City Council unanimously approved an ordinance that will shift the downtown management corporation overseeing the Special Improvement District (SID) from the Rahway Arts and Business Partnership (RABP) to the governing body.

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The governing body approved the ordinance (O-22-21) by an 8-0 vote (4th Ward Councilman David Brown was absent) during its regular meeting on Monday night. The measure was introduced during a special meeting on May 19.

The ordinance designates City Council as the district management corporation controlling the SID.  City Council  currently approves the annual SID budget but does not approve or appoint the seven members of the RABP board, a nonprofit that has been the district management corporation since 2010. In March, City Council approved a $325,000 SID budget for 2021. The ordinance would designate a five-member RABP Advisory Board appointed by the mayor; five non-voting members would include the mayor and other key city officials.

Property and business owners throughout the city fund the SID through assessments and “we strongly believe that those owners should equally share in the benefits,” by Mayor Ray Giacobbe, Jr. and City Council President Danni Newbury wrote in a June 8 letter to business owners. “We also believe that it is important for the SID to expand its focus not only geographically, but beyond its traditional events-oriented emphasis. While continuing to present and collaborate on events, which tend to mostly benefit our restaurants and retail establishments, under City Council the SID will deepen its involvement with activities that support true economic development that benefits all businesses and property owners.”

Also during Monday’s meeting, City Council awarded a $63,000 contract to Heyer Gruel & Associates to develop a downtown strategic plan.

Lisa Vandever of Oak Street was the only member of the public to speak during the public hearing on the ordinance last night. She questioned what the shift in management may mean for the arts and raised concerns that there is no specific mention or representation of the arts on the new RABP Advisory Board but there are posts dedicated to business and the Chamber of Commerce.

Each of the five voting members of the advisory board would be a member of at least one of the following categories:

• An owner of property within the SID;
• An owner or operator of a business within the SID;
• An owner whose property within the SID is primarily residential use; and,
• President of the Chamber of Commerce.

With a background in film, Vandever moved to Rahway in 2004 and has been delighted to see a strong presence of the arts. She also warned that the dedication of the existing RABP staff and board may be overlooked.

Newbury was the only council member to comment during the public hearing, responding to Vandever: “I hear your comments and while the text that was presented doesn’t emphasize the arts, it is fully our intention to emphasize the arts and continue them a focus on the economic development of Rahway,” Newbury said.

During council comments portion of the meeting later on, 3rd Ward Councilwoman Vanni Parson , as the representative to the 3rd Ward, she would “definitely like to get with” Vandever to find out what suggestions she might have with regard to the arts.

The SID was expanded from strictly downtown boundaries, encompassing 138 properties, to include more than 400 properties citywide under legislation passed in 2014. A legal fight by several business owners ensued, which ultimately was resolved in 2019. Negotiations in that lawsuit included calls to expand the RABP’s board of trustees to include business owners.

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