I wanted to quickly share some important budget information and updates on projects going on in Hoboken right now.
COUNCIL BLOCKS MAYOR’S 9.8% TAX INCREASE
After spending the winter and spring asking the mayor to work with the Council to collaboratively develop a budget, in July the administration handed us a municipal budget that proposed increasing municipal property taxes by 9.8%. The mayor first knew we were $7-14 million in the red in January and issued 79 layoff notices in early March, well before COVID-19 impacted our city. Ultimately, he fired 26 hardworking city employees this spring, in the middle of a recession, before even sharing a budget proposal with the City Council. The notion that our budget woes were caused by the pandemic, is simply inaccurate as the City hasbeen guaranteed over $5 million through the federal CARES Act for expenses incurred for our response to COVID-19.
So where are we now?
Hoboken normally approves its budget in May, but with a delay in the state budget, we anticipated an August municipal budget approval, similarly to when Jersey City passed theirs. Given the fact that the Mayor was asking for a nearly 10% tax increase, especially during these economically challenging times, the Council majority was unwilling to pass the budget as presented because we felt the administration had not cut back enough on spending. Had we followed the mayor's lead taxes would have gone up
Instead, at Wednesday night’s City Council meeting, we passed an amended budget with a net 0% percent tax increase for the rest of the year by using more of the City’s budget surplus (the rainy day fund) then the mayor, and his council supporters, would have liked. A recession is not the time to be passing costs along to taxpayers and as I, along with most of my colleagues, have long said, we need to do more with less.
Truthfully though, had Hoboken’s County tax responsibility not decreased significantly this year, then there is no way we would’ve been able to deliver this budget for our residents. Though the combined tax rate remains stable for the remainder of the year, our municipal taxes went up 7.5% and it's preposterous for the mayor to call it the "lowest in a decade" when it is, in fact, the highest. As I've long said, the mayor needs to let go of political convenient contracts, like the fatty multi-million dollar health insurance contracts that I've been rallying against for years and scale back on wasteful spending.
Now is the time for the mayor to follow the Council's lead and cut the waste out of our budget because if we do not immediately begin to management our government more efficiently, it will certainly be tougher to bail him out of a hefty tax increase next year.
SEPARATING POLITICS FROM POLICY
A Hoboken Fire Captain recently filed a claim against the City alleging he was turned down for a promotion because he supported candidates in November who ran against the mayor's slate, including myself. According to the complaint, now Acting Business Administrator Jason Freeman (a member of then Councilman Bhalla’s 2017 campaign team) allegedly told the Fire Captain “we know where you were on Election Day,” when interviewing for the position.
Fire Captain Joe Grossi, second from right, volunteering on my campaign in November 2019.
If this comment was in fact made, it would be an abandonment of public trust and expose the City to another completely preventable lawsuit.
This wouldn’t be the first time where the mayor allowed politics to interfere with local governing at the expense of Hoboken taxpayers. In 2015, then-Councilman Bhalla exposed Hoboken to two First Amendment right violations when residents alleged they were both removed from a public meeting for disagreeing with him politically. These claims were eventually settled out of court for nearly $200,000 and I'm hopeful the mayor has learned from his previous mishaps and has not exposed us to a similar situation.
STANDING UP AGAINST PREDATORY PARKING PRACTICES
On Monday morning, one of my neighbors in the 4th Ward called me in tears as he helplessly watched his car be hooked to a tow truck, causing him to be late for his job where layoffs are imminent. Multiple residents have brought similar experiences to my attention and for some time now, I’ve been working on legislation to address this growing issue because towing on behalf of the City should not be operating as a for-profit business.
As it stands, the minute your car is even slightly hoisted onto a tow truck, even if you're standing right there, the only recourse you have is to pay a $125 cashfine. At next week’s Council meeting, I will be introducing a law that eliminates the release fee if the owner is present before the vehicle is hauled away and requires that credit card payments be accepted on site for any necessary towing related fees. Further, it would require that the City notify a resident or a registered visitor before they institute a tow and keep records of that communication to be made available to the owner upon request.
I’m proud to add this to my record of standing up for residents' parking rights and needs by demanding technology in our garages, putting an end to booting and stopping the Hoboken Parking Utility from writing tickets within 2 minutes of a meter expiring. I hope the administration will work with the Council to push this fair and sensible measure forward.
DEVELOPMENT IN SOUTHERN HOBOKEN
Recently, a number of projects have come before the Southern Development Committee, which I chair, and I wanted to quickly update you on three of which are most pressing in terms of quality of life.
83 Willow Avenue: The mayor is advocating to build an 11 story residential tower at the corner of Newark Street and Willow Avenue, which currently exists as a street level parking lot. I have repeatedly pulled this from the Council agenda citing a need for public input and sufficient community benefits, but instead of listening to these concerns, the mayor called a vote last Wednesday and the project failed to pass.
