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Council Approves Edison Redevelopment Ordinances

Residents pack the meeting, councilman Krakoviak votes 'no'

 

[Editor's note: This story was updated at 11 a.m.]

The Edison redevelopment project got another green light Tuesday night after the township council approved two ordinances on final reading that authorize the finances for the project. 

The 4-1 ‪approval, ‬with Councilman Joe Krakoviak dissenting, ‪capped a five-and-a-half hour meeting that turned contentious toward the end of the night. ‬

The township has been seeking a way to redevelop the 20-acre dilapidated land surrounding the Thomas Edison factory building for 22 years, according to planning director Susan Borg.

The current plan, presented by the land's developer, Prism Capital Partners, LLC, would erect hundreds of luxury apartment units for rent, a parking garage and retail space for a total cost of $250 million.

The council is only considering Phase I of the project, projected to cost $125 million.

Phase I calls for 333 luxury apartment units for rent and 18,500 square feet of retail space in the Edison battery building. It will also include a 635-space parking garage and a Jitney service to both the Orange and South Orange New Jersey Transit train stations.

The air was divisive as residents filled the auditorium at Thomas A. Edison Central Six School Tuesday, torn on whether to move forward with the project.

Resident Richard Stolz said though his downtown business, Supreme Bakery, was doing well, "Main Street is struggling, we need residents in the area, it will get people on the streets."

Council members, too, struck a dissonant cord with each other.

Throughout the meeting Krakoviak echoed concerns expressed by residents over the number of children the project would produce, the affordable housing obligation and the issuing of bonds.

"If it's such a wonderful project, why are we bearing all this risk?" Krakoviak asked.

Coucilman Sal Anderton called Krakoviak's salvo of concerns "disingenuous" and said they both had served on the redevelopment committee for more than a year discussing the project but that Krakoviak had never mentioned any of his deep-seated concerns.

Angered by the remark, Krakoviak maintained he had vetted his questions and concerns regarding the project.

"You're not making sense from a policy perspective," Anderton retorted. "You can't be for redevelopment and be against some sort of financial incentive, thats the very definition of redevelopment."

"I'm for redevelopment but I'm not for taking on most of the risk of the project," Krakoviak shot back.

The approved bond ordinance authorizes the township to issue $6.3 million in general obligation bonds to the developer to pay for infrastructure costs and places a special assessment on the property. The second approved ordinance outlines the financial agreement between the township and Prism. Under the agreement, the developer agrees to repay 50 percent of the issued bonds to the township, with interest.

Council president Patricia Spango acknowledged the tension in the room, "The town is obviously divided on this issue." She added, "Without risk, we wouldn't have development. Success to me involves risk."

Though no one disagreed the area needed a major revitalization, many residents staunchly opposed the project and urged the council to reconsider.  

Resident Rosary Morelli said she and others were ready to "hit the streets" with petitions if the project gained full approval. "We will get this on the ballot, we have to take this into our own hands."

Before construction can begin on Phase I of the $250 million project, the council must still vote on two resolutions approving a modification agreement and an infrastructure construction agreement. Both items were originally slated for a vote Tuesday but were pushed back to the April 3 meeting.

If approved, the project also has to garner approval from the planning board.

  • Do you agree with the township council's vote to approve the finances for the Edison redevelopment project?

    (Voting has been closed for this question)
    • Yes, after 22 years it's about time the council pushed this forward.
        149 (7%)
    • No, this is not the right project for this area.
        1564 (76%)
    • I'm not sure.
        333 (16%)
    Total votes: 2046
  • Your vote will only count once. This is not a scientific poll. View Results Vote!
Related Topics: edison redevelopment

Gary Englert

9:17 am on Wednesday, March 21, 2012

After 50 years of talk and 22 of earnest effort, redevelopment of the battery factory is moving forward; a great thing for the entire community.

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Mark Paulson

11:40 am on Wednesday, March 21, 2012

The people who we have elected to represent us have made a decision to restore a historic section of main street. Everyone in the community was given an opportunity to voice their concerns. Some of the opinions were never possible options but the counsel listened to their comments anyway. Now we need to offer our gratitude to these 5 individuals. All 5 of the members live in West Orange. They all are working hard to improve our community. I am personally grateful for the work that these 5 counsel members are doing. It is a hard and thankless job. However, I am thankful for everything that they do to make this town a wonderful place to live.

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Antonio Monica

12:43 pm on Wednesday, March 21, 2012

I agree with the decision, I am part of the future of this township. I was born in Orange and moved to west orange at 7 years old. I attended Gregory, Roosevelt and of course WOHS. My wife and I recently were married and I decided we would stay in West Orange and start our family here. I think more people my age and more families my age need to stand up and talk about this, because we are the future of west orange and we will be the ones to see it through for the next 20, 30, 40, or god willing 50 years. Let the development happen, create jobs, and help our township get back to the greatness in once had.

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harry

1:57 pm on Wednesday, March 21, 2012

Projects...Section 8 housing..the valley already is a no travel zone at night !!! There goes the neighborhood !! Schools will be deeply affected...District should start charging a fee to all the "legal" guardians of kids in the schools right now,make them pay at Least 50percent of the cost of educating and feeding kids from other towns !!! Only this way we can prevent a Tsunami of "legal" guardians taking over the projects and having 8 kids per apartment !!!

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Gary Englert

2:39 pm on Wednesday, March 21, 2012

@ harry:

Rarely have I seen a rant so absent of any basis in fact.

