Wednesday, August 12, 2009

BELATED POTPOURRI WEDNESDAY 8/12/09

Overslept this am. A residual effect from Monday's night meeting. Today's blog will be true potpourri'.

New's today. A portion of the Connolly's Plainfield properties , Plainfield Appartments LLC. consisting of 9 buildings have filed for Chapter 11 protection. Like many speculative real estate deals the 17million dollar mortgage was written with payments for the first two years of interest only,with amortization of the principle beginning July 1, 2009. apparently on a 10 year mortgage. The corporation failed to make its interest only payment two months ago. Other debts include $203790.00 to the PMUA, the biggest listed after the Mortgage holder. There is no mentioned of taxes owed to the city, since the Aug. bills have not gone out that may be a moot subject.

One can only wonder how long it will be before all the remaining 20 city properties are in default. Depending how many are owned by separate LLC shell companies, Mr. Connolly may be able to salvage the properties with high net returns.

Since the properties are in Chapter 11 proceedings, I would wonder if the foreclosure action is as I suspect on hold. If so how much tax revenues owed the city are going to be lost temporarily? I am not a lawyer but after the bank will not the city become one of the biggest creditors, or are taxes exempt from bankruptcy procedures? One is never too old to learn something new.

Height of CHUTZPAU; (from Hebrew meaning nerve, gall ), Corporation Counsel Williamson's suggestion to Councilor Adrian Mapp that he invite Dornoch's CEO to present his side at Mapp's Town Hall Meeting, the purpose being as stated by Mapp: " I feel that it is important to have a public hearing to get feedback from you, Plainfield residents and taxpayers, before the ordinance goes to second reading on Monday, August 17." .

Since, the ordinance will not be presented for second reading on the 17th, unless there be some political shenanigans to put it on the agenda and thus it has to be void at this time and will have to go through the entire legal two reading process before it can be acted upon again. Parlimentary lawyers may differ with my opinion. the Town Hall Meeting's purpose will be a forum to give citizens an opportunity to express general opinions on tax abatement and PILOT programs.

If Fishman can state a case why the city should above the cost of the land, further subsidize his speculative investment he should be heard. But Mapp's Town Hall Meeting is not the venue to present Dornoch's case, That should be done at an open public Council meeting, one where the public would be given ample opportunity to get the facts and respond.

I lifted the following from today's Plaintalker:

"On Monday, Storch reported on the Planning Board, saying the board had recently done a capital review of road projects. He said sometimes sidewalks were included in the cost of a road project and sometimes not. A written policy is needed, he said, as funds projected for the 15-year plan could probably not cover sidewalks. City Administrator Marc Dashield said there is a policy, but not in writing, He said he would have it put in writing and forward it to Storch."

Who ever heard of a "verbal" policy? Policies are written and accessible or else they don't exist. There for Plainfield has NO POLICY regarding sidewalks and what is done is at the whim of the government when awarding contracts. In fact many years in the past when new curbing was put in or the city laid a sidewalk, the property owner was assessed for the improvement to his property or the city's action to make the property compatible to code. Those who have had expensive Belgian Block or Bluestone curbs as well as new concrete ones placed in front of their property have benefited at the entire taxpayers expense. The same applies to sidewalks where required have always been the property owners responsibility and had to meet code. In some communities Blacktop is acceptable.

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