The City of Newburgh issued a press release this morning announcing the appointment of Edward Lynch as the new Director of Planning and Development.  He will be taking over the post from Courtney Kain, who had served as Acting Director.

According to the press release (download here from the City of Newburgh site), Mr. Lynch comes to Newburgh after spending sixteen years with the Department of Development in New Rochelle, NY.

In New Rochelle, Lynch served under the Development Commissioner Craig King.  When the Development Commissioner position opened up following Mr. King’s leaving due to health reasons, and Mr. Lynch was not selected for the position, he tendered his resignation earlier this year.

Newburgh’s press release attributes New Rochelle’s development successes to Mr. Lynch:

The City has radically changed since then with mixed use transit oriented development downtown, including a 40 story Trump Condominium and a 1000 unit Avalon Bay residential development, a mixed use family entertainment center and significantly more commercial development. As Planning Director and Clerk to the Planning Board, Mr. Lynch obviously had a role in making a positive change.

But New Rochelle’s developments, attributed to Lynch or not, may not all be so rosy.

Trump Tower project lacks lessees; OSC audit critical

Talk of the Sound, a New Rochelle blog, reported on June 21 about a New York State Comptroller audit of the New Rochelle Industrial Development Agency due to be published this month.  The OSC audit portrays a lack of oversight.  Additionally, Talk of the Sound reports that in the case of the Trump Tower, developer Louis Capelli has failed to rent retail space:

The report goes on to state that NRIDA did not monitor the status of ongoing projects to ensure reasonable progress toward the projected benefits described in the original applications so the board cannot be sure the projects will meet their intended goals, or know when they should invoke “recapture” agreements to recover some or all of the benefits provided when projects fall short of their promised goals.

The Capelli organization is on the NRIDA agenda tomorrow, in part to seek extensions on its recapture agreement for Trump Tower which expired in December. A recapture agreement is a clause which allows the City to claim money if a project fails to meet some promise, in this case to lease the retail space at Trump Tower.

The Comptroller warns that when NRIDA officials do not properly monitor ongoing projects and invoke recapture agreements, as appropriate, there is an increased risk that other taxpayers are subsidizing the projects’ financial incentives without receiving the expected benefits to the community. This is precisely what has been occurring since 2009 with Trump Tower.

Read the full post here.

Trump Tower didn’t do much for jobs

Talk of the Sound also reports that the Trump Tower project, according to the Office of the State Comptroller, failed to create the jobs it promised:

The report notes that NRIDA projects have, overall, failed to provide promised job gains for New Rochelle. In particular, Parcel 1A (Trump Tower) was supposed to deliver 358 jobs but has, as of December 31, 2008, delivered just 98 for a net deficit of 260.

Newburgh: New Rochelle North?

Mr. Lynch is not the first New Rochelle expatriate to join the City of Newburgh.  Current Corporation Counsel Bernis Nelson served as New Rochelle Corporation Counsel for twelve years (then under the name Bernis Shapiro.)

The New York State Authorities Budget Office issued their 2010 Annual Report on Public Authorities today.  The full report is available from the ABO website.

Newburgh is trebly delinquent

All three of Newburgh’s public authorities made it onto the ABO’s “Public Authority Delinquent Lists” section beginning on page 24.

The offenders are the Newburgh Community Development Agency, the Newburgh Industrial Development Agency, and the City of Newburgh Local Development Corporation.

All three failed to submit “a 2010 Budget Report in PARIS as of June 15, 2010.”  PARIS is the Public Authorities Reporting Information System, a computer system for authorities to file reports online.

Additionally, all three failed to submit “a 2009 Annual Report in PARIS as of June 15, 2010.”

NCDA•NIDA•NLDC: What’s going on?

The NCDA (Newburgh Community Development Agency) was recently voted by the council/NCDA board to be dissolved, with their assets and liabilities  transferred to the City.  Such an action would require final approval by the state legislature.  As of yet, though, there has been no bill referring to the NCDA (the successor of the Newburgh Urban Renewal Agency) appearing in either the Assembly or the Senate.  Other municipalities, Corning and Rome, have similar requests pending legislative approval, but not Newburgh.

