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HomeMy Public PortalAbout1997/03/19 A Special Meeting of the Mayor and Council of the Borough of Carteret was called to order by Mayor Peter J. Sica at 7:00 P.M., on Wednesday, March 19, 1997, Municipal Court/Police Facility, 230 Roosevelt Avenue, Carteret, New Jersey. Upon individual roll call, the following were noted present: Councilmember Deborah Bialowarczuk "" John DuPont "" James Failace "" Jack Fazekas "" Stanley Gutowski Noted absent was Councilman William Feingold. Also noted present was Borough Attorney Craig Coughlin. Mailed to The Home News & Tribune, The Star Ledger and posted on the bulletin board on March 14, 1997. To discuss RCA Agreements and to adopt a resolution to go into closed session to discuss potential litigation and personnel matters. Patricia Holden asked the Council what they would like to know. Councilman Gutowski said that one of the questions they had was with the letter they all received last week. His question was that according to her letter it seems that she is saying to the State that the projects are going to be over-funded. Ms. Holden said that the word is "appears" to be over-funded. In the original project plan, and they all have copies of it, certain numbers were plugged in and subsequently it took 2 years to get this and other funding was received. It appears to her that if they would have funded at the original requested limit they would be over on certain projects. She sent a letter to the State to review the numbers, verify that we are right or wrong, verify if the project could have overrun the original estimate because...(inaudible)...the funding. It could be that the funding he received has moved out of the way so it's not a requirement. She is asking them to review the package that she's given to the Mayor and Council. She said that she doesn't want to do anything that we're not legally bound to do. Mayor Sica said that we have not put in a penny of that project. All of that money was carried by the developer. No money has been issued nor will any money ever be issued until all of the numbers are verified. Again, this is a project that started 2 years ago. Things change. Other fundings come available. Other fundings dry up. You have to be able to go along with it. The only agreement that is locked in there as far as he is concerned is the north side of the Hill Section where we offered him an incentive to come into Carteret. That is $220,000.00 out ofRCA money. Any other agreement with any other project, including this one that may MARCH 19, 1997 SPECIAL MEETING March 19, 1997 ROLL CALL STATEMENT OF MEETING NOTICE PURPOSE OF MEETING DISCUSSION MARCH 19, 1997 SPECIAL MEETING -Continued appear to be over-funded or under-funded. It's not a grant like we're giving to people. It's a loan. It's based on the same loan criteria he got from the state, the county and the federal government where he gets 30 years to pay the money back. Councilman Failace said that he went through this packet many times. He has a little problem with that $220,000.00 too. That project was supposed to be $584,000.00. Mayor Sica added that we gave him nothing yet. Councilman Failace said that in that project we're saying that he's received, not from us, from Balanced Housing...$231,000.00, home loan, $220,000.00 that he signed with the Freeholders and his own pledge of $132,000.00. The $220,000.00 from us puts him at. .. Mayor Sica said that no money is given to anyone until all the numbers are documented. That's why no one has gotten any money. Patricia Holden said that it is premature for her to be here because she doesn't have a response from the state. Once she has a response back, they have reviewed the numbers and they are either correct or they have been amended by...(inaudible)...a federal legal audit has to be...(inaudible)...somewhere. The Mayor stated that he can't make excessive profit. He's only allowed to be within a window of how much profit he can make. What we're saying to anybody, any developer that comes in here, we're willing to work with you using our RCA money to develop the community to make it better. We're willing to lend you money at no interest. We're willing to give homeowners money and don't have to give it back in order to clean up the town. All of these things. Other towns in the Urban Enterprise Zone take in their money and they put in sidewalks. They put in curbs. They put in nice Belgium blocks. Frank Raia has done that himself up there and hasn't come to us for UEZ money to do that. He would be entitled to it. But again, if he applied for that, the guy next to him where he stopped with his sidewalk applied for that, he is sure we would loök favorably on that to make the whole thing uniform to beautify the area. The Mayor stated that he will not sign a check to anyone unless all numbers are documented. IfMr. Raia says it cost him $105,000.00 down there, or $120,000.00... Patricia Holden said that the original project said $105,000.00. Mayor Sica noted that if he is saying now that we had offered to loan him $60,000.00 and he's now gotten money from someone for $60,000.00, that would be $120,000.00. No, we won't loan him $60,000.00. We'll loan him $45,000.00 provided he lives up to letting the guy stay there for $100.00 a month and keeping the things equivalent. No money is going to be given out until this Council sees every number. 