~ Are Linden Taxpayers Becoming Unwitting Loan Guarantors? ~

Are Linden taxpayers becoming unwitting loan guarantors of loans taken out by the UCIA to bankroll projects by private developers?

The South Wood Avenue project is a major failure ... a project that now has no developer. If no developer comes forward and successfully completes the project, who is on deck for repayment of the bonds? We are. While properties targeted for that particular project have been bought by the UCIA, some have been demolished and others sit vacant for YEARS. We, the taxpayers, are responsible for the bonds (loans) used to bankroll that project, not to mention the eye-popping fees paid to the DeCoiitis law firm. In essence, we have become the guarantors of loans for which we have no control over. It’s one thing for a Municipality to issues bonds for capital purchases or improvements, but in this case, by naming the UCIA as the redevelopment agency, ONE person is making all the decisions, financial and otherwise. If we are unhappy with the progress or lack thereof, can we hold this person accountable by voting this person out of office? No, because this person isn’t even an elected official. She is the Executive Director of the Union County Improvement Authority and Chair of the Union County Democratic Party. I find her dual role as a power yielding political figure as well as the head of Improvement Authority disturbing for a number of reasons.

It begs the question why one person is allowed so much power? Even freeloader Sullivan admitted that the Union County Freeloader Board does not question the UCIA. Imagine that. One person in charge of tens of millions of dollars with little accountability. I carefully reviewed the minutes of the UCIA (thanks to the County Watchers site) and incredibly, there is no serious discussion or questioning by the UCIA trustees, or commissioners as they are called here. After a review of the names of the commissioners, it isn’t hard to figure out why this is so.

I am still gathering information on the Morning Star project which is another projected being bankrolled with our tax dollars. A drive by on St. George Avenue reveals not much going on there either. Assemblyman Green must be happy though. Almost a quarter of a million dollars for his dumps.

As a taxpayer, I am even more concerned of the intention of the UCIA and City to go forward with its plans to “take” the ISP property in Tremley. Remember, this entire plan was hatched under the Gregorio administration, even with the grand illusion of a NASCAR race track at one point. As with the botched South Wood Avenue project, this project will also be in the hands of the UCIA, or in reality, in the hands of Charlotte DeFillipo, the Union County Democratic Chairwoman. ISP was offered and rejected $25 million by the pet developer. If we are to continue with eminent domain, just what kind of money are we looking at here and how much will the UCIA end up paying it? The figure will probably be a lot higher than $25 million and that should be a real concern to the taxpayers, who, in effect, are the guarantors of the bonds that will be used to “take” ISP's property if this goes forward. Yet, there is no guarantee that the project will be a success or the taxpayers’ “investment” recouped.

These issues, IMO, are in the forefront of any issue confronting Linden at this time. Which candidates have the knowledge, ability and guts to fight for the taxpayers of Linden, even if it means taking on the UCIA? I doubt it will be any candidate backed by the Linden Democratic Club.

I think it’s time for our Mayor and council to take steps to see that the taxpayers aren’t made to become unwitting guarantors of loans for private developers any longer. That's what the NJ Economic Development Agency is for and that is where developers should be going to finance their projects ... not us.

~ The Camelot Title - UCIA Investigation ~

It's been over a YEAR since the State A.G.'s office opened an investigation concerning the above, link provided below.

According to a recent news article, Suliga's widow stated that Joe Suliga founded the title agency. Others with a stake in Camelot are State Democratic Chair/Assemblyman, Joe Cryan, and County Democratic Chair, Charlotte DeFillipo. DeFillippo, who has referred to herself as a Cog on wheel, is the Executive Director of the Union County Improvement Authority who, as the County Chair, wields great power on who gets the nod to run for office in Union County. She also is in charge of all those UCIA projects.

In Rahway, Silon, the developer for the Skyview condominum/hotel, working with the Rahway Redevelopment Agency, has purchased properties from the Rahway Redevelopment Agency, to construct its condo/hotel. Not all the properties were bought outright by the developer from the RRA and under various agreements, Silcon pays the RRA back for the properties Silcon purchased from the RRA in different manners such as payments upon the units closing. In 2003, the RRA, through the UCIA, obtained bonds (financing). In essence, the RRA has acted as a lender to Silcon. On this particular project, Camelot Title, is the title agency for the developer Silcon.