This makes corporation counsel Bernis Nelson’s rush to transfer the agency assets a bit enigmatic.  With no bill on the horizon, why the need for speed?

Nevertheless, with a semi-dissolved agency, with governance of its assets and liabilities transferred to the city planning department, it is understandable why the NCDA would have failed to file.

The NIDA (Newburgh Industrial Development Agency) – in contrast to the other two authorities – has been actively working to get its books in order, with a board that meets regularly and auditors hired to prepare their needed annual reports.  But, as of the July 1 ABO report, they had not met their filing requirements.

The NLDC (Newburgh Local Development Corporation) is the mystery authority.  Comprised of members of the council, NCDA, and NIDA, it has not met in recent years yet continues to do business vis a vis the planning department.  (That is, business other than filing annual reports required by the ABO.)

Will the NLDC be meeting the new requirements?

In addition to the budgets and annual reports that must be filed, the ABO’s report describes changes brought about by the Public Authorities Reform Act.  New requirements for public authorities include (from page 2):

• Effective March 1, 2010 the directors of state and local public authorities, and their official designees, are required to sign an Acknowledgment of Fiduciary Duty. The purpose of this requirement is to focus board members on their legal obligations, including understanding that these duties are the means by which the board carries out the mission of the authority (See Policy Guidance 10-01 available on the ABO’s website: www.abo.state.ny.us).

• By March 31, 2010 state authority boards of directors, in cooperation with the management of the authority, were to review and consider the intended purpose for which the authority was created and to file with the Authorities Budget Office a statement defining that mission and the measures the authority would use to evaluate annually its performance against that mission. Local authorities are required to file a mission statement and performance measures by March 31, 2011 (see Policy Guidance 10-02 on the ABO web site for additional information).

• Each board is now required to perform an annual self-evaluation of its performance, measured against the authority’s mission statement, the authority’s goals and values, and the expectations of those served by the authority and the state as a whole.

• The boards of public authorities that issue debt are now required to establish a finance committee to review the authority’s proposed debt issuances; to make recommendations to the full board concerning the nature and appropriate level of the authority’s debt; and to make recommendations to the board concerning the appointment and compensation of bond counsels, investment advisors and underwriting firms.

Since the NLDC has not even met as a board, despite efforts by the NIDA to initiate such a meeting, makes it doubtful that the NLDC is compliant at this time.

Newburgh, NY -  On Saturday, June 26, Congressman Maurice Hinchey (D-NY) and the Newburgh Free Library Job Information Center will host a workshop to provide information on free employment and education training programs available through the Delaware Valley Job Corps (DVJC).  The presentation will occur from 10:00am to 12:00pm at the Newburgh Free Library located at 124 Grand Street in Newburgh.  Since 1979, the Delaware Valley Job Corps has been providing critical job skills to 16 to 24 year olds while helping them earn a high school diploma or GED.

“The education, career training and job placement services offered by the Delaware Valley Job Corps can be life changing for young people who take advantage of this essential program,” said Hinchey. “Even though the Job Corps is located one county away from Newburgh, very few residents of the city are fully aware of all the advantages the program has to offer.  That’s why I am delighted to host this event – to ensure that those who live in the city have the information and assistance they need to successfully apply for and participate in this no-cost program, which has already benefited so many young adults.”

Participants in the program live on campus in Callicoon, New York while receiving training in trade fields including: advanced manufacturing; business technologies; carpentry; culinary arts; facilities maintenance; material handling; medical office support; security; automotive repair; construction; and, electrician support.  Despite the program’s proximity to the City of Newburgh, last year only two residents of the city took advantage of the program, which accepts nearly 400 students annually.  The vast majority of participants are from the New York City area.

In addition to job skill training, the DVJC can help participants attain a high school diploma or GED.  The program also provides free room and board, a cash stipend, basic health and medical services and job placement assistance.  The services are available free of charge to qualified applicants and are funded through the U.S. Department of Labor Job Corps program authorized under the Workforce Investment Act of 1998, which Hinchey strongly supported.

