Local developer Ralph Lieber has been so angry at Union City government that over the past few years, he has posted various protest signs on his land at 801 Palisade Ave., including one reading “Zoning board approvals, are they for sale?”
But last month, Lieber settled his 2007 lawsuit against the city with little fanfare. He had previously charged that because he was not a political favorite of Mayor Brian Stack, the Zoning Board twice voted to deny him variances to develop his property.
The city is still working out the terms of the suit, according to Mark Albiez, a spokesman for Stack – so the amount that the suit will cost the taxpayers is unknown for now.
“The Zoning Board votes with their consciences.” – Mark Albiez
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The suit
Lieber’s problems with Union City date back to June 2005, when the Union City Zoning Board unanimously voted against his proposal to build an 80-unit apartment building on his property at Eighth Street and Palisade Avenue.
Ten months later, he presented a scaled-back version of the plan – 35 units in a six and a half story building – to the board. That proposal, too, was unanimously rejected.
After being rejected twice for a variance, Lieber, along with business partner Patrick Chen of Palisade Towers, LLC, filed a lawsuit in March 2007 against the city and against Stack, alleging “political favoritism” in zoning and building approvals. Lieber alleged that only proposals made by campaign-contributing developers were approved, and that the approvals were influenced by Mayor Stack.
“Simply put, Zoning Board approvals are for sale,” the lawsuit stated. “…Those few dissenters who refuse to ‘play the game’ or those not savvy enough to even know the game is being played, risk almost certain rejection.”
In the midst of the lawsuit, a frustrated Lieber had also painted signs on his property, including the sentiment voiced in his lawsuit, “Zoning board approvals are for sale.”
Stack has maintained that he has no influence over the board’s decision making process.
Influence
Lieber’s suit wasn’t the only source of questions about zoning approvals in Union City.
The Zoning board came under federal scrutiny when former board member John Medina testified in 2008 that he had received opinions and suggestions on how to vote that he believed came indirectly from Stack, according to a March 18 Hudson Reporter article. However, Medina himself was being investigated, and later pleaded guilty to accepting $20,000 in cash bribes from a contractor who had trouble renewing permits for a six-story building on Summit Avenue.
When Medina’s comments were publicly revealed, Stack said they were “totally untrue” and hinted at Medina’s “other problems that will be commented on in the future” (likely the fact that he was being investigated).
Stack also said, “If someone is involved in the city [and is involved in something illegal], I want them rooted out.”
Still, Medina and Lieber haven’t been the only ones to complain. Over the last few years, Union City resident and zoning activist Larry Price has echoed Lieber’s concerns about voting practices on the board. Last March, he claimed that an inordinate amount of board votes in the past five years have been unanimous.
And early last year, it was revealed that a Zoning Board member who apparently was allied with Stack – Justin Mercado – kept his seat on the board for three years after he allegedly moved out of town. The Board of Commissioners declined to reappoint him after that. Mercado maintained that he still lived in town several days a week. The person behind the revelation was Ralph Lieber, who told the press that he had hired a private investigator to determine Mercado’s residency.
“I will expose what has been going on in this city,” said Lieber at the time. “The mayor is a bully.”
Settlement in February
On Feb. 4 in U.S. District Court in Newark, Union City and Lieber reached a settlement – four days before jury selection was scheduled to begin.
The suit alleged “political favoritism” on the part of Stack, the city of Union City, and the Union City Zoning Board.
When questioned about settlement details, the office of Lieber’s attorney, William Goldberg, responded last week that he was “not at liberty to discuss [the settlement] right now.”
According to Albiez, the attorneys are still deliberating over the exact terms.
“It’s up to the attorneys, he said. “We don’t have a time frame yet.”
When the settlement is reached, the town may be required to disclose settlement details under the Open Public Records Act, according to co-counsel to the New Jersey Press Association Lauren James Weir.
“Any time a governing body is spending taxpayer money, the public has the right to know how that money is being spent,” she said.
Rippling effects
Lieber stated last March that he would not be able to develop the property now due to the real estate downturn that occurred since he acquired the land in 2005.
He sold the property last June for about $500,000, tax records show, about one third of the price he purchased it for in 2005.
However, something positive did come in the midst of the legal proceedings – a resident-based Zoning Committee.
The committee was devised to advise the board on the regulation of current building stock, offer their opinions on upcoming projects, and work to bring the 2008 Master Plan to fruition for both commercial and residential developments. The Master Plain is a guideline for how the town should be developed in the future. Albiez said last April that there was no association between the accusations about the board and the committee.
According to Albiez, the advisory committee is still meeting and will ultimately reach some sort of opinion based upon resident input, which they will then put forth in a report to be considered by the Zoning Board.
Albiez reaffirmed in a phone interview last week that Stack has no control over Zoning Board decisions.
“The Zoning Board votes with their consciences,” he said.
Deanna Cullen can be reached at dcullen@hudsonreporter.com.