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.

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 could be curtains for the Newburgh Community Development Agency (NCDA.)  At the city council work session held March 4, new corporation counsel Bernis Nelson proposed that the city assume the assets and liabilities of the NCDA.

What is the NCDA?

The NCDA is the successor to the Newburgh Urban Renewal Agency, created to manage urban renewal projects in the City of Newburgh.  The agency owns the chunk of urban renewal land around Marine Drive that awaits development.  Over the years, the agency has taken over various responsibilities, serving as a pass-through for the federal HUD CDBG funds, as well as offering various loans.

NCDA has been inactive

The last explicit reference to NCDA business I have found was resolution 9-2005, from January 10 of that year, appointing the officers of the NCDA.  Mayor Valentine was appointed Chairman; Councilwoman Angelo, Vice Chairman; Dawn Gobeo, Treasurer, and Councilwoman Elsa Figueroa App, Secretary.

Lopez lawsuit, need for director precipitates action

As reported earlier, Elaine and Hector Lopez filed suit against the NCDA on April 16, 2009, due to a personal injury Ms. Lopez allegedly suffered on NCDA property.  Counsel needed to be appointed to defend the NCDA.  Additionally, the former planning department director, Robert McKenna, had resigned.  The new director, Lourdes Zapata, had not been approved by the board to act on behalf of the NCDA.  At several meetings, corporation counsel Geoffrey Chanin endeavored to have the council meet as the board if only to appoint Ms. Zapata administrative director.  The council balked, expressing concerns about the agency’s need for compliance with the new public authorities law, and the burden of taking on additional responsibilities.  Nothing was done.

New corporation counsel proposes transfer of assets, liabilities

Last Thursday night, Courtney Kain, Acting Director of Planning and Development, and Bernis Nelson, Corporation Counsel, described the proposed action.

[video deleted]

Ms. Nelson stated that it came to her attention because “all these people were calling me” regarding their loans.  She proposed that the council meet as the NCDA board, pass a resolution approving the tranfer, then pass a resolution as the council, accepting the transfer, and that they could later dissolve the agency through state legislature action.

“You don’t need an urban renewal agency,” Ms. Nelson said.  “You can undertake urban renewal if you want to.”

Urban renewal agencies least compliant with the law

Public authorities such as the NCDA must comply with certain New York State reporting and training requirements.  They file their reports with the Authority Budget Office.  I spoke with David Kidera, director of the ABO, on Friday about Newburgh’s proposed transfer.

Mr. Kidera confirmed that the process would require the three steps Ms. Nelson described; a resolution by the NCDA, a resolution by the city council, and finally, a home rule action by the state legislature to officially dissolve the agency.

Johnston: Can they transfer assets?

Kidera: Yes, I think 554, and even 556, I believe talk about the authority of an urban renewal agency to transfer property and assets to municipal government, while the municipal government would have to vote to, in effect, accept that.  And, in theory, the transfer should be in accordance with some urban renewal plan that the community development agency should already have in place.  Obviously, if they haven’t met in years, they might not have a very active plan, but the law basically says that if they want to transfer assets to the city, it should be in accordance with some long-term plan that that property be redeveloped… consistent with whatever urban renewal strategy is in place for the city.

Johnston: I came across the two audits [done by the ABO], of the White Plains Urban Renewal Agency, and the Rome Urban Renewal Agency.  I was wondering if Rome or some other agency has [recently] dissolved.

Kidera: I think we’ve advocated that a couple do.  Back in the summer, what happened was we noticed that there were a healthy number of urban renewal agencies that were not complying with our law.  As a group, as a class, they were by far the highest percentage of noncompliant entities.  So we went out to 15 of them, randomly, and said “what’s going on.”  In a number of cases, it’s basically what you’re seeing in Newburgh, the agency is defunct, or it is inactive, or it really is functioning more, is viewed even within the local government, as a city government department, not as a public authority.  And so they really didn’t think that the law applied to them.  So we said, if it really is inactive, you really need to take steps to dissolve, because either you’re active and you’re complying with the law, or you’re dissolved.  So I think a number of them are going to dissolve.  I think Port Chester in Westchester may be the furthest along.  What we’ve been telling them is you really should be taking formal action that goes well beyond just a resolution by the board saying “we’re going to disband, we’re no longer going to meet,” because you in effect exist into perpetuity unless the legislature intervenes.  So that fact that you said “we’re not going to meet anymore” doesn’t mean you don’t exist.  So I would suggest that they take those steps.