Those looking for additional details on the event should contact Hinchey’s Middletown office at (845) 344-3211.  More information on the program is also available at the DVJC website: http://delawarevalley.jobcorps.gov.  Job Corps representatives will be available to schedule application orientations to interested individuals following the presentation.

From the press release by the city:

The City of Newburgh has retained Buckhurst Fish & Jacquemart, Inc. (BFJ Planning) to complete a Future Landuse Plan. This exercise is the second component of the Sustainable Master Plan adopted in December 2008. All are invited to attend a public meeting May 26 at 6:30 p.m. to discuss the role of the future Landuse Plan and the work completed to date. The meeting will be held at 123 Grand Street in the Heritage Center.

By State law all landuse regulations must comply with an adopted master plan. Therefore, this will set the stage for major revisions or a complete rewrite of the City’s land use regulations.

For more information, call Ian MacDougall at 569-9400 ext. 205.

On Friday, May 14, Senator Kirsten Gillibrand, Congressman Maurice Hinchey, and Mayor Nick Valentine held a roundtable discussion on drug and gang challenges facing the Newburgh community.  The session began with brief formal remarks before opening up to questions and comments from the invited community members.

Gillibrand said she is seeking funding for violence prevention efforts.  From the Record:

Gillibrand said she is working on legislation that would designate $1 billion over five years toward operations that prevent violence. That would include operations such as Thursday’s raid on 78 suspected members of the Bloods and Latin Kings street gangs in Newburgh. Nearly 600 federal, state and local law enforcement agents descended on the city to arrest the targets. As of Friday evening, 64 of the 78 were in custody on federal drug charges.

Coverage of the press conference about Thursday’s raid here.

Full video of the roundtable below, or may be downloaded here:

City of Newburgh Council Work Session, 6:00 p.m. May 6, 2010

AGENDA:

City Council:

1. NCDA/City Council

a. Long Term Options

2. Presentation:

a. Fire Department based EMS services, Fire Department based code enforcement, MOU authorizing Fire Department’s due diligence regarding feasibility (see memo with draft resolution and mou): Chief Michael Vatter

b. Proposed amendments to City Code (see memo): Chief Michael Vatter

• Creation of a fire lane on Front Street from First Street to South Street and request for additional parking spaces on Water Street

• Update the City Fire Code to coincide with the regular updates of the National Electrical Code

c. Financial Updates:

• Sanitation Enterprise Fund proposal (see memo from Dwight): Dwight Hadley, CPA

• Moody’s Rating Report and financial updates: Dwight Hadley, CPA

• (Res. 103) Deficit Financing/Home Rule Request: Dwight Hadley, CPA

• Capital Projects Budgets: Craig Marti and Christine Mitchell

3. Planning and Development/Real Estate

a. Consolidated Iron:

• Site management plan: Craig Marti

• Waterfront alienation: Bernis Nelson

b. First Street Reconstruction – proposal from Stantec Services for completion of First Street Improvement Project (see memo from Craig): Craig Marti

c. Provan Site – recommendation of award of a bid for the building demolition (see memo from Ian and Craig): Ian MacDougall and Craig Marti

d. Ann Street Parking Lot – request for a license agreement

e. 135 Wisner Avenue – request for an extension of time to close

f. (Ord. 5) Creating a section of the Code entitled “Sidewalk Cafés”: Bernis Nelson, Courtney Kain and Chief Vatter

4. Discussion items:

a. Parking, Traffic and Transportation Advisory Committee

b. (Ord. 6) Downing Park fee schedule

c. (Res. 100) Scheduling a public hearing to receive comment on a proposed local law amending the procedure for the collection of water rents

d. (Res. 101) Scheduling a public hearing to receive comment on a proposed local law amending the tax roll valuation date from January to July and changing the hearing date for grievances from the third Tuesday in May to the fourth Tuesday in May (see also memo from Steve Ruelke)

e. (Res. 102) Quarterly warrant for the collection of sanitation fees

f. Liberty/Waterfront Shuttle

g. City Council standard work day and reporting

h. Summer Council Meeting schedule (see calendar)

5. Executive Session:

a. Pending litigation

b. Matters Pertaining to the employment of a particular person

Full audio recording of the meeting below, or download:

It was a long session today for the Orange County Industrial Development Agency Board Meeting––including a lengthy pitch at the end that was not on the printed agenda.

