Sunday the big bond ordinance – for potentially keeping the Municipal Garage in its current location
Office of the Mayor announces:
MAYOR ZIMMER URGES COUNCIL TO PASS BOND ORDINANCE
In a memorandum to the City Council based on findings from legal counsel, Mayor Dawn Zimmer outlined contingency options regarding the municipal garage and stressed the urgency of passing the bond ordinance being considered at the June 13th Special City Council meeting. The bond can only be used for refinancing existing debt already borrowed against the municipal garage on Observer Highway
“Failure to pass the bond could mean that our City risks losing all ownership interests in the garage,” wrote Mayor Zimmer.
Additionally, the garage could then be sold by the bank to Hekemian or other developers, “costing the taxpayers of Hoboken
Further, failure to pass the bond ordinance will “potentially cost the taxpayers of Hoboken an estimated $600,000, when all transactions costs and higher interest rates are calculated….Our auditor and financial advisor agree that voting no on this bond ordinance could severely impact our bond rating for years to come, costing the City untold amounts of money and/or lost opportunities.”
“I call on Council members to support this contingency plan and protect the interests of Hoboken
Concerned residents are invited to attend the meeting on Sunday, June 13th at 7:00 pm in City Hall.
The memo from Mayor Zimmer to the Council, memo from legal counsel, and additional supporting documentation are available on theHoboken
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Talking Ed Note: As a matter of policy MSV posts releases from the city in their entirety along with any newsworthy release(s) from elected officials without comment. In this case Da Horsey is making an exception to note the emphasis in this release that the bond on the table for approval in the City Council on Sunday is strictly planned for any potential problem in the sale of the Municipal Garage. Note the reference that the funds can not be used for relocating the garage. This is clearly a refutation of Councilwoman Beth Mason’s assertion that a city spokesman said otherwise. She stated earlier two locations were under consideration as stated by an unnamed city spokesman Councilman Peter Cunningham. MSV posted his response earlier today.
It’s critical to note, the bank, Capitol One holds the existing loan on the current Municipal Garage and is in the drivers seat. If the city doesn’t take action to potentially put into play its right to repurchase the property, should the developer not follow through on the purchase, the property could be sold by the bank for whatever amount they desire and to any buyer as well.
In short, should the City Council fail to act on this contingency, Capital One could take back the property similar to a home foreclosure. The city would get nothing. The city would also potentially be on the hook for any difference in the bank’s sale to a third party.
This is a direly important issue and one that reaches a head on Sunday. Any Council member who would vote no on this will have a lot of explaining to do.
Jeopardizing the existing property the Municipal Garage sits on and precluding it possibly remaining in this location is going way past playing politics. They would deserve to be run out of town.
It’s critical to note, the bank, Capitol One holds the existing loan on the current Municipal Garage and is in the drivers seat. If the city doesn’t take action to potentially put into play its right to repurchase the property, should the developer not follow through on the purchase, the property could be sold by the bank for whatever amount they desire and to any buyer as well.
In short, should the City Council fail to act on this contingency, Capital One could take back the property similar to a home foreclosure. The city would get nothing. The city would also potentially be on the hook for any difference in the bank’s sale to a third party.
This is a direly important issue and one that reaches a head on Sunday. Any Council member who would vote no on this will have a lot of explaining to do.
Jeopardizing the existing property the Municipal Garage sits on and precluding it possibly remaining in this location is going way past playing politics. They would deserve to be run out of town.
Please see the mayor’s communication to the City Council and Corporation Counsel Michael Kates explanation.