The city should adopt a resolution accepting the transfer of assets, and the board should pass a resolution to formally begin the dissolution process.

Johnston: Is there any reason why Newburgh should continue to have this separate agency?  In one of these audits, I didn’t know that it was a violation to–

Kidera: employ staff?

Johnston: Yes. And that’s been the case here for…

Kidera: Right, and that’s really a violation of a comptroller’s opinion that was issued a number of years ago, that’s what we cite.  I assume that their opinion is based on some legal basis.  So I think, right, we were concerned about that, we suggested that all those local governments and urban renewal agencies consult with their local attorneys and make sure that they in fact are complying with the comptroller’s opinion.  And all our audits, when we found that to be an issue, were referred to the comptroller.  I don’t know that they’ve done anything, but I think that is an issue.

See page 3 of the White Plains Urban Renewal Agency Audit; “urban renewal agency staff may not be utilized to perform work for municipal departments, even if those services are reimbursed by the municipality.”––JJ

Loss of NCDA would cut ability to issue debt

Kidera: If you’re asking the question, is there any reason a local government should be leery about accepting the assets, I think the question really comes down to a couple of points.  One is, does the urban renewal agency have debt.  If they do, then the city, in this case, becomes liable for that debt.  So that may give someone pause.  In this case, it doesn’t look like they have any outstanding debt, so it’s not particularly a big issue.

If you were in the middle of an urban renewal redevelopment of downtown, then certainly an urban renewal agency can be a means by which you can issue debt that is not city debt, in this case.  And so the debt would be paid off through rents on the property that’s being redeveloped, through the sale of the property, or whatever.  And it does not become a city obligation.  But in this case, it does not sound like the City of Newburgh is interested in issuing debt through the community development agency for any kind of urban renewal project.

So I think by transferring this function to the city, any future urban renewal projects that involve the issuance of debt, it becomes, again, city debt, and then you’re subject to constitutional debt limits, and all the rest of the stuff that applies to cities.  2% of your full value property, or whatever the  restrictions are.

So it does limit the city, a little bit.

Other than that, it makes a lot of sense to us, and what we advocated in some of those reports, was that if you really aren’t active, if you really aren’t engaged in anything, if you act as if you’re defunct, and there’s an acceptance of the fact that you really aren’t a functioning urban renewal agency, the go ahead and dissolve.

There are cities that don’t have active urban renewal agencies.  So that the city would develop an urban renewal plan, maybe through its department of economic development, and they’d be using federal funds, or the city would be issuing debt.  You don’t have to create an urban renewal agency.

Need for public referendum?

Johnston: In our charter, there’s a provision that waterfront land must have a public referendum if it’s going to be sold.

[See § C16.03. Rights of city in waterfront, lands under water, wharves, piers, docks, parks and playgrounds. [Amended 7-27-1961 by L.L. No. 1-1961]:

The rights of the city in its waterfront, lands under water, wharves, piers, docks, parks or playgrounds shall not be sold or conveyed unless such sale or conveyance shall first have been authorized by a plurality of votes cast at a special election at which all qualified voters of the city who registered at the last preceding general election shall be entitled to vote. The notice, officers, polling places, manner of conducting and other details of such special election shall be determined by ordinance of the Council.

Note that the City did not hold a public vote when waterfront property was sold from NCDA to Front Street on the Hudson in 1998.]

Kidera: I would assume your charter would supersede the provisions of general municipal law.  So if the general municipal law says they can transfer this land to the city for urban renewal purposes, without a competitive bid and negotiation… The charter requires some other step, whether it be a referendum or something else, then–without knowing the particulars –it would seem to me that that should have to be addressed by the urban renewal agency and the city before the transaction is completed.