Rendering of the mayor's proposed development project at 83 Willow Avenue.
I do believe that this project will again be presented to the Council for a vote, which is why I am hosting a virtual community meeting (click the link for the Zoom meeting) on Wednesday, October 14 at 7 p.m.
Meeting ID: 840 3625 5140
Passcode: 765282
The agreement, as it stands, does not propose any specific use for $500,000 in community funds generated by this project and as we’ve seen already with the Hilton Hotel project, the mayor has been known to build big downtown while designated givebacks for uptown projects. As I stated in my last newsletter, I’ve already secured a commitment to use these funds to upgrade the park on the corner of Garden and Newark Streets, but the mayor has refused to support this productive community use.
Proposed park enhancements at corner of Newark and Garden
Public Works Garage: After nearly a decade of litigation, the uptown Monarch lawsuit was decided by the NJ State Supreme Court in favor of the developer. I won’t harp on how this senseless litigation cost the city millions of dollars despite the clear fault of the administration and planning board at the time, because that’s water under the bridge. However, the mayor has currently proposed taking the residential units planned for that property and relocating them downtown at the existing public works site, a redevelopment plan approved in 2007. I'm currently working with the administration on a financial assessment to decide the worth of the two properties to ensure that the "land swap” is favorable for the City and direct benefits, similar to the community arts center I’ve proposed, are possible.
Observer Highway and Marin Boulevard: The mayor has proposed a 14 story hotel project for this corner and for the last year, I have stopped it from moving forward because traffic conditions along Observer Highway must first be addressed. When I was first elected to the City Council, I was proud to work with Councilman Ruben Ramos on a Southwest Traffic Study which opened up Jackson Street with two lanes of traffic, added the U-turn around the Fire Station and resulted in the installation of three new traffic lights. This was the bare minimum at the time, and before any new development occurs, Observer Highway needs to be expanded to two lanes of traffic to accommodate any new influx of residents or visitors.
Rendering depicting a two lane Observer Highway.
Myself and Councilman Ramos requested a traffic study to show that Observer Highway can expand to two lanes of traffic, and the results were as we've long expected -- it's possible. Now were working to ensure that those costs are covered by the mayor's development proposal. We are also seeking insight on adding a traffic circle to what I refer to as “dysfunction junction,” the section where Marin, Observer and Newark all converge. As I’ve told the mayor, the only development I will support is sensible development that makes critical investments in our neighborhood’s infrastructure. After years of him trying to take community givebacks out of downtown, I'm committed to protecting the quality of life for my neighbors and I’m happy to see that the mayor now seems to agree with my perspective on some of these issues.
MORE MOM AND POP SHOPS ON OUR CORNERS
I’ve long spoken about the value and benefits small businesses bring to our neighborhoods: they create more interesting streets, provide us with the convenience to shop locally and diversify our tax base. Two years ago, I was proud to work between the City Council and administration to deliver a business expansion district that has made it easier for businesses to open up across town and now, we’re slowly starting to see those positive impacts on our streets.
But still, we far too frequently see new development on corners that have ground floor storage or parking and not enough retail opportunities to create the vibrant and colorful streets that make Hoboken so special… and that needs to change. As Chair of the Council Zoning Subcommittee, along with Council President Jen Giattino, I’ve introduced a law that continues this progress by lowering the barriers to permit property owners to use corner lots for small retail.
This might sound like common sense since there are a handful of existing corner retail spaces, but those businesses are either grandfathered in or had to go through arduous approval processes just to get the proper zoning.
The new law echoes a decades-long recommendation in our master plan to develop corner zoning and that's precisely what we’re acting on here. Specifically, the proposed law will permit an extra story on corner construction, only if the ground level is used for retail. Additionally, it allows for a larger footprint to maximize the retail space, much like is being done at the popular restaurant OttoStratta on 8th Street and Park Avenue.
I’m excited this law passed on a first vote at last week’s Council meeting and has been sent to the Planning Board for recommendations with hopes of expeditiously moving this piece of legislation forward.
As always, should you have any questions or concerns please feel free to reach out to me directly on my cell: 646.372.4341 or via email: mike@mikedefusco.com.
P.S. This year has been a challenging time for each of us in our own ways, but with many children headed back to the classroom, and on a personal note - I was really excited to see my niece, Lucia, recently head off to her first day of Kindergarten. Lucia was actually born on my birthday five years ago, the same day I started campaigning for the 2015 Council election.
Watching both of my nieces grow into their own strong, independent selves always gives me a sobering perspective on the importance of standing up for the positive change we want to see in our communities. Wishing all of our students the best for a safe and productive school year, whether it be in the classroom or behind the screen.