Dear Editor:
In the recent edition of the Jersey City Reporter, Councilman Harvey Smith was quoted as stating that the rent dispute in Metropolis Towers belongs before the Rent Leveling Board, not the City Council.
Mr. Smith, you are well aware that this dispute was submitted to the Rent Leveling Board which approved the market rents incorporated in our Reorganization Plan. The court ruled that the Rent Leveling Board has no authority to approve the market rents because the existing ordinance does not address properties coming off a HUD mortgage. In effect the court ruled that the ordinance must be amended to address settled HUD mortgages. To the best of my knowledge and belief, it is the City Council who is charged with the responsibility of amending existing ordinances.
Can you therefore explain to the shareholders the basis of your theory that this matter must be presented to the Rent Leveling Board? The city’s attorney have advised the council that this belongs before the City Council. You are choosing to ignore that advice and instead rely on the misrepresentations by a bunch of deadbeats looking for a free ride. I am certain you know renters who are paying more than $600 per month in a fourth floor walkup and have to pay their own utilities. You are supporting renters in Metropolis Towers who are paying $619 per month for a two-bedroom, two bath unit, with central air conditioning included. How do you explain that one to your “poor” constituents?
There is no question that the refusal by the majority on the council to address the 30-year old ordinance will cause the Reorganization Plan to fail; it will cause the Dime Savings Bank to foreclosure on our $20 million mortgage. Maybe the likes of Panapinto, Barry, Macco et all will acquire the mortgage, and I can bet you will not say to them that the property is subject to rent control.
At least be honest with your views, you are ducking this issue because you are not prepared to support the working-class shareholders of Metropolis Towers. Don’t attempt to pass on your responsibility to another agency. The shareholders relied on the representation by the Rent Leveling Board in support of our Reorganization Plan. We must now consider suing the city and have a court tell the council members that it is their responsibility to amend that ordinance.
In politics it takes courage to do the right thing. We are grateful that at least four of the council members recognize their responsibility to the city and the taxpayers to do the right thing.
Irma Colon