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Trump meeting cancelled, EnCap tax liens paid
(by Corey Klein - April 02, 2008)
Mayor refuses Trump meeting
Rutherford Mayor John Hipp canceled a March 27 meeting with Donald Trump, who took the reigns of a controversial landfill-to-golf courses project in the Meadowlands. Hipp said he would prefer a joint meeting with Trump and all of the stakeholders in EnCap. Joseph Maraziti, Rutherford’s attorney handling the project, wrote a letter to Trump elaborating on the borough’s reasons for canceling the meeting.
"The borough recognizes that it is an inseparable part of a larger community of stakeholders in the Meadowlands district, and that any successful endeavor to clean up and reshape the Meadowlands will require the coordinated effort of that larger community," wrote Maraziti.
Maraziti took on the job of handling the legal aspects of the EnCap project for Rutherford recently. Previously, he handled EnCap litigation in North Arlington, but was let go for financial reasons.
Hipp was looking forward to an April 2 meeting to discuss the project with Trump, the New Jersey Meadowlands Commission, the local mayors and the governor’s office. However, the governor’s office canceled, said Hipp.
"We obviously need to get a forum together or something," said Hipp. "The governor’s office is preventing a real serious effort to clean up these dumps."
North Arlington refused to participate in the April 2 meeting, stating they would not join in any discussions until litigation with EnCap is resolved. EnCap sued North Arlington at the end of 2006 for failing to move forward with taking borough businesses through eminent domain to make way for a separate development on Porete Avenue.
The borough wants any discussions about the project to be handled by borough attorney, Anthony D’Elia, but Cohen has called borough hall seeking to speak with councilman Al Granell directly.
Granell pointed to similarities to the approach taken by EnCap in dealing with state and local officials separately to move the project forward, as criticized in inspector general Mary Jane Cooper’s February report on EnCap. "It’s that divide and conquer thing all over again," said Granell.
North Arlington
Trump pays NA taxes
Donald Trump personally signed a $262,642 check to the borough of North Arlington to stop tax liens from being placed on EnCap property in the borough.
EnCap, the developer with plans to turn landfills to golf courses and housing in the Meadowlands, owns four pieces of property on the former Kingsland landfill, located primarily in Lyndhurst but partially located in North Arlington.
Michael Cohen, Trump’s project executive for the Meadowlands project, hand delivered the check to the tax office in North Arlington.
"Mr. Trump directed me to immediately proceed from Trump Tower on Fifth Avenue to borough hall in North Arlington to personally deliver the check," said Cohen.
North Arlington councilman Al Granell was at borough hall prior to the tax lien sale and said Cohen arrived at 11:55 a.m. on March 26, just minutes before the tax lien sale was scheduled to take place.
"Mr. Cohen ran to the tax office, dropped off the check and left," said Granell.
Cohen did not know whether or not Cherokee Investment Partners, EnCap’s financial backer, would reimburse Trump for his money. "That’s between Trump and the Cherokee folks," said Cohen.
To date, Trump has not put any additional money into the project.
However, EnCap is still not fully paid up on taxes through 2007 and should have paid $450,000 to bring the developer up to date. Twice before, EnCap paid overdue taxes after the borough began moving forward with tax lien sales, said Granell. "EnCap doesn’t pay their taxes on time," he added. "We actually called their bluff, so to speak."
The influx of money will help replenish the borough's reserve for uncollected taxes. "I’m glad we’re getting the money owed to the borough," said Granell.
On March 13, the borough introduced this year's municipal budget with a zero percent tax increase. The borough passed a resolution to place less money in reserve in anticipation of EnCap, one of the biggest taxpayers in town, paying up.
If the town does not have enough money in reserve to make up for taxpayers that do not pay, it must place twice as much money in reserve the following year per state law. By receiving EnCap's money, the town has a better chance of avoiding a bigger tax increase in next year's budget.
"Now that we have this money, we can add to the reserve for uncollected taxes and give the town a stronger safety net going into next year," said Councilman Steve Tanelli.
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