2 Patricia Holden asked if anyone had any other questions. Mayor Sica said that they talked about giving them a reduced tax rate. Mr. Raia has right now, or all totaled, all projects that he wants to do, are 105 units all totaled. He's got 62 of them rented right now. He's paying to the City of Carteret $28,000.00 some dollars in just sewer user fee. It doesn't cost us $8,000.00 to treat that sewage. What in essence these apartments are doing are paying off $20,000.00. We're putting $20,000.00 into our surplus to upgrade our sewers and to payoff what we did do. At the end, they will be paying almost $48,000.00 in sewer bills. These are things we weren't even getting before. We were not getting any of that money. Peek-a-Boo.. . all we were getting up there was derelicts, prostitutes, rats, a dead guy found in a hallway. That's what we were getting from there. This turns around and cleans it up and we're still making some money. So don't look at everything as just taxes. Look at the thing that first, we're cleaning up a blighted area that looked like.. . (expletive). ..in plain English. We're giving people a decent place to live. That should be more important than anything. He has decent people living in 62 units, Cleveland Arms, Roosevelt Hill I, Roosevelt Hill 2. These bring decent people into the community. The taxpayers of this community are going to have to understand that we didn't cause this blight. This blight was caused by years and years of neglect. This blight was caused by the system itself. We're doing all in our power to clean up the system and make a decent place for everybody else. The Mayor stated that all of these things will be reviewed by him. He will make a full report to the Council like he's always done before five cents is paid to anyone. He fully intends to proceed with this East Amwell project. It could be from five units to twenty units, specifically designated by the Mayor and Council to be used only for residential people. Taxpayers are the only ones that could get that money. Out of this Readington money, taxpayers are getting about 1.6 million dollars of that money. That's going to be given to them provided they live in the house for x-amount of years. The Mayor referred to applications received and noted that there are 75 people eligible for this money. If we gave only $10,000.00 to each one of these people we've spent $750,000.00. 3 Patricia Holden noted that those are the applications that they've taken in to date. There are about 30 more that are on the waiting list for the next round. They have to have 3 years of income for every single person living in the house and its assets included, a copy of their deed, pension, social security and IRS information. They have to have current homeowner's insurance. They will prioritize by doing low-income single family then moderate- income single family. Then they will go to the double family, the low-income 2 family and moderate-income 2 family homes. That will be the priority. What has to happen now, Mr. Nagy has to go out once she gives him a list of names to start with, to certify that the house is sub-standard. It has to be either electrical, plumbing, roofing, heating or structural. It has to be one of those or we can't help them. Councilman Fazekas asked Patricia Holden for a copy of the application form. MARCH 19, 1997 SPECIAL MEETING -Continued MARCH 19, 1997 SPECIAL MEETING -Continued RESOLUTION #97-102 Closed Session Adopted ADJOURNED TO CLOSED SESSION OPEN SESSION ADJOURNED Patricia Holden said that the income guidelines that are established are set up by COAH not by us. Mayor Sica said that unfortunately some people come in and scream at us. We're willing to give the money out to the people that are deserving of it. patricia Holden asked is she has their authorization to go ahead with the East Amwell resolution. - Mayor Sica said no problem. Councilman Fazekas asked for a copy of the whole application package. Mayor Sica said that it is not completed yet. Mayor Sica asked for a motion to go into closed session to discuss potential litigation and personnel matters. RESOLUTION #97-102 was introduced by the Mayor and was referred to the Council for action. Upon MMS&C, by Councilmembers Failace and Fazekas RESOLUTION #97-102 "RESOLUTION TO GO INTO CLOSED SESSION" was adopted. Upon individual roll call vote, Councilmembers Bialowarczuk, DuPont, Failace, Fazekas and Gutowski voted in the affirmative. Councilmember Feingold was noted absent. At approximately 7:20 P.M., the meeting adjourned into Closed Session. Upon MMS&C, by Councilmembers Fazekas and Bialowarczuk and unanimous affirmative vote of the five (5) members present, the meeting was opened at approximately 7:51 P.M. There being no further business or discussion, upon MMS&C, by Councilmembers Bialowarczuk and Failace and unanimous affirmative vote of the five (5) members present, the meeting adjourned at approximately 7:52 P.M. Respectfully submitted, ~~~~ Municipal Clerk 4