Any time you'd like to take a post Midnight stroll through the Valley, I'd be proud as punch to escort you and, though my Airborne Ranger days are 40 years past, I can assure you that neither body armor nor sidearms will be necessary.

Joe Krakoviak

2:08 pm on Wednesday, March 21, 2012

Following my exchange with Councilman Anderton, I pointed out that I had voiced many of my concerns about the deal during the committee meetings and calls. I also reminded everyone that until the redeveloper actually gave all council members the various materials and proposed legislation -- only in the last several weeks -- we for the most part had nothing in writing that was detailed, specific and complete. Only someone who doesn’t want to hear concerns about the deal could say that I have not made my positions, rationale and supporting facts abundantly clear at council meetings and in communications with the administration and subcommittee advisors.

At the meeting, following Councilman Anderton’s unfortunate comment, I pointed out some of the many aspects of the deal that are structured to provide maximum benefit to the redeveloper – at the expense of revenue and risk protection to the town:

1. The PILOT portion the town receives from project revenues is the lowest allowed by law. We don’t even receive roughly $150,000 of the Payment In Lieu of Taxes (PILOT), since it’s a credit against underlying property taxes.
2. The annual administrative fee the town receives could have been 2 percent of the PILOT, but the town has agreed to take only half of that.
3. The town has agreed to give the redeveloper a discount on sewage fees, saving him about $130,000.

Please see more at the next comment.

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Joe Krakoviak

2:13 pm on Wednesday, March 21, 2012

(Continued from previous message) I also pointed out that if the project does not go as well as the redeveloper projects, the PILOT revenue due to the town could easily be consumed by credits to the redeveloper, public school tuition and bond debt service payments – even before paying for any additional town services the project will require. Our revenue could go down theoretically to virtually nothing until the minimum PILOT guarantee kicks in around 2016-17, but our costs would not.

I also pointed out that, the redeveloper’s PILOT is at best only roughly a third of what his property taxes would be – amounting to $1.5 million or more annually that goes to the redeveloper and not the town.

I made all these points just at Tuesday’s meeting. If you’d like to see a summary of my major concerns, please go here http://bit.ly/GF5Roe.

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Joe Krakoviak

2:17 pm on Wednesday, March 21, 2012

(Continued from previous message) At other times at the meeting, I pointed out that the town will issue $6.3 million in taxpayer-guaranteed bonds for infrastructure improvements that would not otherwise happen absent the project. The redeveloper is required to pay back only half of the principal and interest over 30 years. If it can’t make payments, the town will have to make them until reimbursed by another redeveloper is in place, which could take a long time and require a property tax increase. We start paying interest on this borrowing later this year, and it will continue for at least 2-3 years without supporting revenue, increasing the town’s costs.

I also pointed out the administration is increasing its risk by allowing the redeveloper not to fulfill his affordable-housing obligation in the current Phase 1 of the project. This increases the chances that the town will be required to fulfill this multi-million-dollar mandate if the redeveloper, as is contemplated in pending documents I read from last night, does not proceed to Phases 2 and 3.

Please see more at the next comment.

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Gary Englert

2:37 pm on Wednesday, March 21, 2012

@ Joe Krakoviak:

This is all a moot point and either an exercise in sour grapes or re-election campaigning as the case might be.

Whatever concerns you had could/should have been addressed at your sub-committee meetings and prior to your agreeing to bring the matter before the Council.

As I recall, you were part of the (initial) 5-0 vote to do just that.

Clearly, your colleagues don't share your concerns and feel the "risks" you're focusing on are manageable and well worth taking.

You obviously couldn't make a case to them and trying to do so here is simply pointless and serves no useful purpose...unless you're planning to put your re-election campaign on hold and join Rosary Morelli's threatened petition drive.

barry_geltzeiler

3:37 pm on Wednesday, March 21, 2012

I find it incredibly inappropriate that a council person would be posting on an internet board concerning a council meeting. Not very becoming of a candidate looking for re-election.

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Raymond Helfrich

4:14 pm on Wednesday, March 21, 2012

I think that it's a *good* thing that he does! He's a communicator. He's aware of modern media/technology. He shares information.

(I notice that you don't refute any of his facts, but just make a statement about what's "appropriate" or "becoming"!)

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Gary Englert

5:00 pm on Wednesday, March 21, 2012

@ Raymond Helfrich:

I don't object to the Councilman posting his thoughts wherever he wishes, however, the single salient point is that he didn't/couldn't effectively communicate his thoughts and concerns to those who counted: his colleagues on the Council.

Ergo, this is an exercise in futility.

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Ken

8:24 pm on Wednesday, March 21, 2012

Nah. I disagree with Joe on all of this, but I'd much rather see council members and candidates discussing these things in forums like this than not doing so for fear of seeming "inappropriate."

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Gary Englert

1:16 pm on Thursday, March 22, 2012

@ barry_geltzeiler:

It's sort of analagous to a parent disagreeing with a ref or coach's call at a kid's basketball game and having to be dragged out of the gym because you're making such a spectacle of yourself.

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barry_geltzeiler

2:52 pm on Thursday, March 22, 2012

@Gary Englert the fact that Joe Krak is the ONLY elected official in town who posts on the boards and forums speaks volumes about whom he is in my mind, as for making a spectacle of oneself at a kids rec league basketball game also speaks volumes about the character of that "certain" coach. But it takes all kinds which why we have an election.

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HankT

9:25 am on Friday, March 23, 2012

I think that it adds to the brief article immensely--and better to have the Council members posting here or other places giving their take--their supporters do anyway, better to get it directly from them instead of having the likes of Gary posting on behalf of Council members who can pretend the obnoxious (and usually inaccurate) message isn't theirs.

