The Rahway Arts & Business Partnership (RABP) began the process to dissolve as City Council took the next steps in its new role as downtown management corporation (DMC) overseeing the Special Improvement District (SID).
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City Council passed two resolutions related to the SID during a brief special meeting on Thursday. The first resolution (AR-192-21) authorized positions and stipends for the SID, totaling $126,000:
Stipended positions:
Economic development officer – $15,000
Secretary – $5,000
Treasurer – $5,000
Event coordinator – $20,000
Full-time positions:
Maintenance worker – $35,000
Administrative assistant – $40,000
Part-time hourly position:
Social media manager – $6,000 (annualized)
A second resolution (AR-193-21) established two ad hoc committees to be composed of five members each, nominated by the City Council president and confirmed by City Council.
The Arts & Culture Committee will be comprised of individuals focused on the arts and the Business Committee will be made up of local merchants. The initial term for members will begin Sept. 1 and last 16 months, through 2022, “or until a successor is qualified and appointed.” Subsequent to the initial appointments, members will serve one-year terms on a calendar year basis.
City Council also approved a schedule of meetings in its capacity as the SID’s downtown management corporation (DMC). SID meetings will be the same night as the governing body’s combined pre-conference and regular meetings for the remainder of the year (generally the second Monday of the month): Aug. 9, Sept. 13, Oct. 12, Nov. 8, and Dec. 13.
In June, City Council shifted management of the SID from the RABP, designated itself as the downtown management corporation overseeing the SID. Last month, five appointments to the newly created SID Advisory Board were confirmed.
The night before Thursday’s special meeting, July 21, the RABP Board of Trustees held a special meeting, most likely its final one, to begin the process of dissolution.
Chairman Joel Schwartz recommended to trustees that they agree to transfer assets and obligations of the SID to the city. “I believe there’s no good reason not to do this,” he said, introducing Steve Mlenak of Woodbridge-based Greenbaum Rowe Smith & Davis who was hired to advise the board about dissolution. He also represented Millburn when it dissolved its SID several years ago.
Even with approval by the board, the process includes administrative steps at the state level and is expected to take 45 to 60 days. There may be a need for a special meeting for the liquidation plan, if the state requires one, Mlenak said.
The board ultimately approved resolutions unanimously (6-0) to dissolve and transfer its assets and debts and approve final minutes of the meeting, “Like most people, I have reservations about the way it was handled but vote yes for continuity and benefit of city,” Trustee Larry Fishman said. Board members were taken by surprise when City Council in May took action to shift management of the SID.
There were no comments from the public before trustees offered comments, mainly expressing appreciation for the organization and specifically RABP’s two managing directors, Amy Garcia Phillips and Ann Marie Williams. Phillips submitted her resignation, effective July 31, while Williams has not yet been extended an offer to continue in the role.
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