Showing posts with label taxes. Show all posts
Showing posts with label taxes. Show all posts

Wednesday, June 06, 2012

The morning news...and more

The Trentonian’s front page is screaming about the fact that one of Mayor Tony Mack’s properties is on the current tax sale list.
It is a shame.  Public officials should set a better example.

But what is a larger shame is that this Hampton avenue property has sat vacant and burned out for years with nothing being done. The city has never moved to forced Mack to fix up the building or tear it down. Never mind that he is now the mayor and CEO of the city. What does this say about Trenton’s ability to operate effectively as a city?

The Trentonian article mentions a few other names that appear on the tax list: Raphiel Mack, the mayor’s brother, for one. Jo Jo Giorgianni, a Mack confidante and supporter, for another.

What wasn’t mentioned was that Bayville Holdings, the owner/developer of the Broad Street Bank building, is also on the list. They owe $15,992.65 a combination of their payments in lieu of taxes and their assessment for being in the Trenton Downtown special improvement district. 

Bayville, you will recall, financed their extensive and expensive renovation of Trenton’s first skyscraper in part with state funding that resulted in an income cap for prospective renters of the buildings apartments. This meant that what could have, should have been a pricey, desirable urban enclave turned into just another high rise filled with subsidized tenants.  At the same time, the developer twisted the city’s arm to get a lengthy PILOT on the property taxes.  Payments they apparently aren’t making anyway.

Good deal (NOT!) that the Palmer administration stuck us with. 



The Times has an interesting story by Alex Zdan about Mercer Countytaking back control of the TMAC grant from the city because of non-compliance with the terms of the funding agreement.

The TMAC grant is state money passed through the county to municipalities to fund alcohol and drug abuse prevention programs for children.  Since the Mack administration took over, there has been the typical lack of attention to conforming to the terms of the grant agreement. The monies have been used, at least in part, to pay friends of the administration, like Lisa Whitaker, with no reported work product being shown.

In April, the city convened the required steering committee in a last ditch effort to retain control over the funding but the county was not impressed.  In this morning’s article, Zdan states that the county will select the program providers, taking the decision away from the city.

Interestingly, the article also states that Joyce Kersey was named the coordinator for the grant.  This is a paid position. It begs the question: if the county is now running the grant, why is it paying, through the city, someone to coordinate the program?

Is Ms. Kersey, who was recently singled out as the individual Mayor Mack used to inform two school board members that he was rescinding their appointments (which, it turns out, he can’t do), yet another “Friend of Tony’s” grabbing a few extra taxpayer bucks for no real reason?

Not reported in the article was another little tidbit we heard re: the TMAC steering committee meeting. One Ms. Linda Gundy was chosen to chair this committee to steer the program that the county has now taken control of.  As ridiculous as that sounds, it gets better.

Ms. Gundy is a friend and supporter of Tony Mack.  She was listed in TMAC grant documents asbeing a “concerned citizen” that was appointed to the steering committee. (It should be noted that many people who were named on this list weren't even aware of it until Anthony Roberts convened that April meeting. It should also be noted that Ms. Kersey's name is not on this list.)

Ms. Gundy may very well be concerned, but she is also on the city payroll.

Since January, Ms. Gundy has been employed by the TrentonWater Works.  Prior to that, she was listed on documents as “an intern” in the recreation department.  She was paid as an independent contractorfrom September of 2011 until she was placed, full time, at TWW.  Interestingly, in August and September of2011, Ms. Gundy was also listed and paid as a “seasonal employee” of theTWW. 

This means that during September of last year, she was a city employee and a paid city consultant. This would appear to violate state law, not that the Mack administration has ever appeared to be concerned about following such law.

Being a friend of Tony Mack’s sure has its advantages.  

Thursday, January 10, 2008

Council kudos

A wave and a nod from the front stoop to Councilpersons Bethea, Coston, Lartigue and Melone. These elected representatives of the city's four wards (North, South, West and East, respectively) are coming together on a couple of key issues facing Trenton residents.

First, they are in agreement that as it stands now, the city's residency ordinance does not make any provision for the Mayor granting a waiver to Police Director Santiago or anyone else. It's a start. And we won't belabor the point.

More importantly, the four Ward Councilmen and Councilwoman have decided to take the budget to the people by scheduling a round of workshops where the public can review and ask questions about just how the City spend our money.

The first of these workshops is scheduled for Wednesday, January 16, 7:00 - 8:30 pm at the St. Mary's Parish Center on Adeline and Beatty Streets.

The object of this, and the subsequent sessions (one each in the other three wards) is to comb through the budget to try and find ways of reallocating funds to improve services and/or reduce the proposed tax increase.

Our representatives are making a concerted effort to open up the process to their constituents. It's up to us to accept their invitation to participate.

As Councilman Coston is fond of saying, the budget now belongs to Council. They can approve it as is or modify it (within reason). Our four Ward representatives are asking for our input.

With all of the woes our broken, down-trodden, (dare I say "corrupt?") city faces, it is going to take greater effort on all of us to pull together and turn things around.

Let's find out if we're really spending our money wisely and effectively. At the very least, maybe we can realign some of the Administration's priorities to more clearly reflect those of the people they work for.

