All Red Bank Democratic Government No More

Cindy Burnham was the top vote winner in this years 2-seat council race. She will replace Sharon Lee on council. It seems the voters are now seeing the problems you face when a town is run like a monopoly for many years. Click Here to see the video of Ed McKenna and Sharon Lee at their 1/2 victory celebration. Sharon Lee speaks of dirty politics, this after press releases were sent to all of the major NJ newspapers about Sean Di Somma’s out of state traffic ticket to question is character.

Connecting the dots at Cedar Crossing Red Bank NJ

I never could quite understand all of the outside connections to the Cedar Crossing property nor the timing of it. It all began in 2006 when a group of investors were trying to get approvals on a former contaminated industrial site on the Westside of Red Bank. I had traced some of the investors to North Jersey and Woodbridge NJ even though they had been referred to as people from Shrewsbury. Some of the people had offices in Shrewsbury as did John Lynch at the time. This site is also located about a block away from another affordable housing site which was involved in the John Lynch investigation related to Pennrose which owns and developed the former River Street School property. While this investment group was in the process of obtaining approvals for 36 units, that even T and M Associates the borough engineer, felt was too intense for the site, Mayor McKenna began to say this was a great opportunity for the town to provide affordable housing. In August of 2006, Mayor Ed McKenna started to push for the town to purchase the property at above appraised value and without the final approvals using free state grant money. John Curley who is currently a Monmouth County Freeholder, was at the time a council person who opposed the purchase and even made statements that the FBI should investigate the situation. In 2007 the property was acquired by the town using the state grant money and around the same time a corporation known as Red Bank Affordable Housing Corporation was created. Again it was a strange mix of people. You had the Reverend of the Pilgrim Baptist Church in Red Bank, Ed McKenna former mayor of Red Bank, another Red Bank Attorney that had provided the Monmouth County Bar Association with a racist skit (when that was revealed he seemed to no longer be involved with the project), William Katchen from Bergen County, and Frank Borin from the DeCotiis Law Firm in Bergen County. For details and links related to the Cedar Crossings development you can read my other posts. This is basically a summary that has taken me several years to put together. I only recently discovered that the Lynch PAC New Directions for Responsible Leadership was co-run by Alfred DeCotiis of the the DeCotiis Law Firm. Now the Bergen County and Middlesex County connections to a small piece of land in Red Bank NJ all makes sense. It seems to have been orchestrated from the very beginning using more or less no-name people from out of the area to present the subdivision, have the mayor of the town push for the town to overpay for the land using free money and have several connected Democratic Party members profit by overseeing the construction and sale of the units. William Katchen, the CPA for Red Bank Affordable Housing Corporation has crossed paths with Joseph Ferriero and Dennis Oury who owned Government Grants Consulting and may very well have assisted in obtaining the NJ grants for this project because the DeCotiis Firm acknowledges that they worked with consultants to obtain the approvals and funding for this project. William Katchen along with Dennis Oury were involved in an investigation related to missing affordable housing funds in Paramus NJ. Again the timing also calls into question about what transpired. John Lynch pled guilty to various charges in September 2006 and would not have been able to have worked on this project. This was just one month after Mayor McKenna pushed for the town to acquire the property. John Lynch was also known to be friends with Ed McKenna and his PAC provided funds to the Red Bank Democratic Party and Ed McKenna’s Law Firm donated to Lynch’s PAC New Directions for Responsible Leadership. So if I were to connect the dots it would be Lynch to no-name developers to McKenna/Red Bank Borough to Baptist Church/Katchen/DeCotiis/McKenna with most likely consultants like Oury/Ferriero/Spatz helping to obtain 100% financing for the project that should yield several hundred thousand dollars in profit if and when they ever sell the remaining 14 units of the 36 unit development.
North South Brunswick Sentinel
October 5, 2006 Edition
GOP: Lynch funds should be returned
Corruption charges against ex-senator become campaign issue in N.B.
BY JENNIFER AMATO Staff Writer
BY JENNIFER AMATO
Staff Writer
The North Brunswick Republican Organization is calling on the Democratic Township Council candidates to return any contributions they received from former state Senate President John Lynch and a political action committee he founded.
Lynch pleaded guilty Sept. 15 to federal charges of tax evasion and mail fraud after investigators determined he accepted bribes to lobby for the approval of projects proposed by a South Brunswick sand mining company. Through Lynch’s political action committee New Directions for Responsible Leadership, over $20,000 has been given to the Democratic political and social organizations since 2002, with direct assistance given to the previous campaigns of Mayor Francis “Mac” Womack, Carlo Socio and Rhonda Lyles, according to state election records.
Although Womack does not deny that the money was received, he said, “Certainly at the time, John was neither under indictment or pled guilty to anything, and those contributions never came with any strings attached in any way.”
Socio, who is running for re-election in November, said that to the best of his knowledge, no money has been received from Lynch or his PAC for this year’s campaign.
“I wish I could say that I was surprised by [Republican Chairman] Pete Maimone once again attempting to turn the voters’ attention away from the issues which really matter, the residents’ quality of life in our township,” he said.

“Just look at the accomplishments, which we have instituted since taking office, like pursuing and winning $6.7 million in business tax appeals, conducting a complete reconstruction of our pocket parks, banning trucks on Adams Lane, fighting to open government by televising planning and zoning meetings, securing over $1 million in new grant money, and topping all of that passing a pay-to-play ordinance and the first limits ever on campaign contributions in North Brunswick,” Socio said.

The Democrats countered by citing the receipt of funds by the Republican Organization from various developers, specifically Halpern, the largest developer in the township, which completed the Renaissance development on Route 130.

“It is an important point in my mind, simply, that we were reformers in North Brunswick and we worked hard to make that change, and we do not take any money from developers, which is a sharp contrast to the Republicans,” Womack said.

Yet Maimone said that the difference in their receipt of $8,000 in contributions is that “developers received no benefits and received no promises of return.”

In addition, the Republicans claim that over $35,000 came from Lynch’s partner in founding New Directions, Alfred DeCotiis, a chief counsel to former Gov. James McGreevey, and that his law firm of DeCotiis, Fitzpatrick, Cole and Wisler was subsequently hired to handle all North Brunswick Township legal business. Also, CME Engineering, another longtime Lynch ally, serves as the primary engineer within the township.

Although 2006 Republican candidates Tom O’Neill and Matthew “Skip” House acknowledge that award of no-bid professional service contracts is legal, they question whether the contributions are “dirty money.”

“As an organization, the NBRO looks forward to returning integrity, honesty, and balance to our local government,” Maimone said.

However, Socio said that DeCotiis was hired after a member of the council used the firm for a personal issue and respected their work, and that CME was in place before the 2003 election.

The Republicans are suggesting that any contributions received should be returned either as contributions to charities or to nonpartisan government watchdog groups. The Republicans say that if the Democrats are serious about “doing the right thing,” they “wouldn’t think twice about acting on this call.”

Womack said that because Lynch is now considered a guilty party, he would reconsider accepting any funds from the PAC next year.

“I would have to look into it,” he said.
This is from the Hudson Reporter showing that John Lynch and Joseph Ferriero were friendly and working together as Democratic Party Power Brokers.
Lynch, a power broker from Middlesex, rose to the height of power in 2001 after he allied himself with South Jersey’s Norcross and Bergen County Democratic Chairman Joe Ferriero.
http://bayonnecommunitynews.com/view/full_story/2400183/matchbin
Don’t discount the golf connection to the original investors. Here is an article related to John Lynch golfing with a Bergen County Political person named Alan Marcus. Golf has always been know for connecting people and business.
Republican lobbyist Alan Marcus recalled the day in 2000 when he played golf with Lynch and Lynch told him he would not run for re-election, at the same time McGreevey appeared on the verge of being elected governor.

“He said it was time to go. He wanted to spend more time with Matthew. I told him, “You will rue the day and so will McGreevey.’ The minute you’re out, you’re out,” Marcus said. Click Here for the full article from the Asbury Park Press.

