Rahway Rising

Another look at Merck's tax appeal settlement

2012-02-15T23:56:00.023-05:00

The city's tax appeal settlement with Merck & Co. added approximately $400 to the average home over three years, according to my estimate. Merck & Co's tax appeal settlement that was approved a year ago cut the property tax bill for the pharmaceutical giant by at least $4.5 million over three years, reducing its overall tax assessment in Rahway by $82 million, or more than 26 percent.

The appeal affected the tax years 2010-2012 and my estimate includes some assumptions based on 2011 tax rates for 2012. The biggest hit looks like 2011 (see the end of this post). My estimate doesn't include some other costs the city might have incurred, such as appraisals, litigation and borrowing, only an attempt to quantify how much the new assessments affected the average home.

Overall, the city's valuation dipped from $1.549 billion to $1.486 billion in 2011 and $1.467 billion in 2012 as a result of the settlement, according to the letter sent to residents last year, explaining the settlement.

As part of the settlement, Merck withdrew its appeal in 2009 and received a cash refund of overpayment of taxes that year of $1.6 million. All told, that's at least $4.5 million, based on 2011 tax rates, that had to be made up somewhere on the tax rolls.

Some explanation of how I arrived at this estimate: The average home in Rahway is assessed at $133,000. Every $13.30 in municipal taxes on the average home generates about $149,000 in tax revenue. Feel free to check my work in this Excel file; the key figures also are listed below (tax rates can be found on the city's website). For 2012, I used the 2011 tax rate since the county and schools have not set their tax rate, while the municipal tax rate has only just been proposed.

Merck's overall assessment was reduced from $312,368,300 to:
- $280,878,500 for 2010 (-$31,489,800)
- $249,699,700 for 2011 (-$31,178,800)

- $230,000,000 for 2012 (-$19,699,700)

Merck's property tax bill shrank approximately:
- $1,614,797 in 2010 [$144 for average home]
- $1,797,458 in 2011 [$161 for average home]
- $1,135,688 in 2012 [$101 for average home]

Council introduces municipal budget

2012-02-13T21:35:00.008-05:00

Municipal taxes are expected to eclipse $3,000 for the average assessed home ($133,000) this year, according to the $49-million budget introduced by City Council on Monday night. The municipal budget makes up about 38 percent of the overall tax bill, which also is made up of the school and county taxes.

The municipal tax levy -- the amount to be raised by taxes -- is proposed at $33.455 million, down slightly from the $34.118 million estimated for all of 2011, which was split between the second half of the 2011 fiscal year budget and a 2011 transitional year budget. The proposed municipal tax rate for 2012 is 2.287 (per $100 of assessed value), so the average assessed home ($133,000) would see municipal taxes of $3,042, compared with $3,046 estimated last year.

The city's net valuation dropped from $1.489 billion to $1.462 billion, a decline of $27 million or almost 2 percent, due primarily to Merck's tax appeal. City Financial Officer Frank Ruggiero told council members that $1.5 million of a $3-million settlement with the Union County Utilities Authority will be used as revenue this year, offsetting the loss of about $1 million in tax revenue this year due to the multi-year tax appeal settlement with Merck. He said the city also plans to become more aggressive in its debt reduction in the 2012 budget.

The City Council introduced the 2012 municipal budget by a 7-0 vote, with two members absent. Final adoption and a public hearing is scheduled for the March 12 regular meeting.

The City Council in November approved a transitional year budget covering July-December 2011, as it moved from a fiscal year budget (July to June) to a calendar year budget this year. Municipal taxes were about $1,522 for the average home for the six-month transitional year budget, and about $2,416 in the last fiscal year budget.

Poll: What kind of grocery store do you want?

2012-02-06T20:00:00.030-05:00

It's time for another fun blog post, like a new poll. It was mentioned during the annual reorganization meeting of the City Council that the city is in discussions to bring a grocery store downtown, upward of 20,000 square feet in size. A grocery store has long been among the top priorities for residents, so our next poll question isn't whether you want a grocery store downtown, but what kind?

Which grocery store would you prefer downtown?
Aldi
A&P
Bravo/C-Town
Fairway Market
Pathmark
ShopRite
Stop & Shop
Supreme
Trader Joe's
Whole Foods
Other

Given the proximity of a few (ShopRite, A&P, Aldi, Trader Joe's), the demographics of some (Whole Foods) and the size of others (Wegman's), I doubt whether these are realistic possibilities for downtown but we needed to give you something to vote for. For some perspective, of the 10 or so Whole Foods stores in New Jersey, the smallest is about 17,000 square feet (Montclair), so I'm not sure what could fit downtown, if anything.

Consider the "Other" option for any boutique or single-location store you might be familiar with, and feel free to share details in the comments. Who knows, maybe someone who can do something about it is reading.

120-unit Meridia Chateau proposed at Savoy site

2012-02-01T00:01:00.006-05:00

A 120-unit rental complex proposed for the former Savoy site would nearly four times the size of previous plan's density. The Savoy, which broke ground in 2006 at the corner of Monroe and Main streets but stalled and went into default last year, was to be a 36-unit, two-bedroom condo development.

