Redevelopment Agency commissioners went into executive session at their monthly meeting Wednesday night to discuss ongoing talks with Carriage City Properties (CCP) about a settlement agreement.
City Administrator and Redevelopment Director Peter Pelissier told commissioners he needed the board’s comments about a potential settlement agreement regarding Carriage City Plaza. City officials have had several meetings, in person and by phone, with CCP/Silcon representatives about a possible settlement, he said.
The Redevelopment Agency approved a settlement agreement in May 2009 after declaring CCP in default earlier that year but it has not been executed by the developer. The resolution that was approved allowed CCP to rent unsold units in the 16-story building.
Among the items included at the time the settlement agreement was approved last year:
- CCP will execute a note and mortgage to secure the outstanding $2,285,250 in development fees and purchase price payments. The agency will get 10 percent of rent from each rented unit, which will be deducted from the $13,850 development fee until the unit is sold, at which time CCP will pay the balance. There are 165 remaining units.
- Infrastructure improvements, namely the East Milton Avenue and Irving Street realignment, cost approximately $1 million, of which CCP was liable for $368,562. The agency accepted CCP’s offer of $150,000, to be released immediately.
- Professional fees of $19,913 and water connection fees of $71,981 owed by CCP will be paid no later than April 1, 2010.
- Construction permit violations totaling $168,000 will be waived upon abatement of all issues identified by the city’s construction official.
The fellow who owns Silcon was at the ribbon cutting ceremony, which I happened to walk by. He made a brief statement, dressed in clothes more expensive than anything I own, surrounded by trophy women, and then drove off in his Lamborghini. You can imagine how excited I am to hear that the city accepted a settlement of anything less than the total promised from this guy, who clearly has the money.The backup plan should have been in the original agreements, all spelled out. Maybe our local leaders are too busy planning their layers of pension payouts to focus on protecting our tax dollars.
Local leaders should get a decent lawyer and get the full amount. Do you think when you take out a loan, lets say for your car, that you have several phone calls and negotiate what you owe? I don't think so. He has a business to run, and the town needs to focus on making it a place that people want to visit. It just seems like Silva took on more properties than he could handle. It is a gamble.
Check the political contributions from Carlos Silva. That's how this town is really run.Maybe I'll call the town and tell them I'll only pay half my property taxes.The people of Rahway had to pay for construction work that Silcon said they would pay for. What a disgrace. While Silva drives his lamborghini around town laughing at us. What an insult.
Idea for Rahway that can add to the arts program:http://www.cnn.com/2010/TECH/innovation/06/10/art.festival/index.html?hpt=Sbin
How about we all not pay our taxes for years; think they'll let us "settle" for less than half of what we owe?Somehow, I don't think so.There are lots of unsold units in that building; how about the town takes 5 or 6, sells them in a week for $100,000 each, and we're good?If you didn't pay your taxes, they'd sell your house out from under you, right? Why do these rich developers get a special deal??
Now is our chance to actually get some action on this matter. There is an active mayoral campaign under way. We need to pressure both candidates to tell us how they would deal with this issue, and how Rahway is proceeding on issues like this going forward.A similar issue is the plan to demolish the old Wheatina factory using taxpayers funding, and then hand the site to developers. Originally, the developers were going to take care of the site.Mark — Would you consider asking Proctor and Cassio to explain their positions on this for us?
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Anon–> I like the digital graffiti because there is no printing involved just a basic white screen to purchase and a projector They should have a movie in the park or something. 5 bucks, hell everyone has at least 5 bucks. Ok I need a job now. I keep giving out ideas yet getting no $$ for them.