For one thing, Marcus said, it removed Lynch’s label. Rather than call him senator, the handy way to describe him became “boss.”
Kathleen Anderson and her husband donated to Rider University’s golf program. Kathleen Anderson also originally had her company in Woodbridge a strong hold for Lynch in Middlesex County.
Click Here for an article from Rider about their donation to the golf center.
Anderson, who has been elected to join the Rider Board of Trustees beginning on July 1, has proven to be a passionate member of the University family. He and his wife, Kathy, donated the lead gift for the golf facility in the Maurer Center, and together, are the lead donor for the Athletics Strength and Conditioning Center. The Andersons have also opened their home in Florida to Rider’s golf team during its spring break trips and served as host for an Athletics Campaign Preview event at the Rainbow Room in New York.
Click Here for the full interview of Ed McKenna speaking about his 5 golf club memberships
I hear you’re a golfer.
Oh, yeah. Big. It’s my passion. I started when I was 36, I think. I actually belong to five golf clubs, three in Ireland. I go to Ireland three times a year to play golf. Click Here to see Ed McKenna donating a round of Golf at Due Process Golf Course in Colts Neck NJ>

And Finally to bring this full circle. We have Ed McKenna who was friends with John Lynch. John Lynch was friends with Joseph Ferriero which now explains the Middlesex County and Bergen County connection to a small development of affordable housing in Red Bank as well as possibly the use of C3 holdings the Borough of Red Bank’s website provider and accused of paying kickback’s to Joseph Ferriero as per the Federal Indictment filed against Ferriero in September 2013.

Station Place Development formerly known as the Courtyards

The Station Place Development formerly known as the Courtyards@Monmouth Project was sold to Brenda McIntyre of Station Place LLC. The property was sold for 4 Million according to tax records and they received 9.6 million in loans from the seller, Amboy Bank. for the 45 market units. The building according to the application is 60,556 sq ft. Roger Mumford went before the Red Bank Zoning Board at a special meeting on December 13, 2012 to revise previously agreed to plans. He received those approvals at this meeting and then Brenda McIntyre signed the deeds on December 19, 2012.
From the Borough of Red Bank Agenda list for a Special Zoning Board Hearing held on Dec 13, 2012.

Station Place @Red Bank, LLC, Monmouth and West Streets, Block 42, Lots
1,2,2.01,3,4,19,20,21 Z 10411
Seeking relief from conditions of a prior Zoning Board approval and amendment to the
application including revised elevations, elimination of solar canopies and roof –top
easement, elimination of on-site car share use, and changes to the parking and grading
plans to permit the construction of a 60,556 square foot multi –family building consisting
of 45 units and a 12,822 square foot building consisting of 12 units. BR-1 Zone and BR-2
Zone.From the Asbury Park Press dated 12/28/12
What had been hailed as a forward thinking condominium project, with solar panels, car-share parking and a rain garden has given way to economic reality.
Revised plans for the former Courtyards at Monmouth project, now dubbed Station Place, were approved by Red Bank’s Zoning Board of Adjustment on Dec. 13, by a 7-0 vote.
The site has seen several previous plans, none of which ever were constructed.
Developer Roger Mumford said the changes were necessary so Station Place will not just be a pipe dream on paper.
The design calls for building a 45-unit, four-story upscale rental building on Monmouth and West streets and a smaller building of 12 affordable units at West and Oakland streets.
The original development proposed by GS Realty Corp., which is part of Amboy Bank, proposed a car canopy over the 67 spaces in a parking lot, to be covered with solar panels, a rain garden to filter rain water and proposals to include parking for car-sharing companies, such as Zipcar, which could eliminate the need some residents have for a first or second car.
The revisions scuttled some of those features, which some said gave the project a visionary aspect. Even the buildings’ appearance with faux brownstone individual entrances and stairs, has given way to a traditional single entrance and lobby.
“I didn’t think they were very appealing. The spirit of the (new) building (facade) is captured from the Count Basie theater,” Mumford said during a hearing on the application. “I wanted more classic architecture that would look great 20 years from now.”
The overall size of the buildings are the same with aesthetic changes and reconfiguring the internal lay-outs.
While he proposed to eliminate the solar, Mumford cited his environmental credibility for building other energy efficient developments, including a group of new homes at Bridge Avenue and Bergen Place.
“Our environmental policy recognizes energy efficiency, conserves natural resources and indoor air quality,” Mumford said. “It may not be technically LEED (Leadership in Energy and Environmental Design) certified, but it will be one of the greenest buildings in Red Bank.”
The solar aspect of the original plans would only provide 10 to 15 percent of the buildings’ electricity, Mumford said.
Gary Weisman, president of the New Jersey Solar Coalition, said the market has dropped out of the solar energy market, since the original approval. He said the solar component of the project was “made for a project, that if your look at it on an economic basis, is no longer viable,” considering the current health of the solar energy market.
“There is no way I could find an investor for the solar component of this project,” Weisman said, adding it would take at least 15 years under the current economic climate to recoup that investment.
Mumford called solar “one spoke on the environmental wheel” and ticked off a list of environmentally friendly features such as cabinetry certified not to contain formaldehyde, “engineered” lumber made of recycled wood chips, recycled concrete chips in the parking lot, a white plastic “cool” roof covering to reflect energy and energy efficient insulation.
The “L” shaped corner property has a tortured history of proposals, which never saw reality.
Prior to interest by Amboy Bank and its real estate arm, G.S. Realty, the last development approved on that site in May 2008 was never built, and borough officials said the bank took possession of the property.
Those plans, proposed by RB Monmouth LLC, would have built three, four-story buildings with stores on the first floor and apartments on the upper floors for a total of 20 units.
RB Monmouth bought the property and different plans from Building Land Technology, which filed an application in 2003 and got approval to build a total of 35 condo and townhouse units in three buildings on the site.
That approval was challenged in 2004, by seven borough residents who sued, contending there was a conflict of interest between a board member and a law firm, which previously represented the land owner.
In 2006, three state Appellate Division judges ruled that board member shouldn’t have heard the BLT application and reversed the approval.

From a letter to the editor on the Hub Newspaper dated 9/28/06
Pay-to-play changing landscape
Now that former state Sen. John Lynch and his business partner John Westlake have pleaded guilty to corruption charges and tax evasion, it is important for my fellow residents of the Jersey Shore to understand the nexus between John Lynch and our local politicians, developers and their professionals. Just as importantly, we need to understand the impact of these relationships and how it has affected the quality of life in our shore communities.
In the movie, “All the President’s Men,” actor Hal Holbrook portrays the Washington insider Deep Throat who continually states “follow the money.” If we follow that lead, it takes us to two political action committees which have had a tremendous influence over our politicians, some who are already guilty of corruption. “New Directions Through Responsible Leadership,” a Lynch PAC – co-chaired by Westlake and John Hoffman of the Wilentz, Goldman, and Spitzer law firm – has raised millions of dollars since 2000. The bulk of those dollars have come from people or companies doing redevelopment projects throughout the state and in our hometowns.
Developers like K Hovnanian, the Gale Co., Mack-Cali, PRC, Jack Morris, Applied Development, Matzel and Mumford, and others have contributed significantly to this PAC, and it is no coincidence they are all doing major development projects in towns like Long Branch, Matawan, Asbury Park, Keyport, West Long Branch, Belmar and my hometown of Red Bank.
In addition, engineering firms such as Maser Consulting, Birdsall Engineering, Schoor DePalma, T&M Associates, and Najarian Associates are among the local firms who have been major contributors for years. Again, it is of no surprise these firms are either employed by our towns or are working on behalf of the developers.
The other PAC called the Monmouth County Council of Democratic Leaders – formed in 1999 and co-chaired by the respective law partners of Mayor Ed McKenna of Red Bank and Mayor Ken Pringle of Belmar – has been in sync with the Lynch PAC for many years. Not only has this PAC received contributions from the same developers and professionals, but it has also received direct monies from New Directions by way of “wheeling.” Also, the McKenna/Pringle PAC has wheeled money upwards to the Lynch PAC for many years.
Where has the money flowed to? In Monmouth County, the biggest recipient of campaign contributions from New Directions has been the Red Bank Democrats and their campaign accounts, each year chaired by Mayor McKenna. In fact, Mayor McKenna received $5,000 in 2000 in his unsuccessful bid for the Democratic county chairmanship. Again, it is of no coincidence that currently there are 19 development projects proposed or under construction in Red Bank.
Another major recipient of campaign monies was Mayor Adam Schneider in Long Branch, who in addition received campaign staff help from John Lynch in his re-election campaign this past May. These staffers were formerly on the payroll of Lynch’s New Directions.
Mayor Schneider and his use of eminent domain on good citizens has been fueled by these developers and professionals. Is it again a coincidence Joseph Barry of Applied Development, Charles Kushner of Westminster Properties, and Phil Konvitz – all guilty of corruption – were doing waterfront development? Mayor Schneider also represented developer Jack Morris in the Walgreens project in West Long Branch, where a bribe was passed to a Democratic councilman.
I could certainly continue to write about how far and how deep this goes, but then it would become a book. I only wish to inspire those of you out there who are not happy with the overdevelopment of your hometowns. There is a direct link as to why it is happening, and it’s not called smart growth. It is pay-to-play and corruption, and it has changed the Jersey Shore landscape.
For those facing eminent domain this holiday season, my heart goes out to all of you, for it truly is the “Lynch” who stole Christmas.

