Meeting Minutes

City of Trenton City Council

January 15, 2013, 5:30 p.m.

The meeting was called to order by Councilwoman Holly-Ward at 5:37 p.m. and the Open Public Meetings Act statement was read which stated, “Adequate notice of this meeting has been given in accordance with the Open Public Meetings Act, pursuant to N.J.S.A 10:1 et. seq. The agenda for the said meeting was sent to the newspaper, posted and filed in the City Clerk’s office onJanuary 11, 2013.”

ROLL CALL

PRESENT / ABSENT
Mr. Bethea / √
Ms. Caldwell-Wilson / √
Mr. Chester / √ / √ 5:45 pm
Ms. McBride
Mr. Muschal / √
Ms. Reynolds-Jackson / √
Ms. Holly-Ward / √

Also in attendance:SamHutchinson, Business Administrator

WalterDenson, ActingCity Attorney

PeterCohen, AssistantCity Attorney

J R Capasso, Acting Director of Housing and Economic Development

JamesBronwnlee, Director Health and Human Services

ClevelandThompson, Director of Inspections

LuisMollinedo, Director Public Works

LeonaBaylor, Municipal Clerk

CordeliaStaton, Deputy Clerk

Invocation and flag salute was led by Ms.Baylor.

An Opening Statement by Councilwoman Holly-Ward was made welcoming ThomasEdisonCollege and the Public to the presentation. She then explained to the Publicthe vote process for the project.

PRESENTATION: THOMAS EDISONSTATE COLLEGE, Dr. George A. Pruitt

Mr. Capasso, Acting Director for the Department of Housing and Economic Development for the City of Trenton, provided a project summation of the former Glen Cairn Arms site, 301 West State Street, Trenton, New Jersey. He explained that in 1997 the site was acquired by the City of Trenton through eminent domain.The property has remained vacant and abandoned since that time. In 2004 a Resolution was passed by City Council to settle the condemnation and the expensive litigation that occurred following the eminent domain. For over thirty-years the site had signified blight in the City of Trenton. Numerous attempts were made to find private sector developers who meet adequate city development criteria. There has been no tax generation and the value has decreasedwhile the funding gapprojections for redevelopment have increased.It has consistently been problematic and costly for the City of Trenton to maintain as an abandoned site.

In consensus of this proposal are Housing Economic Development’s professional staff and City Management for the following reasons:

  1. Lack of prior private sector interest in the property in its current condition
  2. Lack of prior viable proposals who meet City development plans applicable for the Central West Redevelopment Area Plan.
  3. Elimination of blight in a high visibility area.
  4. Creation of temporary construction and full-time permanent professional jobs in downtown Trenton.
  5. Creation of higher educational opportunity in the City of Trenton.
  6. Adds professionals and students to the downtown economy.
  7. Relieves the City of Trenton of environmental and demolition liability estimated at $1.4 million dollars.
  8. The proposed building is of high quality and has approximately 100 structured parking spaces.

This site will support a key element of the redevelopment area which isThomasEdisonCollege; thereby supporting Thomas Edison’s growth into a larger role as an anchor institution. Mr.Capassodiscussed the impact of local colleges and universities not only ThomasEdison but MercerCountyCommunity College, PrincetonUniversity and the College of New Jersey and theirgenuine benefits to the City of Trenton. Those benefits include use of facilities, providing internships to local nonprofits and other local organizations. These interns have solved a variety of problems and have studied or addressed urban problems in the City of Trenton. These students support and enhance the local educational system andprovide economic,cultural and societal benefits by their presence.

While attending a recent Federal Reserve Bank Meeting in Chester, Pennsylvania, discussion ensued regarding a HUD program entitled SC2. WidenerUniversity is the anchoring educational institution in Chester, Pennsylvania, which is a city very similar to Trenton. 10-12 years ago the school received a new president who met with the mayor who considered WidenerUniversityto be a dragon that was sucking up real estate and not paying taxes.

The College President was determined to effectively partner with the City of Chester in instituting various programs and partnerships. He was successful in that attempt and now the current Mayor of Chester considersWidenerUniversity a wonderful partner and doesn’t know what the City of Chester would do without the University being located in the city.

Mr. Capasso reiterated that he is supporting the growth of Thomas Edison State College as an anchor educational institution within the City of Trenton and as a partner to the City of Trenton. He then turned the floor over to Dr. Pruitt.

Dr.Pruittgreeted and thanked Council for the opportunity to speak. He began by addressing the window of opportunity that exists to do something important for the City of Trenton. He addressed the significanceof taking a blighted eyesore and turning it into a state-of-the-art technologic nursing education center. He stated that this undertaking will bring new people into the city,stabilize a deteriorating neighborhood and allow the college to provide some economic relief to a cash-strapped city. He acknowledge and thanked Dr. Reverend Stanley Justice, a Board Member and immediate past Chair for attending the meeting.