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Gary Englert

9:41 am on Friday, March 23, 2012

@ HankT:

The thoughts and opinions I express (here or anywhere else) are my own and not done in concert or consultation with anyone else.

Unlike you, there's also enough courage of conviction behind them that I don't cower behind a screen name while offering them.

If anything I've said is inaccurate, you need only prove it to be so for me to offer an appropriate retraction; give it your best shot.

While Mr. Gelzeiler believes Councilman Krakoviak's posting on-line, I do not...though do believe there's little point in his continuing to make a case here when he was ineffective in doing so where it might have counted for something.

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barry_geltzeiler

10:45 am on Friday, March 23, 2012

What i believe is there should be a social media policy adopted by the town council as to what and when things can be posted by their elected officials. Since there is no policy it is inapropriate for any member to post. He should have articulated his information to Sal Anderton during the 18 months of sub committee meetings. but instead he blind sided Anderton at the meeting and then is preaching over the boards to his followers.
It reeks of pandering to the town as he desperately tries to get votes. To quote Sal Anderton concerning Joe Krak, "disingenuous"...

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Gary Englert

11:16 am on Friday, March 23, 2012

@ barry_geltzeiler:

I think we have to agree to disagrees on this one; I'm disinclined to restrict anyone's freedom of speech and Councilmen are no exception.

Clearly, any one of them is speaking for themselves whenever they do...whether it be from the dais, in a media interview, on social media or an op-ed piece...and I don't think they should be prohibited from doing so.

The only danger being that someone might misconstrue that their opinion is, in fact, Township policy or law, when neither may the case or the Councilman's intent.

Clearly, too, only the Mayor or his designee can speak on behalf of the Administration.

Both, unfortunately, are nuance that many people don't understand and never will.

That said, I agree that, in this instance, Mr. Krakoviak is preaching to his faithful when he should be putting a sock on it and singing the project's praises for the greater good.

James Johnston

6:58 pm on Wednesday, March 21, 2012

why is there a campaign on every social media site to silence all opposition to the redevelopment project? the ad hominem attacks on anyone who dares to question this issue are despicable. while some posters need to review and edit their comments for clarity, others need to reduce their trash-talking. reveal the facts, debate the facts, defend your position with facts. many similar projects in this state have failed, in a whirlwind of wishful thinking and fiscal irresponsibility. look at Asbury Park, Newark or East Orange. The construction of residential property elsewhere has been successful mostly with federal funding, and for low-income tenants. Jersey City has been a success due to a mix of high-end commercial and condominium projects. Prism has a track record in commercial conversions, not residential ones.

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Gary Englert

7:21 pm on Wednesday, March 21, 2012

@ James Johnston: Far from there being a campaign to silence opposition, there has been a concerted effort to refute unbridled nonsense, the readdressing of questions long since answered, revisiting decisions long since made and educating those who think they've got a better idea when nobody is willing to fund it!

The battery factory has been a topic of discussion for 50 years, earnest work for 22 and a viable plan in place for most of the last decade.

The time for talking is over...let's get it done!

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HankT

9:34 am on Friday, March 23, 2012

It's not refuting nonsense--it's trying to hide the fact that we likely gave away the store and there are questions that weren't answered and no other Council members thought to ask. 50 years and decades and that sort of talk it hides the fact that this deal is new, and gives away as much as they can to Prism and will cost us now before there's anything built or any revenue coming in. Your posts lack meat, they're all slogans and lines to hide the fact that four Council members didn't ask good questions and probably weren't going to consider any questions or answers before voting yes anyway. It was a done deal before anyone asked a single question, and we should know that's how four of our Council members function before we re-elect them.

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Gary Englert

9:57 am on Friday, March 23, 2012

@ HankT:

Absent from your rabid defense of Mr. Krakoviak's lone vote in opposition to moving redevelopment forward is any acknowledgement of the fact that he sat on the sub-committee (for 18 months) that reviewed the proposals and crafted the legislation.

He also voted (initially) to bring the matter before the Council to begin with.

It was incumbent upon him to address and resolve whatever concerns he had while a member of that committee and before allowing the matter to be brought before the entire Council.

There's no lack of meat there, those are facts and, having monitored this matter for 50 years...and the earnest discussions held over the last ten...I am more than satisfied that the right questions have been asked and reasonable answers have been obtained; all of which had pretty much been accomplished and done to death, prior to the last 30 days.

A "done deal" doesn't take fifty years to bring to fruition.

pete j

10:45 pm on Wednesday, March 21, 2012

The Councilman points out that, "the town will issue $6.3 million in taxpayer-guaranteed bonds for infrastructure improvements that would not otherwise happen absent the project.". In light of the $250 million that prism has on the line I find this a reasonable risk.

The councilman needs to understand that "absent the project" we will have a giant hole in the ground in the middle of Main Street for another few decades driving away businesses that might otherwise locate here.

"Absent the project" we lose a $250 million investment in our community.

"Absent the project" we are seen as a town that can’t get out of its own way and get things done.

With all due respect I would say this is an issue of lead or get out of the way. While it is healthy to play the role of the skeptic and ask tough questions a leader needs to do more. I have not seen a detailed alternative plan submitted by the Councilman and if he has presented one he apparently has not been capable of convincing anyone to give it serious consideration.

While James Johnston has raised the specter of failed projects there are just as many or more that would fall on the plus side of a municipal balance sheet. Plans for redevelopment of Hoboken was met with similar warnings of doom (I lived there at the time.) but created a head of steam that continues to pay dividends.

