A look back

The failure of Trenton's sole hotel has been a hot topic of late. The comments of former mayor Doug Palmer in this morning's Trentonian ratcheted up the heat just a bit. The wind blew hard from across the Delaware River in Yardley, PA as Palmer tried to paint a completely delusional picture of the hotel's value to the city.

Kevin Moriarty has a very good analysis of those comments in his blog post.

As students of history, we wanted to offer up some perspective on the hotel deal. Courtesy of the online, paid, archives of the Times, we have pulled up just a few articles from the mid-1990's to help refresh your memories. 

Let's start with an article written by Joseph Dee and published on October 31, 1995.  The article reports on a press conference held the day before announcing plans for an arena, hotel, conference center project on the Roebling/US Wire Rope site.

"The plan includes an arena that would be the home of a professional minor league hockey club, a hotel and conference center, a movie theater complex and some office and retail space." Dee wrote.

Describing the hotel and conference center, Dee reported the following:
"The hotel is slated to have 225 rooms while the conference center could handle groups of up to 800, Berman said. The hotel, estimated to cost $25 million, will be ''significantly nicer than a Budget Inn,'' Berman said when that company's lodging was mentioned for comparison purposes."
There was, of course, a caveat:
"Berman said the hotel would not be built if the arena is not. 'The arena is a feeder for the hotel and conference center. Visiting teams will feed the hotel. These two (components of the project) naturally fit and feed each other,' Berman said."

Even then, Palmer wasn't as gracious or grateful as he should have been:
"Mayor Palmer, who thanked Berman and his partners 'for this very bold and great move,' said he would prefer that a hotel and conference center be built closer to the downtown district. Regardless of the location, 'it's an idea whose time has come.'' Palmer said the project ''means jobs, business and other opportunities.' "

In a follow up story from December 20 of that same year, we learn that then state Senator Dick LaRossa was aiding and abetting Palmer's plan to build the hotel downtown. The story started off this way:

TRENTON _ Sen. Dick LaRossa, R-Ewing, threw a bucket of cold water on the proposal for a new sports arena in Trenton, saying the state will not fund it.
 His comments further roiled the waters surrounding proposals for a hotel- conference center and an arena in the capital city.  At this point, Berman had already changed the original plan.  Instead of building all three facilities, Dee reported that Berman "and other private investors would build the hotel and conference center only if the state pays for the proposed 10,000-seat arena, which he estimated would cost between $30 million and $40 million."  LaRossa, who sat on the budget committee, was insistent that the state would not finance the arena because it would not provide any returns to the stae.
LaRossa and Palmer favored the Lafayette Yard site for the hotel. Berman said he and his investors would not build a hotel on the Lafayette Street parking lot site, saying he believes it would fail there.

In the article, LaRossa argues his position this way:
''The state spends $900,000 a year on a conference center in Plainsboro _ that's money that could be rerouted to the city to finance a conference center. The state is only going to participate in a project that they'll get something out of, that will address a need. I am not about to support anything which is going to undermine the development of the Lafayette site.''

Palmer said:
''We've been working on the hotel and conference center for three years now,'' Palmer said. ''I respect what Ron Berman's trying to do, and he has been great, but this arena came out of the blue. Hopefully we can work with the state on an arena at the appropriate time.''

PALMER AGREED with LaRossa that the state would more likely help pay for a conference center. ''If the state supports the conference center, it would be getting something back. If it built an arena, it would be giving money away,'' the mayor said.

Then Mercer County Executive Bob Prunetti weighed in:
''My position is simple. I think the first priority has to be an arena. That will draw people to Trenton. Then we can let the private sector decide if and where a hotel should be built.''

On November 3, 1995, the Times published an editorial entitled Right mix, right place.

Included in the overall support for the Berman proposal was the following caution:

But remember: The project won't be the salvation of New Jersey's capital city. Yes, it will create hundreds of jobs, but it won't erase the poverty, stop the crime or change the school system. The city must develop solid programs in education, medical care, housing and economic development to deal with these problems.

And it should do so soon. Efforts should be made to ensure that local citizens get more than just a few part-time jobs selling hot dogs and programs and directing parking-lot traffic. There could be many opportunities for minority entrepreneurs to strengthen their role in the free-enterprise system.

Obvioiusly, the arena got built, but with county money. The hotel conference center got built, but by the city on the Lafayette Yard site.

There was one more twist in the tale. A developer from Harrisburg, Pennsylvania by the name of John Vartan had been in the mix off and on since 1994. Doug Palmer was courting Vartan to build the hotel downtown.

The Times' then business editor, David Newhouse wrote a piece that was published on April 9, 1996.

