Ballot question lacks transparency

New Jersey state ballot question #1 asking if we want to bond (borrow) another $400 million for Green Acres, Blue Acres, and Farmland and Historic Preservation does not provide us with enough to cast an educated vote on November 3rd.

This insanity of borrowing must stop.  The supporters of the bond have had both feet in the ‘open space’ bonded money for decades and should have been monitoring the expensing of prior money better.  Now they want more.

Americans for Prosperity’s Steve Lonegan has a radio ad that opens a door for further insight, you can listen here.

Assemblyman Rick Merkt wrote a good letter to the editor in the Observer Tribune.  Here is what he has to say about what the $400 million is anticipated to cost when the interest is added in.

“By the way, the same is true for the proposed bond issue: It may approve $400 million in new debt, but the payback will be around $700 million.  Funny, how the sponsors choose not to share this important information with voters in the “explanation” on the ballot.”

That’s a lot of money, to go where?  Other than the Blue Acres for floodplain protection and purchases, it is time these ‘open space’ bonding issues be placed solely in the hands of local voting in counties and municipalities.

Below are three editorials from major NJ newspapers that are also against more borrowing.

Bergen Record

Star-Ledger

Press of Atlantic City

Green [for] Acres

Not unusual in New Jersey for good intentions to turn into good money for those at the trough.  In Bergenfield, Bergen County is a historic property, the Marchbank property on Cooper’s Pond.  Turns out it is a property that originally my ancestors settled on, and later built a chair factory and sawmill, in the late 1600’s and 1700’s.  The Borough of Bergenfield purchased the 4.36-acre property and buildings in 2004 for $1.2 million, receiving $600,000 in state grants and loans, and $800,000 in county grants.  It is listed on the National & State Registers of Historic Places.  The Borough’s intends to complete stabilization and ultimately restore the site.  Bergenfield also committed to match two county grants that total $265,000.

In 2003 the Green Acres program certified the pre-purchase value of the property as $987,500.  The initial private appraisal, ordered by Dennis Oury, was $1.5 million did not state that there were restrictions on the property, severely lowering the value.  Based on this appraisal the price Bergenfield paid an inflated amount for the purchase, using taxpayer money.

To secure the four grants Bergenfield hired Governmental Grants Consulting (GGC), for $128,000 plus a $6,000 retainer.  Joseph Ferriero and Dennis Oury, unknown by Bergenfield, it turns out, own GGC.  The property was development restricted by a preservation easement by NJ Historic Trust, in 1997.  Yet more taxpayer subsidies were sought by GGC.

This deal was riddled with pay-to-play, deceit, abuse of power, no bid contracts, and concealment.  It is one of those webs of a scandal that reaches far into other parties beyond Oury and Ferriero, who I am concentrating on.  According to a Sept. 21, 2008 Bergen Record article, “…21 professional firms earn a combined $506,000 since 2002.  They’ve contributed more than $80,000 to Democratic candidates and organizations during that time, state and local records show.”

NorthJersey.com has in-depth coverage on the guilty verdicts on Former Bergen County Democratic chief Joseph Ferriero. He was found guilty yesterday on three of eight counts from an indictment filed last year by former US Attorney for NJ, Chris Christie (now Republican Gubernatorial candidate).  Ferriero’s sentencing is scheduled for February 10, 2010.

Ferriero’s guilty verdicts:

Count One: Conspiracy to defraud the public of Oury’s [former Bergen County Democratic Organization attorney, and Bergenfield attorney] honest services

Count one is the most serious charge.  The taxpayers of NJ and Bergenfield did not receive honest services, as the Green Acres program grants were clouded by corruption.

Count Two: Mail Fraud in relation to a Nov. 2003 letter from the state DEP [NJ Department of Environmental Protection] Commissioner [former DEP Commissioner Bradley Caldwell] to the mayor of Bergenfield informing the borough of a $600,000 Green Acres grant/loan award.

Count 2 involves a letter from former DEP Commissioner Bradley Campbell, awarding Green Acres grant on Nov. 14, 2003.

Count Three: Mail Fraud in relation to a July 2004 letter from Governmental Grants President David Spatz to Ferriero the held a check from Bergenfield for $128,625 payable to GGC [Governmental Grants Consulting].

Count Five [Count Three] involves a letter to Ferriero from Governmental Grants Consulting President David Spatz, enclosing Bergenfield’s check for about $128,000 for GGC’s services in obtaining county and state grants.

North Jersey.com has a nice graphic that explains the convoluted connections.
Ferriero and Oury concealed their ownership in Government Grants Consulting (GGC).  Through GGC they could generate payments for services and grants for Bergen County municipalities. Their political ties could be a great influence in attaining state grants for town projects.

Dennis Oury agreed to testify against Ferriero and pleaded guilty to mail fraud and not filing his 2006 federal taxes.  This was arranged in a plea deal offered by the US Attorney’s office.

Invoice introduced as evidence
An invoice from David Spatz to Bergenfield Borough Administrator Joseph Hess, dated March 6, 2003, was introduced as evidence. In it, Spatz said he was aware the borough had gained approved for an $800,000 Bergen County Open Space grant and that GGC was owed $80,000 for its work.

Additional evidence included inquiries Ferriero sent to Spatz and Oury about whether Bergenfield had paid GGC.

All the while, Spatz was telling Ferriero that he was owed $95,000 for his work as an employee of GGC.

The evidence also showed that GGC was billing Bergenfield more than a year before any of the grant money actually arrived on Oct. 19, 2004.

Bergenfield paid GGC $128,000 for its work on the Open Space and Green Acres grants on June 2004, four months before it received the grant money. The borough issued bonds so that it could pay GGC.

The amounts paid for this property, and to line the pockets of many,  is borrowed money so the figures do not even include the interest paid by us taxpayers.  We must stop increasing NJ debt.

This case depicts one more reason to Vote NO on the ‘Open Space’ ballot question one on November 3rd.  For more reasons to Vote No click on the image below.