Lawsuit says zone upgrades limited

[admin]

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FREEHOLD — Two local business owners have filed a lawsuit against the borough's downtown economic development organization in an attempt to invalidate actions taken at the organization's annual meeting last month.

The business owners contend the Freehold Center Partnership has invested more money and effort on Main Street but ignored other business areas in the borough.

"Streetsweepers (are on) Main Street; banners (are on) Main Street," said Carl N. Steinberg, owner of Carlton Station, LLC, on Monmouth Avenue. "Any enhancement is (on) Main Street."

The other plaintiff, Paul Lussier, owner of the Freehold Center Laundromat on Throckmorton Street, agreed.

"You're paying something you're not receiving anything for," Lussier said.

Partnership chairman Michael Page acknowledged there are problems throughout the district, including on Main Street, that need to be addressed. The partnership is currently restructuring itself with an eye toward remedying many of the issues in the district, he said.

"Our goal is to improve the economic and business development climate in the entire special-improvement district," Page said.

In their lawsuit, Steinberg and Lussier say the Freehold Center Partnership violated applicable statutes and its own bylaws by not making some members aware of their right to vote and allowing unqualified people to vote at the annual meeting May 21.

The suit also alleges that an unnamed individual solicited proxy ballots rather than distributing them in conformance with the bylaws.

Further, the suit contends that the partnership violated its bylaws by holding the meeting in May, instead of April, and by not filing the nominating committee report at the correct time.

The plaintiffs are also concerned about a provision that prohibits partnership members from voting if they have not paid their special district assessments, said their lawyer, Larry Loigman.

The suit names as defendants the Freehold Center Partnership and the Freehold special improvement district, which the partnership operates.

The borough was also named in the litigation because, the suit contends, it neglected its responsibility to ensure that the partnership and district operated in a fair and equitable manner, and to review financial and "other" reports from the partnership and district.

At the partnership's May 21 meeting, votes were held on the board of directors, the partnership's budget and the bylaws, said partnership Chairman Mike Page.

Steinberg and Lussier want all the action taken at the meeting to be vacated and for the partnership to be restrained from acting, except "strictly in accordance with its bylaws and applicable statutes."

One possible resolution might be for a judge to appoint a monitor to oversee new voting, Loigman said.

Page declined to comment on the pending litigation because the partnership attorney needed to review the suit. Borough Attorney Kerry Higgins also declined to comment.

Members pay taxes to the district, in return for such services as additional street cleaning and flower planting, Page said. The taxes also help pay for events such as Kruise Night, a vintage automobile show held once a month from May through August.

Kim Predham: [phone] or [e-mail]

[richardkelsey]

Long before most business lawsuits are filed, honest efforts are made to reach sensible resolutions.

I don't know any of the facts here, but it looks d**n bad for the Borough and the Partnership to be sued by its members. Carl Steinberg, by the way, is not known for being per se unreasonable. Quite the contrary, he is a very reasonable and rational person.

It is bad leadership on the part of those involved who did not step up and broker a peace in the interest of the town. Dumb, Dumb, Dumb.

[admin]

As I read this, I try to reserve judgment. Most of the time there is more to the story. It does sound as if the plaintiffs have some good points. AS I read and saw the borough also pulled onto the law suit, I am reminded of the disconnect we have seen recently between the FCP and th council when the Kruise Nite issues popped up " all of a sudden".

I hope that some good can come of this and a fair and equitable solution is found that is in everyones best interest. I do believe it is unfortunate that this suit has been brought forth.

I hope that in the end, this suit an be a catalyst that provides better relations between all parties and we see even more progress than we have in the down town. I know the vision study is on its way, I hope that too will be of help.

[novillero]

did anyone ever think the FCP was ever about anything other than Main Street? I don't know what goes on behind the scenes, but this appears obvious to me as an onlooker.

and by the way, they (the FCP) don't do Main Street justice either, even though their attention appears to be solely focused there.