In the article, Palmer recognizes that the project will need "ongoing state support" while "other officials called it a serious mistake to interest any developer based on such requirements."

The article reports on a study done by state agencies that "envisioned a 165-room hotel with 17,500 square feet of meeting space and a multistory parking lot. It labeled the hotel at Lafayette Yard financially viable if it receives between 62 and 66 percent private financing."

Well, that private financing never happened, did it?

Here we are, 17 years later, and the "hotel at Lafayette Yard" is most decidedly not financially viable to us, the taxpayers.

We leave you with the following letter to the editor published in the Times of Trenton, January 4, 1997.

Mayor should support project

How is it that Mayor Palmer can so easily escape valid editorial criticism for not publicly supporting the efforts of private developer Ron Berman to build an arena and hotel-conference center at the Roebling Complex site?
I mention this after having read the interview of the mayor's 1997 forecast for the city of Trenton by Don Delany in the December 1996 issue of Mercer Business magazine.
Not once in the entire interview does Palmer mention the prospect of a major sports arena being built in Trenton. This obvious omission by the mayor clearly exposes his devious plan to promote his visionless hotel agenda, no matter what the loss in tax ratables and the cost added on to the taxpayers' bill. It is mind-boggling that this mayor is deliberately sacrificing this tax- ratable asset (not only for the city, but for the entire county) simply in order to satisfy his own ego.

Instead of genuinely supporting the sure-shot money-making and job-providing potential of a sports arena (and hotel conference center) at the Roebling Complex site, Palmer has chosen to be silent.

Of course, the reason for Palmer's silence is directly related to his competitive stance with Berman for state funding. Quite simply, he wants the money for his lame, long-shot fiasco; whereas, Berman needs the state of New Jersey's money for his sure shot _ a revenue-producing arena.

I hope the powers that be in both the state and county governments will wisely provide financing for the project or projects that will generate the greatest financial return.

Indeed, the mayor should support and promote projects that will most benefit the greatest number of his constituents instead of undermining the projects that will help Trenton financially.

This mayor owes his constituents an explanation as to why he is not genuinely supporting Berman's arena, hotel and conference center.

However, what is even more discouraging is that the media will probably avoid bringing this politically relevant'' question to light.

Joseph A. DeVito
Trenton

Just the facts

We here at the editorial department of the Front Stoop wanted to take a few (three) minutes (180 seconds) to set the facts straight on a couple of points from last night’s Trenton city council meeting.

Mayor Mack does not have “binders full of people” wanting to meet with him. Well, not if you exclude his attorney, his creditors and the FBI.

It is true that Mayor Mack was “saved” from the mean streets of Wilbur by recreation programs; recreation programs that were largely run by the Trenton PAL, not the city.  Was there some city money involved? Probably. Were they city run and staffed programs? No.

There is no “Master Plan” for the city as the Mayor stated last night. At least not that we have seen. If he was indeed referring to his annual “report” and/or state of the city speeches, it has been pointed out repeatedly that they are not plans. Plans have defined goals and measurable outcomes.

The city council does have the authority to reduce the salary for the Mayor. Under the Faulkner Act N.J.S.A. 40:69A-43a., 40:69A-180 and general municipal law, N.J.S.A. 40A:9-165, the power to fix the compensation for the offices of Mayor, City Clerk, Business Administrator, Department Directors, and City Council Members is exercised by the adoption of an ordinance.  Nothing we have seen in the MOU with the state supersedes the statutes. (Btw, Rahway City Council cut their Mayor’s salary last year, no problem).

And, if you remember, Mayor Mack made similarly erroneous statements last spring when the council amended his budget and he didn’t like it.

He was wrong then, he is wrong now.

Finally, if the city council is going to have a time limit on public comment, then it should be enforced on all speakers and all speakers must adhere to it. Period.

Our city government is stuck in neutral and the non-stop ramblings of people, no matter how pithy, inspirational, or amusing does not move us forward.

Ok. Times up.

Dead from the neck up

Trenton mayor and two council members prove they are fools.

The state of New Jersey has announced its transitional aid aware for Trenton for the current fiscal year (FY2012).  Rather, we should say the state of New Jersey has announced a choice in transitional aid amounts that Trenton can receive.  (Of course this is all pending the approval of the legislature to release the transitional aid funds but that is another story).

Mayor Tony Mack has a choice before him. He can select between receiving $22 million in state aid for the city or $16 million.

No brainer, right?

Not quite.

There are, after all, some strings attached to that $22 million.

In order for the city to get the higher amount of aid, the mayor must sign an MOU with the state wherein he agrees to the creation of a three person committee to oversee the process of hiring people to fill key spots in the administration.  The DCA would appoint one member, the mayor, would appoint one member and city council would appoint one member.