The last pitch was presented by Orange County Choppers Senior Vice President of Marketing John Sohigian.  Immediately prior to this, IDA Chairman Jim Petro made an announcement about an article 78 lawsuit that had been filed against the board by Chester Supervisor Steve Neuhaus (excerpt below from today’s Record article):

Neuhaus charges in court papers filed Monday that board Chairman James Petro asked a C&S vice president to “backdate a letter saying that C&S would leave Orange County” unless it got a 15-year, property-tax break the agency had approved in December.

Petro advised the board members to direct any inquiries to their attorney.

Biker dreams

Chairman Petro began with a justification for what he estimated would be a $75,000-$85,000 expense.  He used the explanation at the header of this post, and throughout the discussion returned to the phrase that the board would “not even be spending the money” because they would be getting something in return.

The chairman handed the presentation over to Mr. Sohigian, who elaborated that in addition to the custom-made Orange County Industrial Development Agency motorcycle, the board would be getting much, much more.  The building of the bike would be featured on an Orange County Choppers episode on The Learning Channel (pending TLC approval.)  Choppers patriarch Paul Teutul Sr. would grace a public presentation, for no more than two hours.  (This would also include first-class transportation for two people, perhaps in addition to the bike cost.  It was not stated by Mr. Petro whether this additional cost would be like not spending any money.)

The board was impressed. The Orange County IDA could be beamed into over 100 countries around the world.

Then Mary Ellen Rogulski, Second Vice Chairman of the board, spoke.  (Earlier in the meeting, when Mr. Petro had asked “What do you think, boys?” on an issue, she had softly protested that the board was not just boys, although Mr. Petro did not hear her.)

“I think it’s an interesting idea, but… the first thing that popped into my head was, it’s taxpayer money.  I mean, I think you can get a lot of bang for your buck, and I agree with all the business things, but I think you’re going to open yourself up to a lot of criticism.  Or you have the potential to…”

Petro said it would be considered advertising.

The OC Choppers SVP stepped in with an explanation of depreciation ideas, and that the money would somehow be returned to the IDA.

OC Choppers has already received incentives from the IDA, and earlier on the agenda they asked for a sales tax exemption on building materials as well as a PILOT for their latest proposal, the addition of a restaurant called “Roadhouse” to their OC Choppers complex in Newburgh.

The announcement regarding the lawsuit, and the Orange County Choppers discussion, is below, or can be downloaded:

Newburgh Community Development Agency returns to action (after long hiatus):
When: Thursday, April 8, 2010 at 6:00 PM
Where: Council Chambers, City Hall, 3rd Floor, 83 Broadway
On the agenda: Three items.  1. NCDA Mortgage Loans; 2. NCDA Property (foot of former South Street – $3150 Quadricentennial Grant from Hudson River Foundation); 3. NCDA Long-Term Plans
What’s at stake: At a recent city council meeting, a resident complained that she could not get a document proving her loan granted by the NCDA years ago was satisfied (paid off)  from the City.  Without this document, the resident could not take out a needed loan.  This resident’s plight is due to the NCDA board not meeting for years and there being no one else authorized to take action.  (Although, curiously, a satisfaction document was signed by former Economic Development Director Lourdes Zapata as recently as March 2009; shortly thereafter, she and former Corporation Counsel Geoffrey Chanin sought the city council’s approval to authorize Zapata to act for the NCDA.  The council refused.  Additional NCDA loan satisfaction documents were signed by Zapata’s predecessor Robert McKenna, but then filed with the county years later.)  Recently, Corporation Counsel Bernis Nelson had proposed transferring all assets and liabilities of the NCDA to the City.  That action was not taken by the council (who currently are the NCDA board as well.) Losing the NCDA would also mean losing its ability to issue debt.
Question: Will the NCDA/City Council take any actions at the meeting?  The public notice states “the purpose of the meeting is to discuss” the agenda items (emphasis mine.)
More info: End may be nigh for NCDA

