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OP-ED: Will Bloomfield Taxpayers Be Hostage to $21 Million in Debt?

This opinion editorial was submitted by Sue Ann Penna, Executive Director of Citizens for Limited Government.

 
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Sue Ann Penna, Bloomfield resident and Executive Director of Citizens for Limited Government.
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Last night the Mayor and Town Council voted an additional $5 million for the parking garage (in addition to the $16 million bonded from the Parking Authority) in return for receiving 100% of the revenues, as opposed to 50% of the revenues from the redevelopment project.  

These supposed revenues come after all the bills are paid - i.e. interest payment on the bond, etc. We already have Joe Baumann, Parking Authority attorney, stating that parking garages do not normally generate revenue. We have Mr. Colgan, the developer, recently stating to the Patch that "the first project never accomplishes the end goal."  

Isn't the end goal supposed to be generating revenue and making money? So if this project is not accomplishing that end goal, what exactly is it accomplishing? Why are we bothering with this project and indebting Bloomfield taxpayers? If the developers are not going to accomplish their end goal, which would be generating revenue for Bloomfield and for themselves, it also follows logic that there will not be any revenue left over to give to the town after the bills are paid.  

It doesn't matter where the bonds come from - the town or the parking authority - because the taxpayer will still be responsible for the bonds if enough revenue doesn't come in to cover the interest payments and to "pay the bills."  

I would also like to be clear that the issue isn't about redevelopment. The issue is about the Mayor, Town Council and Developers bonding the Bloomfield taxpayer to build this project. They were elected to put the best interests of the residents above all else. How can they do that while holding us hostage to $21 million of debt?  

The most worrisome part is that none of the money is going to the Board of Education to pay for any additional children attending our school system because no taxes are going to be collected for that purpose.  The money from the development goes to pay the debt for thirty years.   

While they claim families will not be moving into these apartments, that is a naive assumption to make, but it is one that nicely fits the narrative of the developer and town council. It does not fit the narrative of today's reality, which are single parent households moving into apartments and children entering our school system. If they were not planning for this, then why did they increase the number of three bedroom apartments?  

The School Board President has been absent on this issue to the frustration of the people that were just given a tax increase by the Board. If the school Board President continues to avoid the most important issue facing the financial stability of our school system she will be openly declaring that she does not consider another huge tax increase important or worth her time.  

How the school Board cannot understand that a tax increase will have to take place for every single child that moves into the redevelopment is baffling to every taxpayer. One has to wonder - has the school president capitulated to the Political Machine she has in the past railed against?  If she stays silent the question will answer itself.  

Related Topics: Bloomfield Town Center, Parking Garage, and Town Redevelopment

VinVett

6:53 am on Wednesday, July 25, 2012

WHY DO THE TAX PAYERS HAVE TO PAY FOR THIS PROJECT WHY NOT PRIVATE DEVOLOPERS AND THEY WOULD PAY TAXES TO THE TOWN AND LOWER THE BIRDIN

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john g chipko

8:04 am on Wednesday, July 25, 2012

the council and mayor need to be replaced. if they want this so bad let them personnaly guarantee the bonds.

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john g chipko

8:05 am on Wednesday, July 25, 2012

there was not one mention of our taxes being lowered. if this doesn't work we will be paying more taxes and the politicians will have memory loss.

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xoxo

9:25 am on Wednesday, July 25, 2012

Where was the town hall meetings and impact study we were suppose to get before they voted on this. FIRE BAUMANN, THE SNAKE OIL SALESMAN!!! We have been lied to by this Mayor again!!! How convenient that Mr. Venezia wasn't there. I thought the Mayor would have waited until all Council members would have been there for this important vote, but no, let's just spend our money because no one will know until we are long off this council and moved out of town.

For the Mayor who brought this to a vote and broke his promise for a town hall meeting an a town-wide impact study, you lied again. Take your snake oil salesman Baumann and the both of you get the hell out of town!! SHAME ON BOTH OF YOU!!!

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Brian

10:10 am on Wednesday, July 25, 2012

I feel sorry for the people of Bloomfield, I really do. I have many great memories of a beautiful town and while it is a bit battered now, I know it will be a great town once again...someday. I have been out-of-touch with that area, since I've moved to NC but, Bloomfield has/needs a Parking Authority?? Does Bloomfield really need a Parking Authority?? Please help me to also understand why in the world would an already over-burdened township, want to fund a parking garage when that burden should be solely on the developer?! And I apologize and mean no disrespect to anyone but seriously, a major announcement that a Foodtown and Subway are your best prospects so far?! Granted, the residents in that area do need a grocery store and I fear that a Foodtown is going to be the best they can ever hope for. There will never, ever be a "higher quality" store of any kind ( as residents may have been led to believe) such as a Trader Joes, for instance, when Montclair is only a couple miles up the hill...where the money is. That being said, this new development can attract really nice stores ( got to get far away from the nail salon, discount clothing stores Bloomfield ) and be a great success but, you need to question constantly your elected officials and and developer on all their "crystal ball" projections...look through all the promises and into the fine print, if you want the truth.