Stephen M. Fitzpatrick

Red Bank
Ed McKenna who endorsed the GS Realty/Amboy Bank approvals that were acquired by Brenda McIntyre also became a member of the Red Bank Rivercenter just prior to Amboy Bank/GS Realty making application for the approvals and numerous variances. This project failed to meet the guidelines on the Rivercenter organization. In addition the township rezoned the property for greater density on the parcels that were identified as in foreclosure from the former Coffenberg approval after the town argued that the Coffenberg approval was creating a much higher density than permitted in the zone which was never true and proven during the Coffenberg approval process.
Here is the deed for Station Place’s Purchase from GS Realty which is Amboy Bank.
deed station place
Here is the tax record for the Station Place purchase and mortgage from Amboy Bank.

The data within this report is compiled by CoreLogic from public and private sources.
Generated on 11/06/2013
153 Monmouth St, Red Bank, NJ 07701, Monmouth County
Beds
N/A
MLS Sq Ft
60,000
Lot Sq Ft
15,002
Sale Price
$4,000,000
Baths
N/A
Yr Built
N/A
Type
N/A
Sale Date
12/19/2012
Expired Listing
Owner Information
Owner Name: Station Place At Red Bank LLC Tax Billing Zip: 07739
Tax Billing Address: 52 Paag Cir Tax Billing Zip+4: 1739
Tax Billing City & State: Little Silver, NJ Owner Occupied: No
Location Information
Township: Red Bank Boro Carrier Route: C004
Zoning: MU-08 Block #: 42
Census Tract: 8036.00 Lot #: 1
Tax Information
Tax ID: 39-00042-0000-00001 Lot Number: 1
Tax Appraisal Area: 39 Block ID: 42
Legal Description: ALSO LOT 2 NIT 1A
Assessment & Tax
Assessment Year 2012 2011 2010
Assessed Value – Total $737,000 $914,400 $914,400
Assessed Value – Land $737,000 $737,000 $737,000
Assessed Value – Improved $177,400 $177,400
YOY Assessed Change (%) -19.4% 0%
YOY Assessed Change ($) -$177,400 $0
Tax Year Total Tax YOY Tax Change ($) YOY Tax Change (%)
2010 $16,221
2011 $16,523 $302 1.86%
2012 $13,657 -$2,867 -17.35%
Characteristics
Estimated Lots Acres: 0.3444 Estimated Building Square
Feet:
Tax: 1,862 MLS: 60,000
Estimated Lot Area: 15,002 Exterior: Concrete Block

Property Detail
Page 2 of 3
The data within this report is compiled by CoreLogic from public and private sources.
Generated on 11/06/2013
Last Market Sale & Sales History
Recording Date: 12/28/2012 Deed Type: Bargain & Sale Deed
Settle Date: 12/19/2012 Owner Name: Station Place At Red Bank LLC
Sale Price: $4,000,000 Seller: Gs Realty Corp
Document Number: 8988-5283
Recording Date 12/28/2012 09/13/2012 05/21/2009 12/06/2006 07/09/2004
Sale Price $4,000,000 $955,000
Nominal Y Y Y
Buyer Name Station Place At Red Bank LLC
Balacco Property Mgmt
LLC Gs Realty Corp R B Monmouth LLC Palatial Homes At Red
Bank LLC
Seller Name Gs Realty Corp Gs Realty Corp Rb Monmouth LLC R B Monmouth LLC Torra Frank M &
Alexandra
Document Number 8988-5283 8970-6379 8774-6828 8613-680 8379-7961
Document Type Bargain & Sale Deed Deed (Reg) Rerecorded Deed Deed (Reg) Deed (Reg)
Recording Date
Sale Price $40,000
Nominal
Buyer Name Torra Frank
Seller Name Methot June
Document Number 4161-84
Document Type Deed (Reg)
Mortgage History
Mortgage Date 12/28/2012 07/27/2007 05/11/2007 07/09/2004
Mortgage Amount $9,600,000 $500,000 $4,500,000 $1,886,880
Mortgage Lender Amboy Bk Amboy Nat’l Bk Amboy Nat’l Bk Amboy Nat’l Bk
Mortgage Type Resale Construction Construction Resale
Foreclosure History
Document Type Release Of Lis Pendens/Notice Lis Pendens
Foreclosure Filing Date 09/22/2008
Recording Date 01/20/2012 10/07/2008
Document Number 6806 107013
Original Doc Date 03/31/2010 05/11/2007
Original Document Number 27909
Original Book Page 8825009634 8651001071

Legal Problems for Law Firm Involved with Red Bank Affordable Housing Corp.

Part of the indictment related to Joseph Ferriero involves the DeCotiis Law Firm that is involved with the Red Bank Affordable Housing Corporation where former Red Bank Mayor Ed McKenna serves as the Corporations Vice President. This is from NorthJersey.com And, in a statement, Kerrie Campbell, a lawyer representing the DeCotiis firm, said: “The DeCotiis, FitzPatrick & Cole firm assisted the government’s investigation at the request of the U.S. Attorney’s Office. Because the matter is pending in the federal court, we will not be providing further comment at this time.” The indictment puts the three men and Ferriero together at a restaurant in 2002 for a meeting called ostensibly to “settle certain differences” among them. Instead, Ferriero and Scarinci and Hollenbeck — identified in the indictment as Attorneys 1 and 2 — made a pitch to DeCotiis that would ultimately earn their consulting firm about $1.7 million. According to the indictment, the three informed DeCotiis that they had been asked to represent a competitor who intended to use “scorched earth” tactics to defeat Mills’ bid to be named the Meadowlands project developer. For $35,000 a month, though, they said they’d work for his client instead. DeCotiis then agreed to discuss the proposal with his client, who, fearing it could lose out on a substantial investment, agreed to make the payments, the indictment indicates. According to the indictment, DeCotiis recommended to his client that it pay, both to keep Ferriero and those under his sway from opposing Mills’ bid and to secure Ferriero’s help in winning public and official support. The indictment also indicates the DeCotiis law firm, referred to as the “Teaneck law firm,” then made the payments to the consulting company and billed the expenditure to Mills. From 2002 to 2006, the indictment states, about $1.7 million in “consulting service” payments from the Virginia developer were sent to Concept Realization LLC, the company that state records show was created by Ferriero, Scarinci and Hollenbeck. At one point, according to the indictment, Ferriero sent a batch of predated invoices to the DeCotiis law firm. When those invoices ran out in March 2004, DeCotiis had a member of his firm get additional invoices from Ferriero, the indictment indicates. The monthly payments continued until September 2006.
The Red Bank Affordable Housing Corporation also has William Katchen from Bergen County involved in its operations. William Katchen’s path has crossed many times with people who have questionable or criminal activities. The following is an article from northjersey.com showing the connections between Katchen and Ferriero/Oury owners of Government Grants Consulting LLC. Affordable housing funds shifted

Monday, October 6, 2008
Last updated: Monday October 6, 2008, EDT 6:43 AM

BY MICHAEL GARTLAND

STAFF WRITER

Paramus Mayor James Tedesco authorized the transfer of nearly $4 million in affordable housing funds without obtaining the Borough Council’s approval, an apparent violation of affordable housing rules, public records show.

