Gloucester City: Management Firm Needed to Run Chatham Square Apartments

By Nicole M. Maiese

NEWS Correspondent

 Gloucester City Council expects to hire a management firm to run Chatham Square as apartments for at least one year.

  City officials said that because of the economy, it is difficult to find a developer for the site near Klemm Avenue and Route 130.

  The City recently purchased the apartments to "get rid of an eyesore, and a problem," Mayor James said, adding that the biggest problem has been lax management for the past six years.

  The apartment buildings are in better shape than anticipated, and the rents will make up for the lost tax revenue.

  Resident Jim Kelly said he was concerned about the City becoming a landlord.

  The 65 homes built by Beazer in Meadowbrook Run, adjacent to Chatham Square, are now all purchased and occupied.

  In other business, City Council approved the 2008 municipal budget after a public hearing.

  Councilman Nick Marchese said the City has applied for discretionary and extraordinary aid from the state to supplement the budget.

  "We think we have a strong application," James said.

  If the state denies the aid, the $16,439,000 budget will raise taxes 41 cents per $100, or $287 a year on the average assessed home of $70,000.

  During the budget hearing, Resident Lewis Stout asked if this included the increases in the school budget and the county budget, and was told this was strictly the municipal budget.

  He then asked why the City did not simply foreclose on the Chatham Square property.

  The City Solictior said he thought friendly redevelopment was the better option.

  In response to a question by resident Theresa Graham concerning streamlining the budget, City Administrator/Clerk Paul Kain explained there was a major increase in the City's contributions to the pension funds of employees, and that no new jobs have been created.

  "Cuts were made from all operations," Kain said. "We tried not to go into personnel and salaries."

  "We maxed out on capital expenses. We can't cut anymore," Marchese said.

  After City Council came out of executive session, members passed an ordinance on first reading amending the salary ordinance. The second reading and public hearing will be Thursday, May 15, at 8 p.m.

  It established the salary guidelines of the new UEZ Coordinator/Director of Community Development Howard Clark at a minimum of $48,741 and a maximum of $60,000.

  Kain said that this will not be paid by the City, but rather by the Urban Enterprise Zone.

  The guidelines for the Project Assistant to the Governing Body will be a minimum of $29,000 and a maximum of $35,000.

  During the regular meeting, Council tabled an ordinance that would have vacated a portion of Cumberland Street near Broadway for the building of a Commerce Bank branch.

  Kain explained that the City still had not heard from bank officials.

  Mayor James said that Gloria Rowan of Commerce told members of the Gloucester City Business Association that the branch will still be built, hopefully by the third or fourth quarter of this year.

  Council passed a resolution authorizing the Louis Berger Group, Inc., to provide an archeological and historical survey of the Water Works Plant.

  Also, Council selected Remington & Vernick as the project engineers for building the new Water Works Plant at Johnson Boulevard.

  During the Public Forum, Norman Hill said the old Power Plant near GAF on Water Street is historic, and asked if the City could save it.

  The City Solicitor said that would be difficult, because the area is "an environmental disaster. There is asbestos, and PCBs, and the plant now presents a public health hazard."

  Frank Wunsch said he was concerned about the possibility of underground oil storage tanks at the Chatham Square Apartments.

  The solicitor said there are oil tanks in the basements.

 

Comments

[Question]

If the City is so broke, why did they hire so many part time people recently to do Rental Inspections?

What are the costs associated with this?

How many people were actually hired?

[What!]

I hear it is replacing the Confidential Assistant to the Mayor....

i believe it is mr bevan because he couldn't pass some test for another position. Just another way to waste more money. But we are so poor though!

Is Project Assistant to the Governing Body a new position? What crony was this position created for or will it be advertised so all qualified citizens can apply for it? What are the qualification for Project Assistant to the Governing Body?

