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Confidential report released to the public
(by Kimberly Redmond - October 01, 2008)
An analysis ordered by the Emerson Mayor and Council to determine the economic viability of redevelopment in the borough was released to the public following a special council meeting on Monday, Sept. 29.
The financial analysis prepared by Basile, Baumann, Prost, Cole & Associates, Inc. (BBPC), explores the financial implications associated with the project proposed by Millennium Homes. According to BBPC, the plan proposed by Millennium “is very roughly defined.” The proposed project consists of “three to four stories with a mix of retail and residential that suggests first floor retail for portions of the project.” BBPC stated the developer wasn’t able to provide any specifics regarding the fit and finish of the project, except that the residential units will be “higher end.”
BBPC concludes “the project cannot be profitably constructed in the current real estate market due to a lack of demand for residential condos at the necessary price point.” However, the report forecasts that a raise in the sales price of condos in conjunction with a more favorable real estate market could make the project economically feasible.
Mayor Louis Lamatina doesn’t dispute the findings of the report. During a phone interview the mayor said, “I readily admit it’s not feasible to build right now. We want to do this when it’s right.”
The mayor and council decided to release the confidential report in part because it had been prematurely circulated to members of the public prior to last week’s planning board meeting where redevelopment was discussed. The confidential analysis somehow got into the hands of the public and caused speculation and accusations targeted at borough officials.
While Councilman Kenneth Hoffman admitted to releasing the document to two planning board members, it is not known how the report fell into the hands of the public. The release of the confidential report led to the accusation made by several residents and business-owners that the mayor and council attempted to conceal information from the public.
In response, the mayor and council ordered a special council meeting on Sept. 29 to discuss the content, as well as the public release of the Basile, Baumann, Prost, Cole & Associates, Inc. (BBPC) analysis. After a 90-minute closed session, Lamatina announced “the Sept. 18 version of the document will be available to the public due to the fact that it has already been widely disseminated.”
Lamatina also remarked that the Sept. 18 version of the BBPC report has some errors concerning the financial analysis, as well as who will retain ownership of the proposed retail space. At this point, the mayor and council intend to meet with BBPC Associates to address “the incorrect assumptions in the document.”
Several residents made comments concerning the confidentially of the economic feasibility report. Gina Calogero, a borough resident and former councilwoman, stated she disagrees with the initial decision to mark the report as confidential. “Having a stamp on something that says it’s confidential doesn’t make it so, just like hanging a sign that says rottweiller on my cat doesn’t make him anything but a cat,” Calogero said.
Liz Petriano, another borough resident, continued her call for either a referendum or polling on the proposed redevelopment project. Addressing the mayor and council, Petriano stated, “You need to ask the people what they want and you’ll see they want no part in this.”
Throughout the open session, many residents and business owners reiterated a similar statement: Who wants a comprehensive redevelopment of the Emerson downtown?
Lamatina answered that he estimates four out of five Emerson residents “being in support of redevelopment in some form.” According to Lamatina, during his mayoral campaign, he came into contact with many borough residents who’d like to see redevelopment occur in the downtown area.
Vincent Donoto, a former borough councilman, agrees with Lamatina. “There’s no doubt the whole town wants redevelopment in some form. But, I don’t think anyone is aware of the magnitude of the current plan.”
The BBPC report was released to the public on Sept. 30 with an accompanying statement from the mayor. Lamatina writes that, “Release of this document does not mean other documents should or will be released if they are deemed confidential.”
Lamatina states that neither the borough council nor the planning board was attempting to conceal information from the public. Lamatina stated he and the council members received the confidential report on Sept. 22 via email from the borough administrator. The report, according to Lamatina, was marked confidential due to its content. “It would be a violation of the law to release it to the public considering the subject matter of it,” said Lamatina. “If the report was out there, it’d be available to other developers, including Millennium.”
Kimberly Redmond's e-mail address is redmondk@northjersey.com.
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