Amboy Bank to Subdivide Courtyard Affordable Housing

On February 16, 2012 Amboy Bank will seek approvals to subdivide their Courtyards Project on the corner of Monmouth/West/Oakland Streets. It was approved about 1 year ago for 57 condos. 45 of the condos would be market priced in one building and a second building would consist of 12 affordable units. On February 8th, 2012 Amboy Bank officials met with the Red Bank Borough Council in a closed session to discuss the development of the property and financing. Mayor Pat Menna was not present for this meeting.  According to NJ open meeting laws there are only 9 reasons that a government can have a closed meeting. One such reason would be to discuss using public funds to acquire property. According to Amboy Bank representatives they need to subdivide the property in order to obtain financing and they also plan to develop the 2 subdivided pieces  themselves.

Previously Red  Bank purchased private property know as the Cedar Crossings with 2.4 million dollars of state grant money. This property was then sold to Red Bank Affordable Housing Corporation to build 36 affordable housing units and seems to have generated several hundred thousand dollars in surplus funds. This Corporation has members that include former Mayor Ed McKenna, William Katchen a CPA who has been banned in the past by the Federal Government related to public housing funds, and Frank Borin a lawyer with the Decotiis law firm who has taken several thousand dollars in fees from Red Bank Affordable Housing Corportation for his law firm. Ed McKenna has been at several approval meetings supporting the Amboy approvals and is also a representative of the Red Bank Rivercenter. Amboy Bank was able to obtain approvals in contrast to the vision of Red Bank  Rivercenter’s plan to create street level retail along Monmouth Street between the train station and Broad Street.

Non-Profit Scam using public land for grant  money

Crossing Paths in Red Bank Approvals

The Federal Election Commission fined Amboy Bank and its CEO George Scharpf in 2003 for campaign donation violations. George Scharpf and Amboy Bank had a very close relationship with former Governor McGreevey and former NJ State Senator John Lynch.  Lynch was sent to jail for fraud along with Red Bank resident Jack Westlake. Here is an excerpt from the book The Jersey Sting related to Amboy Bank. John Lynch was a major supporter of former Red Bank Mayor Ed McKenna. Here is an excerpt from an article in the bayshore courier news from a few years ago. Also, a 2000 race for the Monmouth County Democratic chairmanship pitted Red Bank Mayor Ed McKenna against Scudiery. McKenna received $5,000 from the New Directions PAC for the ultimately unsuccessful attempt. Lynch’s PAC has continued to support McKenna’s role as a Democratic leader in Monmouth County, contributing $9,700 to the Red Bank Democratic Party and $2,500 to the Monmouth County Council of Democrat Leaders PAC, a committee McKenna is affiliated with, since 2002. Below is a link to  a campaign donation list for John Lynch’s New Directions PAC from 2002. The list is very lengthy and includes an executive with Amboy Bank and the McKenna Law Firm.

new directions pac 2002

 Is this possible Lynch connection more than a coincidence and could the idea of a Red Bank Transit Village come from Lynch.  Ed McKenna has been supporting Amboy Bank to obtain higher than allowed density at the property located at Monmouth/West/Oakland Streets in Red Bank. Next week Amboy Bank goes before the zoning board to subdivide the affordable housing from the market units. Ed McKenna has a non-profit affordable housing corporation and is just finishing the cedar crossings project.  The zoning was changed while Amboy Bank was in the process of foreclosing on the property formerly owned by George Coffenberg. Arguments by the borough engineer against the Coffenberg development was that it was too dense even though it followed the existing zoning laws. If they did not like 16 units per acre why would they change the zoning to 35 units per acre a year later? If you look at the original Coffenberg Courtyard approval process and compare what happened after Coffenberg gave the property back to Amboy Bank you will notice different treatments of the same property.  Ed McKenna was appointed to the Red Bank Rivercenter at the same time that an approval by the zoning board was received to allow Amboy Bank to not follow the required special district zoning promoting street level retail from the train station to Broad Street.  Amboy Bank also funded around $1 million in repairs to the 51 Monmouth Street Red Bank property which was the former Red Bank Police Station sold to Ed McKenna’s Kid’s Bridge charity for $1. Amboy Bank located at 36 Monmouth Street was listed as the address to make donations on behalf of the charity. The former police station building was transferred a year later to the Red Bank YMCA and now the Red Bank YMCA is selling the property to Red Bank Catholic for over $1 million. Interestingly enough is that George Scharpf CEO of Amboy Bank was in charge of the planned capital campaign to fund a new YMCA in Old Bridge which would be under the control of the Red Bank YMCA.   Red Bank’s borough engineer, T & M of Middletown, was also the engineer for the YMCA project in Old Bridge. Even though Ed McKenna is no longer the Mayor of Red Bank he seems to have a lot of involvement in the way the town is run. Here he is celebrating last November’s election

After he wrote the last figures from the local districts on a running tally board, former Mayor Ed McKenna, who frequently taunts his opponents, jabbed his middle finger into the air. In a surprise move a week before the hearing to subdivide the affordable housing units from the market units, the Red Bank Council without the Mayor met in closed session to create a developers agreement for the affordable housing so that GS Realty which is part of Amboy bank can subdivide the land and obtain easier financing. It would seem a bank that owns all of the land would not need to subdivide the land nor find financing.

We only want to limit your density

After arguing for months about the concern of density on the property at Monmouth St, West St, and Oakland St the town decided to increase the allowed density around the train station to create a transit village. I sought a density of 16 units per acre by doing exactly what was permitted which was to build 4 units above retail space at a time 14 units per acre were allowed. This seemed to upset Rich Kosenski of T & M Engineering and was the basis for his denial of constructing buildings 1 inch a apart. Once the town found out that I was losing the property to Amboy Bank, they began to rezone my property based on those parcels identified in MLS tax records as being in pre-foreclosure. rb zoning changes As you can see the original map only covers the 3 lots in pre-foreclosure (2 tax records 3 lots), then a few months later they decided to re-zone my entire property which covered 8 parcels of land. I gave the property back to Amboy Bank in February or March of 2009 at around the same time that the town started working on the zoning change. You can even see how the map lines were an after thought You also notice that the original natural boundry would have been west of West Street and this group of properties are the only ones on the east side of West Street. The new transit village zone raised the allowed density to 35 units per acre. There were several people involved with the town that had access to the tax records in mls and it is probably not a coincidence that the rezoning of the property was done in 2 stages and then ultimately approved for 57 units by Amboy Bank a year later.

Red Bank Creates Special Business District

At the end of 2006 and beginning of 2007 Red Bank began to change their zoning ordinace to expand the Red Bank River Center over towards the westside of town including the train station area. Red Bank River Center is an agency that promotes business and the downtown in Red Bank, NJ. They are also responsible for making sure developers and businesses create a look that is in keeping with the shopping area.

rivercenter ordinance