I believe this is worth the gamble.

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Adam Kraemer

10:33 pm on Thursday, March 22, 2012

With deference to what Pete J is indicating. Speculating in the real-estate market can be a good thing and can improve comuniteis. I hope it works I hope the gamble pays off. However, speculating in real-estate should be with non public funds that could be lost or could make it big. Gambling and real-estate market should not be done with public funds. If you don't believe me on this please look at Fredi Mac & Fannie May

Will Rod

8:32 am on Thursday, March 22, 2012

I want to thank Councilman Joe for his comments. Many of you ignore the value of the content he is providing and make pathetic attempts to minimize his thoughtful analysis and fair representation of the opposition to this project. Not one of you has countered his concerns with facts to the contrary. No one cares how long this project has been discussed, the fact is that its up for discussion and vote now. Many of you have absolutely no idea if Joe has raised these concerns in the past and its wrong for you to assume his resprentation of the taxpayer is anything but that.

I agree completely with the concerns he has raised. The biggest concerns for every taxpayer should be the risk that the taxpayer revenue paid by the developer fails to compensate for the increased cost to our city. Since our schools are the biggest consumer of taxpayer dollars, please explain to me how this project wont lead to future tax increases. Time and time again, i have read posts from Barry and others that say one of the primary reasons for past tax increases are increased enrollment at our schools. Yet, those same individuals want us to believe this project will not cause our taxes to go up. How is that possible? Will everyone paying $2000/month in rent not have a child?

Joe is a voice of reason in a sea of status quo. Stop the madness. We can do better. Vote for change at the next election. Trust that Joe is trying to make WO more affodable. You get the goverment you deserve!

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Gary Englert

8:56 am on Thursday, March 22, 2012

@ Will Rod: The point you seem to be missing is that the matter is not "up for discussion and vote now" as the discussion is over and the vote has been taken.

Mr. Krakoviak had more than ample opportunity to voice his concerns and have his questions answered.

You seem to be forgetting that he sat as a member of the redevelopment sub-committee for 18 months and agrreed the matter was ready to be brought be for the Council for the voting process that culminated Tuesday night.

The exercise of re-addressing each of the concerns Joe reiterates (above) is an exercise in futility and serves no practical purpose.

I will reiterate on point I've consistently made here and elsewhere as it is most germane to the single greatest "risk" concerning the project that anyone seems to have: a potential increase in school population.

With +/-15,000 housing units in town, the 333 apartments that will comprise the first phase of Edison Village represent no more than 2% of that total.

Every study ever done on the subject, and our historical experience here in West Orange, confirms that townhomes, condos and rental apartments simply do not effect school population the way that single family, detached housing does.

I graduated from West Orange High School in 1969 at a point in time when the school population was at its peak of more than 7,000 students: ergo, there was already sufficient housing stock in town to domicile that many.

(To be continued...)

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Gary Englert

9:10 am on Thursday, March 22, 2012

The ensuing years saw a significant decrease in that student population, so much so that schools were sold off or leased (circa 1985) to reduce expenses. The townhome and condo boom of the 1980s and 1990s did little to increase the number of students. We have seen increases over the last decade but, have yet to reach the peak numbers seen circa 1970.

What was the reason for our burgeoning school population?

Well, it wasn't townhomes, condos or rental properties; it was the turnover of single family, detached housing.

We are in the midst of the peak mortality years of the WWII generation that truly built and expanded this town and those who've remained here have long been empty nesters. As they pass on, there home are being acquired by couples with children.

Then too, the WWII generation's children (the "Baby Boomers") have no reached, or will shortly be reaching, retirement age. Those born of this generation (1945 - 65) are now 47 to 67 years of age and have also become/are becming "empty nesters" and some portion of their homes will soon domicile younger families with children.

The risk of overwhelming our schools with student has long been there and that small possibility associated with Edison Village simply pales in comparison.

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Alex Sohn

4:42 am on Saturday, April 14, 2012

@Gary Englert:

You wrote: "...having monitored this matter for 50 years....I am more than satisfied", and then go on to say in a later post: "I graduated from West Orange High School in 1969"

So ... you began monitoring the Edison Battery Factory saga when you were in elementary school? How precocious!! Were you monitoring the redevelopment for Mayor Sheeran? That was the year of the big centennial celebration and 3 years before the battery factory closed.

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Gary Englert

8:46 am on Saturday, April 14, 2012

@ Alex Sohn: Precocious or not, I've had an interest in civics and politics (aviation as well) since childhood and, yes, have monitored the battery factory saga through the last five decaded.

By the way, the first political campaign I ever worked on was Joe Minish's first run for the house in 1962.

In 1966, I worked on Jim Sheeran's bid for a third term that he lost to Lou Falcone; Jim remained a close friend until his death a few years ago..

So, believe it or not, I have been around and involved that long.

Tom G.

9:09 am on Thursday, March 22, 2012

@Pete J - again, let's stop comparing West Orange to Hoboken (and Jersey City). One can not assume a project in WO will be successful because of success in Hoboken. The towns could not be more different and Hoboken has the major advantage of being located 1 mile from NYC, and is an area that naturally flourishes with rental units due to college graduates getting jobs in NYC that can't afford to live in NYC. The West Orange area is completely different, and much less advantageous, which is why I have always been skeptical of the high price of the Edison rentals.