If that is in fact true, and that’s what it requires, then I would think the city’s attorneys, or the urban renewal agency’s attorneys or someone would have to address whether or not that provision applies here.

Johnston: Because it is a transfer, even though they are both city entities.

Kidera: Yes.  If that’s what the charter requires, then someone ought to look at that very carefully.

P.S. Whoops! What about the Lopez suit?

As previously reported here, when former corporation counsel Geoffrey Chanin couldn’t get the council to act as the NCDA and approve Ms. Zapata to act for them and appoint legal counsel, the suit Elaine and Hector Lopez originally filed against the NCDA was expanded to include the City of Newburgh as well.  At a city council meeting, it was promptly approved by the council that this “new” suit be referred to the corporation counsel.  Tarshis, Catania, Liberth, Mahon & Milligram, PLLC were hired to defend the city.

On July 29, 2009, Michael Catania promptly delivers to the court an accompanying letter to his motion.  In that motion, Mr. Catania argues that the property on which Ms. Lopez allegedly was injured belongs to the NCDA––not the city––and thus the city should be dismissed from the suit.

Whoops!

Then came this:

Suddenly, Mr. Catania is now counsel for BOTH the City of Newburgh AND the Newburgh Community Development Agency.  How did that happen?  The NCDA never met to approve such an action, and no one was appointed to act on the agency’s behalf.  But, there it is, and with his new duties representing both entities, clearly Mr. Catania can no longer pin the blame on the NCDA.

On October 1, 2009, Mr. Catania withdraws his motion to dismiss the city from the suit and put the blame on the NCDA.

The legal wrangling has continued, and according to court records, is due to go to trial on May 5 before Judge Catherine M. Bartlett.

Somehow, this bit of NCDA business escaped Ms. Nelson’s attention Thursday evening.

On Tuesday, January 26th, the Newburgh Zoning Board of Appeals heard a presentation in which William Kaplan asked for a variance for his proposed housing development on waterfront land adjoining his Regal Bag Building.  Assisting Mr. Kaplan was Lou Marquet from the Leyland Alliance, in addition to an attorney from Jacobwitz and Gubits.  Kaplan explained he had hired Leyland to assist in the planning process and gaining approvals from the city.

Kaplan began with the history of the Regal Bag Building, before launching into a description of the proposed buildings.  Throughout, he emphasized that the variance was needed to make the project financially viable.  He compared it to other Newburgh projects, stating that “the Foundry is floudering… Ferry Crossing went bankrupt twice… Voisons, that went bankrupt…” until IBM and Kaplan brought Voisons back.

Claims project would bring $2M in taxes

Kaplan reiterated the financial advantages of approving his project, chief among them the $2M addition he claims the project would bring in taxes.

Mr. Kaplan did not sugarcoat his view of the reality facing developers in Newburgh.  “We are starting a project at the worst time in the country in one of the worst cities in the country… we have a bankrupt city right now.  You all know it, I don’t have to tell you.  With no chance of getting anything in here except Ray’s putting up some buildings there [referring to Ray Yannone's Colden Street project].  But there ain’t nothing else going on and there ain’t going to be anything else going on for a very, very long time.”

Public comments were only in favor of project

Several people spoke during the public comments period, including above-mentioned Ray Yannone and Chris Colombo, whose children are partners with Yannone on the Newburgh Train Station renovation.

Also speaking in favor of the project was Dick Polich of the Yellow Bird Gallery building.

Variance decision postponed until next month’s meeting

Because several board members were absent, and also due to the too-brief period board members had to review the proposal, a final decision about the variance was postponed until next month’s meeting.  One part of the variance request involves waiving a need to build over 100 parking spaces.

Full video coverage of the meeting is posted below (or access the video directly at this link.)

Trevor Boddy has an article from Friday’s Globe and Mail (Canadian) about a celebrity appearance of Andres Duany, spokesman for New Urbanism, to sell a couple of developments in British Columbia.

