Mayor Says She'll Keep Pushing To Get Bond Ordinance Passed

Mayor Dawn Zimmer and her council majority are continuing their efforts to convince the rest of the council to approve a $16 million dollar bond before June 23, to potentially buy back the municipal garage.

During a special meeting on Sunday, City Council was unable to get the six votes it needs to approve the bond. The special meeting had been scheduled to make sure Sixth Ward Councilman Nino Giacchi could be there to vote on the matter. When it became clear Giacchi, Second Ward Councilwoman Beth Mason and Third Ward Councilman Michael Russo were not going to vote in favor, the issue was tabled to tonight's meeting. 

During an interview on Monday morning Zimmer said she was "disappointed" with Sunday's meeting's result. When asked how she plans to convince opposing council members Mason, Russo and First Ward Councilwoman Theresa Castellano to vote in favor of the ordinance, she said she'd continue to provide them with sufficient information on the matter. 

Zimmer said also she'd be doing a lot of "one-on-one advocacy" with the three council members. 

The council was provided with information on the matter before Sunday's meeting and got a chance to talk to bank representatives. The city's development attorney was not present.   

"Where is this garage going? How much is it gonna cost to relocate? When are we gonna put our plans down?" asked Second Ward Councilwoman Beth Mason during on Sunday night, adding that she did not have all her questions answered. "To rush it tonight is inappropriate."

But the mayor calls the bond a contingency plan. "It's like a pre-approved loan," she said about the bond ordinance. 

Zimmer said she wants to approve the bond ordinance before June 23 to be part of the Hudson County Improvement Authority "pool," which would allow the city to pay less interest on the bond. Zimmer said it would save the city $600,000.

But, according to the no-votes on the council, this "pool" will come around again in six months and there is no immediate need to bond right now. 

The bond may be needed if developer S. Hekemian Group is unable to close the $25.5 million deal to buy the site on Aug. 13, which is the closing date. But Hekemian has recently expressed that it needs to amend the contract to make it successful and profitable. 

In the meantime, however, the city needs to pay its debt to Capitol One Bank by July 1, if the loan is not extended. 

Hekemian's Corporate Counsel Douglas Cohen appeared in front of City Council a few weeks ago to present the firm's proposals. Hekemian wants  to pay less taxes on the property—5 percent rather than 15 percent, which would cause the city to lose $1 million in revenue per year, until the "market picks up." Cohen did not present a specific timeline or deadline for when the PILOT payments would go back to the 15 percent level. 

Zimmer rejected Hekemian's proposals. At Sunday's special meeting Giacchi said he agrees with that stance. 

If the issue doesn't get passed at tonight's meeting, Zimmer said it will have to happen during a special meeting. Zimmer already called a special meeting for June 22.