Council approval for borough expenditures is required under state guidelines, said Chris Donnelly, a spokesman for the New Jersey Department of Community Affairs.

Tedesco, a Democrat who became mayor in 2003, ordered the largest transfer — $3.6 million — from the affordable housing fund to the Paramus Affordable Housing Corp. in January 2004, according to municipal records. The rest of the money was allocated in three smaller transfers over several years.

Tedesco, who also is president of the non-profit PAHC, offered only a written statement conveyed through Keith Furlong, the borough’s spokesman.

“If the borough did not adopt any specific resolutions, this was an oversight,” Tedesco said.
His Republican predecessor, Cliff Gennarelli, ordered a similar transfer, but for a much smaller sum, $100,000. Gennarelli did not respond to requests for comment.

The U.S. Attorney’s Office has served at least two subpoenas related to the borough’s affordable housing program. The non-profit received one in August and the borough received one in July.

It is unclear what specifically drew federal attention.

Much of the overall $4 million transferred to PAHC eventually went to contractors, whose role in building affordable housing in Paramus is unclear.

The money eventually made its way to Paramus Affordable Development LP, a for-profit company that disbursed borough, county and state funds to contractors for a 46-unit project completed in 2005.

A significant portion of the project’s funding — $3.6 million — came from the borough itself. Bergen County paid $900,000, and the state provided about $4.4 million.
The state guidelines also bar a mayor from formal involvement in releasing affordable housing funds, Donnelly said.

“The town council authorizes expenditures,” he said. “The CFO would ultimately execute them.”
The borough did not provide any council resolutions authorizing the transfers, despite several public records requests by The Record. Instead, it provided four resolutions that did not specifically authorize the transfers.

$3.6M mystery
Council members who served in 2004 also did not recall voting to release the $3.6 million. Former council members Sandra Gunderson, Joe D’Ambrozio and Connie Wagner, who is now an assemblywoman, said they did not remember allowing that sum for affordable housing.
“When it came to affordable housing, I saw virtually nothing,” Gunderson said.

The current council president, Frank Ciambrone, also served on the council at the time. He did not respond to several calls for comment.

In a letter to Paramus Chief Financial Officer Joseph Citro on Jan. 6, 2004, Tedesco requested that $3.6 million be moved from the borough to the PAHC account “as per the agreement approved by Dennis J. Oury LLC.”

Oury was Paramus’ borough attorney in 2004. State records also list him as the registered agent for PAHC.

State records held by the Department of Community Affairs show that $3.6 million was transferred, but federal tax records show no record of $3.6 million coming into or going out of PAHC in 2004.

Tax law experts could not reconcile the contradiction. Victoria Bjorklund, former chairwoman of the IRS Advisory Committee on Tax Exemption, said that if the non-profit received $3.6 million — as state records indicate — then, by law, the money would have to appear on the tax form.
“All the contributions should be shown,” she said. “It should show up at least on the balance sheet as funds that came in. If it came in and went out the same day, it should still show up.”

Oury involvement
Oury resigned as counsel for the Bergen County Democratic Organization last month after he and BCDO Chairman Joseph Ferriero were indicted by a federal grand jury on eight counts of fraud conspiracy not related to Paramus.

The indictment accuses them of using political influence to gain contracts for a consulting firm in which both had financial stakes. Oury’s attorney, Gerald Krovatin, did not return calls for comment.

The accountant who handled PAHC’s 2004 tax return, as well as the returns in 2003 and 2006, was William Katchen, according to the tax records. He, too, did not respond to several requests for comment.

46-unit project
The U.S. Department of Housing and Urban Development slapped Katchen with a one-year suspension from federal housing work in 1990 after the Passaic Housing Authority misspent $1.7 million in taxpayer money. He was the authority’s accountant.

After money was released to PAHC, state records show it went into an escrow account held by the New Jersey Housing and Mortgage Finance Agency.

The mortgage agency then released the money to Paramus Affordable Development LP, the for-profit company that disbursed funding for the 46-unit project.

Eugene Walsh is president of Paramus Affordable Development LP, a company that shares an address with four of those contractors:

* Penwal Affordable Housing Corp. (non-profit): Walsh and Laury Pensa, directors.
* Canyon Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Summit Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Steamboat Corp. (for profit): Walsh, president; Pensa, agent and incorporator.

Steamboat received a $976,500 development fee from Paramus Affordable Development for a project with an $8.1 million budget, according to records provided by the state. Canyon received at least $44,000, and Summit took in at least $5,000.

Development fee
In a financial disclosure form filed with the state’s Housing Mortgage and Finance Agency, Walsh wrote that Penwal — which, according to its tax form, has “implemented and developed low-income housing projects in Dumont, Garfield, Jersey City and Paramus” — would get the development fee. He did not mention his interest in Steamboat on the form.

Other records obtained from the state mortgage agency show that the development fee went to Steamboat.

A financial disclosure form submitted to the state for Steamboat does not list Walsh or Pensa’s interest in Penwal or Paramus Affordable Development LP. Pensa’s signature appears on that financial disclosure statement.

In addition, a public records request submitted to HMFA by The Record showed that disclosure statements for Penwal and Canyon Capital were not filed with the agency.
Walsh and Pensa did not return calls about the payments.

Bergen County’s United Way President Tom Toronto, who has experience with state-funded affordable housing projects, said development fees are a common cost of such projects. He also said any changes regarding development fees would have to be approved and recorded by HMFA.

“HMFA has to bless it each step of the way,” he said. “Otherwise, the money wouldn’t flow.”

E-mail: gartland@northjersey.com

Find this article at:
http://www.northjersey.com/news/bergenpolitics/Affordable_housing_funds_shifted.html
The Decotiis Law Firm Press Release related to Red Bank Affordable Housing Corporation is below. Wonder who the consultants were who secured the Government financing for the project?
DeCotiis’ helps create Red Bank Affordable Housing Corporation

Thirty-six units of affordable housing already in development

DeCotiis, FitzPatrick & Cole, LLP, in its role as Counsel to the Red Bank Affordable Housing Corp., recently helped lead the successful development of Cedar Crossing at Red Bank, a 36-unit, for sale, affordable housing project in the Borough of Red Bank, New Jersey.

This project is being constructed on a site that was acquired by the Borough using Municipal Land Acquisition Funds obtained from the New Jersey Department of Community Affairs. As part of this project, DeCotiis worked with other project consultants to secure necessary state, county and local funding and approvals. DeCotiis attorneys also worked to organize and incorporate the Red Bank Affordable Housing Corp., the nonprofit developer created exclusively for the charitable purpose of promoting, developing, constructing, operating and selling affordable housing in the Borough.

“We are proud to have played a role in the development of this very important project,” said Frank Borin, a Partner at DeCotiis and a member of the firm’s Executive Committee. “I hope we can replicate this project elsewhere in order to bring new affordable housing options to the State’s residents. The leadership of the Borough and of the Red Bank Affordable Housing Corp. should be commended for their commitment to this project and their tireless efforts to see the project through.”

The project consists entirely of two and three bedroom units to be constructed in two phases. All of the units will be owner-occupied by affordable households, as defined by the Fair Housing Act and the COAH regulations. The first phase of the project should be ready for occupancy in the Spring of 2011, with the second phase being completed shortly thereafter.