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barry_geltzeiler

10:06 am on Thursday, March 22, 2012

Mac, nobody wanted the property in jersey City back in the 80"s and scoffed at the idea of redevelopment just like West Orange. But redevelopers with VISION took a risk and now everybody can see it was a slam dunk. This is why you are not a redeveloper, you have no vision or cash to pull off the project. So you should remain a professional at your career and trust the redevelopment professional at thiers.

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pete j

1:18 pm on Friday, March 23, 2012

Hey Tom G., Just want to clarify, I don’t assume the project will be successful. I do believe it has a good shot at it.

Re your comment about Hoboken... the Hoboken of years ago is actually a decent, but not exact, comparison. That many don’t realize this is a testament to how far the city has come and is an example of what is called "Hindsight Bias" in Psychology. (Success is remarkably easy to predict after it happens!) With the crime and corruption of the day success in Hoboken was anything but certain.

I am of the opinion that our town actually has a huge amount going for it and, when compared to the Hoboken of old, could be described as being in a better place.

Finally, now that it has been approved I would hope that everyone would come together as a community so that it has a decent chance of being a success.

Will Rod

9:17 am on Thursday, March 22, 2012

Of course I know the vote was taken and approved. Please stop deflecting. This is still an important discussion to have. Joe is explaining the reasons why he voted the way he did. Thats extremely helpful when an election looms. To that point, this is not an exercise in futility.

I dont get your point about Joe voting to bring this to a vote. Isnt that what he is supposed to do? Bring it up for vote, get public opinion, get information about the specifics of the deal and respresent his constitutients.

I dont want to speak for Joe but his analysis implies we could have negotiated better terms for the project. We could have secured more revenue and guarentees. We did not.

Since you appear to represent the concil members who voted to approve the project, please respond with facts to address the concerns he has raised. What is their view? Let deal with facts, not conjecture. I love your response, "every study ever done", kinda hard to dispute that but lets try. What studies? When were they done? Do you have an analysis showing school enrollment increases by dwelling type?

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Gary Englert

9:46 am on Thursday, March 22, 2012

@ Will Rod:

Clearly, you are somewhat ignorant of the protocols at play here and the way the Council operates.

Mr. Krakoviak and Mr. Anderton sat as members of a Council appointed sub-committee to work with the administration, the Township's professional staff and consultants to formulate the best plan possible to move redevelopment forward. Thiis included the drafting of the ordinances voted on Tuesday night.

This process went on for 18 months and it was incumbent upon Mr. Krakoviak to address his questions and concerns, during that time, while the agreement was being constructed and the documents drawn.

The man allowed the matter to be released from committee and voted to bring the matter before the Council for the voting that culminated last Tueday night.

What does that say to the public?

Simply this: Councilman Krakoviak believed this was the best plan possible and that his concerns and questions had been reasonably answered during the committee deliberations he was involved in for the preceeding 18 months.

If that was not the case the why, pray tell, did he vote to introduce the ordinances?

That is why Mr. Anderton characterized his colleague as "disingenuous."

(To be continued...)

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Gary Englert

9:49 am on Thursday, March 22, 2012

I do not represent the Council. I am a private citizen who long involved in community affairs and who has been paying attention to this matter for 50 years.

So far as the studies I referenced, feel free to do an Internet search as general information on the subject (housing type's impact on school populations) is readily available, with that specific to West Orange available through our Planning and Development Department at Township Hall.

These aren't assertions I've made up.

Gary Englert

9:18 am on Thursday, March 22, 2012

@ Mac:

Opinions are subjective and the basis for this project, and that is encouraging investors willing to fund it, are detailed market studies and analysis that simply do not support your premises and conclusions.

Mr. Diaz quite concisely and eloquently detailed the method behind what you think is madness, when he spoke Tuesday night.

It's abundantly clear to me that Prism is far more in tune with the rental market, and the demographic they are targeting to attract, than you or I and they are willing to invest hundreds of millions of dollars based on the data before them.

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Cynthia Cumming

10:23 am on Thursday, March 22, 2012

I am very encouraged to see that residents in support of redevelopment are speaking up. There are risks involved in the project. There are risks in life, period. The potential benefits far outweigh the risks in my opinion. And I can't imagine that the developers have any desire to see it fail. As opponents dissect the proposal, the reality remains that Prism owns this property and they can do with it as they see fit. How do opponents reconcile that? And who else is lined up to revitalize the downtown area with funding to back that up? I can't understand why residents would prefer nothing.

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Tom G.

11:43 am on Thursday, March 22, 2012

@Gary - yes I read the detailed market studies (the ones that were posted on the town's website). Many aspects of this project received a rating of "inferior" - one of which is location. This led to my point that people should not be assuming success of this project because some projects in Hoboken were successful. Two totally different places. With that said, I am excited this project is moving forward, but it's with cautious optimism.

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Gary Englert

12:15 pm on Thursday, March 22, 2012

Mac:

Perhaps you should revisit that market study as the portion you refer to was a candid, point by point comparison with comparable rental properties within a 5 mile/15 minute distance of Edison Village.

In some respects Edison village was deemed Superior to these proprerties, in some respects Inferior and in others there was Parity; the point being that each is somewhat different and Edison Village will indeed be unique.

Perhaps the most salient points that Diaz made were as follows:

1. The vast majority of the tenants the project will likely attract already live within 5 miles/15 minutes of the property, and...

2. Between here and the Hudson River there is nothing else comparable, whereas one must go 19 miles further west (Morristown) to find rental properties with similar amenities, and...

3. Demand for rentals are increasing with current occupancy rates of 97% across the board in North Jersey.

No, we're not Hoboken but, it's simply not going to be a heavy lift to rent 333 newly renovated rental units located 12 miles from NYC either...and people with far, far more to lose than any of us are betting that it won't be.

