Category Archives: City Council

City Council

Interim parking coming soon to Lot B

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The City Council tonight awarded a $30,000 contract for the construction of an interim parking lot on Main Street, which should be completed within several weeks.

Matawan-based Esposito Construction was awarded the contract in the amount of $29,652.95. Funds for the interim lot were included within a $200,000 bond ordinance also approved tonight that also will fund demolition of 65 E. Cherry St. and installation of a fence around The Savoy site at Main and Monroe streets. Mounds of asphalt millings have been staged at the site for the resurfacing, which must be completed in time for next month’s Hot Rods & Harleys event, according to Redevelopment Director and City Administrator Peter Pelissier.

The interim lot is expected to add about 100 spaces to the existing 65, which the Parking Authority will lease from Dornoch Holdings — the developer which originally proposed to build The Westbury — for $1 annually in exchange for property taxes on the site being waived. The idea for an interim lot was proposed in fall 2009 when it became clear the mixed-used development wasn’t coming online anytime soon. [Link in italics added 4/16]

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An advisory issued last week by NJ Transit indicated that construction of the center stairs at the train station — which have been closed for a year — is expected to begin in “mid-April.”

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City Council

$165k for police assistance center

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A multipurpose bond ordinance to be considered by City Council next week includes $165,000 for equipment and improvements for a police community assistance center currently undergoing renovations on East Cherry Street. The governing body is scheduled to approve several bond ordinances at its meeting on April 11.

The $1-million bond ordinance, which includes the purchase of various equipment and improvements, calls for a down payment of $8,250 and issuing $156,750 in bonds. The city acquired the former Beverage Shop building at 52 E. Cherry St. last spring from the Rahway Center Partnership for $80,000 and plans for the police center were announced last fall.

The $165,000 is for “pretty much everything we need to open the building as a police facility,” said Police Chief John Rodger, including furniture and equipment, such as IT infrastructure, for a 30-capacity conference room. Rodger said the interior has been slightly redesigned and the Juvenile Detective Bureau will be moved into the building full time. The video system for East Cherry Street also will be moved there and cameras will be added for Lot B and the driveway accessing it from East Cherry Street.

Renovations to the center have counted on donations to this point, said Rodger, estimating that less than $15,000 has been spent so far. Pending expenses including flooring, ceiling and Sheetrock work, the chief said, adding that he’s working on getting all material donated for the electrical work as well as volunteers from an electrical union to do the work.

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This Wall Street Journal story from last week, All Not Cake on Hoboken’s Washington Street, indicates that even everyone’s favorite cool city is having some difficulty when it comes to retail tenants. About a dozen storefronts along an eight-block stretch of downtown are currently closed, though some new tenants are on the way, according to the WSJ story. Rents vary, with spaces closer to the train station more expensive, as much as $100 per square foot while uptown locations rent for as little as $2 or $3 per foot.

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City Council

Council to vote on another $1.6m for arts projects

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The City Council last week introduced an amendment to add $1.6 million to a bond ordinance to cover additional costs associated with the Hamilton Street Arts District projects. A public hearing and final adoption is scheduled at the April 11 council meeting.

The governing body approved two bond ordinances and introduced six others last Monday to borrow funds for various improvements or equipment. We’ll break down the ordinances related to redevelopment projects in  the coming weeks.

An $8.5-million bond ordinance, originally adopted in March 2010, was amended to $10.1 million. The extra $1.6 million would cover additional expenses that were presented to the Redevelopment Agency earlier this month, . The original ordinance included funds for the renovation of the Bell Building into a 200-seat black box theater and related equipment, acquisition of nearby homes for eventual parking, and the future acquisition of the Elizabethtown Gas building at the corner of Hamilton Street and Central Avenue. The $1.6 million would cover, among others things, construction of a parking lot behind the Bell Building and a temporary lot where an 1,100-seat amphitheater is planned.

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A pretty wonky read, Next American City magazine offers a roundtable entitled The Art of Change, with three experts discussing, among other things, what cities can do to support the arts. Not too long but relevant considering Rahway’s efforts to make the arts a cornerstone of redevelopment efforts. One of the roundtable participants is president of Americans for the Arts, which recently released a study indicating that 41 percent of nonprofit arts groups last year failed to meet a balanced budget, up from 38 percent in 2008, with the “health of the sector at a 12-year low.”

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City Council

E. Cherry St. eyesore may come down by summer

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The City Council Monday night awarded a contract to install a fence around Dornoch’s dormant Savoy property on Main Street and moved forward on demolishing the developer’s East Cherry Street eyesore.

First, the governing body unanimously approved a $16,820 contract to Pollock Installations, Inc. of Woodbridge to install a fence at Dornoch I, a.k.a., The Savoy, at Main and Monroe streets. The council then introduced a $200,000 bond ordinance to cover the cost of the fence installation, as well as the demolition of 65 E. Cherry St., and improvements to Parking Lot B, a.k.a., Dornoch II/The Westbury.

The council is scheduled to approve the bond ordinance at its April 11 meeting. If all goes well, bids for demolition would be awarded by June and demolition could come by summer, according to City Administrator and Redevelopment Director Peter Pelissier. The property paid about $1,040 in property taxes last year, according to PropertyShark.com.

