You would be hard pressed to find someone who thinks the Delaware River Port Authority has not overstepped its bounds with its "economic development" projects like providing $6 million to build a medical facility at George Norcross' hospital. And you would also have to use convoluted reasoning to conclude that the appointed DRPA Board reflects the voice of the people.
The main function of the DRPA is to run the bridges and ports in South Jersey. And while their recent toll hikes have drawn the ire of commuters, this unaccountable bi-state agency has branched out to include projects, many worthy of consideration, that have nothing to do with the bridges or ports. In addition to the hospital upgrades for South Jersey's political boss, some of the projects include dorms for Rutgers-Camden and improvements in a rowing course on the Cooper River.
Collingswood was among the 0.6 percent of public entities rated by Moody's to receive a "large, multi-notch downgrade," or a downgrade of two or more notches. The borough was dropped an astonishing six notches, from A1 to Ba1.
The primary source of the problem seems to be a development scheme wherein the borough underwrote considerable debt to secure the financing of high end housing:
The downgrade was a reflection of doubts over how Collingswood would fully pay off $8.5 million for the LumberYard, a luxury housing and retail complex near the PATCO Hi-Speedline. The borough will make an extended maturity deadline of Dec. 7, but not without borrowing another $4.5 million to purchase unsold condos, which it will try to lease.
This odd situation has lead Reuters columnist and municipal debt expert, Cate Long to award the Borough of Collingswood the "Muniland Absurdity of the Year Award" Long writes:
The small town of Collingswood, New Jersey is facing some rough sledding in the next 90 days as it attempts to raise cash to pay off loan guarantees it made on behalf of a local condo and commercial development.
The private project, The Lumberyards, originated in 2006 with funding from TICIC, a consortium of New Jersey banks that provided $18,000,000 in construction loans to Lumberyard Condominiums. After completing about one third of the project the developers encountered weak demand when the housing market and economy softened following the 2008 financial crisis. The developers are now broke and have turned to the town of Collingswood, their municipal guarantor, to repay the loan to TICIC.
Down here in Camden County where patronage flows like the river Jordan, new details have emerged about yet another wellspring of largess. You gotta see this clip from Zachary Fink on NJN.
This move should restart a long standing feud between PA and NJ. Pennsylvania Senators Arlen Specter and Bob Casey requested $3.8 million in the omnibus spending bill to dredge and deepen the Delaware River. The funding would go toward deepening the 103-mile main shipping channel by five feet between the Philadelphia Harbor and the mouth of the Delaware Bay. The move has long been fought by New Jersey and the funding request prompted this strong response from Congressman Andrews:
"Despite the fact that this $3.8 million earmark is not even 2 percent of the anticipated total cost, any money spent toward dredging the Delaware is a terrible misuse of taxpayer's money at a time when our economy cannot afford to waste," he said, pointing to a Government Accountability Office report that said deepening the river would result in a 49-cent loss for every dollar invested.
The project still hasn't received environmental permits for New Jersey or Delaware. Environmentalists have argued the project threatens aquatic life, drinking water and wetlands, without economic justification. Over the last decade, five New Jersey governors from both parties have opposed the project. The last time this issue came up, it became a sixteen month battle that involved holding up board meetings with the Delaware River Port Authority.
