Senate stalls bill to sell off surplus land

Critics fault bidding process
Posted by the Asbury Park Press on 03/5/07
BY MICHAEL RISPOLI
GANNETT STATE BUREAU

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TRENTON — Lost in the shuffle of budget talk and subpoenas, a 
seemingly inconspicuous bill authorizing the sale of surplus land 
stalled in the Senate recently after previously passing the state 
Assembly unanimously.

The sale of the former State Police barracks on Route 130 South in 
Edgewater Park, Burlington County, found itself at the center of an 
unexpected debate, after which the bill deadlocked in a 17-17 vote. 
The bill was pulled back and will be voted on again.

Critics said the sale of the 3 1/2 acres of land went for too low a 
price — $1,028,000 — especially for a state looking to sell assets 
to raise cash, and that the auction in which it was bid was flawed.

Those upset with the way the land was auctioned said the state used 
a "candle auction," in which bidders call a recording where they 
learn of the highest offer and can place a higher bid until time 
expires.

The state Treasury Department, however, has not used candle auctions 
since the fall of 2005, said Treasury spokesman Mark Perkiss. The 
barracks auction, conducted from Jan. 24 to Feb. 3 2006, took place 
on the Internet — similar to an eBay auction. Some say the method is 
similar, just online.

Sen. Leonard Lance, R-Hunterdon, said it did not matter whether it 
was a candle or online auction, the process used is still not the 
way to go when selling state property.

"The highest price is traditionally achieved through a sealed-bid 
process," Lance said.

The outspoken critics of the transaction, mostly Republicans, did 
not seem to have a problem with the decision to sell the land but 
wanted the bill to be held and amended to require another appraisal.

"I am not an appraiser . . . but a million dollars for nearly 4 
acres of land on Route 130 is a tad low," Sen. Peter Inverso, R-
Mercer, said.

The land was appraised at $545,000 by P.B. Sopenhoff and Associates 
after the state declared the land "surplus" in March 2004.

Mark Remsa, director of Burlington County's Department of Economic 
and Regional Planning, said the land hasn't been used for at least 
10 years and that a high bid for nearly double the appraised value 
was fair.

"Sounds like the state is getting a great deal," Remsa said. "Three 
acres for a million bucks. . . . That's a fair price."

The land was initially offered to Edgewater Park, but the township 
passed on purchasing the land. The highest bidder on the land, 
Joseph Lieberman, is expected to put up retail stores or maybe a 
strip mall, according to Remsa.

Linda Dougherty, municipal clerk and township administrator for 
Edgewater Park, said local officials were "a little taken aback" by 
the reaction the authorization got in the Senate. Since the land was 
taken off the township's tax roll in 1955, Dougherty said the 
township has lost an estimated $350,000 in revenue from the land and 
that because of its location, it could generate some money.

"When you have an area that's blighted . . . anything that comes 
along to start improving those properties certainly affects and 
stimulates economic growth around those properties," Dougherty said.

Dougherty added the property needs to be improved not only for 
economic purposes, but because its location acts as a gateway on a 
main corridor into the town.

"It's an eyesore right now," Sen. Diane Allen, R-Burlington, said. 
She co-sponsored the bill along with Sen. Shirley Turner, D-Mercer.

During Gov. Corzine's annual budget address, he repeatedly spoke of 
the state's financial troubles, urging others to think outside the 
box. As lawmakers try to come up with ways to garner money for the 
state, Turner said this can help aid the state's financial woes.

"We need the money in our treasury, and this is money we can use now 
to stabilize property taxes, school aid and also help us with the 
budget," Turner said.

Turner added that the bill is expected to be posted again at the 
next voting session on March 12 without any changes made, but with 
the hopes of more Democrats in her caucus voting in support of the 
sale.

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