Hoboken council approves settlement for hospital bankruptcy; gives up $2M in claims
In a special meeting on Thursday night, the Hoboken City Council voted 5-3 to affirm a special legal contract with Okin, Hollander and DeLuca at a rate of $540 per hour, and also voted to approve a settlement of the city’s $2 million claim in the bankruptcy of Hoboken University Medical Center’s operator, Hudson Healthcare Inc. (HHI).
HHI filed for bankruptcy on Aug. 1, naming approximately 5,000 creditors. The city is owed approximately $2 million.
Under the terms of the settlement, the city wouldn’t receive any of its $2 million claim, and would in turn not be liable for lawsuits from creditors in the bankruptcy. The HHI, the non-profit manager of the hospital that claimed bankruptcy, would be responsible for settling the bankruptcy claims, even though the city is the chief bond guaranteer for the hospital’s operations.
Mayor Dawn Zimmer has said that the claims have to be resolved before the transfer of ownership can be completed.
The council voted in 2008 to save the hospital from closure by guaranteeing $52 million in bonds to keep the facility open after the former owners said it would shut down for financial reasons. The Hoboken Municipal Hospital Authority, a municipal board, is selling the hospital to a private buyer to relieve the taxpayers of the $52 million bond guarantee, and now only needs the commissioner of the Department of Health to issue a Certificate of Need. Then the sale to HUMC Holdco, a group that also owns Bayonne Medical Center, is complete.
Paul Hollander, the new special legal counsel for the city, said on Thursday he has already worked 25-30 hours. Zimmer is permitted to hire an attorney on an emergency basis for up to $17,500. The council will see another resolution for payment after the limit is reached, officials said on Thursday.
Councilman Michael Russo said he was disappointed that the council hasn’t been privy to the discussions of the sale all along, even though they have been asking for inclusion for months. Russo, along with Councilwoman Theresa Castellano and Councilman Tim Occhipinti, voted against the two measures.
Councilwoman Beth Mason was absent from the meeting, and council members Carol Marsh and Peter Cunningham joined the meeting by phone.
Councilwoman Jen Giattino voted in favor of the two resolutions, saying that the city shouldn’t have the liability of the hospital over their heads anymore.
Council President Ravi Bhalla voted in favor of the claim and the attorney’s contract, saying it’s “unconscionable and reckless to not move forward.”
The $2 million includes money the hospital owed to the Parking Utility.
Increased PATH, toll fares approved
After steep proposed fare increases were announced for the PATH trains and Lincoln and Holland tunnels earlier this month, the PA voted on Friday to approve staggered versions of the hikes.
The current $1.75 one-way PATH fare will increase by 25 cents for each of the next four years. This means that by 2014 a one-way PATH fare will be 2.75. The Port Authority had originally proposed that PATH fares immediately jump to $2.75 beginning next month, but the governors of New York and New Jersey submitted a revised plan staggering the increase.
Cars that use EZ Pass tags will see a toll increase of $1.50 next month at bridges and tunnels. EZ Pass fees for cars will then increase by 75 cents each year from December 2012 through December 2015. Cars that pay their tolls in cash will see the same increases, but they will be charged a $2 penalty for using cash.
Tomato tasting event canceled for Historical Museum
The annual heirloom tomato festival at the Hoboken Historical Museum, scheduled for Aug. 28, has been canceled due to an illness in the family of the farmers.
The Museum encourages Hobokenites to shop for locally grown tomatoes and other fresh produce at the city’s two farmers markets: uptown by the Museum at 13th and Hudson streets on Thursdays from 3 p.m. to 7 p.m., or downtown by the CVS at Washington and Newark streets. on Tuesdays, also between 3 p.m. and 7 p.m.
However, there is still a heirloom garlic festival scheduled for Oct. 16.
Large publishing company eyeing Hoboken move, reports say
A large education textbook publishing company could be moving from Bergen County to Hoboken’s waterfront, according to a story in The Record.
The textbook publisher Pearson Education has a lease in Upper Saddle River until 2014, and the company recently applied for a $90 million tax break through the Urban Transit Tax Hub Credit, according to the report. In order to be eligible for the tax credit, Pearson would have to move to a transit accessible city, like Hoboken.
The New York Post also reported in June on the possibility of Pearson’s potential move to Hoboken, naming the office building on the south waterfront on River Street next to the W Hotel as the rumored destination.
Pearson employs approximately 1,200 workers in Upper Saddle River, and a spokesperson told The Record that the company would not comment until after they are done “researching potential locations.”
Senior citizen swimming scheduled for Aug. 22 to 26
The Hoboken High School pool (located at Ninth and Clinton streets) will be open to any senior citizen over the age of 55 who would like to take part in recreational swimming for free.
The event, Senior Citizen Swimming, is hosted by the city and will be held from Aug. 22 to Aug. 26 from 10 a.m. to 11 a.m.
To register, contact the Multi-Service Center at (201) 420-2055.
Petitioners gather enough signatures to place Hoboken election issue on ballot
The petitioners who want the voters to decide on the change of municipal elections from May to November have succeeded in their drive, according to a memo from the City Clerk’s office to council members and members of the petition committee.
The City Council passed legislation last month by a narrow 5-4 vote to move municipal elections to November, citing cost saving concerns, as well as a possible increase in voter turnout. But after the council voted to move the election, a team of petitioners took to the streets to put the issue on the ballot so that the people could decide whether to move the elections, rather than the council deciding.
“After reviewing the petitions, I certify that the petitions meet the legal requirements pursuant to statutory reference N.J.S.A. 40:69A-184 to 196 to be submitted to the City Council at the August 24, 2011 City Council meeting,” City Clerk James Farina wrote in his letter to the council and committee, dated Aug. 19.
The council can now either repeal the legislation at an upcoming meeting or allow the public to vote on the issue during the November election this year.
The change would also have a one-time side effect of adding six months to the terms of the current mayor and council.
The committee needed to gather 2,189 valid signatures to place the issue on the ballot, but Jamie Cryan, a petitioner, said the group gathered 3,710 signatures to be handed in to the clerk. The clerk’s office counted as many as 2,500 valid signatures before stopping, Cryan said on Friday.