[admin]

newstranscript.gmnews.com/news/2008/0702/front_page/011.html

Businessman questions partnership's operation
Throckmorton Street deserves more attention, property owner says
BY CLARE MARIE CELANO Staff Writer


FREEHOLD - A $354,000 budget for the Freehold Borough Special Improvement District (SID) was approved at a special meeting of the Borough Council held June 25.

The council gave its unanimous approval to the SID's budget for 2008, which will require SID members to pay $245,920 in a special tax assessment to support the operation of the Freehold Center Partnership, which oversees activities and events in the borough's downtown area.

The SID tax assessment in 2007 was $205,000, divided among all of the SID members.

Carl Steinberg, who owns the Carlton Station commercial property on Throckmorton Street, said there were inconsistencies in the money raised by the Freehold Center Partnership and how that money was dispersed.

"I don't feel we get our fair share like the properties on Main Street," he told the council members.

Steinberg claimed there was improper conduct in the voting process held at the Freehold Center Partnership's annual meeting on May 21.

"People who were supposed to vote did not get ballots. There are discrepancies," he said, adding, "I am not against the partnership, but we still have problems on Throckmorton Street that need to be addressed."

Steinberg said Throckmorton Street property owners have to deal with a situation that most Main Street business owners do not have to face - day laborers lining up for work on a daily basis.

"I'm not against people looking for work, but we have problems as a result of that, including garbage strewn around and incidents of public urination. If this was a construction site there would be a portable toilet, and there should be one in this area," he said.

Steinberg, who is a former borough councilman, said these issues "hurt the image of our town" and "stop us from renting our properties.'

He said he has tried to get the Freehold Center Partnership to address Throckmorton Street as the main artery going into town that he said it is.

"We pay our share, but we don't get the benefits. We're tired of being treated like the step-child," Steinberg said. "We want the same bang for our buck that everyone else is getting."

Larry Sorcher, who owns the property at 23 W. Main St. and formerly operated Al's Bootery on West Main Street, took issue with the $40,000 increase in the SID tax assessment.

"I feel the partnership spends money on things to create a vehicle for outside vendors," he said. "It's disturbing to see outside vendors … on a banner in downtown Freehold."

Sorcher said the Freehold Center Partnership has not accomplished what he envisioned when he served the organization as president when it was established. He said he envisioned a "real revitalization" of the downtown area.

"The governing body should address these issues," he said. "The governing body and the board of directors of the Freehold Center Partnership see things differently than I do, but this is a redundant conversation."

Mike Page, the chairman of the Freehold Center Partnership, said the organization is working to address the issues Steinberg raised, and others as well.

Page said he did not disagree with Steinberg's comments and concerns and added that "there is some truth in them."

"We are restructuring ourselves to be in a better position to address these issues," he said. "We have to restructure ourselves in order to effect the changes needed."

Page said the organization has hired a new chief executive officer, Richard Gatto, who began on July 1.

Steinberg said many towns are laying off municipal employees. He noted that half of the Freehold Center Partnership's budget goes to salaries.

"I'd try to enhance Freehold Borough by cutting the SID budget. Slice some Kruise Nite expenses and let merchants see a new beginning. These are tough times, no matter what town you're in," he said.

Steinberg said he was told that if he did not like the way the partnership was being run he should challenge it.

"And, that's what we've done," he said, referring to a lawsuit that has been filed in state Superior Court by himself and Paul Lussier of Freehold Center Cleaners, Throckmorton Street, against the Freehold Center Partnership, the Special Improvement District and the Borough Council.

Councilwoman Sharon Shutzer said although she could not comment on the lawsuit, she "did not like the implication that we're not doing our jobs."

"In the Freehold Center Partnership, just as in other organizations, the majority rules. I'm hearing the same three people talk against the partnership. What can I do as a councilwoman but listen to the majority?" she said.

"It's not for me to decide what's fair. I can only do what the majority of the partnership say is right. If there are problems in the partnership, that's your responsibility. If you cannot sway others in the partnership, then I cannot help," Shutzer said.

