Mayor Rick Proctor focused his State of the City remarks last night on regional flood mitigation efforts and the city’s response to Hurricane Sandy while touching on some redevelopment topics. He also warned of a tough budget year, thanks to another water utility deficit that will raise water rates.
Category Archives: City Council
Public hearing on PILOT for artist housing
The City Council on Monday night will hold a public hearing and final approval for a financial agreement that includes a Payment In Lieu Of Taxes (PILOT) for the Rahway Residence for the Arts to pay the city at least $33,000 annually. Mayor Rick Proctor also is expected to deliver the State of the City address at the same meeting.
Council moves forward on arts housing measures
The City Council passed a series of measures last month to move forward with a proposed affordable housing development geared toward artists at the former Elizabethtown Gas building.
Ordinance 3-13 — introduced Jan. 14 and up for final approval on Feb. 11 — would execute a financial agreement between the city and the AFHDC for the affordable housing project, for a term not to exceed the agency’s mortgage for the project, with an annual fee to be determined as a percentage of annual gross revenues, not to exceed 20 percent.
The city would collect between $33,000 and $38,000 based on 6.2 percent of a projected $617,000 in gross rents, according to Redevelopment Director Peter Pelissier. That percentage was requested by the developer but is still under negotiation with the Redevelopment Agency, he said, adding that the length of the mortgage has not been agreed to yet. The property is currently assessed at about $500,000, making for an annual property tax bill of about $30,000. The Redevelopment Agency is negotiating the purchase of the site at Central Avenue and Hamilton Street from AGL Resources, the parent company of Elizabethtown Gas.
Also up for final approval at the Feb. 11 council meeting will be an ordinance (O-3-13) to amend the redevelopment plan. Representatives of the Actors Fund Housing Development Corporation (AFHDC) are expected to appear at one of the February council meetings to address questions about the proposal.
A resolution (AR-4-13) also approved by council declared the project will meet an existing housing need and that the Redevelopment Agency will make a mortgage loan to the AFHDC, which will construct, own and operate the 69-unit facility.
Ordinance 2-13 would amend the Central Business District (CBD) redevelopment plan for Block 167, Lot 1 (the former Elizabethtown Gas Building), stipulating permitted principal land uses and permitted bulk standards (including up to 75 units per acre, a maximum four stories/50 feet, and minimum lot area of 30,000 square feet), and minimum number of parking spaces (1 per unit, with a maximum 0.33 spaces per unit provided on site).
The AFHDC initially proposed 60 units but has since increased the idea to 69 units and the organization recently came before the Redevelopment Agency with survey findings it believes show very strong demand for artist housing. They told the agency that additional low-income housing tax credits for Hurricane Sandy-affected areas are included in legislation that was considered by the House of Representatives on Jan. 15. Original development costs were estimated at $15 million, based on the 60-unit plan, including subsidized low-income housing tax credits of 4 to 7.5 percent.
Exec minutes provide few details on settlement
With no public comments from any parties involved in the settlement and release agreement with the former city administrator, we turn to the minutes of two executive sessions last month that led to the deal.
Continue reading Exec minutes provide few details on settlement
Council rejects legal contract proposed by mayor
The City Council last week unanimously rejected a resolution proposed by the mayor that would have awarded a $75,000 contract to a Parsippany law firm.
Continue reading Council rejects legal contract proposed by mayor
Taxi companies seek $1 fare increase
Rahway taxi companies have requested a $1 fare increase, which would be the first hike in more than seven years.
In a Dec. 17 letter to Mayor Rick Proctor and “Councilmen,” Station Cab and Rahway Taxi seek an increase of $1 in each of the three zones within Rahway. A ride within Zone 1 currently is $4; Zone 2 is $5, and Zone 3 is $6. An increase of $1 would be an average 20 percent overall. Rahway senior citizens would continue to receive a $1 discount on fares.
“This rate increase is consistent with our increased cost of doing business and should take effect as soon as possible,” according to the letter, signed by Thomas Maye of Station Cab, Inc. and Howard Sager of Rahway Taxi. They cited changes since the last rate increase was approved in November 2005, such as the Consumer Price Index (CPI) rising 18 percent and the cost of gasoline going from $2.25 per gallon to $3.29 per gallon — a jump of 46 percent.
Zone 1 is essentially from the train station to the borders of St. Georges Avenue, West Hazelwood Avenue and Lawrence Street; Zone 2’s borders are Madison Avenue, West Scott Avenue, Route 1 and the city’s southern border; Zone 3, basically covers everything outside of Zone 2 to the city’s borders. This Google Map might give a better visual description of three zones than those explanations in the municipal code.
Increasing taxi fares would require City Council to amend the city code. The earliest a fare hike could take place might be April; if the governing body introduced an ordinance at its next meeting in February, a public hearing and final approval would be at the March 11 meeting and take effect 20 days after approval.
Nearly $500k in damage to rec center, library
Rahway Public Library and Recreation Center were among the “victims” of Hurricane Sandy, with damages running as much as a half-million dollars to the two facilities.
The City Council last month approved a $750,000 bond ordinance (O-35-12), including a downpayment of $35,715, for various improvements to city facilities damaged in the October storm. The largest item listed in the ordinance was $285,000 for the acquisition, installation and replacement of the floor at the Recreation Center, and another $205,000 for acquisition, installation and replacement of the roof at the library.
There also was $155,000 for acquisition, installation and replacement of various office furniture and equipment at City Hall and $105,000 for the repair of the roof and acquisition, installation and replacement of various equipment at the Department of Public Works.
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The bond ordinance was prepared until insurance comes in but the Redevelopment Agency might pursue the builder of the library for damage incurred if it’s not covered by insurance. The city plans to file for reimbursement with the Federal Emergency Management Agency (FEMA) for costs due to Sandy, including physical damage as well as overtime salaries and additional expenses allowed, such as hiring of out-of-state tree crews, according to City Council President Samson Steinman, though he said there’s no estimated total yet.
During his report to the Redevelopment Agency last month, City Engineer James Housten said the membrane that was attached to the library roof came loose during Sandy’s high winds, causing tears around the drains and columns, de-laminating the membrane and tearing it from the insulation.
The tears and drains were repaired to keep from losing the membrane and temporarily reinforce it. Roof replacement likely would be necessary in the near future, which Housten estimated at about $150,000, on top of about $35,000 to reinforce the membrane. The drains connected to the plumbing were never attached to the framework, allowing the wind to lift them up, he said. There was a 15-year warranty on the roof, but only up to winds of 55 mph, but if it was cause by improper installation, he added, it might not be covered by insurance.
The 75,000-square-foot facility opened in 2004, with $3 million of the $15-million construction cost coming from the Federal Emergency Management Agency (FEMA), another $7.4 million from federal and state governments, $1.4 million from the state Office of Emergency Management, $1 million from the U.S. Economic Development Administration, and $2 million from the New Jersey State Public Library.
The library was built as a public-private partnership. The Redevelopment Agency remains a member of the condominium association that manages the facility along with the owner of the top two floors of office space which was acquired in 2009 for $4.55 million, The old library, at the corner of St. Georges and Central avenues, was destroyed by Tropical Storm Floyd in September 1999.
Neighboring Carteret had planned to request $53 million from FEMA for damage to public and private property. In Passaic County, the federal government had planned to buy 65 homes damaged during last year’s Tropical Storm Irene.
City administrator on the way out
The nearly two-year battle within the city administration is coming to an end — City Administrator Peter Pelissier is on the way out, along with $163,000 – but will remain as redevelopment director.
Continue reading City administrator on the way out