Main Street frontage

Representatives from Capodagli Property Company appeared before the Redevelopment Agency Wednesday night with a concept plan for the five-story Meridia Chateau, which would include 120 parking spaces on two levels, and an entrance from both Dock and Main streets. Taking advantage of the natural slope from Main to Dock streets, 57 parking spaces would take up the first level of Main Street( along with a main entrnace), and another level of 64 parking space below it, on Dock Street.

There would be 30 units per floor. Of the total 120, 60 would be two-bedrooms, another 30 one-bedrooms, and 30 one-bedrooms with a den/office. The units would range in size from 650 to 815 square feet, similar to what's planned at Meridia Water's Edge, according to George Capodalgi, a principal in the firm. He was unsure of the exact density of the project but estimated it also would be similar to Meridia Water's Edge, about 140 units per acre. "The biggest demand right now: studios. It's hard for us to believe it," he said.

Upper level parking

The Pompton Plains-based developer is getting ready to break ground on Water's Edge, a 108-unit project on 0.75 acres behind the city library, and last year completed Meridia Grand, 88 units on East Grand Avenue.

Redevelopment Agency Chairman William Rack asked that Capodagli consider changing the name of the project to Meridia Lafayette, to mark a historic visit by General Lafayette to a former tavern on the site.

Lower level parking

The next step will be for the Redevelopment Agency to designate Capodagli as redeveloper of the site, which could occur as early as next month, and then negotiate a memorandum of understanding, said City Administrator and Redevelopment Director Peter Pelissier. After a redevelopment agreement is reached with the agency, he said the City Council would have to amend the redevelopment plan while the Planning Board offers its input, before voting on any application, which could come by summer.

***Feb. 2 addition: The subject of a Payment in Lieu of Taxes (PILOT) did not come up during the presentation, but when asked after the meeting, Pelissier said he expects Capodagli to apply for one. Cadogali confirmed in an email on Thursday that he would ask for a PILOT.***

Bond ordinance increased for building removal

2012-01-30T00:01:00.004-05:00

The City Council this month unanimously approved an amendment increasing a bond ordinance by $85,000 for work related to the demolition of an East Cherry Street building last year.

At its Jan. 9 meeting, the governing body amended an ordinance from $200,000 to $285,000 (an increase of 42 percent) for work that included demolition of 65 E. Cherry St., which occurred in May (after the facade collapsed last February) and was paid for via a $75,000 emergency resolution in June). The ordinance also included funds for improvements to Lot B on Main Street.

City Administrator and Redevelopment Director Peter Pelissier said the increase was needed for additional engineering costs to shore up the sides of the neighboring buildings, and ensure that when the building was removed, the adjoining basements were not affected. The city has placed liens on ~~the work for~~ the property, he added.

Developer Dornoch Holdings purchased the property for $65,000 from the Parking Authority and more than four years ago had proposed renovations to the Planning Board but those never went anywhere.

Sheriff's sale on Riverwalk units next month

2012-01-25T19:46:00.005-05:00

A $5.255-million sheriff's sale on the remaining 19 unsold townhouses at Riverwalk is scheduled for Feb. 8, Redevelopment Agency attorney Frank Regan reported to commissioners at their meeting earlier this month. Bank of America likely will purchase the 19 units at the sheriff's sale and then look to sell them, Regan told commissioners.

Foreclosure on the 19 unsold units began in late 2009. A total of 86 units were built, with a plan to add more on an adjacent parcel that never materialized. About two dozen Riverwalk units that are owned won judgments on their tax appeals last year, seeing their assessments reduced by as much as $20,000 and their taxes by $1,000.

***

Well, check this out: A study by the National Trust for Historic Preservation claims that retrofitting an exiting building to make it 30 percent more efficient will "essentially always remain a better bet for the environment than a new building built tomorrow with the same efficiencies," according to The Atlantic.

New concept for The Savoy site to be presented

2012-01-23T00:01:00.002-05:00

A new concept plan for the defunct Savoy project -- likely to be several times larger than the 36 units originally envisioned -- is expected to be presented to the Redevelopment Agency next week.

Capodagli Property Company is expected to come before commissioners at their 6:30 p.m. meeting on Wednesday, Feb. 1 with a plan for as many as 100 units, according to City Administrator and Redevelopment Director Peter Pelissier. He previously has said that the original plan for 36 units will not work and will need to be larger because of the amount of money already invested by the bank.

The Pompton Plains-based firm is expected to begin construction this spring on Meridia Water's Edge, a 108-unit rental development behind the library. Capodagli was negotiating to acquire the Savoy site, which had gone into foreclosure, from the bank.

The Savoy was to be a four-story 36-unit, two-bedroom/two-bath condo project, with 7,000 square feet of ground-floor retail space along Main Street at Monroe Street (Block 320, Lots 1.02, formerly Lots 1-4). The developer, Dornoch, which bought up the parcels along Main Street for The Savoy and The Westbury more than five years ago, was declared in default of its redevelopment agreement last year.

