The City Council took an important step in an arduous process to continue a middle-income affordable housing program at Church Towers last Wednesday night, although some members weren’t sure the timing was right. Many residents of the buildings were at the meeting to show their support.
Six members of the council approved a tax abatement for the three buildings at Willow Avenue and Grand Street between Sixth and Seventh streets, but only if the owners enter into a state-approved affordable housing program.
Council persons Dawn Zimmer and Peter Cunningham opposed the measure because they weren’t sure the resolution could bind the owners to the program.
Some critics of the move asked why the city wouldn’t wait for a program to be approved before issuing the Payment In Lieu Of Taxes, or PILOT plan. In PILOTs, developers typically pay negotiated amounts over the years, allowing them to avoid dealing with the unpredictable rise and fall of regular taxes.
Councilman Michael Russo, who lives in the building, recused himself from the vote because of the conflict of interest.
Members of a local tax reform group volunteered hours of their time over the past few months to investigate the matter, since the original PILOT approved over 40 years ago expired last February without any action on the part of the city.
Indeed, the city even had problems locating a copy of the original agreement before they could begin looking toward an ongoing solution.
These residents – among them attorneys Toni Tomarazzo and Valerie Pels – were upset that the city rushed into the PILOT agreement without a state-approved program in place.
Keeping rents low
Residents of the building worried that market-rate rents would put them on the street, while other factions in town claimed the intent of the affordable housing program was not being honored.
Over the years, rumored tales of wait list jumping and preferable treatment have tarnished the reputation of the housing managers, although no hard evidence to support the claims has come to light.
A lawyer for building management, Gary E. Fox, said at the meeting that the owners had no intention of bringing the housing units up to market-rate, especially since they are a not-for-profit organization.
In an interview on Thursday, Fox said any allegations against the management were “blatant slander.”
“Someone wrote an anonymous letter to [the building manager’s] employer alleging that she was taking bribes,” he said. “I’d like to know who’s saying that so I can sue them for slander.”
Fox said owners have investigated the situation and have found no wrongdoing whatsoever.
The owners of the building have also maintained anonymity during the process.
Fox said anyone with factual knowledge of wrongdoing should come forward.
“If it’s truthful, people’s heads will roll,” Fox said.
As far as seeking out the affordable housing program, Fox said he will work with building management and the state to find the right solution. The city, he said, will have no input into the process.
Several other affordable housing programs and PILOT plans will expire in the coming years. This was the first expiration that the city had to deal with.
Who does FXFOWLE work for?
The council declined to increase the amount of a contract awarded to FXFOWLE, designers of the elaborate plan to redevelop the Hoboken Terminal train yard.
NJ Transit is actually paying the cost of the plan – in fact their chosen developer LCOR is paying the bill – so the City Council wasn’t even being asked to spend their own money.
NJ Transit has engaged the city in the process, most likely to reap the benefits of city tax breaks that come in redevelopment zones.
The original contract with FXFOWLE was not supposed to exceed $155,000, but the palnning firm spent more than that and now asked the city to increase the contract to $230,000.
Residents have lashed out because the planners held several meetings last year asking for public input, but never integrated any of it in the plan.
Members of the council seemed to agree that the developers were not responding to the community.
Councilwoman Terry LaBruno said, “This firm has shown a lot of arrogance.”
Members of the council said they also disagreed with the size and scope of a plan whose smallest building, one member said on Friday, would be the largest building in Hoboken.
The council voted unanimously to not approve the change of contract, in effect expressing their displeasure with the representation the planning firm is providing them.
Russo said at the meeting, “The one thing we did agree on is that something needs to be developed there.”
Fiscal Monitor Judy Tripodi confirmed on Friday that she would allow the council to make development decisions.
Finance department created
At the direction of Tripodi, the council finally agreed to create a finance department at last week’s meeting.
Only Councilwoman Theresa Castellano opposed the ordinance on ground that the director chosen by Tripodi was not from town and the city has a residency requirement.
A “failed experiment” to privatize the financial services was nixed last year after the budget was found to be underfunded.
The council also fixed two mistakes by the administration at the meeting.
A bonding measure was approved to cover $2.2 million in improvements made to the Robotic Garage made over a year ago.
The money was borrowed from another account at the time, and now can be replaced.
Also, an ordinance appropriating the pass-through of grant funds for the Maxwell Place waterfront walkway was approved after the fact.
Bills? What bills?
For the third straight meeting, the council has voted against temporary emergency appropriations to fund city expenses before a budget is adopted.
Tripodi has called for a special council meeting this Wednesday to introduce amendments to the budget.
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Tripodi has called for a special council meeting this Wednesday to introduce amendments to the budget. The meeting at 7 p.m. in City Hall will also allow members of the public to speak on the fiscal situation in Hoboken.
Tripodi was waiting for a city audit of last year’s finances that is a major resource in guiding the budget.
Although the council has voted down the appropriations, Tripodi has full authority to overrule them and has.
In the past, the city has shut down over the non-appropriation of funds.
Timothy J. Carroll may be reached at tcarroll@hudsonreporter.com.