By Nicole M. Maiese
NEWS Correspondent
Gloucester City Council expects to hire a management firm to run Chatham Square as apartments for at least one year.
City officials said that because of the economy, it is difficult to find a developer for the site near Klemm Avenue and Route 130.
The City recently purchased the apartments to \”get rid of an eyesore, and a problem,\” Mayor James said, adding that the biggest problem has been lax management for the past six years.
The apartment buildings are in better shape than anticipated, and the rents will make up for the lost tax revenue.
Resident Jim Kelly said he was concerned about the City becoming a landlord.
The 65 homes built by Beazer in Meadowbrook Run, adjacent to Chatham Square, are now all purchased and occupied.
In other business, City Council approved the 2008 municipal budget after a public hearing.
Councilman Nick Marchese said the City has applied for discretionary and extraordinary aid from the state to supplement the budget.
\”We think we have a strong application,\” James said.
If the state denies the aid, the $16,439,000 budget will raise taxes 41 cents per $100, or $287 a year on the average assessed home of $70,000.
During the budget hearing, Resident Lewis Stout asked if this included the increases in the school budget and the county budget, and was told this was strictly the municipal budget.
He then asked why the City did not simply foreclose on the Chatham Square property.
The City Solictior said he thought friendly redevelopment was the better option.
In response to a question by resident Theresa Graham concerning streamlining the budget, City Administrator/Clerk Paul Kain explained there was a major increase in the City\’s contributions to the pension funds of employees, and that no new jobs have been created.
\”Cuts were made from all operations,\” Kain said. \”We tried not to go into personnel and salaries.\”
\”We maxed out on capital expenses. We can\’t cut anymore,\” Marchese said.
After City Council came out of executive session, members passed an ordinance on first reading amending the salary ordinance. The second reading and public hearing will be Thursday, May 15, at 8 p.m.
It established the salary guidelines of the new UEZ Coordinator/Director of Community Development Howard Clark at a minimum of $48,741 and a maximum of $60,000.
Kain said that this will not be paid by the City, but rather by the Urban Enterprise Zone.
The guidelines for the Project Assistant to the Governing Body will be a minimum of $29,000 and a maximum of $35,000.
During the regular meeting, Council tabled an ordinance that would have vacated a portion of Cumberland Street near Broadway for the building of a Commerce Bank branch.
Kain explained that the City still had not heard from bank officials.
Mayor James said that Gloria Rowan of Commerce told members of the Gloucester City Business Association that the branch will still be built, hopefully by the third or fourth quarter of this year.
Council passed a resolution authorizing the Louis Berger Group, Inc., to provide an archeological and historical survey of the Water Works Plant.
Also, Council selected Remington & Vernick as the project engineers for building the new Water Works Plant at Johnson Boulevard.
During the Public Forum, Norman Hill said the old Power Plant near GAF on Water Street is historic, and asked if the City could save it.
The City Solicitor said that would be difficult, because the area is \”an environmental disaster. There is asbestos, and PCBs, and the plant now presents a public health hazard.\”
Frank Wunsch said he was concerned about the possibility of underground oil storage tanks at the Chatham Square Apartments.
The solicitor said there are oil tanks in the basements.
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