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jojo

2:22 pm on Wednesday, July 25, 2012

Brian, thank you for your sympathy, you are 100% right. At present there is no reason to park in Bloomfield for anything, and it doesn't seem like much is on the way. Very sad.

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Bert Jones

10:29 pm on Wednesday, July 25, 2012

Why not just rebuild without a parking garage if no one is coming to Bloomfield now building a parking garage wont make them come here for a foodtown and a subway store. Also the way the economy is right now with all these houses foreclosing with the recession we are in building all these luxury condos and apartments would also be a mistake if no one can afford to move in!

satish

10:20 am on Wednesday, July 25, 2012

VinVett, from what I remember from reading a few years back, Bloomfield taxpayers were to pay for building and maintaining this parking garage under the managment of Parking Authority until it becomes profitable! Do we all see that there is something wrong there? If a parking garage is losing money-let the tax payers foot the bill, but once it makes money the BPA will keep the money. It really is a perfect scam and the citizens of Bloomfield are that dumb. (I am including myself in that group).

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Pete Mock

11:05 am on Wednesday, July 25, 2012

I was actually pleased to find a piece by Ms Penna that I mostly agreed with and that wasn't full of political retoric. That was until I got to the last two paragraphs.

I would agree that the mayor and the council have bungled the development, and I agree that it's insane that there are no tax revenues from this development to support our schools.

However, the last two paragraphs are obviously driven by politics and are a total cheap shot at the BOE and Board President. This particular board has actually been doing a good job keeping politics at bay and doing what's right for the kids and our schools. The board has been especially active in trying to get Bloomfiled's fair share of educational funding from the state, and they were successful keeping BOE elections in April to avoid the partisanship that occurs in November.

After all that has happened within our schools and the board over the last year, to say that the board is not sensitive to taxpayers and to suggest that they have been co-opted by the dem machine would suggest to me that the writer is either playing politics or has just not been paying attention.

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Geoff Gove

11:35 am on Wednesday, July 25, 2012

I totally agree with Pete M. Penna has not strayed far from her roots as a local Tea Party founder. She apparently has a personal agenda against the BOE President that goes beyond any rationale for dragging her into this article. Makes one question the political agenda -- and the facts -- behind her numerous op-eds.

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John Lee

7:40 am on Thursday, July 26, 2012

that American Flag avatar has disappeared; makes me wonder if Penna is one of the hundreds of teapartiers who are planning to flee to Canada now that SCOTUS has ruled the Affordable Care Act constitutional

Pat Gilleran

12:03 pm on Wednesday, July 25, 2012

I too agreed with ms. penna until she got to the BOE President who has done and continuesto do an EXCELLENT job!

http://bloomfield.patch.com/articles/op-ed-help-fight-for-bloomfield-s-fair-share-of-educational-funding

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john g chipko

12:47 pm on Wednesday, July 25, 2012

we need to remind the mayor and council members they are not fiscal geniuses

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A

2:14 pm on Wednesday, July 25, 2012

Get rid of them all! This is disgusting. I can't believe that they are truly allowing all this to continue. Elections can't get here soon enough!

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mary shaughnessy

2:15 pm on Wednesday, July 25, 2012

If I may, I'd like to set the record straight: I have spent twelve years of my life fighting inappropriate development in this town--and I'm not done yet. In 2000 I joined a small corps of dedicated people who raised tens of thousand of dollars to hire attorneys and experts to keep nearly 200 units of housing off of a FEMA-designated high-hazard flood area. Because of that fight, the township now owns 5.7 acres of that site, which was slated for 38 housing units, and NOT ONE BRICK has been placed on the other part--which is a battle that is hardly over. I volunteer many hours a week to tend to BOE business, often testing the limits of my family's patience, so I'm very grateful that others like Ms. Penna have finally stepped forward to keep up the pressure to guarantee that the township proceeds with development that will be in the long-range best interest of its citizens. We all make our own contributions as we are able. I know I will continue to do my part and will most certainly support Ms. Penna in hers. Meanwhile, her suggestion that I have "capitulated to the political machine I once rallied against" will most certainly be news to "the machine," if not somewhat comical.

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Sue Ann Penna

11:24 am on Thursday, July 26, 2012

I thank Mrs. Shaughnessy for commenting on my article. Let me also clarify that this is not about Mrs. Shaughnessy or the good work she has done in the past. The issue is that the School Board she currently serves as President must get very involved in what can become a serious financial burden on the school. This is something that only the school board can take up. I along with many other individuals stand ready to support the school Board in requesting the funds that belong to our schools. The building of possibly 1,600 apartments under PILOT programs is not fair to the teachers, the students or the tax payers.

The number one responsibility of the School Board is to make sure the funds for educating our children are correctly appropriated. If this is not that issue than what issue is? The town wants to build 1,600 apartments (bringing potentially 3,000 more residents to Bloomfield) according to Councilman Joanow in the last council meeting, all under a Pilot program that will give the school ZERO tax dollars. If only 5% of these apartments have two kids that is an additional 300 children that will need to be educated at a current cost of around $3.3 million. The Political bosses are telling us not to worry about it, so the question to the School Board is simple - Who will pay this bill?

