What Christie's Victory Means For Harrison.
Chris Christie's victory last night means that it will not be business as usual in Harrison. Governor Jon Corzine was in many ways a benefactor for the Town of Harrison. Mayor Raymond McDonough's close Democratic ties with Governor Corzine provided assess and funding for the town of Harrison. Christie is not likely to be so kind.
Harrison receives both Abbott District money, Distressed City Funding and its share of Extraordinary Aid from the State of New Jersey. With a looming interest payment of $3.5 million due in 2010 for the $40 million dollar Red Bulls Bond and retroactive pay increases to town employees, any loss of funding can be devastating to Harrison's taxpayers.
At the Special Council meeting held on October 26, 2009, a resident asked the Mayor on several occasions what his plan was to reduce the property tax burden. Mayor McDonough had no plan. McDonough lamented that the terrorist attacks of September 11, 2001 had stalled the redevelopment and that the current economy was stalling the project. McDonough's plan to decrease property taxes through Redevelopment has hit a huge brick wall. The wall is almost as thick as the 20 foot foundation walls of the demolished Guyon Building.
McDonough did reveal that he had a conversation with Peter Cocoziello, President and CEO of Advance Realty (Advance), the designated developer of the property in front of the Red Bull's Stadium. Peter Cocoziello had promised to start vertical construction on the project designated as the RiverBend District. McDonough however could not provide any details on the nature of the vertical construction.
Daily Harrison has picked up on a Advance Press Release and published an article entitled Infrastructure work at the Riverbend District. The press release sounds great but after reading it carefully the release simply states the obvious. The sewers, sidewalks and lights will be installed in front of the Red Bulls Stadium. The Harrison Planning Board previously modified its agreement with Advance allowing them to install temporary blacktop sidewalks and telephone pole street lighting. Advance will therefore be completing temporary horizontal improvements.
Obviously, the nation's economic downturn has effected the viability of the Riverbend District project. Advance has delayed construction but promises in the same release that:
"Phase I of vertical construction at the Riverbend District is scheduledto begin in 2010 and will feature more than 800,000 square feet ofretail space, including an anchor grocery and retailers, a 16-screencinema and notable restaurants; a 175-room hotel and a 350-room, fullservice hotel with 25,000 square feet of conference space; a wellnesscenter; corporate and boutique office space; and approximately 1,900for sale and rental residential units."
The Press Release does not specify when in 2010 the Advance plans on starting the vertical construction on the property or when it plans to complete construction. Horizontal construction paid for by taxpayer bonding is nice but Vertical construction paid for by a redeveloper which will eventually lead to some income for Harrison is much better.
Mayor McDonough must be proactive in heading off a large and devastating property tax increase. McDonough must realize that taxpayers are on the verge of panic over ever increasing property taxes. If the last three council meetings are any indication, it is clear that McDonough can no longer ignore the poor financial condition Harrison finds itself in. The sooner the Mayor takes the bull by the horns the more likely he will be able to avoid a devastating property tax increase.
As unpopular as it may be, the Mayor must ask town employees to defer arbitrator awarded pay increases for two years. There is record unemployment. Many residents find themselves unemployed and with ever increasing expenses. Mayor McDonough could demonstrate with such a request of town employees that he is serious about weathering this economic storm without imposing an additional property tax burden on homeowners. Union leaders should be very conscious of the current economy and seriously consider the deferral proposal. Many private sector employers have implemented wage freezes to avoid layoffs. One's current salary is better than no salary. A deferred pay increase will enable Harrison to weather the current economic storm. Once the vertical construction is complete tax revenues will be available to pay the salary increases without overwhelming property owners.
Mayor McDonough's legacy will be determined in the action he takes in the next few weeks. Let's see if he has the ability to make some difficult but necessary decisions. Let's hope he doesn't make only "political" decisions but makes some unpopular but necessary "business" decisions. Harrison's future and his legacy hang in the balance.
Harrison receives both Abbott District money, Distressed City Funding and its share of Extraordinary Aid from the State of New Jersey. With a looming interest payment of $3.5 million due in 2010 for the $40 million dollar Red Bulls Bond and retroactive pay increases to town employees, any loss of funding can be devastating to Harrison's taxpayers.
At the Special Council meeting held on October 26, 2009, a resident asked the Mayor on several occasions what his plan was to reduce the property tax burden. Mayor McDonough had no plan. McDonough lamented that the terrorist attacks of September 11, 2001 had stalled the redevelopment and that the current economy was stalling the project. McDonough's plan to decrease property taxes through Redevelopment has hit a huge brick wall. The wall is almost as thick as the 20 foot foundation walls of the demolished Guyon Building.
McDonough did reveal that he had a conversation with Peter Cocoziello, President and CEO of Advance Realty (Advance), the designated developer of the property in front of the Red Bull's Stadium. Peter Cocoziello had promised to start vertical construction on the project designated as the RiverBend District. McDonough however could not provide any details on the nature of the vertical construction.
Daily Harrison has picked up on a Advance Press Release and published an article entitled Infrastructure work at the Riverbend District. The press release sounds great but after reading it carefully the release simply states the obvious. The sewers, sidewalks and lights will be installed in front of the Red Bulls Stadium. The Harrison Planning Board previously modified its agreement with Advance allowing them to install temporary blacktop sidewalks and telephone pole street lighting. Advance will therefore be completing temporary horizontal improvements.
Obviously, the nation's economic downturn has effected the viability of the Riverbend District project. Advance has delayed construction but promises in the same release that:
"Phase I of vertical construction at the Riverbend District is scheduledto begin in 2010 and will feature more than 800,000 square feet ofretail space, including an anchor grocery and retailers, a 16-screencinema and notable restaurants; a 175-room hotel and a 350-room, fullservice hotel with 25,000 square feet of conference space; a wellnesscenter; corporate and boutique office space; and approximately 1,900for sale and rental residential units."
The Press Release does not specify when in 2010 the Advance plans on starting the vertical construction on the property or when it plans to complete construction. Horizontal construction paid for by taxpayer bonding is nice but Vertical construction paid for by a redeveloper which will eventually lead to some income for Harrison is much better.
Mayor McDonough must be proactive in heading off a large and devastating property tax increase. McDonough must realize that taxpayers are on the verge of panic over ever increasing property taxes. If the last three council meetings are any indication, it is clear that McDonough can no longer ignore the poor financial condition Harrison finds itself in. The sooner the Mayor takes the bull by the horns the more likely he will be able to avoid a devastating property tax increase.
As unpopular as it may be, the Mayor must ask town employees to defer arbitrator awarded pay increases for two years. There is record unemployment. Many residents find themselves unemployed and with ever increasing expenses. Mayor McDonough could demonstrate with such a request of town employees that he is serious about weathering this economic storm without imposing an additional property tax burden on homeowners. Union leaders should be very conscious of the current economy and seriously consider the deferral proposal. Many private sector employers have implemented wage freezes to avoid layoffs. One's current salary is better than no salary. A deferred pay increase will enable Harrison to weather the current economic storm. Once the vertical construction is complete tax revenues will be available to pay the salary increases without overwhelming property owners.
Mayor McDonough's legacy will be determined in the action he takes in the next few weeks. Let's see if he has the ability to make some difficult but necessary decisions. Let's hope he doesn't make only "political" decisions but makes some unpopular but necessary "business" decisions. Harrison's future and his legacy hang in the balance.
Posted by John Pinho at 11/4/2009 12:09 PM 
Categories: Council Meeting, Property Taxes, Mayor, Politics, Redevelopment, State
Categories: Council Meeting, Property Taxes, Mayor, Politics, Redevelopment, State
Comments