Please join DeCotiis, FitzPatrick & Cole in congratulating Frank Borin, Maurice Stone and Amy Shotmeyer for their exemplary work with the Red Bank Affordable Housing Corporation.

T&M Engineering Questionable Donations in Hamilton NJ

The Star Ledger as part of an on-going investigation into the Birdsall Engineering illegal campaign donations has discovered that two other engineering firms who did business in Hamilton, NJ may have violated pay to play laws in that town. If a company donates more than $300 they must declare that and are barred from doing business in the town for the next 12 months. T & M paid the Hamilton Republican Party $600 for an ad journal that was never reported. This money then made it’s may to the Mayor of Hamilton’s Campaign Fund. The following year T & M received nearly $75,000 in business from the town. Here is part of the article: Like Birdsall, the two firms — T&M Associates and Remington, Vernick & Arango — made contributions in the form of advertisements in the programs handed out to attendees of former Mayor John Bencivengo’s annual Mayor’s Ball galas. They went on to receive tens of thousands of dollars in township contracts soon after, in apparent violation of Hamilton’s rules.

The money went to the Hamilton Township Republican Committee and was transferred to Bencivengo’s own campaign accounts, committee chairman Michael Chianese said.

Under the township’s pay-to-play rules, first adopted in 2003, if a company makes more than $300 in donations to the campaign of any elected official, candidate municipal party or committee, the firm is barred from receiving contracts for 12 months.

Business Administrator John Ricci said neither firm reported any donations on their disclosure forms, as required when applying for a township contract, and passed pay-to-play examinations by the legal and purchasing departments. He said he did not know why the contributions were not reported. T&M Engineering has always been one of the largest donors to politicians in New Jersey. This is from an Asbury Park Press article and the full article can be read at Red Bank Green. The biggest donor, as it has been in all five years the reports have been compiled, was the Middletown-based engineering firm T&M Associates. It made 184 political contributions totaling $435,110 last year, and was paid $30.3 million from government contracts, up 2.3 percent from a year earlier.

Company spokesman Tom Wilson said the firm doesn’t feel pressure from politicians to make campaign donations, and receives contracts after going through competitive processes that show it’s often the best candidate for the work.

“The reality is it’s one of, if not the, largest professional engineering firms in the state,” Wilson said. “They do work all over the state. They have lots of folks who solicit them for support, charitable, political and otherwise. I don’t think it should be terribly surprising their being at the top of the list.”

T&M Associates did work last year for 17 of the state’s 21 counties or their authorities, including contracts totaling more than $1 million each from Gloucester, Middlesex and Monmouth. It also held local contracts in more than 100 municipalities, including nearly $1.4 million in Union Township in Union County, and $1 million each in Middletown and Red Bank.
T&M Engineering had questionable donations made in Jersey City a few years ago. Here is an article from the Jersey Journal/Star Ledger on how it was resolved Here was an earlier article where T & M Engineering denied making the donation and ultimately the Councilman was told to change the form dates to reflect receiving donations prior to the pay to play laws taking effect. QUESTIONS VEGA REPORT
Firm with city contract denies giving him $$$
Friday, November 13, 2009
By MELISSA HAYES
JOURNAL STAFF WRITER

Jersey City Councilman Mariano Vega’s campaign finance reports have come under fire.

Resident John Seborowski Sr. cited the reports during Tuesday’s City Council meeting, saying an engineering firm may have broken the city’s pay-to-play law. But the firm contends the reports are erroneous.

This is not the only issue with Vega’s reports.

As The Jersey Journal reported yesterday, Vega last month updated his ELEC filings to include $10,000 that was previously not reported. The funds are linked to $30,000 Vega allegedly took from a federal informant cooperating in a federal corruption sting. Vega was one of 44 people the U.S. attorney charged in July.

According to Vega’s May Election Law Enforcement Commission reports, T&M Associates contributed $600 to Vega’s re-election campaign and Dominic Carrino, the vice president of the Middletown-based firm, donated $400. There was no date for the contributions on the report.

Those contributions would appear to violate the city’s pay-to-play law, adopted last year, which prohibits donations over $300 from people and firms doing business with the city.

But T&M spokesman Pete McDonough, a partner at Winning Strategies Pubic Relations, said the donations were never made and noted that the company’s address on the contribution attributed to Carrino is incorrect.

“They checked with the employee and they checked the bank records, and no donations were made,” he said.

Reached by telephone yesterday, Vega said the money had to come from someone.

“If I put it in there, I must have gotten something from somebody,” said Vega, who serves as the treasurer for his account. “I’ll probably look into it.”

T&M is vying for a $125,000 contract for design and construction of Marion Greenway Park at the former PJP Landfill in Jersey City. The council was set to vote on the contract, but the resolution was tabled.

According to the city’s pay-to-play law, a business or individual employee cannot donate more than $300 to any candidate, $500 to any joint candidate committee or $300 to a political committee or political party in Jersey City within one year of receiving a contract with the city.

T&M has an ongoing contract with the city for work it has already done at the PJP tract.

The law also places a $500 cap on donations to Hudson County political committees and political party committees and to any political action committees (PACs) that “regularly” donate to local candidates.

Companies found in violation of the law can be banned from city work for four years.

Jeffrey Brindle, executive director of the Election Law Enforcement Commission, said he couldn’t comment on a specific case, but spoke generally.

“It could possibly be something that is accidental or a mistake. In that case we would work with the filer of the report to amend the report and correct the mistake,” he said.

“On the other hand if it’s an intentional misrepresentation of the source of the contribution we would probably turn it over to the attorney general.”

http://www.nj.com/hudson/index.ssf/20 … l_front_and_back_609.html

West New York Affordable Housing

The Mayor of West New York Felix Roque has had some legal issues after a Hudson County Freeholder was working for the FBI as an informant and now it is learned that the Freeholder has been cooperating on other matters since 2011. William Katchen who is part of the Red Bank Affordable Housing Corporation is also the accountant for the West New York Housing Corporation With $8.14 million in assets as of year-end 2011, West New York Housing Corporation A New Jersey Nonprofit Corporation is one of the larger nonprofits. The 2011 reported income for West New York Housing Corporation A New Jersey Nonprofit Corporation was $8,000, making it one of the lowest-earning organizations.West New York Housing Authority Executive Director denies FBI visiting West New York just days before it is announced that Jose Munoz was an informant for the FBI. Bob DiVincent, the West New York Housing Authority Executive Director is also the CEO of West New York Housing Corporation. Frank Borin, William Katchen and Robert “Bob” DiVincent are all members of the New Jersey Chapter of the National Association of Housing and Redevelopment Officials. William Katchen and Frank Borin are involved in the Red Bank Affordable Housing Corporation along with former Red Bank Mayor Ed McKenna. Robert Divincent and William Katchen are also involved in the West New York Housing Authority. It seems that William Katchen is always surrounded with scandals yet nothing ever seems to happen to him but it is interesting that his friend denies that the FBI has visited West New York and then within 2 weeks it is discovered that the FBI had an informant targeting the town. Here is another Affordable Housing investigation involving William Katchen:
Published in the Bergen Record, Monday, October 6, 2008

[Funds transferred without Council approval; Christie subpoenas]

Affordable housing funds shifted

Monday, October 6, 2008
Last updated: Monday October 6, 2008, EDT 6:43 AM

BY MICHAEL GARTLAND

STAFF WRITER

Paramus Mayor James Tedesco authorized the transfer of nearly $4 million in affordable housing funds without obtaining the Borough Council’s approval, an apparent violation of affordable housing rules, public records show.

Council approval for borough expenditures is required under state guidelines, said Chris Donnelly, a spokesman for the New Jersey Department of Community Affairs.

Tedesco, a Democrat who became mayor in 2003, ordered the largest transfer — $3.6 million — from the affordable housing fund to the Paramus Affordable Housing Corp. in January 2004, according to municipal records. The rest of the money was allocated in three smaller transfers over several years.

