Mayor: "$5 Million for Parking Garage Will Reduce Our Debt"

At Monday night’s council meeting, Bloomfield Parking Authority Attorney Joe Baumann introduced a resolution designed to show the people of Bloomfield that they, the town council and the Parking Authority were “all on the same team.”

The resolution, seeking to appropriate $5 million to help pay for the new parking garage in the town center -- -- was presented with an amendment that sweetened the deal for Bloomfield taxpayers.

“One hundred percent of the excess revenues the Parking Authority generates in a given year will come back to the township in perpetuity,” he explained. “I think that should address any concerns the township has about [the bond] being repaid.”

“We were going to get fifty percent,” Mayor McCarthy informed the council.  “Now we would get the whole one hundred percent.”

Councilman Joanow inquired how much revenue Parking Authority actually produced.

“The anticipated revenue is $8.4 million over the 30-year-term of the agreement,” answered Baumann, adding at the end of his presentation, “The Parking Authority thought it was important to demonstrate to the township that we’re part of the same team.  We’re all in this together.”

At the vote, all said yes except Joanow. Councilman Mike Venezia was absent.

Preceding Baumann’s presentation, addressed the council.

 “I’m here to dispel the rumors that the mayor and council here would put an unnecessary burden on the taxpayers of Bloomfield,” Colgan began. “The perception that there are handouts and that the developer is not paying its fair share to the Parking Authority -- I felt the need to address that.”

Colgan went on to say that the shared parking agreement required the developer to pay market value, or $720 per year per parking space, for 468 spaces.  

“Should – when, is more appropriate to say -- the downtown is revitalized, the retail patrons will park in the deck and pay market rate for parking,” he said.  “We have an arrangement with the Parking Authority.  One percent of their gross revenue will be paid to the Parking Authority.  It’s a clear demonstration that all the invested parties want to see the parking deck succeed.”

Following Monday's meeting, McCarthy explained in a phone interview that the $2 milion increased appropriation -- from $3 to $5 million -- has already been earmarked for the project and would not increase residents' tax burden.

"What we're doing is reducing the town debt by $5 million, which allows the Parking Authority to operate in the black while the parking garage gets built," he said. "We had the $5 million already committed. Though it's been raised by $2 million, we've just done it in a different way.  That's why we only needed a resolution."

Because it was approved, McCarthy said the Parking Authority will vote in the beginning of August to formally accept the additional money -- "And then here comes the parking garage."

McCarthy said the additional money will also help defray unexpected costs to the project, such as the delay caused by the recent lawsuit.

"If you listen to Cary Heller's traffic guy, he said this garage will be packed every night." He said he expects the parking deck to generate revenue for the township. "For $5 million we get almost $4 million in return.  Not a bad investment."

McCarthy also noted, "One reason we needed to act quickly is that the price of concrete is at an all-time low.  So this garage may even cost a little less now." 

In general, Mccarthy said the $5 million appropriation will help the project move forward quickly and benefit the taxpayer in the long run.

"It's a good move credit-wise because it reduces the debt of the town," he said.  "We're all in this together."