Newburgh residents might remember Duany from his visits to Newburgh for the charrettes on the Leyland waterfront development project, culminating in the final presentation which is now available on the City’s site in four parts (see here: part 1, part 2, part 3, part 4.) These videos and the earlier charrettes with the actual citizen involvement had been available on Leyland’s site, but are no longer there.

Boddy is critical of New Urbanism in his article:

New Urbanism is dangerous because it claims to cure the very sprawl and social class separation that it causes. There are worse ways to develop the suburbs, but none are so two-faced. The New Urbanism is city planning’s equivalent of the “compact SUV.”

The movement, led by Mr. Duany and partner Elizabeth Plater-Zyberk, is a compromise position that will be doomed by greater forces. Mr. Duany’s two Southlands proposals, nicknamed “Tuck” and “Sweep,” offer us a Honda Element and Land Rover LR2 when what Tsawwassen really needs is a Prius or Smart car.

The Canadian project is a little different from what is being proposed in Newburgh. The development here would be denser than “Tuck” and “Sweep” which work out to a net density of “barely four dwelling units per acre.”

But Boddy’s commentary is well taken: don’t be bewitched by the stage manager.

If the Century Group’s larger proposal is approved, the 2,000 housing units planned there will be worth between $1-billion and $2-billion, so a few hundred thousand spent on a lavish design charrette with pricey imported talent is chump change.

I wasn’t at the original charrettes, where citizens could offer up their suggestions for the project to be incorporated by Duany and his planners. I did attend the concluding panel (links to the video above) as well as the one year “anniversary” meeting held recently, sans Duany.

At both meetings I was struck by the slick salesmanship that reminded me of another salesman from Tuxedo Park, Clotaire Rapaille, a marketing guru profiled on the PBS documentary The Persuaders (In the clip Rapaille is holding forth at his Tuxedo mansion.) In an interview here he explains his work with codes:

Do you think that, ultimately, people can be figured out?

Part of my theory is that in the human world, nothing happens by chance, nothing. When you see people doing something, there is always a reason why, a code. I don’t pretend I know all the codes, but when I work with a client and we try to break the code, then we understand why people do that. Nothing happens by accident in the human world. It’s fascinating to try to understand, to break the code.

And the codes can be translated into practical marketing strategies.

Yes, and those can be, of course, translated into how to address the real needs of the consumer, which means marketing practice and marketing strategies. For example, if I know that in America the cheese is dead, which means is pasteurized, which means legally dead and scientifically dead, and we don’t want any cheese that is alive, then I have to put that up front. I have to say this cheese is safe, is pasteurized, is wrapped up in plastic. I know that plastic is a body bag. You can put it in the fridge. I know the fridge is the morgue; that’s where you put the dead bodies. And so once you know that, this is the way you market cheese in America.

I started working with a French company in America, and they were trying to sell French cheese to the Americans. And they didn’t understand, because in France the cheese is alive, which means that you can buy it young, mature or old, and that’s why you have to read the age of the cheese when you go to buy the cheese. So you smell, you touch, you poke. If you need cheese for today, you want to buy a mature cheese. If you want cheese for next week, you buy a young cheese. And when you buy young cheese for next week, you go home, [but] you never put the cheese in the refrigerator, because you don’t put your cat in the refrigerator. It’s the same; it’s alive. We are very afraid of getting sick with cheese. By the way, more French people die eating cheese than Americans die. But the priority is different; the logic of emotion is different. The French like the taste before safety. Americans want safety before the taste.

Is Duany–and Leyland–on code for Newburgh?

Certainly, the selling of the experience of Newburgh, from visiting the little markets and the flower baskets and walking-friendly neighborhoods sounds enchanting. Also enchanting to the fiscal-minded is the additional tax revenue the new development would ostensibly bring with it.

What has been missing from the salesmanship is how this new development will integrate with some of the tough realities the city faces. It’s not the developer’s duty, of course, to address governmental issues from crime to burdensome taxes to the economic woes of a post-industrial city, but these beasts will need to be dealt with, even between the stalls of the cheese markets and beneath the begonias.