1 1 HOUSING AUTHORITY OF THE CITY OF NEWARK 2 NEWARK, NEW JERSEY 3 THURSDAY, JANUARY 28, 2021 4 x--------------------------------x 5 IN THE MATTER OF: * 6 THE SPECIAL MEETING * TRANSCRIPT 7 OF THE HOUSING AUTHORITY * OF 8 OF THE CITY OF NEWARK * PROCEEDINGS 9 via Zoom * 10 x--------------------------------x 11 HOUSING AUTHORITY OF THE CITY OF NEWARK 12 500 BROAD STREET 13 NEWARK, NEW JERSEY 14 B E F O R E: 15 HOUSING AUTHORITY OF THE CITY OF NEWARK 16 EDDIE OSBORNE, President 17 MARTINIQUE COSTA, Commissioner 18 FAUSTO BAEZ, Commissioner 19 NORMA GONZALEZ, Commissioner 20 BRIAN LOGAN, Commissioner 21 ALIF MUHAMMAD, Commissioner 22 23 24 ANTHONY HOFMANN, C.C.R. 25 LICENSE NO. XIO1854 2 1 PROFESSIONAL STAFF: 2 3 VICTOR CIRILO, Executive Director 4 KATIA OLIVEIRA, Executive Assistant 5 ELIO MENA, Counsel 6 DANNY GONZALEZ 7 GREGORY GOOD 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 1 I N D E X 2 PAGE 3 Transcript of Proceedings 4 4 5 RESOLUTIONS PAGE 6 H-1 9 7 Executive Session 10 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 4 1 (Whereupon, the proceedings as 2 previously recorded were transcribed as 3 follows.) 4 MR. CIRILO: Let them know we're 5 demolishing the property and plans for the property. 6 And, lastly, it needs to be all bundled together and 7 put into an application submitted to the HUD office 8 in Chicago for final approval so we can demolish the 9 property and build a new complex in that facility. 10 Lastly, you know, I believe it was 11 last month we approved a developer partner for West 12 Side Villa to help us in the development process 13 once the property is demolished. Today we would be 14 taking the steps to ask HUD to allow us to demolish 15 the property and move forward with the development 16 process. 17 Any questions? 18 CHAIRMAN OSBORNE: Do the 19 Commissioners have any questions? 20 COMMISSIONER GONZALEZ: I don't. 21 COMMISSIONER MUHAMMAD: This is 22 Commissioner Muhammad, Chairman. 23 MR. CIRILO: Commissioner Muhammad. 24 COMMISSIONER MUHAMMAD: I thought the 25 developers were paying for the demolishing. 5 1 MR. CIRILO: Sure. That deal hasn't 2 been yet finalized as far as who is responsible for 3 the payment of the demolition. We need first to get 4 approval and then we will figure out how, you know, 5 the redevelopment plans addresses it. The Housing 6 Authority is required to put some skin into the deal 7 in the form of the land, in the form of some subsidy 8 via project based vouchers and perhaps some 9 financial amount in order for us to build in a 10 strong ownership in the new complex. 11 COMMISSIONER MUHAMMAD: I understand 12 that, but the problem is that's why the other 13 developer backed out because they wanted us to pay 14 for demolition so I thought that the new developer 15 was paying for -- they said they were assuming the 16 responsibility of demolition. Now you are saying we 17 are going to get a grant for it. I don't understand 18 that. 19 MR. CIRILO: Sure. For your first 20 point, Mr. Muhammad, the issues was environmental, 21 it wasn't the cost of demolition. It was the cost 22 of any environmental liability. The developer 23 partner backed out because they would have incurred 24 and this current developer agreed to incur any 25 environmental liability associated with the 6 1 property. That's on the first point. 2 On the second point, the matter of the 3 demolition or expense or any type of financial 4 structure is still not yet finalized. 5 CHAIRMAN OSBORNE: Are there any other 6 questions? 7 COMMISSIONER MUHAMMAD: Chairman, one 8 minute, I'm confused. What environmental problems 9 we have over there? I'm so sorry because see I 10 remember this deal and then they brought in somebody 11 else and then we took that person out. I am just 12 trying to understand this, you know, that what do 13 you mean by environmental? I don't understand that. 14 MR. CIRILO: Sure. So we are required 15 to do an environmental assessment of properties and 16 then we negotiate a deal. I can give you an example 17 again, Felix Fuld. We in the legal document in the 18 redevelopment deal we itemized what we write in who 19 is responsible for the clean up cost, if there is 20 any clean up cost. Whether it be the developer or 21 the owner, the Housing Authority, after the 22 preliminary environmental assessment is done. So to 23 your original point, the developer did not agree for 24 us to extend to them liability in case there is 25 clean up to be done and they backed out. 7 1 COMMISSIONER MUHAMMAD: Stop, I'm 2 sorry, this is my fault. This is -- I'm sorry, I am 3 trying to get my screen working on this new 4 computer. All we are doing is asking HUD to allow 5 us demo, right? 