Sue Ann Penna

11:24 am on Thursday, July 26, 2012

I believe that no other issue is more important to the School Board than this issue and the school Board President must either assign a Board member to take the fight for our teachers, tax payers and students to the Developers and the town council or take the lead herself. We the residents are here to support her. I have supported and voted for Mrs. Shaughnessy three times and support the good work she has done. But when an issue that has been talked about since April continues to get little to no attention from the Board, what are we to think? I know there is much work that needs to be done at the BOE. But bring me one other issue that can cost the school system millions of dollars as this issue does?

Mrs. Shaughnessy we are ready to stand with the Board. Please act.

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mary shaughnessy

3:17 pm on Thursday, July 26, 2012

Ms. Penna-- I will be enlisting the help of professionals like state comptroller Matthew Boxer and the New Jersey School Boards Association to determine the best way to go about addressing the potential negative impact of the P.I.L.O.Ts that were extended to two of our pending developments. Mr. Boxer is no fan of the indiscriminate use of these tax breaks:
http://www.nj.gov/comptroller/news/docs/08_18_10_tax_abatement_pr.pdf
Right now, the township is light years away from collecting a dime for either of these projects so there is time to negotiate (or challenge) how these tax dollars are distributed. And those deals were inked without input from the district. But I thoroughly agree that this is an issue that needs public discussion so that residents more thoroughly understand the impact these PILOTs (payment in lieu of taxes) will have on our schools. Perhaps that could be the subject of our next education forum. Our June 7 forum paid very rich dividends for the district: Bloomfield was going to lose an extraordinary amount of state aid under the governor's proposed budget. We would have been one of the hardest hit districts in the state. I believe scores of calls and emails from the people who attended that meeting helped remove the language in the proposed budget that would have greatly shifted the burden of funding our schools from the state to the municipality. I'd be happy to sit with you to further discuss this and any other issue you have on you mind.

mary shaughnessy

3:35 pm on Thursday, July 26, 2012

Ms. Penna--Slight correction, only two of the several projects have been extended tax breaks: the downtown redevelopment and the one at 225 Belleville Ave, which together include about 550 units. The smaller number does not change the fact that the district must fight for its fair share of tax revenue. In the long run, though, it is the township's responsibility to fund the schools through taxpayer dollars, no matter which pocket it is taken from. But again, I don't want to have further discussion on this topic until we more thoroughly research the implications of the facts.

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Sue Ann Penna

4:14 pm on Thursday, July 26, 2012

Thank You Mrs. Shaughnessy for looking into the matter. I want you to know I and other concerned citizens stand ready to assist you in any way we can to deal with this issue. I would be happy to attend a town hall meeting, especially if this issue will be discussed. Please keep in mind that the town has just bonded another $5 million to give over for to the construction of the parking garage clearing the way for the beginning of construction. Time is important and people will be moving in before you know it. Thank you again for your honest answer and again I stand ready to help.

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G. Lombardi

5:18 pm on Thursday, July 26, 2012

As this is not the first Parking Garage in history to ever be built, may I suggest we look at how other towns built and paid for similar sized projects and the revenues and or losses that resulted there.

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Bert Jones

6:43 am on Friday, July 27, 2012

they must feel by building a parking garage more upscale stores will come to Bloomfield like the Gap,Starbucks,Wholefoods,The Apple Store,Abercrombie & Fitch,a Loews Theater etc. I dont see it , i see them building the garage then having no top level store come in there then we will be back to square one starting all over again when it becomes a ghost town once again!

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John Lee

6:55 am on Friday, July 27, 2012

so what you're saying is that if whatever fills the space isn't a top drawer mall chain nothing else matters; interesting concept however one need to just look at Watchung Plaza in Montclair to realize that vibrant shopping districts can be achieved in suburbia with locally owned businesses; don't let the Teapartiers fool you into thinking that only the corporate overlords are the only ones who have the power to do anything

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Pat Gilleran

7:21 am on Friday, July 27, 2012

Yes- let's look at the strips of nail salons and "dollar stores" in Bloomfield and see exactly what John Lee is talking about...

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John Lee

7:27 am on Friday, July 27, 2012

Oh Pat! Bloomfield Avenue is nowhere near Watchung Plaza!

Pat Gilleran

8:30 am on Friday, July 27, 2012

then why are you directlng us to look at it???

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T.C.

8:48 pm on Wednesday, March 20, 2013

So now we have God awful ugly parking garage in downtown Bloomfield . Can someone explain why its there. Montclair built their new parking lot because they needed it for the people going to restaurants and shops. We don't have that!!!!
Does anybody think that people are going to flock to downtown Bloomfield now that we have a new parking lot?
What are they going to do , sit in there cars ?
You have to attract people with businesses that are attractive. Dummies.

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jojo

11:40 pm on Wednesday, March 20, 2013

hey, I flocked over to look at the new parking garage, drove by cause there was no where I wanted to shop. oh well, another poorly planned project.

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T.C.

5:29 pm on Thursday, May 9, 2013

I think are town of Bloomfield, has moved into first place, as the worst run town in New Jersey.

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