February 2000

Public Officials Assist Developer's Consultants Behind Closed Doors of Mayor's Office

Weehawken residents pack Planning Board hearing of Roseland project.

At the January 27th Weehawken Planning Board hearing, testimony revealed a private meeting between the developer’s consultants and Township officials in Mayor Richard Turner’s office. Testifying on behalf of Roseland developer Carl Goldberg, fiscal expert Dr. David Listokin described a private meeting that took place between him and Planning Board member Richard Barsa and Planning Board attorney Thomas Dunn. Under cross examination by attorney James Segreto, who represents the objectors Friends of the Weehawken Waterfront, Listokin disclosed that Dunn referred him to Hugh McGuire, a real estate appraiser, as the source to valuate commercial buildings in Goldberg’s project. Listokin also testified Township officials suggested he lower estimates of township costs for his report. Mayor Turner is also a Weehawken Planning Board member. In addition to sitting on the Board, Richard Barsa serves under Mayor Turner as Director of Finance.

The Weehawken Planning Board has been reviewing the application of Carl Goldberg to build a massive 3.9 million square foot project on 142 acres of prime real estate at Weehawken’s waterfront. This application has been bitterly contested by the Friends of the Weehawken Waterfront who claim that a project of this size will overwhelm their community of 12,500 residents and create a project that will keep much of the waterfront private, like so many other projects to the north in West New York, North Bergen and Edgewater.

This testimony exposes a potential two-fold problem for the developer and township officials. First, the Township officials have a conflict of interest. The Township and Planning Board are obligated to objectively review this application, not to actively assist the developer. Secondly, because Township officials gave their prior blessing to the source of the valuations, the evidence itself that was submitted to the Board was not objective and is of questionable validity. Listokin made no other effort to verify the developer’s real estate estimates.

Segreto elicited additional testimony from Listokin which indicated that the value of units in his December 30th report had been revised upward after taking into consideration 163 affordable units not included in an earlier report. The earlier report whose units were valued at $126,000 rose to $137,000 in the new report and units valued at $172,000, became worth $192,000. One conclusion that can be drawn from these revisions is that after including the affordable units, it was necessary to increase the value of other units to make the numbers work.

According to Listokin’s report, the Roseland project will provide less than 2% net income for the Township after 10 years of construction. If any of the assumptions in this report are overly optimistic, this project could provide a net loss each year for the Township of Weehawken.