Agency closes on sale for Water's Edge parcel

2012-01-19T19:49:00.002-05:00

The Redevelopment Agency last month closed on the $1-million sale of a three-quarter-acre parcel where a 108-unit rental complex will begin construction this spring. Pompton Plains-based Capodagli Property Company will undertake the project under the name Meridia Water's Edge Urban Renewal, LLC.

Redevelopment Agency attorney Frank Regan informed commissioners at their meeting last week of the mid-December closing and the initial payment of $250,000 by Capodagli Property Company to the agency. Another $250,000 payment will be due at the end of next month, he said. The balance will be due when the first temporary certificate of occupancy (CO) is issued.

Construction is scheduled to begin in March and be completed by May 2013, according to the 10-year PILOT and financial agreement that was approved last month by City Council.

The sale was for $1 million but Capodagli will be credited for the expense of removing soil from the property, adjacent to the library, Center Circle and Rahway Plaza Apartments. Those costs were estimated to be about $160,000, making for total expected revenue to the agency of $840,000.

Rahway Rising Happy Hour next week

2012-01-18T21:20:00.007-05:00

Back by popular demand -- and far too long in the making -- the next Rahway Rising happy hour will be next Thursday, Jan. 26 at Nancy's Towne House.

The groupies tend to start arriving around 6 p.m. Hope to see you there. Anyone with an interest in having some fun, maybe chatting a little about redevelopment, or just meeting your neighbors. All are welcome.

We'll also be raffling off two tickets to The Rahway Taste of Spring. Maybe afterward we'll all hit up the Mayors Council on Rahway River Watershed Flood Control meeting at 7:30 p.m. in the library.

Interest in Wheatena site

2012-01-17T22:42:00.000-05:00

City officials were scheduled to meet last week with a developer interested in the former Wheatena site.

File photos

City Administrator and Redevelopment Director Peter Pelissier told the Redevelopment Agency last week that he and Redevelopment Agency attorney Frank Regan were scheduled to meet with American Properties last Thursday. The company, which has several developments around the state, previously had expressed interest in the property, according to Pelissier.

Matzel & Mumford recently terminated a redevelopment agreement for the 8-acre parcel at the corner of Elizabeth and West Grand avenues, where it once had planned as many as 300 units before scaling back to 130 units and ultimately dropping the project.

Auto parts store seeks renovations

2012-01-12T00:01:00.000-05:00

After a plan to create a park at the site didn't pan out, a downtown auto parts store is looking to add an apartment to its second floor.

Norwood Auto Parts, at the corner of Monroe and Essex streets, aims to renovate its second and third floors to create a residential component to the structure while also including some flood protection measures.

Pat McElduff of Norwood Auto Parts came before the Redevelopment Agency Wednesday night with an application to add a 1,400-square-foot, loft-style apartment on the second floor of the building, which isn't currently used for anything. The plan is to essentially create high ceilings by combining the existing the third floor, which only encompasses part of building, McElduff said. The garages might be used by contractors, such as plumbers or electricians, he said.

Given the topography of the site, Norwood Auto Parts has flooded regularly during big storms, McElduff said, and seems to be getting worse. Though the water comes and goes quickly at the site, there was still three feet of water after this past summer's storm, he said. As part of renovations, the floor would be raised about two feet and some flood protections would be added to the building's foundation, including a rubber membrane.

The building has been an auto parts store since 1955 but started as a temple. In 2010, the city had explored using some state Green Acres dollars to acquire the site and create a park but it was not economically feasible.

The Redevelopment Agency was receptive to the concept presented by McElduff at a December meeting and asked for a formal application to be presented. The agency is expected to pass a resolution at its February meeting to allow the renovations within the redevelopment plan, which then also would need to be amended by City Council to include the plans.

The two properties that make up 125 Monroe St. (Block 321, Lots 3 and 4) were acquired in 1991 and have a property tax bill in excess of $15,000, on an assessment of about $265,000, according to property records.

Council rejects pair of mayoral re-appointments

2012-01-09T21:22:00.000-05:00

The City Council tonight unanimously rejected two re-appointments proposed by Mayor Rick Proctor amid several others that were approved, while also dismissing a local "pay-to-play" ordinance.

Rejected were the re-appointments of George Wagenhoffer, a Republican, to a three-year term on the Alcohol Beverage Control Board and Josh Donovan to a four-year term on the Zoning Board of Adjustment. However, two other re-appointments to the Zoning Board -- William Hering (term through 2015) and Paula Braxton (alternate, 2013) -- were approved. In a separate resolution, Ray Lopez was approved to fill a vacancy on the Zoning Board through 2012.

City Council members had no comment, not even any comments unrelated to business on the agenda, which they sometimes offer in their end-of-meeting reports. Council President Samson Steinman, who pulled the affected resolutions from the consent agenda, declined to comment on the failed re-appointments following Monday night's meeting. (The consent agenda allows the governing body to combine routine resolutions into one vote but a council member can pull them out to be voted on separately, as was the case with several tonight).