And next week…

Who: Pace University Land Use Law Center & Center for Community Progress
What: Strategy Sessions about City of Newburgh Vacant/Abandoned Buildings
When: Two Public Meetings: Wednesday, April 14 at 6:30 p.m. - Education Session & Overview of Best Practices
and Thursday, April 15 at 6:30 p.m. - Community Strategy Session
Where: City of Newburgh Activity Center, 401 Washington Street
For more info: call the City of Newburgh at (845) 569-9400
Funder: made possible by grant from the Ford Foundation
Official description:
As in many communities across the country, vacant and abandoned buildings in the City of Newburgh continue to drain the energy and vitality of neighborhoods. Eyesores as well as  magnets for crime, these buildings degrade  the overall quality of life for people in the  surrounding blocks, while dragging down surrounding property values and negatively impacting rehabilitation efforts.

What are the best ways to address this pervasive problem? To learn more about how other communities deal with blighted buildings, and to participate in a community strategy session, all are invited to attend presentations.

Wednesday’s presentation is “Vacant & Abandoned Properties: Effective Public Policy Approaches.”  It will inform local leaders, partners, stakeholders, and the public of the land bank model, land management strategies, system reforms, and financial models to make it all work.

Invitation-only workshops / focus groups will be held on Thursday during the day. These workshops will facilitate discussions on present practices, challenges, and opportunities related to tax-foreclosed and other vacant and underutilized properties.

Thursday evening’s public community strategy session will include recommendations for next steps, system reforms, identifying possible funding sources, board composition, staffing needs of proposed programs, and more.

City Press Officer Ann Kuzmik clarified that “developers, local merchants/realtors, department heads, institutional stakeholders, non-profits, community/neighborhood group leaders, and advisory board reps will be attending the (invitation only) day sessions.”

Yesterday, March 24, the New York State Comptroller’s Office (OSC) issued their audit of the City of Newburgh’s 2010 budget. The audit is available to download from the OSC’s website.

In response, today the city issued the following press release:

Acting City Manager Richard F. Herbek Responds

To State Comptroller’s Press Release on City’s 2010 Audit

In response to a press release on the City’s 2010 audit issued by State Comptroller Thomas DiNapoli on March 24, Acting City Manager Richard F. Herbek commented, “It is important to note that the City of Newburgh requested this audit in order to get as clear a picture as possible of the City’s financial status. I requested the audit on behalf of the City Council in the fall at a meeting with Mr. DiNapoli’s office that Senator William Larkin and Assemblyman Frank Skartados helped to arrange. I very much appreciate their assistance in setting this process in motion, as well as the assistance of Mr. DiNapoli’s office.”

In the last several months, Mr. Herbek’s efforts have been focused on gaining clarity on the many financial challenges facing the City, and obtaining expert assistance to address them, in the absence of a Comptroller.  Council approved hiring financial consultants Michael Genito and Dwight Hadley to help review the City’s finances, and recently extended Mr. Hadley’s contract so he can continue to assist new Comptroller Christine Mitchell.

Some of the budget issues that came to light were overestimated revenues, including payment in lieu of taxes, appropriation of an unsubstantiated fund balance for expenditures, and underestimated debt service payments.

The current financial crisis is “the City’s number one priority,” he said. “We know that 2010 and 2011 will continue to present cash flow issues, and along with Council, the City Comptroller, and Mr. Hadley, we will continue to carefully review expenditures and revenues.” The City’s outside auditors have completed the 2008 audit, and will soon begin working on the 2009 audit, which should give a clearer picture of the City’s finances, he said.

He added, “The City will begin work on the 2011 budget shortly, and is also taking steps to institute deficit financing. We will be working constantly to achieve a structurally balanced 2011 budget.”