Tuesday, May 6, 2014

PILOT Approval Clinches Liberty Village Sale

Liberty Village residents packed Municipal Court Monday to witness the City Council vote that ensured 20 more years of rental assistance at the 96-unit complex in the West End.

The council's unanimous approval of a payment in lieu of taxes (PILOT) agreement sealed the sale by Liberty Community Associates to Liberty Village Estates Urban Renewal LLC and met a May 7 HUD deadline to renew a Section 8 contract. The deal had been explained several times in April, including the May 7 expiration of the HUD contract, but at another meeting Monday with Rep. Rush Holt, Assemblyman Jerry Green was seeking an extension until the end of June.
Before the council vote, Isaac Sassoon, an attorney for the purchaser, said the parent company owns and operates thousands of housing units and assured all that past problems at the complex will not happen in the future. He listed improvements including security cameras, a community room with computers, electrical upgrades and more that will come with the deal, in addition to an increase in the PILOT from 6.25 percent of the rent receipts to 10 percent for the city. He said he understood there had been issues including "political matters that I want to rise above" and said he hoped for a "yes" from the council.

The audience broke into applause after all seven council members voted "yes," with Councilman Cory Storch taking part by telephone.

The PILOT plan began 30 years ago and had 20 years to go. Liberty Community Associates had a 30-year management contract with the Housing Authority of Plainfield. But after the original owner's death, successors uncovered many problems at the complex and, according to heir Sam Perelman, had to sue the Housing Authority to regain control. The company hired a well-regarded management firm to make improvements and raise the complex's  HUD score to acceptable levels. The new owner will also manage the property.
Councilman Bill Reid lectured the Liberty Village residents on their responsibilities before the vote.

"You got to pay the rent," he said. "You got to keep it clean."

Reid said tenants must not let people stay with them if they are not on the lease, nor let drug dealers "run over you and take you over."

"There's a lot of responsibility on you," he said. "Pay the rent and become good citizens."

(Plaintalker covered the April 8 meeting where the PILOT was not moved to the agenda, the April 15 meeting where it was rejected as a new item,  the "Town Meeting" proposal and the Town Meeting itself (here and here). Believe it or not, there is even more to this story, but I am signing off for now.)

--Bernice

10 comments:

  1. Jerry and Co. saved the day...by dragging this process out, trying to create a political football... and then Bill Reid lectures the residents about paying their bills and being good citizens????
    He's got a set of brass ones the size of church bells..simply stunning.

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  2. Councilman Reid dumps the problems onto the laps of Liberty Village residents. But we should remember that when the development opened in May 1984 the ceremonies included such luminaries as Senator Frank Lautenberg, Congressman Matt Rinaldo, Acting Mayor Rick Taylor (Councilwoman Taylor's late husband), then-Freeholder Jerry Green, and the Plainfield High School Marching Band. That seems to have been the last 'Official' interest in Liberty Village between then and last October, when the proposed sale first came to light. Grasping for straws, Assemblyman Green berates Mayor Mapp for waiting until he actually took office before negotiating on behalf of the City. Had he done so, Green would no doubt be hounding Mapp today for overstepping his role as a mere Council member without any executive authority. So, after holding the tenants hostage to political games, Green's campaign treasurer insults them as well. Well played Mr. Reid. It truly is 1984, where down is up, and ignorance is strength.

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  3. Rob, I hate to say it, but in this case, Mr. Reid was on point with his comments to the residents. It obviously does not apply to everyone, but for those that it does, take heed. Pay or get out. Play by the rules or get out. Just because a community is affordable does not mean it has to be a ghetto. People and families live here and should have a safe, clean place to do so. Let Liberty Village become a shining example of affordable housing in the City. Congrats to the new owners. Congrats to the residents.

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    1. pay your rent while I shirk my taxes was the point...

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  4. Maybe Mr. Reid should of said "Pay your taxes and be good citizens" oops what was I thinking...

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    1. Maybe Reid should pay HIS taxes

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  5. I think Reid indeed had a lot of nerve lecturing the residents of Liberty Village, especially since he consistently fails to pay his property taxes on time and is not the ideal citizen himself. Clean up your own back yard before looking over the fence at your neighbors.

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  6. I have to say this and I might get blasted for this but I was not there last night but I know for a fact that the majority of the residents there have drug dealers all up & down that area. Liberty Village is worst than the Elmwood. at least most of the residents in Elmwood care. They need a one strike in Liberty Village. They could acre less over there and the city will see this soon.

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  7. The meeting which was held at Liberty Village with the tenants was mystifying. Every conceivable aspect of the proposed arrangement was clearly described by the purchaser's attorney. The contract is abundant with safeguards. The property will, for the first time, be registered with the State. This registration triggers inspections at 5 year intervals. The City of Plainfield will have the authority to inspect the premises at least annually. If the property is not maintained properly the contract has penalties and a default provision. The City will receive and increased income from the new owner. The new owner who has been managing the property has initiated vast improvements in the property over the past several years. Notwithstanding all this, the Green team dug in hard and having little to legitimately object to created a theory for the obvious purpose of delay. A delay which very probably would sink the deal because of HUD time restraints. The Green team said they wanted to investigate the events of the prior 25 years in order to protect the tenants from future neglect. In addition, they said all of this was happening too fast for them to absorb the information. They needed time for reflection. Mr. Green had the temerity to say that if the tenants were evicted because of his gangs opposition that he could relocate the 90 families in Plainfield. REALLY!? Can you imagine the cost and confusion in relocating 90 families...at what price in dollars and human inconvenience even if it were possible which is doubtful. .What would the new rents be? Crazy talk.A sullen, morose Mr, Green introduced himself by saying that he had been disrespected. Perhaps he was, but whether or not he was disrespected or not it was irrelevant to the topic at hand.
    Can anyone tell me why this crew dug in so hard to oppose what is a conspicuous benefit to all parties?
    Can anyone tell me why the same obstructionist gang rejected a Health officer.? Sad, sad for Old Plainfield on all counts.. .

    Bill Kruse

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    1. Bill, can you say Jerry Green?

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