Among the appointments that gained approval were two to the Parking Authority (James Walker, 2015, and Eric Kabel, 2016), one to the Planning Board (City Councilman Sal Mione, through 2012), and another to the Redevelopment Agency (Matt Dobrowolski, unexpired term through 2014).

When Ordinance O-3-12 ("Pay-to-Play") came up on the agenda, 3rd Ward Councilman Jerry Scaturo and 4th Ward Councilman David Brown both pulled their sponsorship of the measure, which was set at last week's pre-meeting conference. Neither addressed the move publicly. A copy of the four-page ordinance can be found in this Google Document file. The mayor had mentioned pay-to-play in his State of the City message last week (another Google Doc).

The mayor and City Council, all Democrats, have been at odds over the last half year or so, over a number of items, including reducing his salary and other staff appointments in the mayor's office.

A year after the big apartment fire

2012-01-05T00:01:00.002-05:00

It was a year ago today that a fire destroyed a three-story, 50-unit apartment complex on St. Georges Avenue. Brookside at Rahway was under construction and nearly completed with leasing was expected to begin later in the year.

Police determined the fire was arson within a few days, but it wasn't reported as such until one of our follow-up inquiries in March. Police Chief John Rodger said last week that it remains an open investigation.

Demolition of the three-story structure began about three months after the fire and work began anew in late September. In August 2009, trees were cleared at the 5-acre site to make way for construction, which began the first time around in August 2010.

Brookside at Rahway has since been nearly rebuilt, with leasing expected to begin in the spring.

***

The idea of public art is always intriguing, so I thought this piece from The Atlantic was pretty cool about an effort in Budapest, Hungary ("An Artistic X-Ray for Buildings in Budapest"). A local art collective commemorated buildings that had been razed for new construction by painting a mural of what appears to be a black-and-white X-ray of what once stood there.

It reminded me of some of the old artifacts and other signage found when some Main Street properties in Rahway were razed several years (namely a Marks Harris (.pdf) on the side of the building facing Lot B that's been painted over white). Click the link above to see the images, it'll really give you a sense of what I'm talking about.

State of the City 2012

2012-01-03T21:46:00.115-05:00

In what could be called dueling State of the City addresses, Mayor Rick Proctor and City Council President Samson Steinman both delivered remarks at tonight's annual reorganization meeting, assessing the city's position as it enters a new year.

After being elected council president for 2012 by his peers, Steinman delivered remarks for about five minutes from his seat on the dais, touching on several aspects of redevelopment, among other things, including:

* City Council members have met with private investors interested in bringing some type of grocery store or supermarket downtown. In an interview after the meeting, Steinman declined to go into details, only to say that discussions started within the past two months and there has been talk of up to a 20,000-square-foot facility.

* A Los Angeles-based production company is looking to build two sound stages within the city, which could mean an investment of up to $40 million.

* A national arts-based franchise is interested in establishing a franchise within the city's Arts District.

* Negotiations with the Union County Utilities Authority (UCUA) yielded a $3-million settlement for previously owed fees that the city was entitled to under the original community host fee agreement. The plan is to use more than half of that lump sum to stabilize the city budget and earmark the remainder to the city's financial reserves.

Asked why he chose to deliver remarks at the reorganization meeting, which in recent years has only seen the mayor make prepared statements, Steinman said it shows he will not be a typical City Council president.

Proctor followed with a 15-minute speech from the podium, touching on a variety of challenges and accomplishments in 2011 and urging the city to strive to do better in 2012. No longer can renovations to the train station be called new, now that it's been 13 years since they were completed, he said, but other enhancements are needed downtown. It's not good enough to say the library and recreation center are new as they were established for years now, he said, promising to focus on programming.

Proctor pledged to discontinue a "business as usual approach," particularly when it comes to the city budget, which will face a 2-percent state-mandated cap this year, and also will be affected by a 72-percent increase in tax appeals that reduced revenues by $2 million, including $1.6 million from Merck.

Both Steinman and Proctor alluded to contentious relations between the legislative branch and the administration during the past year. The mayor celebrated the initiation of weekly mayoral office hours, which he said was used by residents and business owners but "barely utilized" by City Council members despite claims that he does not communicate with them. Proctor said he refuses to let personal motives stand in the way of his ability to lead the city. Steinman was more veiled, warning "those who act in detrimental ways toward Rahway" that the City Council would protect the city's and taxpayers' interests.

Also Monday night, the City Council unanimously overrode another mayoral veto, this time of the salary ordinance which reduced his pay. Proctor vetoed Ordinance 38-11 on Dec. 22.