He then presented the summarization in four parts:

Background of ThomasEdisonStateCollege

ThomasEdisonCollege moved into Trenton, New Jerseyfrom Princeton, New Jerseyin the late 70s. Thomas Edison had sites in Cherry Hill, East Orange, Newark, MonmouthCounty and Camden, New Jersey.He related that the former Trenton State Collegenow the College of New Jersey,RiderCollege,and MercerCountyCommunity Collegehad all started in Trenton, and moved out of the City. Thomas Edison State College moved into Trenton to stabilize and save a magnificent piece of Trenton’s historical property and architecture which is the KelseyBuilding. He commented on the lack of conservation on the part of the State of New Jersey and the City of Trenton regarding its historical assets.

When Thomas Edison State College arrived in the City of Trenton a commitment was made to use their assets to help develop and enhance the City. Dr. Pruitt went on to state that having a state college in your city is a trade off in the sense that it brings in assets but the reality is that it is a tax exempt organization. He stated that the KelseyBuilding has not paid taxes since 1910; the townhouses which were in disarray that Thomas Edison restored had not paid taxes since the 1940s.

The KuserMansion which was also rescued, housed the New Jersey Secretary of State under the Florio Administration under a lease agreement; but that office moved back into the State House and the State did not remove the lease. Subsequently, Thomas Edison reoccupied the site and finally purchased it.

The first expansion made by Thomas Edison State College wasto construct and renovate two properties on West Hanover Street. The college at that time chose not to purchase them but to lease them where they have provided taxable income to the city in the revenue of $360,000 annually. This projecthelped energize and stimulate the economy of thesurrounding distressed area.

Dr. Pruitt stated that there are several other projects that Thomas Edison State College has assisted or supported the City of Trenton in which includecollege staff assisting in completing a complex application and thus obtaining and became the first municipality to receive a Federal Weed and Seed Grant.

Thomas Edison State College has over 700 alumni and staff that live in the City of Trenton. It is one of twelve universities or colleges in the State of New Jersey. It is the second largest in New Jersey with over 21,000 students. It has the largest veteran enrollment in the state combined; and the largest school of nursing and baccalaureate provider program by which this proposed facility will support that growth and expansion. He continued to detail the specifics of the nursing program and the renovation to the Carriage House behind the KuserMansion. This will create a state of the art SEM Lab for the nurses. The SEM are mannequins that simulate all the body functions of a real person. This program will provide access to new technology, training to lab technicians, hospitals, students and other universities in the area.

The Project and its Inception and Structure

Dr. Pruitt supported the original proposition to have the New Jersey State Library located on the Glen Cairn site. He stated that he is aware of the State not paying its fair share of taxes relative to its presence in the City of Trenton; buthe also is convinced that no private sector developer will ever come and expand this site.

The City of Trenton formed an Economic Development Advisory Committeeon whichDr. Pruitt served as a board member. The Committee had three Co-Chairs, PhillipKirschner, President of the Business and Industry Association,Robert Prunetti, President of the Mid-Jersey Chamber of Commerce, and Diane Rodgers, CEO of the Capital City Redevelopment Corporation. At one of the meetings Glen Cairn Arms became the topic of discussion. The majority concluded then that no private sector developer would come in and invest in the property due to contamination. It has a $1.4 million dollar liability, and the site is 9/10ths of acre or $300,000 in land value. Dr. Pruitt stated that you will never get a return on investment as a private developer. If an opportunity availed itself to develop the site, either theCity of Trenton or the State would have to do the demolition and pay the resources. Dr. Pruitt was then approached to undertake the project with Thomas Edison State College. In November, 2012, voters approved the higher education bond issue of $750 million dollars. Thomas Edison State College is eligible and has applied for $247 million dollars of these funds for redevelopment of the Glen Cairn Arms site to build this new facility. They are now competing with eight other universities but Dr. Pruitt is optimistic that the college will receive the funds. He did comment that he does have other optionsto build the facility elsewhere; but believes in good stewardship and the continuing support of the City of Trenton.

In finalizing the plan Dr. Pruitt contacted John Hatch an architect and local businessman who also shares the vision of conserving historical architecture. Improvement and restoration to this blighted area will then drive up property value and attract investors to a stabilized area. Thomas Edison State College is willing to invest $16.7 million dollars for this project included in that amount is the $1.4 million to do the demolition.

He referred to discussion regarding fairness of value. Dr. Pruitt indicated that the property does not have value as it is assessed in a negative $1.4 million liability sitting on 9/10th of an acre of land valuedat $300,000. The City of Trenton would never get a fair deal. He stated that the City of Trenton did a study for demolition costs which the college is relying on but it remains undetermined as to what the actual cost will be. Asbestos contamination is present and there are no results for the soil, yet the college remains prepared to accept the risk.

