City Council Approves Bond Ordinance Unanimously

City Council unanimously passed a $16 million bond ordinance to potentially buy back the municipal garage, after Second Ward Councilwoman Beth Mason, who is a staunch opponent of Mayor Dawn Zimmer, persuaded the rest of the Council minority to vote in favor. 

The bond was passed in time to be part of the Hudson County Improvement Authority's pool of funds, so the city can borrow the money at a lower rate than it otherwise would (1.5 percent, rather than 6 percent). This would save the city $600,000 annually.

But that was not the reason Mason decided to vote in favor, "with our backs against the wall," as she put it.

Mason pointed out—"what nobody wanted to admit"—that not passing the ordinance could actually mean that the city may end up with two properties, on top of defaulting on the loan it currently has with Capitol One Bank. The bond would be used to buy back the municipal garage on Observer Highway, but will be used only if the developer who is planning on buying the site for $25.5 million, is not able to close the deal. 

In the meantime, the city has received seven bids for temporary municipal garage space. If S. Hekemian Group, the developer trying to buy the existing municipal garage, is not able to close, and the city still wants to move to a new location, this could leave the city owning the old garage space, leasing new garage space and still defaulting on the loan.  

"This is a very disheartening decision to make," Mason said. 

Although Council members Theresa Castellano and Michael Russo were against the bond, they voted with Mason. Still, the minority members argued that they need to know more details about the potential new location of the garage. The city received proposals Tuesday for seven potential locations—of which two are located in Jersey City.

Mason and Russo said at Sunday night's meeting that they would not support the bond ordinance. Even on Wednesday, before the "yes" vote, Castellano said she didn't feel "comfortable" voting for the ordinance, without more information. 

The council majority—consisted of Michael Lenz, Carol Marsh, David Mello, Ravinder Bhalla and Peter Cunningham—all reiterated the same arguments as they did on Sunday night, calling the bond ordinance a "cost-free contingency."

Now that the bond has been passed, the council will meet during a special meeting on June 22 to discuss the proposed temporary locations for the garage.