Here's a word cloud based on the full text of the mayor's speech (click it for a larger version):

For those interested, here's a Google doc of the mayor's remarks in full, and another of the council president's remarks. And here's a word cloud based on the text of the council president's speech:

For some historical perspective on State of the City updates, check out previous blog posts going back to 2008 (the older links, 2003 and 2005, link to old city press releases):
2011 State of the City
2010 State of the City
2009 State of the City
2008 State of the City
2005 State of the City
2003 State of the City

Meridia PILOT, redevelopment agreement OK'd

2011-12-29T18:01:00.051-05:00

The developer of the proposed Meridia Water's Edge will pay $216,000 annually -- roughly $2,000 per unit -- to the city for 10 years in lieu of regular property taxes that normally would be split among the city, county and school district.

The City Council unanimously approved the Payment In Lieu Of Taxes (PILOT) at its meeting Dec. 12 [Ordinance 29-11], with no comment or discussion among members of the governing body. The lone public comment during the meeting came from Patrick Cassio, the local Republican chairman former mayor candidate, who bemoaned the fact that the PILOT avoids any payments to the school district. Union County will get some portion of the payment.

How much the property would have normally paid in property taxes, or how the $216,000 figure was arrived at, is unclear. Currently, the vacant land is assessed at $161,700 but generates no tax revenue since it's owned by the Redevelopment Agency, which does not pay taxes. (Theoretically, the assessed value would generate a property tax bill of about $9,322, based on the current overall tax rate of 5.765 per $100 of assessed value).

Capodagli Property Company will acquire the three-quarter acre property (Block 305, Lot 5.04) from the Redevelopment Agency for $1 million, minus a credit for removing soil on the site left from the construction of the library a decade ago. The agency approved a redevelopment agreement at its meeting this month. Principal George Capodagli told the Redevelopment Agency this month that the cost of soil removal was about $160,000, which would make for a final sale price of about $840,000. City Administrator and Redevelopment Director Peter Pelissier initially anticipated the cost would be upward of $250,000.

The five-story, 108-unit Water's Edge will have about 87 parking spaces on the ground floor and will use 21 parking spaces in the adjacent lot owned by the condominium association that operates the library building. The rental development will have 56 two-bedroom units and 52 one-bedroom units.

The Planning Board gave its approval of the plan last month, and the City Council amended the redevelopment plan to include the site. Only one council member objected at the time, based on concerns about not requiring some type of LEED-certified construction.

Water's Edge will be the second project undertaken by Capodagli Property Company in Rahway. The Pompton Plains-based firm completed Meridia Grand, an 88-unit rental complex last year, which sold for $19 million several months ago. Capodagli also is in negotiations to acquire the former Savoy property, which has been stalled for many years. The firm is expected to present a concept plan for The Savoy site to the Redevelopment Agency early next year.

Wheatena development scrapped

2011-12-27T00:01:00.008-05:00

Due to unfavorable market conditions, the developer of the former Wheatena site on Elizabeth Avenue issued a notice to terminate the redevelopment agreement.

Matzel & Mumford, a K. Hovnanian Company, "does not foresee any reasonable prospect of being able to move forward with the development during the next year," according to a resolution passed this month by the Redevelopment Agency acknowledging receipt of the notice.

The redeveloper had been working for more than a year to come up with a new timeline for the project, already realizing it was "economically unfeasible." The notice to terminate was issued Oct. 31. They met with the Redevelopment Agency on Nov. 14 to discuss the matter and reasons why the redeveloper cannot move forward with the development and reasons for termination.

File photo

Plans for the 130-unit Carriage Park at Rahway consisted of 72 "stacked" and 58 "traditional" townhouses, which was scaled down in early 2007 from 300 units (264 condos/36 townhouses). It would encompass Block 228, Lots 1-6, and Block 227, Lots 1 and 2, and Block 226, Lot 1, which includes both the former Wheatena oatmeal factory at the corner of Elizabeth and West Grand avenues and the former Quinn & Boden site further east along Elizabeth Avenue.

The biggest parcels (Block 228, Lot 1 and Block 227, Lots 1-2) are owned by the David and Sylvia Weisz Foundation in Los Angeles, Calif., which acquired them in 1985 for more than $2 million, according to property records. The roughly 8 acres are assessed at more than $2.3 million and pay almost $150,000 in property taxes.

East Cherry Street eatery closes

2011-12-22T18:01:00.069-05:00

After about 18 months in operation, Casa Borinquen on East Cherry Street closed last week. The eatery specializing in Puerto Rican fare opened in March 2010.

No word on why it closed. A sign posted in the window (below) explained that the last day was Dec. 16, thanked customers for their patronage, and noted that catering still will be available.

The East Cherry Street storefront has seen its share of tenants over the years. Taste of Portugal closed in the fall of 2009 and prior to that, the space was occupied by Eat To the Beat Cafe.

More than 100 properties win tax appeals

2011-12-19T20:01:00.010-05:00

More than 100 properties successfully reduced their tax assessments for 2011, securing reductions in their property tax bills totaling $117,704.

