Friday, February 26, 2010

Newburgh's Latest State of Emergency

Right now, as I write, the City of Newburgh is in it most recent state of emergency. This time it is the mother of all snowstorms. The Acting City Manager Herbek is AWOL. Platt of the Water Department is AWOL. And George Garrison, the head of DPW, is neck deep in whiteness.
Garrison is left to run a city, plow the streets and coordinate an impending disaster by himself. I have a lot of confidence in Garrision, but I think it would be best if he could handle one crisis at a time.
During my campaign for County Legislator last year, I became aware that the County of Orange would no longer be plowing Broadway. I made it an issue of concern and did a little research on how the City of Newburgh lost this very important perk from the County.
This is the story as reported from reliable sources:
First as background, you should know that the County found the funding to pave Broadway in 1996. Then Mayor Audrey Carey and City Manager Harry Porr were going head to head about who should take credit. I will give the credit to Carey because she seemed to have a better rapport with then County Executive Joseph Rampe. The funds were available through a Federal Program and Carey did lobby for it. So we got Broadway paved. Amen.
Next, there was a suggestion to have this main corridor plowed on an annual basis. This was no doubt a big perk from the County that typically looked at Newburgh as a cross-eyed, red-haired stepchild. But behold, it happened. The County agreed to help Newburgh by paving Broadway for 10 years. I believe this was in 1996 also.
Ten years pass, and now my friend, Ed Diana, is County Executive. Diana loves Newburgh. He is the main politician behind moving the Department of Motor Vehicle to Broadway and establishing the County Building there as well. Diana was also the main proponent of putting SUNY Orange in downtown Newburgh.
When the 10-year agreement to plow Broadway ended, Diana extended the process. For the past three years, the County kept a plow machine down at the Newburgh DPW on Pierces Road. They drove a driver over to that machine and efficiently plowed Broadway. Sometimes they used several operators depending on the snowfall. This arrangement cost the County money while Newburgh saved a big expense in manpower hours.
But this year, the County ended the plowing. It fell apart last year during a meeting with City and County officials about SUNY Orange. Then City Manager McGrane and Mayor Valentine proposed a park in front of the college of Broadway and other perks. It was not in the plans and would have added an extra expense for the projects. The County got sick of being hen-pecked by this duo and decided to pull back. At that meeting, it was decided that Newburgh was on its own. And the plowing of Broadway was discontinued.
This is what happens when children bite the hands that feed them; they lose some benefits. And when politicians bite their benefactors, we all suffer.
Last fall, I asked George Garrison if his department could handle plowing Broadway and the side streets. He gave me the confidence that his boys could do it. I don't think he anticipated this level of snowfall in such a short period of time. Nor did he expect to have the weight of the entire city on his shoulders either.

Thursday, February 4, 2010

A Case Study: Newburgh ZBA vs. Kaplan

Last week, the Zoning Board met. There was a quorum, so they proceeded to hear cases.
To the table steps the biggest philanthropist and developer in Newburgh, Mr. Bill Kaplan. If there were ever a more solid citizen of Newburgh, Mr Kaplan is the poster boy. He has donated millions to St. Lukes Cornwall, Mount St Mary, SUNY Orange and other civic organizations.
It was reported to me, that Mr. Kaplan came to the ZBA to ask for a variance for 160 parking spaces on his property. That parking was to accommodate the condominiums proposed to be built on his property around the Regal Bag Building. I understand that he will eventually turn that building into apartments.
I have no doubt that Mr. Kaplan made an excellent presentation. But the ZBA could not find it possible to approve this project because they did not have all the members present. So Mr. Kaplan will have to wait until next month to move forward with the project.
By the way, the property is now assessed to pay $160,000 in taxes. After improvements, the city will be compensated with nearly 2.5 million a year in taxes.
Now, I am suggesting that anyone should a get carte blanche treatment at a municipal board. But we should recognize and honor the local individuals who have a history of stellar work and propriety.
I hope project is approved next month without any fanfare and grand standing.

Herbek addresses Newburgh Developers Group

The Newburgh Developer’s Association and I have something in common: our hiatus is over. After three years plus, the NDA met today for their monthly lunch meeting. After three months, I am finally writing in my blog.

Today’s NDA meeting was held in the most appropriate of locations: Christine’s on Broadway. This jewel of a restaurant in the midst of a blighted lower Broadway has long needed such attention. The owner, Jim Moss, put his time, energy and wealth into this downtown establishment based on a belief in Newburgh's redevelopment. That belief is still to be realized, while his restaurant is a reminder of how the rest of Broadway could look to those who still hope for Newburgh's redevelopment.

The NDA started its meetings in 2000 when the city was between city managers. Just like now. NDA founder Gerry Sanchez announced that this was the 85th meeting of the organization. The NDA suspended operations and was dormant for three years. Along the way to this meeting, Sanchez survived three strokes, yet his energies are undaunted. Some would say 'you can't keep a good man down.' Whatever way you look at it, I hope Gerry stays around to continue in Newburgh's redevelopment.

