Archive for the 'Abatements' Category

NJMP Debate

Wednesday, September 8th, 2010

Millville First will be meeting on Tuesday, September 14, 2010, 7:00 p.m. at the American Legion Post 82 located at Buck and Mullberry Streets in Millville.  The public is encouraged to attend and participate in the running of your government.

Keep the NJMP Debate in Proper Perspective

September 2010

There is a debate in Millville about the NJMP. It is going to go on for quite a while. It would help if the discussion were factual, focused and impersonal.

First, let’s agree that the NJMP has “put Millville on the map”. Just how that benefits the taxpayers of Millville I am not sure, but it seems that fame is something a great many people value. NJMP certainly has delivered on its “notoriety for Millville” promise.

Second, let’s agree that money has been spent in Millville and its environs that never would have been spent here and let’s agree that some jobs have been created. On both those counts the promises far exceeded the results but, something is better than nothing.

Third, it appears there are thousands of people who participate in motor sports and many of whom are wealthy. Also there are many prosperous businesses connected with the sport which somehow, it is suggested, will be beneficial to local taxpayers.

However, we need a little perspective. Why was it necessary for the developers to grossly exaggerate the anticipated benefits? Why is so much taxpayer money needed for financial support? Instead of stirring up all this controversy, why doesn’t NJMP build its ATV track where it has been approved for the last 5 years? The City has already approved an ATV facility. If NJMP doesn’t have the money, why don’t the thousands of motor sports enthusiasts and the hundreds of prosperous businesses profiting from the park, step up to the plate and provide the needed money?

If the same rules of taxation that apply to every homeowner in the County were applied to NJMP its tax bill would be over $1 million a year. However, its taxes are just $175,000 and fixed for 15 years. Furthermore, the schools and the County are shortchanged as well. See Comptroller Boxer’s report. That’s right everybody else’s taxes go up every year, but not NJMP’s. So every taxpayer in the County is helping to pay for people from all over the world to enjoy their favorite past time. That may be OK, but we should approve of it with all the facts on the table. Why are the taxpayers of Cumberland County expected to foot the bill for what is essentially a country club for motor sports?

Taxpayers should also be aware that the hype by NJMP in the approval seeking process was more than exaggeration. It bordered on fraud. The Planning Board application included a financial benefits analysis required to determine whether the project would result in a profit, or loss to the City. That analysis promised a profit based upon a PILOT of $350,000 which was the amount NJMP told the City it would pay each year. Once the approvals of the Planning Board and City were obtained, NJMP told the Commissioners it could not afford the $350,000 but could only pay half that, or $175,000. Millville, that doesn’t know how to say no to any out of town developer, then approved a financial agreement that set the payment at $175,000 fixed for the next 15 years.

But that’s not all. There are no consequences for failure of NJMP to deliver. None. And NJMP has breached many of the provisions of its contract. When the lack of enforcement provisions was questioned by taxpayers, the commissioners chose to trust the developers as men of “good faith”. No protection for taxpayers required, but many benefits for the developers were included. Shall we start with the $600,000, 15 year, no interest loan to the developer by thetaxpayers, the first $200,000 of which went directly to the developer to reimburse it for preliminary expenses? Or, shall we talk about the unsecured $425,000 low interest loan from the CCEZ for off season operating expenses? Or, the clever evasion of the law that dictates the amount to be paid in lieu of taxes must be 2% of the cost of improvements or $800,000 not $175,000? Sorry, that last one would take a room full of municipal lawyers to explain.

And let’s not forget the land grab. The City spent millions of taxpayer’s money to acquire the land, run sewer and water to it, clean it up to the satisfaction of the DEP, widen and improve some roads and extend Bogden Blvd. The City then passed a resolution fixing the price of the land at no less than $40,000 an acre. Problem is it sold 500 acres to NJMP for $5,000 an acre and gave it a 10 year option on an additional 200 acres at the same $5,000 an acre. Furthermore, the City had to give a large chunk of the money to the FAA for a release in order to convey part of the land to NJMP.

So let’s put it in perspective. We have the track. The current furor is not about its presence. The furor is about 1) its failure to do anything about the “noise problem”; 2) its push to make changes in its contracts that will further deteriorate local taxpayers’ quality of life; 3) its failure to live up to its promises; 4) its 50% reduction in the $350,000 payment it promised in order to get the track approved and 5) its perversion of the law requiring the PILOT to be 2% of the cost of improvements or, $800,000.

It is hard to understand why NJMP, with all its claimed resounding success and fame; with all its many supporters and fans; with all its moneyed participants and would be participants; with all its business associates, doesn’t do what it contracted to do. Those coming to the commission meetings, describing their support and the affluence of the attendant businesses and participants, should step up to the plate and provide the financial support the NJMP appears to be lacking to fulfill the promises it made. Given what the County’s taxpayers have paid to make the NJMP possible and the sacrifice in quality of life forced upon local taxpayers, that’s the least NJMP and its followers should do.