Tedesco, who also is president of the non-profit PAHC, offered only a written statement conveyed through Keith Furlong, the borough’s spokesman.

“If the borough did not adopt any specific resolutions, this was an oversight,” Tedesco said.
His Republican predecessor, Cliff Gennarelli, ordered a similar transfer, but for a much smaller sum, $100,000. Gennarelli did not respond to requests for comment.

The U.S. Attorney’s Office has served at least two subpoenas related to the borough’s affordable housing program. The non-profit received one in August and the borough received one in July.

It is unclear what specifically drew federal attention.

Much of the overall $4 million transferred to PAHC eventually went to contractors, whose role in building affordable housing in Paramus is unclear.

The money eventually made its way to Paramus Affordable Development LP, a for-profit company that disbursed borough, county and state funds to contractors for a 46-unit project completed in 2005.

A significant portion of the project’s funding — $3.6 million — came from the borough itself. Bergen County paid $900,000, and the state provided about $4.4 million.
The state guidelines also bar a mayor from formal involvement in releasing affordable housing funds, Donnelly said.

“The town council authorizes expenditures,” he said. “The CFO would ultimately execute them.”
The borough did not provide any council resolutions authorizing the transfers, despite several public records requests by The Record. Instead, it provided four resolutions that did not specifically authorize the transfers.

$3.6M mystery
Council members who served in 2004 also did not recall voting to release the $3.6 million. Former council members Sandra Gunderson, Joe D’Ambrozio and Connie Wagner, who is now an assemblywoman, said they did not remember allowing that sum for affordable housing.
“When it came to affordable housing, I saw virtually nothing,” Gunderson said.

The current council president, Frank Ciambrone, also served on the council at the time. He did not respond to several calls for comment.

In a letter to Paramus Chief Financial Officer Joseph Citro on Jan. 6, 2004, Tedesco requested that $3.6 million be moved from the borough to the PAHC account “as per the agreement approved by Dennis J. Oury LLC.”

Oury was Paramus’ borough attorney in 2004. State records also list him as the registered agent for PAHC.

State records held by the Department of Community Affairs show that $3.6 million was transferred, but federal tax records show no record of $3.6 million coming into or going out of PAHC in 2004.

Tax law experts could not reconcile the contradiction. Victoria Bjorklund, former chairwoman of the IRS Advisory Committee on Tax Exemption, said that if the non-profit received $3.6 million — as state records indicate — then, by law, the money would have to appear on the tax form.
“All the contributions should be shown,” she said. “It should show up at least on the balance sheet as funds that came in. If it came in and went out the same day, it should still show up.”

Oury involvement
Oury resigned as counsel for the Bergen County Democratic Organization last month after he and BCDO Chairman Joseph Ferriero were indicted by a federal grand jury on eight counts of fraud conspiracy not related to Paramus.

The indictment accuses them of using political influence to gain contracts for a consulting firm in which both had financial stakes. Oury’s attorney, Gerald Krovatin, did not return calls for comment.

The accountant who handled PAHC’s 2004 tax return, as well as the returns in 2003 and 2006, was William Katchen, according to the tax records. He, too, did not respond to several requests for comment.

46-unit project
The U.S. Department of Housing and Urban Development slapped Katchen with a one-year suspension from federal housing work in 1990 after the Passaic Housing Authority misspent $1.7 million in taxpayer money. He was the authority’s accountant.

After money was released to PAHC, state records show it went into an escrow account held by the New Jersey Housing and Mortgage Finance Agency.

The mortgage agency then released the money to Paramus Affordable Development LP, the for-profit company that disbursed funding for the 46-unit project.

Eugene Walsh is president of Paramus Affordable Development LP, a company that shares an address with four of those contractors:

* Penwal Affordable Housing Corp. (non-profit): Walsh and Laury Pensa, directors.
* Canyon Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Summit Capital Corp. (for profit): Pensa, president, incorporator, agent.
* Steamboat Corp. (for profit): Walsh, president; Pensa, agent and incorporator.

Steamboat received a $976,500 development fee from Paramus Affordable Development for a project with an $8.1 million budget, according to records provided by the state. Canyon received at least $44,000, and Summit took in at least $5,000.

Development fee
In a financial disclosure form filed with the state’s Housing Mortgage and Finance Agency, Walsh wrote that Penwal — which, according to its tax form, has “implemented and developed low-income housing projects in Dumont, Garfield, Jersey City and Paramus” — would get the development fee. He did not mention his interest in Steamboat on the form.

Other records obtained from the state mortgage agency show that the development fee went to Steamboat.

A financial disclosure form submitted to the state for Steamboat does not list Walsh or Pensa’s interest in Penwal or Paramus Affordable Development LP. Pensa’s signature appears on that financial disclosure statement.

In addition, a public records request submitted to HMFA by The Record showed that disclosure statements for Penwal and Canyon Capital were not filed with the agency.
Walsh and Pensa did not return calls about the payments.

Bergen County’s United Way President Tom Toronto, who has experience with state-funded affordable housing projects, said development fees are a common cost of such projects. He also said any changes regarding development fees would have to be approved and recorded by HMFA.

“HMFA has to bless it each step of the way,” he said. “Otherwise, the money wouldn’t flow.”

E-mail: gartland@northjersey.com

Find this article at:
http://www.northjersey.com/news/bergenpolitics/Affordable_housing_funds_shifted.html

Public Trust the story of 51 Monmouth St & Cedar Crossing Red Bank NJ

Here is an article related to government officials and the NJ Criminal Code.

By Edward J. Kologi. Esq. League Associate Counsel

Many individuals seek public office with the genuine intent  of trying to effectuate positive change. Although only a small percentage of  elected officials ever engage in actual criminal behavior, it is imperative  that all officials remain aware of precisely what constitutes criminal conduct  to ensure that they never cross over the line.

The New Jersey Criminal Code (N.J.S.A 2C:1-1 et seq.)  contains a number of offenses which are specifically directed at public  officials and/or employees. Although this article is not intended as an  exhaustive treatment of all state law on this subject, it will hopefully  provide a working knowledge of the major acts or omissions which may give rise  to criminal culpability.

Official Misconduct (N.J.S.A. 2C:30-2) A public servant commits official misconduct if with a purpose to obtain  a benefit for himself or herself or another (or to injure or deprive another of  a benefit) he or she knowingly commits an act relating to his or her office  constituting an unauthorized exercise of official functions: or knowingly  refrains from performing a duty which is imposed by law and is clearly inherent  in the nature of the office. The “benefit” obtained may be of minimal value.  Investigation Into Hamilton  T.P. Board of Education 205 N.J. Super. 248 (App. Div.1985). This also includes  benefits not received by the public official but rather by a third party. State  v. Schenkolewski 301 N.J.Super.115 (App. Div.), cert. den.151 N.J. Super.  (1977). To violate this section, the individual must be a public servant and  the act must relate to the office. State v. Bullock 136 N.J. 149 (1994). Unlawful Business Transaction Where Interest Is Involved  (N.J.S.A. 2C:27-9) A public servant violates this law if, while  performing his or her official functions on behalf of a governmental entity, he  or she knowingly transacts any business with him or herself, a member of his or  her immediate family, or a business organization in which the public servant or  an immediate family member has an interest. The term “business organization”  shall not include aggregate familial ownership or control of one percent or  less of an interest in the capital or equity of the business organization.  Further, it is not a violation if the public servant’s performance of official  functions would not affect him or her, his or her family or business  organization differently than such performance would affect the public  generally.

