A Message from Joseph M. DiBella, Mayor – Howell NJ

September 19, 2005

Dear Howell Resident:

Over the past several weeks there has been much written about a parcel of land near your home, commonly referred to as the Frequency Engineering (FE) site.  Unfortunately, I think much of what has been shared with you has been false or not properly explained. Many press accounts have been incomplete and flyers circulated in your neighborhood have not adequately presented all the facts. Since this is such a significant issue I wanted to write to you personally to give you the facts.

Largely dormant for many years, the property owner filed for bankruptcy and owes the township nearly $4,000,000 in back taxes. According to tax records, the property owner also owes Lehman Brothers (an investment bank) $10,000,000 and other companies and a state agency millions more. In addition, according to the NJ Department of Environmental Protection (DEP) portions of the property are contaminated and need to be cleaned. The environmental hazard is real and threatens our water supply. As a result, we must do all we can to have the area cleaned to protect our precious drinking water.

In sum, the property is ideal for future commercial or industrial use and is an important future tax ratable for the community. However in its present state, with the bankruptcy process rapidly approaching, having the land used for its’ maximum potential will be most problematic.

While the township has been trying to get our back-taxes for many years, bankruptcy protection and legal maneuvering have prevented the Township from being successful. Finally, the matter is slated to be resolved due to a court ordered bankruptcy property sale to the highest bidder. The Township is a guaranteed creditor so we will be paid before nearly any other entity that is also owed money. However, with so much other debt in place and with the site environmentally contaminated, it will likely be sold for far less than it is truly worth. If this is the case, the Township may not be able to get all of its back taxes now, leaving us with yet another “IOU” from the new owner. The possibility exists we may only get a portion of our back taxes returned to us and so we will again have to wait to get our money back.

As Mayor, I know full well the overwhelming tax burden facing Howell families. We need this $4,000,000 and we need it now. This money can go a long way in providing real tax relief. Plus, if the property was cleaned it could again be a viable location for business and industry, bringing in significant taxes each year to the Township.

Due to the significance of what is at stake with this land, the Township designed a strategy to help us achieve our two primary goals; (1) have the area cleaned to protect our water supply and precious natural resources and (2) collect as much of the $4,000,000 in back taxes owed us. To achieve these two objectives, we developed the following plans of action:

1. Get the land clean - The NJ DEP makes significant state funding available to Townships facing major clean up projects like what is needed at FE. Through Brownsfield clean up grant money, the Township can secure funding to have the site cleaned without the clean up being funded by local taxpayers. By securing this money, we can work with the NJ DEP to ensure the land is cleaned properly and not by a future owner that may not want to spend the necessary money to ensure the best, most thorough clean up. One way to better the likelihood of securing Brownsfield money is to declare the area in need of being re-developed. Therefore by creating a Re-Development authority we can significantly improve our chances of demonstrating to the State that we are serious about getting the land cleaned and fast. So, the governing body has asked the Planning Board to act on declaring the area in need of Re-Development.

2. Get our $4 million in back-taxes – Since the land is contaminated in some areas, this de-values the property. With the land de-valued it will likely not sell at its real market value. As a result, we may have a harder time collecting most if not all of the $4,000,000 owed us. Plus, the present owner is challenging our back-tax amount, arguing they owe much less. To help ensure we get as much of our $4,000,000 back, the land needs to sell at its maximum value. By achieving goal number 1, we can demonstrate to the bankruptcy court that a devalued bid should not be accepted since clean up costs will be covered elsewhere.  Free of the massive clean up expenses, the value of the property will increase and should ultimately sell for its real market value. This then helps us get as much of the $4,000,000 in back taxes as possible.

To achieve these goals, we needed to ask the bankruptcy court to delay the auction. We lawfully advised all the bidders and the court agreed to delay the auction until February 2006. This additional time was needed for the Township to apply for and hopefully secure the Brownsfield money and determine if we can name the area in need of re-development. We are working now on both these activities and hope we’ll be successful. What’s at stake is protecting our water and providing much needed tax relief.

Unfortunately, I understand that an abundance of misinformation has been relayed to you. I have attempted to collect as much of these untruths as possible and I have listed them below, explaining why the statements are false. These are as follows:

·        The township plans to condemn and take the land via eminent domain – This is not true. The Township does not have the money to buy the land as we could not bond to cover all the expenses. Plus, the Township has absolutely no interest in owning the land and never has. We want the land cleaned and returned to be a functioning and viable tax ratable for Howell.

·        The township wants to help a potential buyer by having the site cleaned – This is not true. The Township’s only goal in having the land cleaned is that we can be sure it is cleaned correctly and thoroughly. Plus, if we wait for some future buyer to clean it, that may take years. We need to protect our drinking water now. Also, by securing Brownsfield aid money, we can have the land cleaned by real environmental experts, not a commercial developer looking to cut corners at our expense. By having the site cleaned, we can increase the value of the land.

Doing this returns the land value to its real market value so that when it is sold we’ll have the best chance to collect as much as our $4,000,000 in back-taxes as possible.

·        The township wants to re-zone the land to build houses or age restricted senior housing. This is not true. There are no plans at all to re-zone this land from its commercial state. This is merely rumor and innuendo. At no time has the governing body or the Planning Board ever discussed changing the zoning to allow for housing of any kind. I am personally against housing of any kind at the site. I want the site commercially developed for maximum ratable purposes. The site is ideally situated near I-195, Route 33, Route 34 and the Parkway. It is perfect for business and needs to be returned to a viable commercial property.

As Mayor, my job and that of the Council, is to act in the best interests of all Howell residents. We believe collecting this $4,000,000 in back-taxes and ensuring the area is cleaned are in fact in the best interests of our community. I am saddened that some have tried to politicize this issue or spread misinformation. It’s time for us to get beyond typical “politics as usual” and start doing the business of the people. I believe that by acting aggressively on the FE project, we can provide significant short and long term benefits for the community.

The Planning Board is deliberating now about creating the needed re-development authority. There are several criteria that must be met to establish a re-development area. The Board is considering all these criteria. I encourage you to attend the Planning Board meeting when this will be discussed now that you have the facts. You may contact the Planning Office on 732-938-4500 to get the next date since the next meeting has yet to be scheduled.

In the event you have any questions with this matter, please feel free to call or email me anytime. My contact information is below. I appreciate your taking the time to read this letter and I’ll make myself available to help you on this or any issue.

Most Respectfully Yours,

Joseph M. DiBella

Mayor, Township of Howell

Email:             MayorDiBella@twp.howell.nj.us

Web:               www.MayorDiBella.com

Phone:            732-938-4500, Extension 2155

This letter was paid for by Mayor DiBella and not at tax payer expense.