file photo by Boyd Loving
From the archives: Local towns paying heavily for Bergen County loan program meant to save time, money
DECEMBER 28, 2009, 8:47 PM LAST UPDATED: THURSDAY, JULY 22, 2010, 2:41 PM
BY STEPHANIE AKIN AND CHRISTOPHER SCHNAARS
STAFF WRITERS |
THE RECORD
This story was originally published Dec. 28, 2009.
A Bergen County loan program touted as a quick and easy way for local governments to pay for big-ticket items has instead plunged some of them into long-term debt.
The five-year-old Municipal Banc was supposed to let cash-strapped towns bypass conventional borrowing methods and get county-backed loans for emergency services and public works projects. The program promised 24-hour loan approval with no red tape, backed by the county’s AAA credit rating.
Most towns and school districts that used the program borrowed only what they needed and spent the money quickly. Many praised the program for its convenience and low fees.
But some towns took out loans for items as inexpensive as rope and firefighter boots, borrowed money long before they intended to make purchases and paid interest on money they never spent. In some cases, their applications were approved even though they provided little information about how the money would be used.
From 2004 to 2008, Rutherford, Fair Lawn and Hackensack let a total of more than $1.6 million in loans sit idly in Commerce Bank accounts while taxpayers paid more than $200,000 in interest and fees. Fair Lawn, for example, waited four years to buy a $130,000 generator.
“That’s like saying, ‘I’m going to buy a house, I’m going to pay a mortgage and interest on the house, but I’m not going to move in for three or four years,’” said Joseph Tedeschi, a Fair Lawn councilman.
TD Bank took over the program after it bought Commerce in March 2008.
Five consultants that donated more than $450,000 to Bergen County Democrats from 2004 to the end of 2008 were paid at least $1.8 million for professional services by the Bergen County Improvement Authority — the agency that oversees the Municipal Banc — including more than $180,000 for services tied to the loans.
Those consultants included Dennis Oury, the former counsel for the BCIA and the Bergen County Democratic Organization. Oury, who pleaded guilty to federal corruption charges in September, collected more than $1.1 million from the BCIA during that period. Oury resigned from the BCIA in early September 2008 after federal officials accused him of fraud.
The program auditor, Ferraioli, Wielkotz, Cerullo & Cuva, also was the auditor in three of the towns that were the heaviest users of the program: Fair Lawn, Hackensack and Rutherford.
Rurik,
Which part of my conclusion do you disagree with ? I guess the idea of spending a lot of money on something that is not really needed now, and may not be needed in the future, does not really appeal to me. Too much of a risk to take going forward, unless, of course, you happen to own a restuarant in the area of Hudson Street.
I’ve said it before and I’ll say it again, Rurik is not only pedantic, but he is didactic.
Bill H. The garage question has been studied ad nauseum for generations and the decision has been made to build one structure at Hudson St. Are there other options? Sure there are. Is this option perfect in every respect? Of course not. But at some point you have to take a deep breath, pull the chord, and jump. Leaving it to the Dynamic Duo, we will be “studying” the subject for another generation.
Paul Smith: I am flattered we agree on 10%. Regarding Clinton Ave. Sidewalk, could you provide me with more information? I am a walker and I think all of our streets should have sidewalks.
The “victim” film auteur referred to on several articles on the blog lives there… it’s the street blocked off for traffic on school days near the Ridge school… And yes, 10% of the time you do lurch into the truth 🙂
See Bill H. nowhere in you post did you mention any council person or group just a logical answer but as you see Mr. Halaby can’t help himself using ” Dynamic Duo” in his reply.
Personality disorders are a class of mental disorders characterized by enduring maladaptive patterns of behavior, cognition, and inner experience, exhibited across many contexts and deviating markedly from those accepted by the individual’s culture. These patterns develop early, are inflexible, and are associated with significant distress or disability. Does this sound familiar Do you know a post that fit this Bill H.?
But using “3 amigos, Paulie, Pooch,” etc. is okay?
I actually understand in part what you are saying in this instance Rurik but disagree with the conclusion. The reason why the project has been studied and studied but never actually built is because at the end of the day, although we need more parking, it does not make sense from a practical, logistical or financial sense to build one in the downtown proper.
Rurik,
1:34 is exactly right. I would even argue that there was more of a need for additional parking 20 yrs. ago than there is now. You now have the Internet to contend with, bigger malls, etc. In other words, more competition for the consumers dollar. This project does not make sense going forward.
S.Franz. Pedantic at times, Didactic at others. Trying to learn at all times. Ancora Imparo (I am still learning) as Michelangelo said on his death bed.
Bill H.: I appreciate your comment. The retail trade is changing fast with many $$ going to the web. The shopping centers are suffering, no doubt. One theory I have is that it could be good for the CBD if it were to specialize in high end, boutique, stores. For instance, we bought many of the grandkids’ Christmas gifts on the web but bought some specialty ones from Jekyll & Hyde, one of my favorite CBD stores. I wish you had expressed your views in person at the many VC meetings on the subject. While I disagree with you, having people express their views rationally as you have with your posts, would have led to a healthy and constructive debate.
Born in the USA 7:55 Shaken or stirred? Naah, this Mystery Man drinks his gin neat.
Ok Secret Agent Man neat it is. LOL
9:09 PM, look who is talking about rationale? Have you EVER offered any real argument other than just accusing village residents and buttering the 3?
Rurik, I don’t think the retail shopping centers in this area are “suffering ” as much as you think because if that were the case the folks at the Garden State Plaza (Westfield), who know a lot more about this than you and I, would not have made the decision to expand to the extent they did. And I really don’t see the malls on Rts.17 or 4 going out of business anytime soon, as was predicted. There is enough to go around, so to speak, BUT, unless you get the landlords on the same page as everyone else, and resolve the parking situation so that everyone benefits, the CBD will not be what it can and should be.
Rurik,
One other point regarding the above( 8:52 was me). This proposal is a classic “take a look at where you have been ” situation. For as long as I have resided here(33 yrs.) we have “needed” more parking. Never, even in the boom years, did we need an additional 300 plus spaces, and that included Christmas shopping season. Always got by. Could we have used an extra 100, rarely. So the question remains, why would you need an over the top garage now that would primarily benefit one end of the CBD ?
Anon 11:20.
1. The word you are thinking of is rational not rationale.
2. I have at times been critical of all the members of the VC, including the Three Amigos. An example is when I fought against the narrowng of Franklin under the trestle.
3. I have also arm-wrestled the Mayor on many occasions, especially on the matter of Valley.
4. Do I support the Three Amigos overall? Yes. They are decent people who are at least trying so hard to do what’s right to revitalize Ridgewood. In spite of all the personal attacks they have to endure.
5. You contrast them with the Dynamic Duo who do nothing but say no to appeal to their vocalanti base. And yes Ridgewood continues its slow descent to oblivion.
6. Take a look at letters I wrote to the Ridgewood News: https://www.northjersey.com/misc-pages/search/njmg-search-7.156839?q=Rurik%20halaby
and 8:52 increasing rates will be a disaster for anyone currently struggling.
Anon 8:52. You raise some very good points. Please come to the Village Council and express your views on what can be done to revitalize the CBD. Or write a letter to the Ridgewood News..