually don’t like the abatements.” – Gary La Pelusa
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But the words did not sway council members who maintained the anti-20-year-abatement stance.
“I’m just disappointed in the council’s decision,” Burakovsky said on Saturday, April 25.
Other issues
The meeting also included the announcement of the public presentation of the $131 million 2015 municipal budget.
The budget introduction had spurred resident Peter Franco to speak in the public portion of the meeting about the city’s financial matters. Franco questioned where the city will get the money needed to balance this year’s budget, especially with only an announced 3-percent tax increase, which he said would not be enough to fill an estimated $24 million structural deficit figure for this year.
“By settling the [Peninsula at Bayonne Harbor] lawsuits, you now have the opportunity to collect tax ratables on properties owned for 15 years that the city has not collected one dime for,” Business Administrator Joseph DeMarco said.
Franco also hammered away at the administration for what he said was excessive hiring since Mayor James Davis took over last year.
DeMarco countered that many of the new employees were to replace posts vacated due to the change in administration or to retirements.
Joseph Passantino may be reached at JoePass@hudsonreporter.com.To comment on this story online visit www.hudsonreporter.com.