Considering the Mack administration’s track record in selecting qualified candidates for BA and department heads, it is not really a bad idea to have an oversight committee. Just a quick recap: over a half dozen business administrators (one who pleaded guilty to stealing campaign funds); one Housing and Economic Development nominee who is a convicted felon and another who has a history of failed businesses, judgments and tax liens against her; a municipal judge appointee with her own financial problems; a municipal court director with a police record (who, by the way, has been enjoying a six week and counting paid vacation while a superior court judge determines if he is qualified for the position); serious turnover in the law department. 

So, leaving the question of the personnel committee aside what are the scenarios for the two aid amounts? 

1. $22 million --- balanced budget, possible tax decrease, probable re-hiring of some police
2. $16 million --- balanced budget, probable tax increase, no additional police

Yet the mayor can’t decide.  What does that say about his ability to lead this city?

If the mayor’s apparent indecision isn’t bad enough how about this comment in today’s Times from Councilman At Large Alex Bethea:

“We certainly need the money, but I wouldn’t want to give away the whole house for an extra $6 million. You have to maintain some control, notwithstanding that we’ve made some mistakes in the past,” he said.

“If he decides that, ‘Okay, that’s okay, we’ll take the $22 million,’ then I’ll sign off. If he says this is going a little too far, then I would have to support the mayor on that decision as well,” Bethea said.

This is it Trenton? This is the best you can do? A prideful mayor who would flush away $6 million in state aid is not fit to lead and a councilman who cannot think for himself.

But wait, there's more.

Council President Kathy McBride, in the same Times article, says she’s waiting to speak to the mayor before making any more comments on the choice of aid packages.  In other words, she is waiting for Mayor Mack to tell her what to think and say as well.

At least East Ward Councilwoman Reynolds-Jackson is keeping her mouth shut on the subject...for now. Someone must have whispered in her ear that old adage about it being better to keep quiet and be thought a fool than to speak and prove it.

It is the state's fault

{Yawn!}

Well, we weren’t too far off in our estimation of Doug Palmer’s speech regarding the governor’s proposed elimination of all aid to the city of Trenton. (Surprisingly, there were no shout outs to departing Acting Business Administrator Dennis Gonzalez and no blame laid at the feet of the opponents to the Trenton Water Works split and sale).

In a rather tired and repetitive speech before a packed city council chamber, Palmer pointed the finger squarely at the Capitol and the state’s alleged refusal to pay a fair share. He railed against the states refusal to allow development on the surface parking lots that surround some of the state buildings downtown.

In short, last night was an attempt at a Tent Revival-type meeting aimed at firing up the public’s passionate indignation at the Governor putting his foot down and refusing to fund the city’s spendthrift ways.

By and large, the attempt failed.

Palmer was unable to stir much emotion from the assembled crowd as he read through his prepared remarks.

We’ve heard it all before and I think all but the most die-hard Palmer supporters are tired of the twisted logic and half-truths.

Let’s remember that the parking lots around the Hughes Justice Complex are actually owned by the Trenton Parking Authority (TPA). The state has a 40 year lease with the TPA for those spots that brought nearly $1.3 million in revenue last year.

And then there is Palmer’s estimate that the state would owe $155 million in taxes if they paid the same assessment as other property owners.

Dan Dodson, who has formed a citizen’s group to look at AND FIX the city’s budget has come up with the following counter argument:

Mayor Palmer claims that the State should be paying us $155M if they were taxed at our rate (~let’s say 3% effective). That would equate to a valuation of state property of roughly $4.5B.
However, DCA estimates all public property in Trenton which includes State, City and Federal buildings (but doesn’t include schools and the arenas) at $1.4B. Based on this number and some analysis by Trenton Downtown Associationi and my own guesstimate, I’d say the State valuation is more like $1.2B. With that valuation in mind, the State would owe more like $36M/year in PILOT.
Trenton’s actual ratable value is $2.1B (the number our property taxes are based on).
A disagreement about this basic fact would lead to two radically different positions:

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  If the Mayor is right, then the State is a deadbeat like he said.

  
  
  
  
  

  If my calculations are right, then we’ve been receiving aid for a long time because the State currently funds us to the tune of $340M ($250M for schools and $90 for municipal aid).

  
  
  
  

In the coming days there will no doubt be more revelations on the topic of state funding. What we do know is that Doug Palmer failed in his effort to incite the crowd at last night’s meeting. It was, by most accounts, a waste of time.

Let’s hope that the Fix Trenton’s Budget group can provide some clearheaded thinking that can be brought to the table during negotiations with the state.