To the last post. Are they qualified to hold their jobs. I have seen some of them working and think they are. A lot more qualified then then the appointments of the last admin. Some exapmples that have not worked out: Kaye, Crothers, Maley, The Kains especially Pual,I could go on. Now you undersatnd. Be creful but keep up the good work Nick, Jay and Billy.

[Why???]

Why in this economy, are we buying the Chatham Square apartments? Now we will hire a management company for hundreds of thousands and don't forget, the buildings all need to be brought up to code. The previous owner was being cited constantly for violations, now let's see if Gloucester Inspectors will cite the city. This is crazy to do this, only to hold onto a piece of property until the economy gets better and then to sell it to the highest bidder for new homes. Why didn' Beezer buy it? He most likely can't afford it, but we can....go figure!!!
Oh yes this can be blamed on the James administration......

[city resident]

I'm confused on who makes the decisions as Mayor. As far as I see and hear Mr. Nick Marchese has alot to say. It's amazing how all the latest appointments are from Marcheses "Lakes Friends". If you live near Nick by the lake you are in. Talk about "Connections". He wants to be the Next Mayor! I know alot of citizens of our town who are very upset with Mr. Marchese and Disappointed with Mr. James.

I cannot beleive that anyone could blame the present administration for our fiscal problems. this is there first full budget that they have done on there own. the last one was kind of left to them. the previous administration are to blame. along with the one who moved to moorestown with his new bride.

[Confused]

What is the salary for the Project Assistant for? Is it the UEZ Assistant or is it a title change for another position or is it a new position?

Blind Loyalty
Is this the beat up sail boat that people are talking about? I heard about it twice today they say Bevans is pushing for it. Is this another toy?
Pumper

[Ingrateful1]

thanks Wobert

[blind loyalty]

Why do people always blame the past regime for all of the problems in town now. The current mayor and council have been in power long enough to shoulder the blame for mismanagement and waste. I would thank the current mayor and council for our " so called " budget woes. Do you people really believe this city has a money problem?They make unnecessary promotions in all city departments. Plenty of high cost parades and festivals. Anybody upset that the city has put in a bid for a cruise ship for about $ 210,000 with about $ 100,000 worth of repairs. They will tell you all about it this Saturday down at the old coast guard base when they pull it in to dock. Wake up people and start blaming the current council for our problems and continuing nepotism throughout our city. The city seemed to have money for 100 years and now were broke when the James gang takes over? Same old politics, different players.

[Wait a minute]

I love how people forget that Bill Hagan was part of the old regime. Why isn't he listed in your "thank you" comment. Just because he wasn't faithful to the machine does not excuse all his misdeeds when he was faithful. He would flip back to the other side in a heartbeat if his they promised to promote/hire another family member. Hagan is probably the smartest man in this city!!

[Thank you]

Thank you Bobby, Tut, Pat, Jean, Elsie, Rocky, Ray, Fmr. Freeholder who were you people listening to.

And just who is it that had the njob of making the day to day management decision? Isn't the administrator obligated to do something besides collect the biggest paycheck in town. I'll bet he makes sure his contributions are paid up to date.
Taxpayer

[Who Me???]

"In response to a question by resident Theresa Graham concerning streamlining the budget, City Administrator/Clerk Paul Kain explained there was a major increase in the City's contributions to the pension funds of employees, and that no new jobs have been created."

There was no "major increase" in the City's contributions. It all started when Governor Whitmann made the wise decision to steal from the pension system, and then told municipalities that they do not have to make their contribution to the pension system. The City has gotten away with not contributing AT ALL or not the full amount for a long time. Now everyone is hunching their shoulders with their arms out asking, "What happened?" I know...lets blame the workers who DO CONTRIBUTE to their pension EVERY paycheck, and blame them because we didn't budget correctly. The city should have budgeted correctly and set that money aside a long time ago. Complete mismanagement is to blame for the tax increase, not the pension system. In essence they borrowed money and have the gall to be upset that they have to pay it back.