RJ Smith, the most prominent real estate broker in Orange County, made an excellent presentation on the need for more homeownership in Newburgh. The data on homeownership is quite bleak in comparison to other cities. Newburgh has about 30% homeownership, while even Middletown maintains 54% homeownership. 64% of Americans own their living space. Smith suggested that by increasing homeownership, especially in multi-family properties, the city could rise up from its current state of affairs. Amen.

The acting City Manager Richard Herbek addressed the audience as well. He spoke of his background and 39 years of experience in municipal governance and his first six weeks in the job after finding there was not enough money to make payroll. No doubt, he has the contacts and acumen to resolve our problems. Yet, his presentation was not as crisp and clear, as I would have enjoyed. Then came the questions, rumors and innuendos.

The biggest rumor was that he refused to take the job of City Manager because he did not agree with the terms. The audience voiced concern that there is no stability in city government, a familiar and recurring concern. Herbek explained that the City Council opted to go ahead with a new search and that was their decision. He said he would stay in what he called “the biggest challenge of his career.”

Herbek announced that the City was offered to buy the Armory property on South William Street for $1. He said some city departments may go there or a recreation facility. He mentioned a recent meeting with the YMCA which brought concern from some audience members that other recreation organizations would not be given an opportunity to make a bid.

My question was concerning the taxpayers of Newburgh. I asked why would the city use a large, basically free parcel of land for city departments and recreation when we need to expand our tax base. That property would make a great corporate park or industrial site that could provide jobs and some tax relief for those of us paying the 35% tax increase due to the city's fiscal irresponsibility. I asked Herbek to consider using the Orange County IDA and Orange County Partnership to market the property and find a suitable tax-paying corporation.

Herbek responded that the city was offered the property and had until May to make a decision to acquire it. I then jumped up again and asked how could the city acquire another piece of property when it cannot take care of the properties it has taken in tax foreclosures.

Herbek's final response was that it was the City Council's decision to acquire the property and if it did, the city could not sell it at a profit. YIKES!

I will say this a thousand times: The City of Newburgh is not a developer!!!! It is a municipality. It has municipal responsibilities that it does not fulfill: security, infrastructure, and fiscal propriety. It needs to relinquish all properties it owns not acquire new ones. Show me one project the City of Newburgh has developed to completion and I will swim the Hudson River.

I left the meeting without chitchating with the remaining attendees. I had an appointment to do loan modification and tax grievance for a client who can't afford Newburgh's taxes.
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Wednesday, November 4, 2009

Groundhog Day: Newburgh's never-ending nightmare


The results are in: Burger, Dillard, and Angelo win. Newburgh loses.
I lost in my bid against Burger, partly because the minor party candidates pulled votes. Yet, mostly because the numbers were not in my favor and many of my supporters stayed home. I can't understand.
People in Newburgh have been doing the same thing over and over. But there is a twist; they expect different results. That is the definition of severe insanity. I am somewhat frustrated but I will turn to the positive.

First, I will continue to speak up on public issues that involve the city. We have housing, economic development and fiscal problems which need to be addresses.

Second, I will expose more Newburgh tidbits in this blog. It is important to know the story behind the story.

Lastly, I will continue to be involved in the community. Newburgh folks are hurting. You know and it and I see it everyday.

Thanks to all who supported me and voted yesterday.

All is good!

Wednesday, October 21, 2009

Time for action.

There comes a time when enough is enough. It is past that time right now.

It amazes me that more people are not up in arms over the prospect of a doubling of their taxes. There should be citizens in front of City Hall protesting. I predict there will be, if the City decides to go ahead with a 90% increase in taxes as was proposed by the City Manager at the recent budget meeting. Who can support such a crazy concept?

It is hard from the outside to say exactly what City Hall should do. But raising taxes should not be on the list. Already, real estate sales have plummeted due to high taxes and market conditions. With the current tax structure, a two-family house is actually a single family home. One unit now goes to pay the taxes. Not an ideal situation for an investor; even worse for a new homeowner.

By raising taxes, the expense will be passed along to the tenants. Newburgh could change drastically because the poor would not be able to live here and, unfortunately, Newburgh is not yet desirable to attract higher income renters.

Right now, City Hall should not stop at a quick fix for 2009 and a hope and prayer for 2010. There should be a long-term plan to solve the fiscal crisis that the past five years of malfeasance has brought us.

I would suggest the following "fixes" to our current crisis:

First, create a task force to design and implement a five-year plan to fiscal solvency. This group should include city and county officials, a member of the NYS Comptroller's office, accountants, city planners, an IDA representative and Newburgh residents. This five-year plan should be upheld and continued by any new City Manager that touches ground in City Hall. Hence, change in the City Manager should not affect the plan itself. By 2012, the next five-year plan should be developed and implemented.