The DeCoitiis law firm is the attorney for the RRA as well as the UCIA. It was reported that Assemblyman Joe Cryan, a stakeholder in Camelot, returned campaign money to the DeCoitiis law firm.

As far as I know, Suliga, DeFillipo nor Cryan are attorneys or licensed title agents. So what would possess them to get into the title business? I realize you don't need to be a cook to open a restaurant either.

Two years ago, Senator Lesniak, colleague to Assemblyman Joe Cryan with whom he shares a legislative office, crafted Bill No. 2229 which hasn't been brought forth for a vote. That bill would allow title agencies to offer "inducements" or discounts to persons purchasing title insurance. According to studies, as much as 60% or more of title insurance premiums are the agent's profit. If you are a politically connected title agent for big developers, you can well afford to offer discounts. If the Senator sponsored the bill because he thinks title agents make too much money off the premiums, the premiums, based on the dollar amount of insurance, can be re-evaluated and re-set set by the Commissioner of Banking and Insurance. Afterall, it is that agency's responsbility for overseeing the insurance industry. In this fashion, ALL title companies will be on an equal playing field.

U.S. Attorney Chris Christie doesn't mind State A.G. Annie Milgrim, appearing with him in photo ops. Maybe he should ask her for a peek into the files so his office can complete the investigation. He might want to get a hold of ex-Assemblyman Cohen's computer while he's at it.

Link to article on investigation:

http://www.nj.com/news/index.ssf/2007/11/ian_t_shearn.html

~Three Council Seats Up for Election~

Believe it or not, there are other election races, the results of which will probably have more of a direct impact on your wallet than the presidential race. Please remember as you gleefully select your next President that you do not have to vote down the party line.

There are 3 council seats up for election.

Does anyone know the position of the council candidates when it comes to pursuing eminent domain over ISP’s property?

The taxpayers are on the hook for $25 million for three new firehouses. The library construction is projected to be $7.6 million.

The taxpayers are on the hook for blocks and blocks of properties on South Wood Avenue that no one seems to want.

Is it a sound idea to continue efforts to seize ISP’s property? The politically connected developer, The Morris Company, offered ISP a paltry $25 million, which was rejected by ISP. Recent court decisions indicate that juries take these matters very seriously and lowball offers are tossed aside. If Linden, through its redeveloper agent, the UCIA, proceeds with this “taking”, the amount of money we, the taxpayers, would have to pay ISP is UNKNOWN.

These “new” debts are, of course, in addition to our “old” debt, the figure for which I do not have at this moment, but I've got to imagine it’s in the tens of millions. It would sure be nice if Linden’s 2008-2009 budget was on the City website, as well as council meeting minutes and agendas. Imagine having that kind of information at your fingertips? It’s a disgrace that it’s not available on the City website in this day and age of technology.

South Wood Avenue ~ The White Elephant?

If things couldn’t get any worse for the "Transit Village", they just did in recent weeks with the Wall Street and banking meltdown. The days of obtaining easy mortgages are over. It won’t be easy for developers to tap those sources any longer either.

Other indicators which don’t support a market for a retail/residential mixed use of the area include:

A soft real estate market. Look around the city and see the many homes up for sale and the lack of buyers.

Newer commercial buildings in town which are unable to attract tenants.

Empty stores on Wood Avenue which are unable attract retail businesses.

Rahway may have been in the forefront in its re-development plans of its downtown, but it’s my opinion that those efforts are now facing a downturn due to the current market conditions. Despite the initial outlook, many of the condominium projects are not sold out. One condominium project recently changed its plans from condos to rentals. Another project was significantly scaled back. Rahway has also failed to attract the much anticipated retail establishments for its downtown.

The redevelopment of South Wood Avenue got underway some 8 years ago and evolved into a "transit village" concept which relied on the locale of the train station to attract would-be NY commuters. The fallout from the Wall Street crisis may mean a great loss of jobs in New York, and elsewhere as well.

Perhaps it’s time to scale back our own re-development plans. Possibly Linden should focus on marketing one phase at a time, starting with the block that has already been demolished. It seems this project may be too big for Linden, the UCIA or any one developer in view today’s troubling economic times.

Maybe it’s time to start thinking "outside the transit village box" and perhaps find a way to cut the taxpayers’ losses now and get those UCIA issued bonds off the backs of the Linden taxpayers.

Verge/Valvano apparently figured this all out. When will we?