The Building Our Future Bond Act is the major source of capital for this project. The Bond Act will fund 75% of the construction costs. The remaining $4 million dollars the College will be responsible for and the Board is committed to that.The regulations for the Bond Act will be made public on January 22, 2013. They will sit for public comment for sixty days, at the end of those sixty days the State will be accepting applications for funding from this Bond Act.

This project meets all of the criteria for a nursing education building and regulations specifically exclude any revenue generating activity to be associated with the project. Because of the preference for “shovel” ready projects, we have already invested a considerable amount of money in the work now. Assuming Council’s impending approvalwe will take this project to “construction ready” documentation; then when the funding is awarded, the project will be “shovel ready” and the work can begin immediately.

Dr.Pruitt stated that he has heard from New JerseyState officials in the Executive and Legislative Branches indicatingthat they intend to have all projects identified, recommended and approved by July 1, 2013. There will be an application process that will take place between mid-March and mid-April, then the college will have to approach the state with an identifying source on which it will build the project.

This discussion with the City of Trenton has been ongoing. Thomas. Thomas Edison State College will provide the resources, take the risks, pay for it, and stabilize that neighborhood for future economic development and investment. Thomas Edison will bring about 2,500 – 3,000 students, faculty, guests and others into the facility per year. All the college requires is your cooperation and support to allow us to do this. Dr. Pruitt stressed that the taxpayers of New Jersey have voted in support of a $750 million higher education bond and the last time this type of legislation was enacted was in 1988, he nor the City of Trenton have another twenty-five years to wait. This is an opportunity for Thomas Edison State College to anchor and grew within the City of Trenton. If this attempt should fail he stated that he will go out and buy land, build elsewhere and the consequence will hurt both the college and the City of Trenton. He repeated the urgency of the matter.

Criticisms and Concerns regarding the Project

Dr. Pruitt addressed Council and provided a questions and answer handout. He indicated that he understand the frustrations and anger of some of the people. Most of the concerns and passions are based on false or misinformation. He stated that he does not hold ill well against those who have voiced disdain against him or for the project. The main items that he wants to respond to are as follows:

  • The City of Trenton is giving away the land.

Dr.Pruitt again explained the negative $1.2 to 1.4 million liabilities attached to the property site and the additional $300,000 payment; which he stated does not make it a gift but merelyastructuredway to allow the college to pay for it.

Regarding the statement Thomas Edison State College is taking the Glen Cairn Site off the tax rolls.Dr.Pruittresponded that this property has not been on the tax rolls for over twenty-years.

  • The Property would be bestservedwith a Private Property Developer

Dr.Pruitt stated that this is absolutely correct to have a private property developer to come in and develop the site and keep it on the tax rolls; and hopefully create some commercial and residential use for it. However, there is absolutely no probability that it will happen. This is reinforced by The Department of Economic Development and all the other Advisory Committees that have addressed this site.

  • That ThomasEdisonState College Should Pay Property Taxes

Dr.Pruitt stated that discussion must be held with Congress and the Legislature relative toTax-Exempt status eligibility; and is a good open debate to have. He sympathizes with the City of Trenton with so many State agencies present the issue of tax exemption has become aburden to the City. However, Thomas Edison State College has worked hard not to aggravate the situation. He asked Council to review the many contributions that Thomas Edison State College has made and that a fair analysis will see that the college has contributed more than it ever cost the City of Trenton. The college has over 350 employees.

Dr.Pruitt then addressed one of the blogs referencing the project and clarified that Thomas Edison State College does not own those buildings on West Hanover Street; nor did it hire any one to work on the buildings.

Dr. Pruitt then summarized his presentation by addressing Council he stated that this is an act of self-sacrifice on the part of Thomas Edison State College. He repeated that the institution does want to support, partner, and enhance visual and economic development in the City of Trenton. He encouraged Council to embrace the project and move forward.

Councilwoman Reynolds-Jackson inquired of the probability of a partnership between Thomas Edison State College and Trenton Central High School in developing a curriculum to assist students in going to Mercer County Community College and then on to Thomas Edison in preparation for theirbaccalaureate degree.

Dr. Pruitt indicated that he has worked ona dual admission program with MercerCountyCommunity Collegeto finish at Thomas Edison; including the Nursing Program. He stated that he would welcome the opportunity. Thomas Edison State College meets and is regularly looking for ways to have positive outreach to develop other programs with the TrentonSchool system. He has met with every Trenton Board of Education Superintendent since Cosby Copeland. Thomas Edison State College houses the Trenton Education Foundation which raises money to provide college support and extra curricula experiences to students who would not have that experience in the high school. He also stated that all of the County College Presidents are available and waiting to provide assistance and opportunity to the Trenton School System.