Raymond Helfrich

12:26 pm on Thursday, March 22, 2012

What about what Rodolfo Rodriguez said?
What about what Jerry Guarino said?

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Gary Englert

12:35 pm on Thursday, March 22, 2012

@ Raymond Helfrich:

At Mr. Guarino's Campaign Kickoff Event last night, he publicly stated he was in favor of redevelopment and would have voted for the proposal had he been a member of the Council.

As to Mr. Rodriguez's position, his comments are so rambling and disjointed that, if he has a position (other than being generally opposed to the redevelopment proposal as currently constructed) he hasn't articulated it well enough for anyone to understand what it is.

Cynthia Cumming

11:56 pm on Thursday, March 22, 2012

Thanks for that info Gary. Good to hear Jerry supports redevelopment. I agree that Rodolfo's comments were not particularly succinct.

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Raymond Helfrich

1:31 pm on Friday, March 23, 2012

I wish that we weren't going to get another apartment house. Yes, the new bodies in town will patronize local businesses (and further strain our over-taxed infrastructure!), but we're missing out on a great chance to make a unique destination (some kind of commercial ratables that are not retail, either)--co-located with the magnet that is the national historic site--to attract many more people. (Yes, Gary: I realize that you are right, still, and I am wrong, again.)

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Gary Englert

2:27 pm on Friday, March 23, 2012

@ Raymond Helfrich:

In the immortal words of Bachrach & David via Dusty Springfield:

"Wishin' and hopin' and thinkin' and prayin' Plannin' and dreamin' ..." simply will not make it so and you're bemoaning issues that were examined, conclusions reached and decisions made nearly a decade ago...following 50 years of "Wishin' and hopin' and thinkin' and prayin' Plannin' and dreamin' ..."

People need to understand that the Township issued a request for proposals to redevelope the site and those expressing any interest all agreed upon one fundamental point: what worked for the site (and what they were willing to invest in) was a mixed use (residential-commercial) project.

Only once the concept was approved and Prism's design proposal selected did they acquire the property...at the Township's invitation and urging...toward redeveloping the property with an acceptable plan.

Cynthia Cumming

1:36 pm on Friday, March 23, 2012

Raymond, Prism owns the property and can do what they want with it. We can't make them do anything. Hey, I would have liked a supermarket or something... but at the end of the day, I look forward to seeing great things happen!

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Sue Freivald

9:32 am on Monday, March 26, 2012

Clearly they can't do what they want with it, or they wouldn't have to come before the Council and planning board! And they aren't just doing what they want--they are asking the town to give them incentives that give them more of a buffer while taking WO's buffer to possibly less than nothing--no one even knows how much the town's added expenses will be.

cb

2:43 pm on Friday, March 23, 2012

Cynthia you are right let Prism do what they want, but not on my dime. There is a lot of risk here with the downside that we the taxpayers may be forced to fund. I am all for development but when It comes to my money and taking financial risk I feel that should be my choice not yours or the towns. I am against the 6.3 mil taxpayer general obligation bonds for Prism and this redevelopment. And Yes it should be a referendum on the ballot for the taxpayers of this town to have the right to vote yes or no. After all that is what democracy is all about.

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Gary Englert

3:24 pm on Friday, March 23, 2012

cb:

Do you understand how little financial "risk" you are personally actually under here?

While the possibility is really quite remote (given the substantial investment Prism and it's investors will have in the site), in the worst case scenario (Prism going belly up, the property not being re-sold and not a penny of income accruing to the Township), the increase to your personal property tax bill would be no more than $24 a year.

Understand that these General Obligation bonds are financed over 30 years,

If the Township opted to retire this debt based on a one-time assessment to all property owners, $350 per property (+/-18,000) would do the trick.

The Township bonds all the time for a whole host of things without a dedicated source of income to repay the debt; that's what make this proposal unique and advantageous.

Lastly, please do understand that the Township invited and encouraged Prism to come here and purchase the Edison site for the sole purpose of redeveloping it.

This is now, and was always supposed to be, a public-private partnership.

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Cynthia Cumming

3:50 pm on Friday, March 23, 2012

They already own the property. You can feel the way you want, but the real thing the town stands to lose is a developer willing to revitalize the downtown area. I am glad Prism wants to invest in West Orange, and I suspect that they don't plan on failing.

Peter Shea

3:27 pm on Friday, March 23, 2012

Oh come on Gary Englert! I thank you for your service to this country and New Jersey, but please do not try to pass yourself as some honest broker on the Edison Redevelopment project or on the upcoming West Orange Town Council race. You have been a Legislative Aide to Assemblyman John McKeon (D) since 2002. John McKeon was West Orange Mayor from 1998-2010 and started this whole Redevelopment project with Prism. Until Joe Krakoviak came into the Redevelopment issue, first as a citizen and later as a Council member, your boss and his cronies have done everything possible to obscure facts about this project and its financing. This obscurantism continues, obviously, with your continuing efforts here. Full disclosure: I was Joe Krakoviak's campaign manager (volunteer) and supporter in his first run for Town Council. You are obviously being paid to dominate all West Orange-related electronic media website/discussion groups discussing West Orange governmental doings and elections. So let's agree, as between two political operatives (albeit, yourself a professional and me an amateur), hackery has no place in discussions as important to West Orange as the needed development of the Edison site and current town government's spending profligacy and slated tax increases.