Acceptance or Receipt of Unlawful Benefit by Public Servant  for Official Behavior (N.J.S.A . 2C:27-10) If under color of office and  in connection with any official act performed or to be performed, a public  servant directly or indirectly knowingly solicits, accepts or agrees to accept  any benefit for himself or another person to influence the performance of any  official duty, a violation occurs. Further, the term “benefit” includes any  benefit from or by reason of a contract or agreement for goods, property or  services awarded by the public entity employing the public servant. There are  three exceptions in the statute as to conduct not constituting a violation: (1)  fees or any other benefit prescribed by law to be received by the public  servant to which he or she is otherwise legally entitled and if said fees or  benefits are received in the manner legally prescribed and not bartered for  another benefit to influence his or her official duties; (2) gifts or other  benefits conferred on account of kinship or other personal, professional or  business relationship independent of the official status of the recipient if  same are not bartered for another benefit to influence the performance of an  official duty; (3) trivial benefits which involve no risk that the public  servant would perform official duties in a biased or partial manner. For  grading purposes, this section is a crime of the second degree unless the  benefit solicited or accepted is of a value of $200 or less, in which case it  is a crime of the third degree. Hence, an occasional lunch or even perhaps a  round of golf may not be problematic; however, using a vendor’s condo in Florida on a regular  basis may certainly raise problematic issues under this section

In  sum, there is little room for error in terms of conduct which falls within any  of the above categories. While the official may not be aware that such acts may  constitute a criminal act, ignorance of the law continues to be no excuse, nor  should it be. If an official has the slightest question as to whether a  proposed action or course of conduct is illegal, appropriate advice from either  the local public entity attorney or in appropriate cases, the County Prosecutor  should be sought prior to acting. The career you save may be your own.

Edward J. Kologi, Esq. has represented public entities for 25  years and currently serves as Linden’s  Municipal Attorney and as Associate Counsel to the New Jersey State League of  Municipalities.

After reading the above report you start to question whether the 51 Monmouth St (Old Red Bank Police Station) and the Cedar Crossings development were handled properly. The 51 Monmouth St property was gifted to Mayor Ed McKenna’s Kid’s Bridge Charity which then borrowed over 1 million dollars from Amboy Bank for possible renovations. Kid’s Bridge Charity was taken over by the Red Bank YMCA about a year after the town gifted the property. Eventually the property was sold for over 1 million dollars while the Borough of Red Bank received no money thus costing the taxpayers of Red Bank over 1 million dollars. A judge as noted by the plaintiff pre-wrote her decision which also happened to me involving the Courtyards at Monmouth project and led me to create this site. The decision appears to allow the sale to go through between the YMCA and Red Bank Catholic but does not address an allegation that it was not disclosed that Ed McKenna’s charity would be the organization that received the property for $1. This transfer occurred while Ed McKenna was Mayor of Red Bank.  Another situation involving Mayor Ed McKenna was that in August 2006 he pushed for the Red Bank Council to acquired land at above the appraised value using State Grant Money designated for the creation of affordable housing.  At the time Ed McKenna never indicated that he would be creating a non-profit development corporation known as Red Bank Affordable Housing Corp in which he was designated Vice President. This corporation was created in the Spring of 2007 just months after Ed McKenna stepped down as Mayor of Red Bank. Here is information from the Decotiis lawfirm on the creation of Red Bank Affordable Housing Corp.

DeCotiis’ helps create Red Bank Affordable Housing Corporation  

Thirty-six units of affordable housing already in development

DeCotiis, FitzPatrick & Cole, LLP, in its role as Counsel to the Red Bank Affordable Housing Corp., recently helped lead the successful development of Cedar Crossing at Red Bank, a 36-unit, for sale, affordable housing project in the Borough of Red Bank, New Jersey.

This project is being constructed on a site that was acquired by the Borough using Municipal Land Acquisition Funds obtained from the New Jersey Department of Community Affairs. As part of this project, DeCotiis worked with other project consultants to secure necessary state, county and local funding and approvals. DeCotiis attorneys also worked to organize and incorporate the Red Bank Affordable Housing Corp., the nonprofit developer created exclusively for the charitable purpose of promoting, developing, constructing, operating and selling affordable housing in the Borough.

“We are proud to have played a role in the development of this very important project,” said Frank Borin, a Partner at DeCotiis and a member of the firm’s Executive Committee. “I hope we can replicate this project elsewhere in order to bring new affordable housing options to the State’s residents. The leadership of the Borough and of the Red Bank Affordable Housing Corp. should be commended for their commitment to this project and their tireless efforts to see the project through.”

The project consists entirely of two and three bedroom units to be constructed in two phases. All of the units will be owner-occupied by affordable households, as defined by the Fair Housing Act and the COAH regulations. The first phase of the project should be ready for occupancy in the Spring of 2011, with the second phase being completed shortly thereafter.

Please join DeCotiis, FitzPatrick & Cole in congratulating Frank Borin, Maurice Stone and Amy Shotmeyer for their exemplary work with the Red Bank Affordable Housing Corporation.

When the Decotiis law firm speaks of working with consultants to obtain government grant money you have to wonder who they worked with. What I do know is that the Decotiis firm has crossed paths with the people involved in the following article and that they had not been arrested at the time Red Bank Affordable Housing Corp was  established. This article also mentions an investigation into the Paramus Affordable Housing Corp in which William Katchen is involved as well as being involved in the Red Bank Affordable Housing  Corp. Chances are  that this explains why Bergen County Democrats were involved in the creation and operation of the Red Bank Affordable Housing  Corp.

Bergen County Democratic Organization Chairman Joseph Ferriero indicted

• Written By: News Media
• 9-9-2008
• Categorized in: Bribes, Payoffs, and Politics, Government, U.S. Attorney  District of New Jersey

Bergen County Democratic Organization Chairman Joseph Ferriero Feds say Ferriero bragged of influence

Tuesday, September 9, 2008

Federal authorities indicted Bergen County Democratic Organization Chairman Joseph Ferriero and the party’s chief counsel, Dennis Oury, today.

A federal grand jury returned an eight-count indictment accusing Ferriero and Oury, who was fired as the Bergenfield borough attorney in January, of conspiracy to commit fraud against the borough and mail fraud.

“I am done being surprised in this job,” U.S. Attorney Christopher J. Christie said. “We’ve had these conversations before about others we’ve prosecuted … for some reason, greed and power seem to corrupt them and overcome what otherwise might be good sense and good decision-making.”

The indictment charges that in December 2001, Ferriero and Oury conceived of a plan to form a company called Government Grants Consulting LLC that would be paid by Bergen County towns to assist them in obtaining state and local grant monies. According to the indictment, Ferriero indicated that Government Grants would be successful because he could use his “influence” to help the municipalities “get a better result.”

Federal investigators began issuing subpoenas for records related to Oury, Ferriero and Governmental Grants Consulting in May. Since then, they have executed more than 30 subpoenas in North Jersey, and in August, conducted searches of both Oury and Ferriero’s respective law offices.

Ferriero’s troubles were compounded last week following allegations of sexual misconduct. According to a law enforcement source close to the case, a formal charge has not been filed against Ferriero and he has not been taken into custody.

A clerk in the criminal records division of Bergen County Superior Court said that a docket number had been created and that “a sexual charge” was pending against Ferriero. The case has been transferred to the Hudson County Prosecutor’s Office from Bergen County.

Since the allegation became public last week, Ferriero has announced that he would be taking leaves of absence from three different posts: as chairman of the county’s Democratic Party, in his role as a lawyer at Scarinci Hollenbeck and as chief counsel for the Passaic Valley Sewerage Commissioners.

Ferriero and Oury both provided start-up money for Governmental Grants Consulting, according to David Spatz, the president of the now-defunct firm. Leonard Kaiser, the chairman of the Bergen County Utilities Authority, also had a financial interest in the firm.

According to the indictment, Oury was appointed to serve as the borough attorney at a January 1, 2002, Bergenfield borough council reorganization meeting. While GGC was still in the planning stages and had yet to be formally organized, Bergenfield retained it to serve as its grants consultant and agreed to pay a $6,000 retainer fee, plus an additional fee calculated as a percentage of any grants or loans received. Oury never disclosed his ownership interest in GGC, according to the indictment. Despite this, Oury went on to exercise his official power to further a grant-aided real estate purchase – all as Oury and Ferriero stood to gain personally from their ownership interests in GGC.

