Prism Capital Partners has negotiated a dismissal of the foreclosure proceeding on its Barton Press property in the downtown redevelopment area, according to the township’s outside attorneys at the January 22, 2013, Town Council meeting.
In other actions last night, the council:
- Approved the hiring of a lawyer to provide legal services and conduct an inquiry related to a town contract that is under state investigation;
- Approved hiring an engineering firm to begin a renovation of the wading area at the Ginny Duenkel pool at an estimated cost of $100,000-$120,000;
- Approved a formal request to Essex County to build grass soccer and baseball fields at Turtle Back Rock in South Mountain Reservation, which is on county property off Walker Road in West Orange, at no cost to the town;
- Approved three shared services agreements governing $950,000 of improvements that the town is funding at the high school athletic complex.
The agenda and related documents are here.
While the township’s redevelopment attorneys said they were unclear about the details of the end of the foreclosure other than that Prism purchased the outstanding mortgage (previously estimated at about $4.5 million), they said the settlement was negotiated in late December and the dismissal stipulation was filed in court on January 8. The lifting of the foreclosure removes another negative issue for Prism, following its repayment of delinquent property taxes and redevelopment escrow account in recent weeks following notice of default letters from the town.
However, the attorneys made clear that Prism is continuing to fail to respond adequately to an October 26, 2012, demand for information related to the company’s financial ability to move forward on the project. Prism was given 10 days to respond. The lawyers said they would continue to press for the information, but it was clear that the administration and council majority were not ready to send another notice of default. (I’m in favor sending the notice of default, since we’ve seen that this produces results from Prism.)
Attorney Glenn Scotland said Prism told him that the company is discussing funding of a construction loan (of approximately $50 million) with four major financial institutions – PNC, M&T, First Niagara and Bank of America. He also said he’s seen signs in the market that banks are looking more favorably on projects such as Prism’s. Scotland said Prism is reconsidering plans to seek federal historic preservation tax credits and debating to reformat to condominiums from rentals. He said he was hopeful that construction on the project could begin by the end of the second quarter.
A council majority approved the hiring of Edwin R. Matthews in connection with the state investigation of the town’s contract with Gold Type Business Machines (GTBM), which provided e-ticketing and camera/video equipment for 10 police cars in 2011. Mr. Matthew’s duties will include conducting an inquiry of the transaction “to determine if there have been any improprieties and, if so, how they can be remedied and avoided in the future.” (I voted against the resolution because the contract will have no limits on costs and no timeline for delivery of the inquiry results.)
In a separate decision, Mr. Matthews and his firm, Bourne, Noll & Kenyon, were approved to assume the town contract to defend against residential property tax appeals (as well as the town’s tax-appeal litigation against Orange over the reservoir near Turtle Back Zoo) for an annual fee of $33,000. (I voted against this.)
A council majority approved funding of a contract for $12,800 to Integrated Aquatics Engineering to design the renovation of the wading area at Ginny Duenkel pool, including bid documents and a “spray pad sprinkler system.” The town did not seek competitive proposals for this work. Clarifying my preview blog, the town’s recreation director said the plans would slightly reduce the pool’s footprint and cost an estimated $100,000-$120,000, including equipment. (I voted against this because of the cost and appropriateness, given our tight finances going into the 2013 budget. Council President Victor Cirilo abstained.)
Council actions included:
- Renewal of a one-year contract with Fairview Insurance Associates for risk-management consulting related to the town’s continuing participation in the Garden State Municipal Joint Insurance Fund (JIF). Fairview’s compensation is 7% of the JIF assessment of $810,000, or $56,700. The town did not seek competitive proposals for this work. (I voted against this because I believe we should try to reduce this commission cost.)
- Approval of shared services agreements with the Board of Education for the town to fund, and schools to construct, resurfacing of the soccer field ($400,000, lighting of Soriano Field ($200,000) and a concession stand ($350,000). (I voted against the resolution because we should not be funding all of these projects with our tight finances.)
- Approval of a net decline of $14,042 in the construction contract for the Mayfair sewer project.
- Approval to pay $4,900 to investigate soil at the high school for the placement of lighting for Soriano Field.
- An executive session (closed to the public) to discuss potential litigation, the state investigation and potential release of a legal memo on redevelopment.
I’m a West Orange Township Councilman, since 2010 and can be reached at firstname.lastname@example.org. A former financial journalist, in my spare time I’m a business communications consultant.