The tax appeal amounts were approved by City Council at its November meeting, following property judgments by the county Board of Taxation. The 104 properties successfully reduced their collective tax assessments by more than $2 million, from $16.74 million to $14.7 million. Included among the reduced assessments were two dozen Riverwalk townhouses and two units at Carriage City Plaza. These judgments were appeals that reached the county level, and could be appealed to the state Tax Court. In all, the city received about 200 individual property appeals this year, according to Tax Assessor Richard Kulman.

The number of appeal judgments approved are twice as many as the 52 settled at the county level in 2010, which were twice as many as 2009. The totals do not include the tax appeal settlement with Merck. The pharmaceutical giant had its assessments for 2010, 2011 and 2012 reduced as part of the settlement.
Averages among the 100+ properties, followed by high/low, were:

Original assessment: $162,551 -- $82,800 / $305,700
New assessment: $142,729 -- $61,200 / $250,000
Reduction: $19,822 -- $2,100 / $47,900
Appeal amount: $1,143 -- $121 / $3,211

Here's a Google Docs spreadsheet with all the properties and details on the assessments and reductions. If that's not cool enough, here's a link to a Google Map of all 104 sites (which can also be found below). [It was pretty tedious and laborious to put together, so it'd be great if you could click the link to at least make me think it was worth the time and effort...].

View County tax board appeals, 2011 in a larger map
There seem to be a couple of pockets or clusters around town. In addition to the new construction, some two dozen properties around the Rahway River Park neighborhood won tax judgments and another handful in the Inman Heights area.

***

In case you missed last week's drama between the City Council and Mayor Rick Proctor, Sunday's Star-Ledger had an editorial about the ongoing debacle ("Rahway mayor's overreach may cost him his job"). In addition to calling Proctor's veto of an anti-nepotism ordinance "tone deaf," the 258-word piece essentially said the council is trying to push Proctor out by reducing his salary.

Looking for feedback on the blog

2011-12-18T18:01:00.048-05:00

I'm looking for some feedback this week about the blog, namely when exactly you read and visit the site. Whether or not the poll results affect what time I can post remains to be seen but I'd appreciate hearing if you have any preferences.

When do you usually read/check the blog?
- Early morning
- Late morning
- Early afternoon
- Late afternoon
- Evening
- Late night
- Weekends

I can tell site visits are certainly higher during the week, one reason why I don't usually post on the weekend. I tend to post whenever I have time and some information though I've tried different schedules, if possible, such as just after midnight so email subscribers get the posts about 10 hours later; lately I've aimed for a specific time, like 7 p.m. Would that be something you're interested in, a set time, like 10 a.m. or noon or 7 p.m., to be consistent? Or perhaps you like the randomness and surprise of whether there's a post that day?

Also, I'll sometimes share interesting items about redevelopment or planning stories from outside of Rahway, either via Twitter and/or Facebook, and/or tacked on to the end of a blog post. I like to keep up about goings-on elsewhere but also perhaps some items might be relevant to local redevelopment. Let me know what you think about that.

I'm always open to suggestions and feedback, so feel free to comment or shoot me a comment. Thanks for reading.

Restriction lifted on proposed jazz club

2011-12-15T18:56:00.012-05:00

The Redevelopment Agency last night officially agreed to consider uses other than those permitted in the redevelopment agreement for the former Kelly's Pub property.

A principal of the proposed KC Jazz Club at 1646-54 Irving St. (Block 162, Lots 5-7) made his case to commissioners at their meeting last month, arguing that financing evaporated while annual costs continue unabated. A restriction limiting the property to use as a jazz club apparently also hindered any potential sale or new developer to resurrect the project.

(Note the new sign in recent weeks, "Commercial Building Available," on the left in the photo above, juxtaposed with the one on the right that says: "Coming Soon! KC Jazz Restaurant.")

The resolution was adopted during a special meeting last night, a week after a lack of quorum for last week's regularly-scheduled meeting did not allow for official action to be taken.

***

Check out this piece from Crain's New York Business about Brooklyn's Myrtle Avenue. Twenty years ago, you'd be told to avoid the Clinton Hill neighborhood's "crime-ridden main drag." Today, 97 percent of the businesses are locally owned, with eight new arrivals in the past year, and 78 percent of them are minorities and/or women.

The story provides some details about community leaders and longtime residents creating a revitalization project in 1999 that has morphed into a business improvement district with an annual budget of $1 million thanks to money from the city, private foundations and fees on local landlords.

Council overrides mayor's anti-nepotism veto

2011-12-14T23:34:00.002-05:00

In another instance where the City Council and Mayor Rick Proctor parted ways, the governing body on Monday night voted unanimously (9-0) to override his veto of an ordinance that would have established an "anti-nepotism policy" within the city's personnel policies.

"Never in a million years did I expect an official in Rahway would veto" an anti-nepotism ordinance, 6th Ward Councilman Samson Steinman said at Monday night's meeting. He cited an anti-nepotism bill at the state level, introduced by Amy Handlin (R-Monmouth), and reiterated a statement from the assemblywoman about the need for such legislation.