During a meeting in December, Redevelopment Agency officials asked Glen Fishman, managing partner of Dornoch, about the possibility of at least installing a fence around The Savoy site, since it’s sitting there just waiting to be vandalized. Given Dornoch’s financial situation, his suggestion was for the city to install the fence and place a lien on the property.

The wall that collapsed at the property last month was not load bearing, according to Richard Watkins, director of the Department of Building, Planning and Economic Development. The building was declared unsafe and the owner was ordered to demolish it, however, he has refused, Watkins said. The city plans to place a lien on the property to recover the cost of demolition.

Dornoch purchased the East Cherry Street property from the Parking Authority for $65,000 (less than the likely cost of demolition) and had proposed renovations to the Planning Board in 2007.

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City Council, tax appeals, taxes

Merck tax appeal adds $66 to municipal tax bill

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A tax appeal settlement with the city’s largest taxpayer, Merck & Co., will cost the average taxpayer another $66 this year, on top of what was expected to be a $146 municipal tax hike for the average Rahway home. The City Council approved the settlement by a 6-0-1 vote during its meeting last week.

Continue reading Merck tax appeal adds $66 to municipal tax bill →

City Council, tax appeals, taxes

Tax appeals doubled in 2010

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Refunds were approved for 52 tax appeals last year, twice as many as were filed and settled at the county Board of Taxation in the 2009 tax year.

The increase was not unexpected and primarily due to economic conditions, City Administrator and Redevelopment Director Peter Pelissier said. In 2010, 20 of the 52 properties that were appealed were purchased in late 2008 or 2009, and three of them were brought by the city to correct assessments, he said.
The average tax refund among the 52 tax appeals was almost $1,900 while the average reduction on the appeal was $36,500. The largest appeals were industrial or commercial properties, such as more than $5,000 for 1072 Randolph Ave. and more than $15,000 for 670 E. Lincoln Ave., which saw its overall assessment reduced by a third. All 52 tax appeals can be found in this Google spreadsheet.
It’s much the same everywhere. This Bloomberg report from December indicated tax appeals are way up all over (“Tax appeals swamping U.S. cities, towns as property prices plunge”). Specifically, New Jersey homeowners filed 18,147 appeals in 2009, up from 10,067 the previous year — an increase of 80 percent.

Closer to home, there’s this story from MyCentralJersey.com, Piscataway budgets $500G for tax appeals, as well as this one from the Cranford Chronicle, Citing tax appeals, Cranford officials say surplus is down to $58,000 from previous estimates of $1 million.

In November, the City Council approved a multi-year tax appeal settlement for 1510 Main St./90 E. Cherry St. (Block 318, Lot 12) that had been pending in Tax Court. (It was not among the 52 appeals in 2010).

The building, acquired by Pioneer Investment Corp. in Linden for $205,000 in February 2000, houses Skaff Pharmacy on the first floor and apartments on the second and third floors. It pays about $11,000 annually in property taxes. The assessment was dropped by $37,600 — from $202,600 to $165,000 — reducing property tax by $1,909 in 2008, $1,962 in 2009 and $2,054. The total $5,924 will be applied toward 2011 taxes, as per the Tax Court.
After more than an hour in closed session tonight, the City Council approved a tax appeal settlement with Merck that will affect the 2011 budget and tax bills. The settlement was approved by a 6-0-1 vote. We’ll have details later this week.

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City Council, taxes

City Council vote on budget Monday

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After holding a public hearing on the municipal budget last month, the City Council is expected to vote on the spending plan at its meeting on Monday at 7 p.m.

The 2011 budget, which runs through June, is $44.9 million, with approximately $31.1 million (up from $29.7 million last year) coming from property taxes. The governing body held a public hearing on the budget at its January meeting but tabled approval of the spending plan until the February meeting. The overall budget is up about 1.3 percent from last year while last year’s budget was up about 4.5 percent.

The average home, assessed at $133,000, paid roughly $2,280 in municipal taxes last year, and that total is expected to rise by about 6 percent, according to City Administrator and Redevelopment Director Peter Pelissier. A 6-percent increase would bump last year’s average municipal taxes paid by about $136, for a total of almost $2,416.

Municipal taxes generally make up about a quarter of the overall tax bill, with another quarter from county taxes and half from school taxes.

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In case you missed it, the Merck-Schering-Plough merger, announced almost two years ago, looks like it will mean some of Merck’s Rahway employees, as well as some in Summit and Union, will be moved to Kenilworth eventually. The firm plans to convert its Kenilworth campus into a research center focused on biologics, according to this Star-Ledger report last month. Some 580 manufacturing jobs will be lost while another 900 employees in marketing, HR and legal will move to the headquarters in Whitehouse Station.

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City Council, taxes

Hearing on 2011 municipal budget tonight

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City Council tonight will hold a public hearing on the 2011 municipal budget during its regular meeting tonight at 7 p.m.

The $44.9-million budget will raise approximately $31.1 million from property taxes. Officials tout that appropriations have increased only 1.3 percent over last year while being below the state-mandated caps, though the exact impact of the budget on the average assessed home is unclear.

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Sunday’s Star-Ledger had this story that examines Rahway’s redevelopment efforts over the years and the state of downtown. I’m not sure I would call the 50-unit St. Georges Avenue apartment complex that went up in flames this month a “symbolic achievement” as much as other downtown projects, like the 222-unit Carriage City Plaza or 159-unit Park Square (which didn’t even warrant a mention in the piece). What did everyone else think?

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