The Mailbag: On the Parking Authority Building Purchase

By • Nov 30th, 2009 • Category: Blog, News, Politics

Editor’s note: Sometimes we receive traditional letters to the editor rather than comments on stories. We will begin sharing them every once in a while in “The Mailbag.”

This week’s letters both concern the City Council’s vote last week to move forward with the purchase of the Parking Authority’s building on Central Avenue, despite calls from some for a new appraisal.

‘You Have a Duty to be Responsible in Your Spending’

So now our omnipotent city council has an expertise in real estate. Yet, in the same breath, they can’t even begin putting together a budget that is long overdue. A budget that by the way is facing a $40 million gap. How someone can fathom that an appraisal over a year and half old still be valid is beyond me. Have you been living under a rock? Even citizens that do not support Fulop supported him on this. Real estate prices have plunged. I am sure that piece of property is no exception. Mortgage rates are at record lows. I think the audacity here has a direct correlation to why the budget is still not completed. Furthermore, you owe the taxpayers as well as the city workers you are FORCING furloughs on. You have a DUTY to be responsible in your spending. Especially now. What was the rush on this? Did the seller push this so he could get the proceeds in for tax year 2009? Obtaining an independent appraisal if nothing else, would have reduced the fair market value enough to cover the cost of getting it done. However, anyone with some clear thinking would know that there would be some substantial savings on the property. Savings that would have amounted to AT LEAST $100,000. Now, you add in the fact that an appraisal which was partially based on an entity (USPS) that is clearly having financial difficulty, this simply compounds why using an appraisal over 18 months old simply defies logic and reason.

Mr. Donnelly:

When hearing about your resume Mr. Donnelly, I was very optimistic about the state of Ward B. Even citizens who do not consider themselves Healy supporters had given you high marks. But now, you accuse Steve Fulop of grandstanding???? How is it attempting to spend taxpayer money wisely synonymous with grandstanding? Have the hacks of Jersey City already gotten to you? How is acting in the best interest of ones constituents considered grandstanding? It seems that anytime a council person has no way to respond to a colleague on an issue they fall back on simply making the accusation of grandstanding. So in short, when a Jersey City council person makes the accusation of grandstanding, what they really mean is “I am clueless on this issue and I have ran out of responses that have no relevance to what we are discussing.” Furthermore, a lack of a REAL response certainly looks like they are trying to sweep something under the rug.

Mr. Vega:

Which leads me to a comment from Mr Vega. “I listened to the arguments of everyone that voted and I was persuaded by those arguments.” Isn’t being persuaded by people whom know nothing about the best interest of the citizens of Jersey City what got you into trouble in the first place with the FBI? Aside from your lack of judgement that you think you can properly serve on the council AND defend yourself in court, turning a blind eye to common sense here just puts yourself an even more negative light.

With people being laid off, getting their pay cut, being selected for a mandatory furlough, etc, we expect nothing less our of our city council than the same belt tightening that we are all forced to.

You are all on notice. The Jersey Call To Service Forum held in the council chambers on the 19th had an amazing turnout. The indication is that Jersey City residents have finally had enough and we are looking to take our government back and have responsible and sensible people run it again.

The clock is ticking until Jersey City finally has a council that LISTENS to its constituents and makes reasoned and sound decisions. Both of which this current administration is predominantly lacking.

I can say one we are in, we will be thanking you for one thing: keeping our seats warm!

- John Hanussak

‘There Should be No Building Purchase Until a Budget is Made First’

First of all, congratulations to those that showed some common sense and voted NO.

To the others…..

Are you ALL out of your minds???!!! Maybe these sort of purchases should now be put up for citizen vote rather then council vote only!!!!!

There should be NO building purchase until a BUDGET is made FIRST. Ah hell! Is Healy now going to be one year behind in making his budgets so he can cover up tricky actions???? If so, tell us now please.

It was my understanding Vega stepped down. If he did not, he sure as heck should have as he is being investigated. Now people, we know when people are under investigation by the FBI that is is not for good reasons, so again. WHY DOES VEGA HAVE ANY VOTE!!! As a tax payer I totally dispute this purchase action (to begin with) and Vega’s vote for a 2nd.

Mayor Healy:

You are the mayor of this city. You have not set a budget yet. WHY NOT???? Since you have NOT set a budget, why are there workers on forced furloughs? You can’t take actions like this unless you have a budget and KNOW how much money you have, or don’t have and where it is going to PAY CITY BILLS!

Just because you have a picture shaking Obama’s hand does not mean you can now spend money like a drunken sailor! ENOUGH!!!!!Shape up or ship out (step down).

Mayor….

“The Parking Authority wants to purchase the site for $4.2 million, but the city must guarantee the bond. “

So tell me Mayor. Without a budget how can you figure we can afford this?? How can you VALIDATE a building purchase when you have people on forced furloughs and are ready in debt?

AND DO NOT TELL ME THIS COMING YEAR THAT YOU HAVE TO RAISE PROPERTY TAXES BECAUSE WE ARE IN DEBT!!!!!!!! If you do this purchase.

Mr. Vega:

Get off this council NOW!!! IF you are cleared, then you can come back unless the people FINALLY smarten up and send you where the sun doesn’t shine. Your arrogance is disgusting. You have no more credibility!