Second, disband the economic development department. It has not produced any worthwhile economic development. Instead, a memorandum of understanding should be executed with the Orange County Partnership, and the Newburgh and Orange County Industrial Development Agencies. The agreement should require these agencies to market and sell Newburgh as a viable location for companies and industries to do business. We have two large parcels that need to be correctly marketed: the Pierces Road lot and the Armory on William Street. Both would make excellent industrial parks. Orange County could assist in making them positive development projects that could expand our tax base.

Third, sell all city-owned property and immediately put them on the tax rolls. These properties should be sold for the outstanding taxes, plus any interest and fees. After the sale of said properties, a steady tax cash flow will assist in sustaining future revenue. The city, in the past, has been trying to profit on these buildings and holding them for that purpose. The city is not a developer. Newburgh is a municipality with the purpose of protecting and securing its citizens and maintaining infrastructure to attract new residents and industry.

It boggles my mind that the City is the largest owner of real estate. Currently, our city owns over 300 properties. With foreclosures occurring at a frightening pace, the city could have over 600 properties by 2011. They are quick to grab a property then do nothing with it. These city-owned properties are costing taxpayers too much. The city has no capacity to manage them nor the stomach to evict the tenants. If the city continues to act as a landlord, it will be exposed to potential lawsuits and liabilities. And we all know the city does not handle lawsuits very well.

Before you read on, please note that public safety (police and fire) make up 50% of the city's budget.

Fourth, consolidate the Newburgh City Fire Department with the local volunteer fire districts in the Town of Newburgh. This is no small order. The fire fiefdoms of the township are holding on to their fire district incomes. They have more equipment than our paid firefighters. By consolidating resources, we could actually expand all departments, pay more firefighters and respond more quickly to fires in both municipalities.


Fifth, revamp the entire Newburgh Police Department from the head down. I called for a new police chief in my blog several months ago. In response, I received a two-page, well-written letter from Chief Paolilli defending his tenure. Sorry Chief. But I believe the NPD would be better served with an outsider who has no attachment to the ranks. Someone who will roll heads when drug money is missing or an officer violates the rights of a citizen. A chief who has no tolerance for bad behavior on the part of his officers. We have good men and women in the police force who work hard. Like anyone else, they want to go home alive. And they have a better chance of doing that in a cushy police job in a Westchester County town. But they chose Newburgh.

Consolidating Newburgh PD with township forces or Orange County Sheriffs is a joke. Even the NY State Troopers are out of their element in Newburgh's inner city. Newburgh police are trained in handling our inner city problems, however, we need to expand their ability to operate and effectively patrol the city. We need more cops and cameras. There are federal programs to make this a reality, but the city needs to seek them out.

These are just some ideas that are feasible to save money and reinvent our city government. But it requires innovation, purpose, courage and action. And good relations with Orange County. Our county is the only fiscally responsible municipality in New York State. And Newburgh should take notes.

This year is the first year in the past 12 years that the county will not be plowing Broadway. It was reported to me that we lost this beneficial service because McGrane and Valentine did not know how to keep good relations with county officials. In any event, the county left equipment behind so our DPW can get the job done. But if we cut staff, how will these men and women be able to plow both Broadway and side streets? The side streets have always been poorly plowed because of cars on both sides of the street and potholes. I hope Garrison's department will be able to pull this off. He says he can.

We have a financially ruined city, firemen and police with low morale, and taxpayers unable to bear the burden of higher taxes. Worse yet, we have no leadership. We need to change how we operate and think about our local government. Consolidation can save money and make services more effective. Forming task forces to address issues and take action is better than doing studies that sit on a shelf. The bottom line is we need action. And my campaign is a call for change and a call for action.

It is time to acknowledge that enough is enough. And vote to remove city and county officials who cannot lead us where we need to go. We need financial solvency and we need to rebuild our sense of community.

Please vote for me on Tuesday, November 3. I promise to promote change that will lead to better results!




Tuesday, October 20, 2009

Attorney for Newburgh Geoffry Chanin resigns

Confirmed! Geoffry Chanin resigned from his post as Corporation Counsel for the City of Newburgh effective yesterday. We have lost the Comptroller, Fire Chief, and City Manager...now the legal mind leaves.







Very scary times.

Saturday, October 10, 2009

Can't Cut City Government Enough

Big news!

Inside story!

Word is that the Interim City Manager Richard Herbek was about to layoff people Friday morning.

Yes, layoffs are eminent. But Herbek was convinced not to drop the hammer until Tuesday. There is a meeting or press release that is going to announce some very bad news for city taxpayers.

It is hard to confirm but taxpayers are facing a mega double-digit tax increase of 60 to 75 percent. This increase is happening even though the city is laying off more than 70 employees. And after all that, the city may face a 7 million dollar deficit by year end 2010!!!!!

Now, Mr. Herbek is no joke. He doesn’t have to do the politics game. He is not there to make friends. He is not elected and does not have a political mandate.

He said that there has not been a realistic budget done in Newburgh in over 10 years. Now reality is biting us is biting us in the soft flesh just below our wallets.

It will be interesting to see how elected city officials will deal with telling workers that their lack of vigilance has cost them their jobs.