It may be wrong to look backwards, but if we were given this kind of opportunity in the past maybe we could have redirected spending so that the water utility was an efficient asset rather than something to sell off in parts for cash.

Maybe we would have redirected Police spending on appropriate staffing, technology and vehicles rather than redesigning badges or repainting and re-lettering the fleet.

Certainly we might have determined the need, ala new Hamilton Mayor Bencivengo, for a sensible City Vehicle policy to save costs and discourage those 50 mile commutes!

Maybe the public would written off the idiotic neon fire helmet rather than continually pumping money into trying to keep it lit.

We're not going to solve all of the city's fiscal woes in a couple of budget review sessions over the next couple of weeks. Still, one can't help but think that if we'd had a more "hands on" approach in the past we wouldn't be at the point where civic associations have to consider taking responsibility for maintaining landscaping in neighboring parks and traffic islands.

Residents in permit parking areas might not be faced with having to pay for the privilege of parking in their own neighborhoods (it's coming folks, yes indeed, its coming).

Maybe at least this budget review will show that we really can't afford to award the $90,000+ contract, plus car and gas, plus office to our part-time gang consultant.

Or you can stay home and watch Dancing with American Idol and complain later about the property tax increase.

Saturday, August 25, 2007

Golden Swan Lays Golden Egg for Developer

Once upon a time there was an early 19th Century building of historical significance located in downtown Trenton. After having served at various times as a tavern, newspaper office, appliance store, locksmith’s shop, etc. it sat vacant for over a decade.

Along came former NJ Senator Robert Torricelli and his real estate development company, Woodrose Properties, to step in to save the long vacant “Golden Swan” (aka “Caola Building”) at W. Front and S. Warren Streets.

Please hold your “huzzahs.”

Yes, it is a positive step forward in preserving a landmark downtown building. But at what cost?

Before Woodrose/Torricelli came along another developer had gotten the rights to the historic property. Enterprise Real Estate Services, Inc., an affiliate of the well-known and highly successful Rouse Company, was very interested in preserving, renovating and revitalizing that down-at-the-heels site in 2002.

Everyone was excited to have such a respected company come to town and do their magic. Best of all, Enterprise representatives said they were not intending to seek tax abatements on the project.

The banners were unfurled, the trumpets blared and the drums were beaten. Signs were hung from the building’s facade. It was the perfect follow-up to the then soon to open Marriott and just what was needed to turn the corner for that part of downtown and Trenton touted it as only Trenton can.

As the story goes, the developer went back to the city and asked for some help with the demolition of a 20th Century addition at the rear of the building, plus some other remediation/stabilization work. Specifically, the City declined to fund some/all of the needed work to the tune of about $500,000.00

Now remember, the developer was going to buy the building and wasn’t going to ask for tax abatements.

The City Father’s balked. The Developer walked.

In March of 2005 Woodrose comes in and gets the property for $1 (the city paid $164,000 for it a few years earlier) plus a five year tax abatement equaling 15% of annual gross revenues once a Certificate of Occupancy is issued. And the demo and remediation work were done at the City’s expense.

At about the same time, Woodrose/Torricelli purchased some property on West State Street, not too far from the Golden Swan. Plans were announced to redevelop those buildings for office space.

Work started and the Golden Swan started looking good. Progress was noted on the West State Street properties. The Mayor was happy. The Once and Future Acting Housing and Economic Development Director, Dennis Gonzalez, was happy. The Developer was happy. Signs went up, trumpets blared, yadda-yadda.

On August 17, 2006 Trenton’s City Council approved the granting of $89,000.00 in Urban Enterprise Zone funds to Woodrose Properties (a for-profit, private developer) for the installation of an elevator in the West State Street project. The vote was 6 to 1 in favor of the appropriation. The lone “No” vote belongs to West Ward Councilwoman Annette Lartigue.

The argument made by the Administration in favor of the funding: “The as yet uncompleted project is fully leased.” As of the last time we checked that building was still vacant.


What wasn’t said, but should have been made clear to the Council and the general public was the fact that this Private, For-Profit Developer has as one of the principals former Senator Robert Torricelli. The same Robert Torricelli who was caught up in a fund-raising scandal that cost him his Senate seat.

Interestingly, in the year immediately preceding the May 9 Municipal Elections, the Torricelli for US Senate, Inc. contributed $6,000.00 to the Mayor’s re-election campaign. Additionally, in April of 2006 the former Senator’s ex-wife contributed $2,500.00 to the Mayor’s campaign and another $2,5000.00 to the Joint Committee to re-elect the Palmer slate of At-Large candidates. In total, $11,000.00 was contributed to re-election campaigns.

Is it coincidental that $89,000.00 in Urban Enterprise Zone funds that could have been spread around to help many more businesses was contributed by the city to Woodrose? And is it equally coincidental that an estimated half a million dollars worth of demolition and remediation work was financed by the city plus a five year tax abatement granted to Woodrose’s “Golden Swan” project? A project, by the way that will probably also qualify for Historic Preservation Tax Credits.

All of this City financed largesse was given to a Private, For-Profit Developer and a principal in that developer is former Senator Robert Torricelli.

It’s no fairy tale.