Mr. Donnelly:

As the “new kid” in office, who to heck are you to accuse ANYONE of grandstanding????? Get your feet wet first pal!

Fulop has a LONG record of CONSISTENT HONESTY and CARING about the people of this city and shows it day in and day out!!!!!! Hmmm….. Or are you already in the ‘pay off’ section of the city council now ????

Joseph D’Amato said:

“Joseph D’Amato, the city’s appraiser, said the appraisal reflects the viability of the tenants and the rent collected from the tenants and that has not changed.” Sounds like Obamanomics to me! Maybe it is time to get a new appraisor.

So when did you start leaning to faulty loans like this? Remember ACORN and how they got into trouble??

“Viability of the tenants” Since Jersey City does not have a budget, and does have a large deficit. How do you consider them viable?

Mr Sottolano said:

“I think it’s a prudent thing to do at this particular time,” he said. “I think it’s a value to the city I also think it’s something that’s going to save us money in the long run.”

Okay, so AGAIN, with no budget for Jersey City for this year, HOW CAN YOU FEEL WE CAN AFFORD THIS???????? Are you now a member of ACORN and just want us ‘poor folk’ to buy a building???

- Dorothy Hanussak

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  • Jeff Kaplowitz

    The Jersey City Council once again has shown what little integrity they have when it comes to the stewardship of Jersey City taxpayers’ money. Over the Thanksgiving holiday week the Council snuck in a bond obligation of $4.3 million for the purchase of 392 Central Avenue where the Parking Authority rents space. First, why is the council spending this money at a time when they have failed to present a budget for 2009 which is already 5 months late? This budget will certainly contain furloughs, layoffs, reduced services and higher taxes. Second, why are they purchasing this building based on a year and half old appraisal from April 2008?

    The financial landscape of the world has changed drastically since September 2008. Just on the local level, Central Avenue has over 2 dozen vacant stores, the rents are coming down by 15 to 20% otherwise the stores stay vacant. Sales of commercial properties have slowed to almost nothing. Even if an owner received a good offer, he couldn’t be sure that a bank would lend money for the purchase at the same terms as they did before 2008.

    The foundations of the deal as stated by the Appraiser and Council Members are that the building has paying tenants, the US Postal Service and the JC Police Department and their rental income will offset the cost. But the US Postal service’s lease will expire in 2012. They have already closed one office on Pacific Avenue when their lease came up for renewal. Why would the City Council think that the US Government will be willing to pay the same high rent if they could reduce it or move to another location on Central Avenue? Did anyone talk to the Postal Service and request an extension of the lease to lock in the rental income? The Police Department rental is a bogus number since it is taxpayer money paying the Police Department to pay the Parking Authority. No different than taking money from your right pocket and putting it in your left pocket, you still haven’t gained anything. The Parking Authority has been in the building for at least 10 years, has anyone checked to see if they are overpaying on their rent? I have been a commercial broker in Jersey City since 1987 and I have never seen a market as depressed as we have now and yet the Appraiser when asked stated that he hasn’t seen any negative impact on value with regards to this property. How could that be possible when we have witnessed the worst economic collapse since the 1930’s? Yet the City Council was willing to accept this statement at face value and refused to have new appraisals done to make sure the taxpayers of Jersey City were not being cheated. If the Jersey City Council could reduce abatements on Canco, Crystal Point and Harwood Journal Square because of the downtown in the market how is it possible that Central Avenue could be untouched by the downtown? Was this a personal favor to the owners of the building at the expense of the people? Only Council Members Fulop, Richardson and Flood stood up for the people of Jersey City by voting no on this sham. For this, I thank them.

    With regard to allowing people to speak on the issue of how their money will be spent by our City Government, 4 Members of the City Council voted against opening the public portion of the meeting. Shame on you, I believe you do not understand our system of government OF THE PEOPLE, BY THE PEOPLE AND FOR THE PEOPLE. As we have hundreds of thousands of Americans risking their lives around the world to defend our freedoms you have shown that you are unqualified to hold elected office.

    Finally as we enter the holiday season and the people of Jersey City face much hardship this year, I think the owners of 392 Central Avenue should give thanks to the Jersey City Council for the very generous Christmas gift they have received.

    Jeff Kaplowitz
    Jersey City

  • Mary J Mills

    Readers may be interested to note that Jeff Kaplowitz is a very longtime and respected realtor in Hudson County. He has also served on the Planning Board or Zoning Boards (perhaps both). I think he knows something about what he is observing. I cant help wondering if this bonding doesn’t constitute a kind of fraud because the underlying value of the building without longtime rent contracts is certainly lower. If you went to sell a commercial building now a bank would send its own appraiser who would use a changed set of criteria for the appraisal. Much tougher because of the market. The council is totally wrong to not insist on a re-appraisal, even if only to counter any appearance of conflict. We deserve a higher not lower standard from our counsel members.

  • BearBear

    Ooooh “Obamanomics” *and* a scattershot reference to ACORN in one letter? Win.

    I’m opposed to this irresponsible purchase, almost as much as I’m opposed to mindless Fulop worship.