Ferriero is widely credited with injecting new life into the Bergen County Democratic Party and making it the dominant force it is today. He became the party chairman in 1998 after Oury dropped out of contention. Since then, his talent for fundraising has made him one of the state’s most powerful Democrats.

Oury also wields a great deal of power in North Jersey Democratic circles. He is counsel for the Bergen County Improvement Authority and has held jobs in several towns, including Ridgefield and Bergenfield, both of which employed Governmental Grants Consulting.

January 2003 billing records from Bergenfield show that Oury charged the borough $135 for a telephone conference involving Spatz. If accurate, Oury was billing the borough for dealing with a firm in which he had an undisclosed financial interest.

Oury’s financial disclosure forms submitted to Bergenfield, New Milford, Paramus, Edgewater, Fort Lee and the Fairview Board of Education never mentioned his financial stake in the firm. And officials from Garfield and Ridgefield said Oury never filed disclosure forms, despite working in those towns.

In Bergen County, Oury’s public work generated $760,000 to $1.1 million in annual income for his law firm in each of the three previous calendar years.

Oury has given at least $105,000 to Democratic candidates since 1999, most of it going to the Bergen County Democratic Organization.

Bergen County municipalities paid the firm 10 percent of the first $1 million in grant money it obtained for them, plus a retainer in some cases, according to contracts obtained by The Record.

Ferriero, Oury and GGC are not the only ones to attract interest at the U.S. Attorney’s Office. In recent months, Christie has also issued subpoenas seeking information about the Paramus Affordable Housing Corporation and SVC Consulting, a company established by Ferriero.

State Sen. Loretta Weinberg, D-Teaneck, has been one of Ferriero’s most vocal critics. She described news of the indictment as a hardship for the Democratic Party.

“This is not a happy day for the Bergen Democrats,” she said. “My goal is to make sure we remain united &hellip we can’t let this interfere with that.”

Bergenfield Mayor Timothy Driscoll was instrumental in having Oury ousted in January.

“It’s been a long time coming,” he said Driscoll.

Here is an article that explains that Red Bank Housing Authority would oversee the construction which was not true. The Red Bank Affordable Housing Corporation was the developer. Here is an article whereby Mayor Ed McKenna states that acquiring the Cedar Crossings property is a “Sterling Opportunity”. He never disclosed that he would create an affordable housing corporation only months after pushing to acquire the land. After the town received the NJ Grant money for acquiring the land, the town then gifted the land to Red Bank Affordable Housing Corp. The gift was in the neighborhood of 2.5 million. Red Bank Affordable Housing Corp will eventually earn hundred’s of thousands of dollars when the project is finished.

Here is a NJ Investigative Report related to land development in  Chesterfield NJ.

In New Jersey, public officials who exercise their official influence over matters in which they have a conflict of interest commit a crime when they do so with a purpose to benefit themselves or others.

The OSC investigation confirmed that Durr used his official influence and unique position as a government official to gain benefit from the land use program he helped implement in Chesterfield, known as a Transfer of Development Rights (TDR) program. That program, which balances farmland preservation with controlled development, won national recognition and paved the way for legislation authorizing TDR programs statewide. It is vital for the future credibility of TDR as a land use strategy that those responsible for its administration not use their privileged position for personal advantage.

Here are some regulations related to government officials in NJ as well as the code of ethics.

5 II. GENERAL STANDARDS OF CONDUCT

It is essential that the conduct of public officials and employees shall hold the respect and confidence of the people. Public officials must, therefore, avoid conduct that is in violation of their public trust or that creates a justifiable impression among the public that such trust is being violated. Accordingly, State officers and employees and special State officers and employees shall conform their conduct to the following standards.

1. No State officer or employee or special State officer or employee should have any interest, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity, which is in substantial conflict with the proper discharge of his/her duties in the public interest.

2. No State officer or employee or special State officer or employee should engage in any particular business, profession, trade or occupation which is subject to licensing or regulation by a specific agency of State Government without promptly filing notice of such activity with the Commission.

3. No State officer or employee or special State officer or employee should act in his/her official capacity in any matter wherein he/she has a direct or indirect personal financial interest that might reasonably be expected to impair his/her objectivity or independence of judgment.

4. No State officer or employee or special State officer or employee should knowingly act in any way that might reasonably be expected to create an impression or suspicion among the public having knowledge of his/her acts that he/she may be engaged in conduct violative of his trust as a State officer or employee or special State officer or employee.

It would seem to me that at the very least Mayor Ed McKenna should have disclosed his relationships to the non-profits receiving million dollar plus properties owned by the Borough of Red Bank. I would also think in all fairness to other charities and non-profits that other organizations should have had an opportunity to bid or demonstrate their ability to operate the projects. Both of Ed McKenna’s organizations were start ups and in the case of the Kid’s Bridge organization had to close shortly after being formed due to a lack of funding. Maybe one day someone will decide whether these transactions met the criteria of public trust or not.

Penalties for violating the public’s trust

No state officer, employee, or member of the Legislature shall:-Representation, appearance or negotiation, directly or indirectly, for acquisition or sale of property by state-Representation of state agency in transaction involving pecuniary interest-Disclosure or use for personal gain of information not available to public-Solicitation, receipt or agreement to receive thing of value for service related to official duties

(penalties found§52-13D-21(i))EC §52:13D-15EC §52:13D-20EC §52:13D-25EC §52:13D-24

$500 – $10,000; suspension from office for 1 year; if decided to be willful and continuous disregard of the code of ethics, may be removed from office and may further bar from holding any public office in the State for a 5 year period

Ed McKenna arrested after Parkway Crash

Ed McKenna, former Red Bank Mayor and current Cedar Crossings Developer,recently had his third publicized car accident. Unlike previous incidents, this one resulted in an arrest with a court date scheduled in June. Ironically, he was arrested by State Troopers from Holmdel who many years ago tried unsuccessfully to interview him regarding a possible hit and run accident that occurred on the Parkway. The recent accident accuses him of drunk driving as well as driving in the wrong direction on the Parkway.

You are Judged by the Company you Keep McKenna Cryan and Mendendez Round Table

In a round table meeting held on March 19th 2013 to discuss immigration featuring Ed McKenna (former Mayor of Red Bank), Joe Cryan (NJ Assemblyman) and Robert Menendez (US Senator from NJ) . It is interesting that Ed McKenna surrounds himself with people who have questionable ethics. Currently Robert Menendez has been rumored to be a target of a federal investigation into illegal campaign donations and forgot to pay nearly $60,000 for reimbursements on trips to the Dominican Republic. Just days after this meeting Joseph Cryan became a familiar name due to the release of personal emails related to a possible former girlfriend who was prosecuted for stalking Mr. Cryan.

Previously Ed McKenna was very friendly with Jon Corzine (former Gov of NJ) and John Lynch (former NJ State Senator and convicted criminal) Jon Corzine left office to lead MF Global into a 1.6 billion dollar collapse. While Lynch was in prison Corzine paid Lynch’s wife $10,000 a month . John Lynch’s brother-in-law was alledgedly the leader of the NJ Genovese Crime Family

At some point you have to question why people you associate with always have investigations or convictions and at best questionable actions. Ed McKenna has had his run-ins with the law as well. He previously refused to come to the door when the State Police visited him to investigate a hit and run accident on the Garden State Parkway.

What Will Red Bank Affordable Housing do with the Profit?

According to the 2011 990 tax filing required by non-profit organizations, the Red Bank Affordable Housing Corporation has retained a profit of over $416,000 from phase 1 of the Cedar Crossing Development. Upon the completion of phase 2 the project should generate a total profit of approximately $800,000. The project was started with the purchase using “free” taxpayer money to aquire the land. Ed McKenna while Mayor of Red Bank pushed the Borough Council to approve this purchase using tax money from the State of NJ. Since non-profit organizations cannot make a profit, it would be a nice gesture on the part of Red Bank Affordable Housing Corporation to donate all profits on the project to the Borough of Red Bank and it would help reduce the property taxes for everyone in the town.