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Gary Englert

3:52 pm on Friday, March 23, 2012

@ Peter Shea:

While I thank you for your acknowledgement of my service to state and nation, I can assure you that I'm has honest a broker as your're likely to find concerning the Edison Redevelopment Project.

Why?

Because I do not personally stand to gain a thing from the project's success, or very much of anything to lose in the unlikely event it becomes a failure.

Neither, by the way, does John McKeon, nor anyone else holding local office, past or present, to my knowledge.

Yes, I am a Legislative Aide for the 27th District, and provide assistance on matters within my fields of expertise, veteran and military issues among them.

Largely voluntary, I receive a very modest annual stipend that doesn't even reimburse me for my out of pocket expenses; not a salary or living wage by any stretch of the imagination.

Accordingly, your suggestion that I am being paid to voice my opinions (which are neither coordinated nor orchestrated with anyone) is without any basis in documentable fact.

Further, while my documentable success and expertise in successfully running local political campaigns is a given, I've never been paid a dime for doing so and, though worth every penny anyone might wish to send in my direction, my amateur status remains fully intact.

(To be continued...)

Gary Englert

4:12 pm on Friday, March 23, 2012

All that said, John McKeon did yeoman's work in moving redevelopment forward as it was a well recognized need that had veen a topic of discussion for the 40 years prior to his taking office...and all kudos to him for doing so.

He did what he truly thought was in the best interest of the town he grew up in, raised his family, served well and continues to reside in.

Anyone thinking otherwise simply doesn't know the man or just how decent and honorable he is...and I can asure you that Mr. Krakoviak's public service, and personal sacrifices to provide it, pale by comparison.

Lastly, my resume and community involvement need not be repeated as it has long been a publicly available as part of my profile (as is my picture) on The Patch.

Ergo, I'm not hiding myself, or anything about me, from anyone.

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john anthony prignano

4:32 pm on Friday, March 23, 2012

John Mckeon AND Richard Codey are documented liars . Now, { Current as of the fourth quarter 2011 } who is this Gary R. Englert , Legislature / Legislative General Assembly Members, Staff Services, Division Director Managerial Unit M at a salary of $97,970 ? Is this the very,very prolific letter writer on Patch ? Is that yet ANOTHER no- show job as a reward for total syncophancy and utterly blind loyalty ? And , does anyone think that Prism would invest such a great deal of time and effort AND $60,000,0000 on only the CHANCE that their project would be approved ? Done deal , fait accompli

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Gary Englert

5:08 pm on Friday, March 23, 2012

@ john anthony prignano (twice failed candidate for mayor '94 & '98):

The salary you are noting (above) is for the position of Director, Division of Veteran Services, NJDMAVA (not a no-show job, by the way), that I left in March 2010.

Any information you have, or are disseminating, to suggest I currently draw such compensation (or have since 3/10) is wholly inaccurate.

john anthony prignano

5:17 pm on Friday, March 23, 2012

{ Current as of the fourth quarter 2011 } Who is this Gary R Englert Legislature / Legislative General Assembly Members , Staff Services, Division Director ,Managerial Unit M? I would imagine this { managerial } position pays a very good salary . Does anyone know what it is ? This information is not current to March 2012 . It could very easily be more than $97,970 . Judging by the number of Capital letters in the job description and the obfuscating nature of the job description itself , I think a salary estimate of $100,000 a year is very reasonable. What the hell is going on here ?

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Gary Englert

1:11 am on Saturday, March 24, 2012

@ john anthony prignano:

Repetition of the same inaccurate nonsense (and absent any source to boot) makes it no more true with each retelling.

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john anthony prignano

1:04 pm on Saturday, March 24, 2012

" Ergo, I'm not hiding myself, or anything about me, from anyone " Who is this Gary R. Englert Legislature / Legislative General Assembly Members,Staff Services, Division Director, Managerial Unit M ? Nobody, and I mean nobody , takes better care of their " good friends " than John Mckeon and Richard Codey. Shakespeare : "Foul deeds will rise , though all the earth oerwhelm them to men's eyes" " So full of artless jealousy is guilt , it spills itself in fearing to be spilt " Charlie Sheen : " Winning ! "

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Gary Englert

8:25 pm on Saturday, March 24, 2012

@ john anthony prignano::

Would you care to share your resume with the group?

Any truth to the story you were dismissed by the US Postal Service?

Or that the gym you then owned went bankrupt?

That your unrelenting rage over the last 20 years is a result of using steroids?

That your "career" since has been as a "Mr. Mom" while your wife actually earns the family living?

Of course we do know that you're a two-time loser in your attempts to gain public office so, if you're "winning" anything it isn't apparent to much of anyone.

By the way, the subject is redevelopment and this is not a forum for your incessant personal attacks on people you barely know.

john anthony prignano

10:34 pm on Saturday, March 24, 2012

I will conclude my expose with an epigram by Sir John Harrington : Treason doth never prosper : what's the reason ? Why, if it prosper, none dare call it treason

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Gary Englert

12:49 pm on Sunday, March 25, 2012

@ john anthony prignano:

Repetitive personal attacks (without basis in fact) against long past political opponents is far from an expose; it's just sour grapes.

It's also not germane to a discussion of redevelopment.