Proctor and the City Council sparred earlier this year over allegations that he tried to get his wife hired as the new health officer, a position he held for several years before becoming mayor. The council originally adopted the ordinance Nov. 14 and the mayor vetoed the measure (O-33-11) on Nov. 23. In his remarks at the Nov. 14 meeting, Proctor said he found it odd that the co-sponsor of the city's anti-nepotism ordinance was the "same council member who called me in June begging for a job for his child this summer," referring to 1st Ward Councilman Robert Rachlin, who seconded the measure with Steinman as the primary sponsor.

Former Mayor James Kennedy had an interesting comment about the veto in today's Star-Ledger story: "What the heck is he thinking?" Proctor was Democratic municipal chairman for many years during Kennedy's tenure as mayor. "Just when you thought you'd heard it all. The veto was the craziest thing I've ever seen in politics," Kennedy told the Ledger.

In a memo to the city clerk Nov. 23, Proctor outlined several reasons for his veto, including exposure to lawsuits based on racial and religious discrimination and jeopardizing the city's status as an equal opportunity employer. He also believed it conflicts with the open competitive process set forth by the state Civil Service Commission and is discriminatory "on face value by eliminating potentially qualified job candidates solely on the basis of relationship."

Hiring of personnel originates with directors and the business administrator, not the mayor and council, so Proctor argued that influence would be exerted at that level. "If the ordinance is going to be more than just window dressing...the scope should be expanded to include department directors and administrator at a minimum. Even a cursory review of nepotistic relationships among city employees will support this argument," he wrote.

Council reduces mayor's pay by unanimous vote

2011-12-13T00:01:00.041-05:00

The City Council last night night unanimously (9-0) approved a salary ordinance (0-38-11) that will slash the mayor's pay by 68 percent, effective Jan. 1, 2012. Entering the second year of a four-year term, Mayor Rick Proctor will see the salary for his part-time post reduced from $65,000 to $20,809.

As he has maintained for weeks, the mayor said the move by City Council is "political payback" for seeking accountability. "I refused to go along with business as usual approach to management. And now I am paying the price," he wrote in a three-page memo to Council President David Brown dated yesterday. Accompanying the memo was a bar graph indicating the percentage increase in salary ranges for management personnel under the proposed ordinance, most of which were 0 to 4 percent -- except for the mayor's position.

"Passage of this ordinance is fiscally irresponsible and totally unnecessary given that a valid ordinance is in effect. If passed, your actions will make it clear that the only purpose is to attack the mayor's salary," Proctor wrote. He claimed the governing body is purposely deviating from past practice that has been in effect for 20 years, where the council adopts the municipal budget, and then, based on available funding, passes a salary ordinance for management personnel.

"No one in this city is foolish enough to believe that you take this action pursuant to a reasoned, thoughtful consideration of its consequences," Proctor wrote. "This council acts now based on politics, in an arbitrary and capricious manner. You have allowed this legislative body to be coerced by a small but threatening minority whose political rewards have been threatened by me as mayor." (All nine council members and the mayor are Democrats.)

The few residents who were in attendance Monday night spoke at the public meeting. Scott Caffee of West Scott Avenue, a frequent attendee at City Council meetings in recent months, agreed that the mayor's pay cut was a "personal, calculated" move by the governing body and suggested reducing everyone's salary. Frequent council critic Patrick Cassio, the local Republican chairman and a candidate against Proctor last year, questioned why the council did not act in January when Proctor took office and what happened between now and the last election season cycle when other council members campaigned for the mayor.

Sixth Ward Councilman Samson Steinman, who worked on Proctor's mayoral campaign last fall, conceded the pay cut should have been done a year ago, making the point that department heads who replaced longtime directors in recent years also were brought in at lower salaries. He continued to reject claims that the pay cut was a personal slight against the mayor.

Floren Robinson of Essex Street feared that cutting the salary will discourage qualified people who might want to run and not incentivize people to work to better the city or deal with all that it takes to be mayor. "Fighting over a few thousand dollars is not going to help the city," she said. Her husband, Michael Pressman, a compensation consultant by trade, told the council that compensation can "serve as a powerful performance motivator" and in any situation where a person is replacing an incumbent, they're aware of the terms prior to their new role. He said the city needs a cooperative government and an engaged mayor, emphasizing his concerns that the ordinance will have a negative impact.

Steinman countered that the mayor's position is not a job as much as it is public service. "To look at the mayor's job as a job is totally wrong," he said. Fifth Ward Councilwoman Jennifer Wenson-Maier suggested that some highly qualified mayors in other Union County towns make $1 in their positions, such as Fanwood's Colleen Mahr. Council members earn $8,043 and also are considered part-time posts.

Other council members didn't speak on the salary ordinance directly, alluding to it and other critiques in their public comments. Councilman At Large James Baker called some of the criticisms of the council "out of line, not based on any sound perspective." He said the accomplishments by this council and mayor are often "overlooked or oversimplified. We make difficult decisions in a proactive and positive way and the public is not necessarily aware of these things."