6 MR. CIRILO: That's correct. 7 COMMISSIONER MUHAMMAD: That is what 8 this is, right, this resolution? 9 MR. CIRILO: That is all we are voting 10 on today. 11 COMMISSIONER MUHAMMAD: I am so sorry. 12 I am so busy trying to work this new computer that 13 is why you see the screen. My bad, sorry, Chairman, 14 go ahead, I'm sorry. 15 CHAIRMAN OSBORNE: No problem. 16 Any other Commissioners have any other 17 questions or concerns? 18 COMMISSIONER BAEZ: I just wanted to 19 know, I know it's going to be demolition, but 20 whatever we are going to build up there it is going 21 to be affordable housing, right? 22 MR. CIRILO: Correct, Greg, is it a 23 hundred percent affordable or is there a mixture for 24 the current proposal? 25 MR. GOOD: Yes, the current proposal 8 1 as it is the first phase is eighty-two units of 2 senior housing, four percent LIHTC credits is the 3 goal and then ninety-four unit senior building 4 secondarily will be the unit mix. 5 MR. CIRILO: It is affordable to your 6 question of Mr. Baez. 7 MR. GOOD: Yes, the project is 8 affordable, Commissioner. 9 COMMISSIONER BAEZ: The four percent 10 you say is always a little. 11 MR. GOOD: It is just the nature of 12 the funding is four percent Low Income Housing Tax 13 Credits which means that part of the project will be 14 funded by that pool of money and in order to receive 15 that bid of money, we have to produce affordable 16 housing units. 17 COMMISSIONER BAEZ: That is what I 18 mean, I would like affordable housing. Thank you 19 very much. 20 MR. GOOD: No problem, sir. 21 CHAIRMAN OSBORNE: Any other questions 22 or concerns? 23 So I guess we are all right with this? 24 COMMISSIONER BAEZ: Yes, sir. 25 CHAIRMAN OSBORNE: Move on to the next 9 1 matter. 2 MR. CIRILO: We will entertain a 3 motion to move this resolution if it is okay with 4 you. 5 CHAIRMAN OSBORNE: Let's make a 6 motion. 7 COMMISSIONER BAEZ: I move it. 8 COMMISSIONER GONZALEZ: I will second 9 it. 10 MR. CIRILO: On the motion, Mr. 11 Chairman. 12 Commissioner Logan. 13 COMMISSIONER LOGAN: Yes. 14 MR. CIRILO: Commissioner Muhammad. 15 COMMISSIONER MUHAMMAD: Yes. 16 MR. CIRILO: Commissioner Baez. 17 COMMISSIONER BAEZ: Yes. 18 MR. CIRILO: Commissioner Gonzalez. 19 COMMISSIONER GONZALEZ: Yes. 20 MR. CIRILO: Commissioner Costa. 21 COMMISSIONER COSTA: Yes. 22 MR. CIRILO: Chairman Osborne. 23 CHAIRMAN OSBORNE: Yes. 24 MR. CIRILO: The motion passes. 25 Mr. Chairman, the second item on the 10 1 agenda is an Executive Session to discuss personnel 2 matter. I would ask that you entertain a motion to 3 go into Executive Session at which point the public 4 feed is cut and we go into Executive Session. 5 CHAIRMAN OSBORNE: Let's make a 6 motion. 7 COMMISSIONER BAEZ: I make a motion. 8 CHAIRMAN OSBORNE: Mr. Baez. 9 Can I get a second? 10 COMMISSIONER COSTA: I will second. 11 CHAIRMAN OSBORNE: Commissioner Costa. 12 MR. CIRILO: On the motion to go into 13 executive session. 14 Commissioner Logan. 15 COMMISSIONER LOGAN: Yes. 16 MR. CIRILO: Commissioner Muhammad. 17 COMMISSIONER MUHAMMAD: Yes. 18 MR. CIRILO: Commissioner Baez. 19 COMMISSIONER BAEZ: Yes. 20 MR. CIRILO: Commissioner Gonzalez. 21 COMMISSIONER GONZALEZ: Yes. 22 MR. CIRILO: Commissioner Costa. 23 COMMISSIONER COSTA: Yes. 24 MR. CIRILO: Chairman Osborne. 25 CHAIRMAN OSBORNE: Yes. 11 1 MR. CIRILO: Okay, we are going to 2 move to Executive Session at this point. We will 3 ask our staff in the room to excuse themselves and I 4 will call you back once we are ready to proceed. 5 CHAIRMAN OSBORNE: Thank you, sir. 6 MR. CIRILO: Thank you very much, 7 Greg, have a good night or good day. 8 9 (Whereupon, the proceedings were 10 concluded.) 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 12 1 C E R T I F I C A T E 2 3 I, ANTHONY HOFMANN, a Certified Court 4 Reporter, and Notary Public within and for the State 5 of New Jersey, certify that the foregoing is a true 6 and accurate transcript of the stenographic notes of 7 said witness(es)who were first duly sworn by me, on 8 the date and place hereinbefore set forth. 9 10 11 12 ___________________________ ANTHONY HOFMANN, C.C.R. 13 LICENSE NO. XIO1854 14 15 16 17 18 19 20 21 22 23 24 25