Councilman Kevin Kane said the partnership has been working hard over the last few years to identify problems and to resolve them. He said things may change with the hiring of a new director. Kane noted that the partnership's bylaws have already been rewritten.

Councilman George Schnurr said although he had some concerns about the SID issues being discussed, he wanted to give people the benefit of the doubt.

"I'm the new guy (on council)," he said. "I'm going to give this a chance. If we're here a year from now, however, listening to the same things, even though the majority rules, I would take into consideration the other views and listen to the dissenters."

[novillero]

A few other business voice dissent... In the end, I think the squeaky wheels will get a little grease, not a dissolution as Cycle Parts owner suggests...


Suit reveals rift over downtown development
SOME MERCHANTS CLAIM FREEHOLD GROUP BIASED
By Kim Predham • FREEHOLD BUREAU • July 14, 2008


FREEHOLD — A recent lawsuit has brought to light a simmering issue in the borough: Not everyone is happy with the Freehold Center Partnership.

The partnership, the organization charged with running the borough's special improvement district, focuses on economic development downtown.

A recent informal survey of the member businesses paying taxes into the district shows opinions are mixed on whether the partnership's services are worth the money members pay for them. Some business owners love the partnership, but others see defects in its operation.

"We are neglected. . . . If (you) are not within . . . the main money pit, you're not involved," said Thomas Iliadis, owner of Tony's Freehold Grill on East Main Street.

The area Iliadis refers to is the borough's so-called "Restaurant Row," a strip of Main Street that includes high-profile eateries such as Court Jester, Federici's and Cornerstone Caffe.

That perceived preference was an impetus for a lawsuit recently filed by local business owners Carl Steinberg of Carlton Station and Paul Lussier of the Freehold Center Laundromat, Steinberg has said. Carlton Station is on Monmouth Avenue; the Freehold Center Laundromat is on Throckmorton Street.

While Steinberg and Lussier's suit primarily focuses on alleged improprieties surrounding the partnership's annual vote in May, Steinberg has said he was motivated by frustration over what he says is a lower level of service provided to district members not in that area of Main Street.

Some business owners interviewed echoed Steinberg's feelings.

"We don't really get much bang for our buck," said Ed Henderson, owner of Henderson's Service Center on Throckmorton Street.

And Joe Boguslawski, owner of Mr. Cycle Parts on Throckmorton Street, said he wants to join Steinberg and Lussier's suit.

"I would like to see the partnership dissolve," Boguslawski said. "They've destroyed great events like Kruise Night."

Although Steinberg is not alone in criticizing the partnership, not everyone in the district sees problems with the organization's services. Some business owners praised the partnership's efforts.

"I love the partnership," said Joe Gilpin, owner of Freehold Tire Center on Center Street and a former member of the partnership's board.

"They help Freehold. They market Freehold," Gilpin said.

And over at County Seat Tobacco on South Street, manager Burt Kaplan said the street's businesses have been included in improvement projects and in events like Kruise Night. Focusing more attention on Main Street is understandable, Kaplan said.

"The main attraction for people coming into Freehold is Main Street. . . . It's just certain areas are more prominent than others," he said.

Jessica Furnare, assistant manager at the Cornerstone Caffe on East Main Street, agreed that the partnership has helped Main Street businesses.

"They do bring a lot of businesses to the Main Street," Furnare said. She said her only criticism was that the partnership did not adequately advertise for this year's first Kruise Night in May, which was approved by the Borough Council just weeks before it was held.

Michael Page, chairman of the partnership and owner of Court Jester, defended the group, reiterating his assertion that the partnership's current restructuring will help resolve many member complaints.

The restructuring will focus the partnership on business and economic development rather than events, members have said. A part-time economic development consultant, Richard Gatto, joined the organization July 1.

"We've really put ourselves in a position to make an impact," Page said.

Kim Predham: [phone] or [e-mail]
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