Brown, the council president and representative to the Fourth Ward, suggested that when the current council majority took control of the governing body in 1996, "downtown was a ghost town." Some of those same council members, he added, have been responsible for bringing millions of dollars into the city.

Meridia Grand sold for $19 million

2011-12-12T00:01:00.079-05:00

Barely two years after properties were razed to make way for the the 88-unit Meridia Grand, the five-story rental complex has sold for $19 million. The sale (Block 379, Lot 2.01) closed Oct. 25 and the buyer was listed as a West Hempstead, N.Y.-based entity called 3101-15 Ave. I, LLC.

2010 rendering

The seller, Capodagli Property Company, last week gained approval for a 108-unit rental project, Meridia Water's Edge, to be built adjacent to the city library. City Council will vote tonight on awarding a PILOT (Payment In Lieu Of Taxes) to the project. The Pompton Plains-based developer also is negotiating to take over the foreclosed Savoy project at Main and Monroe streets.

2008 rendering

The Meridia Grand, which was named Renaissance at Rahway throughout the planning process, is assessed for $5.362 million and paid about $31,000 in property taxes last year. Apartments started leasing last summer.

Renaissance at Rahway originally had been planned as a 72-unit condo development but that was changed in 2008 to 64 rental units, before bumping the total to its present 88. The plan originally also called for developing the entire triangle block but one property owner declined to sell. The project also eliminated a stretch of M ontg omery Street from East Grand Avenue to Monroe Street.

Poll results: Reduce mayor and Council salaries

2011-12-11T18:57:00.107-05:00

More than a third of voters in our latest poll agreed that City Council should reduce the mayor's salary, with another quarter adding that salaries for City Council members should be cut as well.

The City Council is scheduled to vote on a salary ordinance tomorrow night that would reduce the mayor's salary by 68 percent, to $20,809.

Should the City Council reduce the mayor's salary?* Yes. 34 percent (44/128 votes)
* Yes, but they should all be cut, including Council members. 23 percent (30/128)
* Not only cut, but salaries for all elected officials, and then some, should be cut. 17 percent (23/128)
* No. 12 percent, (16/128)
* No; you get what you pay for; they should be paid something to attract worthy candidates. 7 percent (10/128)
* Times are tough, make cuts wherever you can. 3 percent (5/128)

There were a total 128 votes cast in the latest poll and there was as smattering of votes both for and against that I received via email, which I'm not sure if they actually went to the site and clicked on the poll.

I always like to offer more than a yes/no question in the poll, and I realized too late (after I'd posted it and some votes had already come in) that I should've had another option, something like, "No, it reeks of political retribution," since that's what the mayor is claiming. Perhaps that would've gotten some more votes for the no group, or least another option, compared to the three "Yes" options. Either way, about three quarters of the votes favored a reduction in some way, and 40 percent wanted to cut all salaries, not just the mayor's. In all, 20 percent of votes said don't cut the mayor's salary.

Remember this is a simple poll that, if you have enough time to waste, can be manipulated. It's not exactly scientific.

City Council set to vote on mayor's salary cut

2011-12-07T20:12:00.015-05:00

The City Council is set to vote on a salary ordinance Monday night that would reduce the mayor's salary by 68 percent. The council also is expected to override Mayor Rick Proctor's veto of an anti-nepotism ordinance (O-33-11) as well as vote on a PILOT for the Meridia Water's Edge development (O-29-11).

The mayor's salary would change from $65,000 to $20,809, effective in January. The mayor's post is considered a part-time position, just like City Council members, who are paid $8,043 ($9,676 for the council president).

Sixth Ward Councilman Samson Steinman explained in a brief interview after Tuesday's pre-conference meeting that the salary ordinance merely follows a pattern of reducing salaries when turnover occurs at the department head level. He pointed to numerous posts within City Hall -- including the tax assessor, tax collector and health officer, among others -- whose salaries were set less than their predecessor after a recent hire, or the position was filled by a consultant or shared with another municipality.

Steinman explained that the $20,878 figure in the salary ordinance was arrived at by taking slightly more than the overall average salary of all Union County mayors. He also pointed to neighboring Linden as an example, where the mayor took a pay cut when was elected after succeeding a longtime mayor who earned well into the six figures. Steinman and some other City Council members were in office then raises for former Mayor James Kennedy were approved, progressively raising his salary from $18,000 early in his tenure (1990-2010) to $65,000 by his final term. Steinman said Kennedy earned the higher salary as his mayoral experience and accomplishments grew.

Mayor Rick Proctor dismissed that excuse, still describing the move as political retribution after the council rejected his proposal to add staff within his office while also claiming the mayor tried to hire his wife as health officer. Using Steinman's logic, Proctor said, the mayor's salary should have been reduced after he won election in November, adding that he actually declined a salary increase last summer. He earned about $150,000 when he was the city's health officer.

One resident who spoke at this past Tuesday's pre-conference meeting suggested to City Council that all city employees and officials have their salaries frozen until taxpayers can afford it. Monday's meeting is scheduled to begin at 7 p.m.