MARGATE – The funding and agreement to purchase a defunct gas station and turn it into a public parking lot is a done deal and the only thing that can stop it now is the discovery of extensive underground contamination.
The Board of Commissioners Aug. 1 approved a $3 million bond ordinance putting the funding in place to purchase and develop a 30-spot parking lot at 7901 Ventnor Ave.
The board approved the bond ordinance appropriating funds for the project with a vote of 2-1. Commissioner Maury Blumberg voted against the ordinance and companion resolution that authorized the execution of a $2.3 million agreement with Bryan and Colleen Taylor for the purchase of the now closed gas station. The Taylors and Exxon Mobil are responsible for cleaning up any known contamination at the site.
The city will get a “due diligence” period to conduct its own investigation into the “standardized” reports required by the NJ Department of Environmental Protection, city Solicitor John Scott Abbott said.
“Because they are public documents, I see no problem making them available to everyone. The more eyes the better. If its unsatisfactory, we can get out of it,” he said.
The agreement calls for the city to provide a $100,000 down payment with settlement on Aug. 28, which is when the bonding process will be finalized.
“The city will not be responsible for any remediation,” Abbott said.
The agreement is binding pending the city’s approval of environmental studies that have already been completed but not yet fully disclosed, he said.
The city is hoping to reduce the cost of its investment, and previously authorized grant consultant James Rutala of Rutala Associates of Linwood to apply for up to $1 million in a competitive land acquisition grant offered through the NJ Economic Development Authority. Grant awards are expected to be announced later this year. The EDA requires the funding for the entire project be authorized in advance of issuing a grant award.
Once approved, the project could be built within three months, officials said.
The vote came after a second hours-long discussion with the community, who packed the meeting room Thursday and on July 18 when the ordinance was introduced.
Before opening the meeting up for public comment, Collins offered a lengthy statement to dispel what he called “inaccurate information” being spread online.
He said that although Blumberg disagrees with the expenditure, all three of the commissioners agree that more parking is needed in the city’s business districts. Both the Margate Business Association and the city’s current Citizens Advisory Committee are supportive of the parking lot, which Collins said is part of his larger plan to have parking lots at both ends of town and a shuttle service connecting the two lots. Blumberg suggested utilizing the transit parking lot across the street from Taylor’s, but that is not an option because the city has a long-term lease with NJ Transit, Collins said.
He reiterated that the city has “no cost obligation” for remediation of the site, and maintenance of the lot as it is currently designed would have a zero impact on taxpayers, he said.
He also said the bond would not cause a property tax increase because the city consults with its auditor and financial advisor each year to keep all general capital improvement bond debt service level, with some bonds being paid off as others are created.
“We try to stay within the confines of our budget each year…without impact on taxpayers. We have full intention of staying under that amount this year in light of the purchase of the property in question,” he said.
The city recently approved another bond ordinance, and has plans to build a new Public Works building and replace the jogging path around the Sigmund Rimm Recreational Complex, he said.
Although Blumberg said the bond would cost taxpayers as much as $450 a year, Collins said if the cost were added to the operating budget the impact would have been a half-cent on the tax rate, or less than $30 a year for a home assessed at $500,000.
Margate’s total property valuation tops $4 billion and growing each year. It has a $40 million budget, carries about $44 million in debt, including for Water and Sewer and schools, and a local tax rate of 65 cents per $100 of assessed valuation.
Taxes increased this year partially due to $1.1 million of unfunded capital being added to the budget after several years of kicking the can down the road.
He also said the purchase of land would be an asset that will appreciate in value over the years.
The main message presented by Collins and Commissioner Cathy Horn is that the city cannot afford to lose another opportunity to create parking spaces. The city passed on purchasing the lot across from Johnny’s restaurant when it came on the market two years ago, and Blumberg said the city did not support his effort 10 years ago to create a parking lot and park at the Burger Bus property across the street from the gas station.
With the way real estate is going in Margate, “we’re going to run out of opportunities,” Collins said. “For us to lose an opportunity…and come back in 10 years and say woulda, coulda, shoulda, would be a fault of this administration. It’s clear we need to move forward.”
The commissioners listened to what the people had to say and seemed to agree that the 30-space parking lot should include more green space, benches and trees, and that any shuttle service put in place should include electric vehicles.
Rendering of the parking lot and park at the Burger Bus location in Margate 10 years ago.Resident Art Cotilli said the city would lose a substantial ratable when it purchases the property, which will make it tax exempt. He suggested the city institute beach-block parking, alternating from one side of the street to the other, which would create 240 spots and benefit senior citizens who are unable to carry their beach gear long distances.
Resident Jay Weintraub asserted that it was “not a good deal for Margate” considering the cost of borrowing, and that the need for parking spaces is more prevalent on the south side of the city.
“I believe you are throwing an additional burden on us to satisfy a few. Your obligation is to serve and protect all. It will take a lot of money out of our pockets,” he said, calling for more public meetings and a non-binding referendum on Nov. 5.
Collins indicated the city would install a metering system at the lot and limit time to ensure turnover. The current rate for parking along Amherst Avenue through ParkMobile is $1 per hour.
Resident Joe Doyle said at that rate, it would take more than 70 years for the city to recoup its investment, and that the businesses operating in the area knew when they opened that there was a lack of parking in the area.
Blumberg again asked the board to table adoption of the ordinance and resolution and give the public the opportunity to vote on it in a referendum in November.
“The financial people who advised me are different than the ones who advised them,” he said. “$3 million is a lot of money and it will impact our budget next year. If it won’t impact our budget next year, there are important things we will not be able to do that we planned to do,” stating the parking issue is only a “a large parking inconvenience for three weekends out of the year.”
“We have no inconvenience for nine months of the year and we will see an empty parking lot for nine months of the year,” Blumberg said.
Resident Dan Bachalis asked the board to hire a professional to do a comprehensive 5- to 10-year parking plan that can be included in the city’s Master Plan, which is up for re-examination next year.
“Without a comprehensive plan, we are just flailing about. It would be prudent to hold off until we get a comprehensive plan,” Bachalis said.
He also suggested that developers seeking variances to open a business without on-site parking contribute to a fund that can be used to purchase lots for public parking as they become available.
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