Sheila Lefkowitz

10:22 pm on Sunday, March 25, 2012

Let's stop slinging the mud. The Town Council has spoken. We have the right as registered voters in the Township of West Orange to sign a petition for a referendum. Let the people speak. The issue of redevelopment is immense. It is not just about facts and figures, but the risk that the people of West Orange are willing to bear in a down economy. Perhaps the support is there and perhaps it is not- let the people speak! Petitions are circulating- my suggestion is to sign them and get out on election day. Sign, vote, and be counted!!!! With Peace and Good Will to All- Sheila Lefkowitz, West Orange

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Adam Kraemer

6:45 am on Monday, March 26, 2012

@ Sheila -The best way to let your elected officials know that you think the bond ordinacne and public funding of realestate deal is not in the best intrest of the community is in how you vote in May 2012 for township council. Three council seats are up the voters can put in people who might repeal this and the voters can put in people wiho would never do this sort of thing again. If council members get in with only 25% or so of the voting public in town voting as they have historically then they will think no one is watching and do this sort of thing.

Cynthia Cumming

10:49 pm on Sunday, March 25, 2012

Can we circulate a petition to defeat the petition to vote?

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Cynthia Cumming

8:47 am on Monday, March 26, 2012

Adam, what exactly do you mean by "this sort of thing"?

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Sue Freivald

9:47 am on Monday, March 26, 2012

Perhaps "this sort of thing" means voting on something without having all the facts. Voting even though they don't have the answers to important questions--like whether WO's costs will even be covered by the PILOT, or what those costs will be at all.

The proper response to hearing uncomfortable questions about the financial details is NOT an attitude of gee, I haven't heard these before so I'm going to vote yes anyway, but to say, gee, I don't know the answers to these concerns, so I shouldn't vote yes--let's stop and look at this more closely and come back to this, possibly with some changes. How could anyone would vote yes on something when they don't even know how much it's going to cost or if the revenue will cover those costs or what the COAH obligation will be or what major future transactions involved will entail?

When basic, factual, objective questions are treated with hostility, and are even seen as treasonous (not just with redevelopment but with any topic at all) something is very wrong.

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Gary Englert

11:25 am on Monday, March 26, 2012

@ Sue Freivald:

What you're feeling isn't what others regard as treasonous but, simply that you're ill-informed as opposed to those of us who've followed this entire saga for decades longer than you.

Development of the site...in any way, shape or manner...could not be done without a public-private partnership...and the plan currently in place was chosen following a laborious process; it is what has been approved though all existing protocols and that which developers are willing to fund.

Paralysis by analysis is no way to govern.

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Cynthia Cumming

2:34 pm on Monday, March 26, 2012

Sue, I was asking Adam to respond. Unless you are speaking on his behalf, I would rather see what he has to say so I know how to respond. ;)

Gary Englert

9:47 am on Monday, March 26, 2012

Just how much "risk" accrues to any single taxpayer through the Township's issuance of $6.3 Million in general obligation bonds in support of the project?

Not very much at all, really.

First the Township bonding authority is detailed in state law, with the allowable value of bonds a municipality can issue predicated on its total assessed property value.

At present, the Township has outstanding bond obligations equal to less than 1/3 of its total bonding authority and enjoys an excellent credit rating; the issuance of $6.3 Million in bonds would not adversely effect either.

If however the absolute worst case scenario were to come about...Edison Village/Prism goes belly up, they can't make their payments, can't sell and/or we get tied up for years in litigation to collect monies due...here's what the effect would be on the typical taxpayer:

1. If the Township decided to retire the bonds with a one-time assessment (unlikely): a one-time payment of $350 for every property owner (+/- 18,000)

2. If the Township decided to repay the bonds over their 30 year term (likely): an annual payment of $24 per year for 30 years for every property owner (+/- 18,000)

Those are pretty big "ifs" and given something that the people putting $250 Million into Main Street aren't about to let that happen very easily.

(To be continued...)

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Gary Englert

9:48 am on Monday, March 26, 2012

Still, redevelopment is a complicated process and missing from the most recent debate is a summary of things decided years ago for reasons that color the entire project.

Why formal redevelopment and tax incentives are necessary here is because the parcel is not conducive for fully private investment without them.

Like it or not, the battery factory has historic significance as status by both the state and federal governments.

Second, the building itself is made of Edison's own design and using his proprietary formula for concrete and will likely outlast the pyramids of Egypt; if it could be demolished (and it can't, see preceding point) the cost would be extraordinary and prohibitive.

Last, because the property was an industrial site long before environmental concerns where on anyone's radar screen, the property required substantial site remediation (already accomplished)overseen by the DEP.

What all of this means is that redeveloping this property will require an investment of +/- $112 Million to construct a complex that will have an assessed value of $80 Million.

Can anyone get a (legitimate) mortgage on a home equal to 40% more than its value?

No, and investors aren't lining up to back such a project without some incentive that makes it palatable and that incentive is the PILOT (Payment in Lieu of Taxes) Program and willingness to assist with providing advantageous financing of $6.3 Million (the bond) for infrastructure and public amenities.

Gary Englert

9:48 am on Monday, March 26, 2012

This dynamic would apply to any investor and to whatever fanciful alternative uses one might think preferable, as those that were willing to make the investment agreed on one point: a mixed use (commercial-residential) is what was appropriate for the site.

That people are willing to turn their nose up at a $250 Million investment in our community...in the face of risk so small as to be non-existent...is simply mind boggling to me; particularly given this debate has gone on for fifty years.

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Ken

11:45 am on Monday, March 26, 2012

Is it just me, or does it seem there's a weird flip-flop where many of the same people who want to block Prism's intended use of their land were also strongly in favor of Seton Hall Prep's deforestation scheme?

The Prep doesn't even pay us PILOTs!

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James

5:06 pm on Friday, April 6, 2012

some people are rightthey are the future of downtown. Loud music, and dirty street.

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