Group Wants Referendum on Convention Hall Bond

CAPE MAY — A group headed by resident Virginia Hesel is circulating a petition to require the city to hold a special referendum election on city council’s passage of a $10.5 million bond May 20 to finance construction of a new Convention Hall.
Council unanimously passed the bond ordinance .
The petition notes the Faulkner Act gives voters the power of referendum. The petition said the referendum would determine if the city’s voters wish to fund the project through the bond ordinance.
According to Christine Miller — who spearheaded a referendum that delayed reconstruction of the Washington Street Mall for one year after voters defeated a $6.4 million bond ordinance that included $5 million for reconstruction of the mall — signatures equal to 15 percent of those who voted in the last general election are needed to bring about a referendum. Miller estimated 180 to 200 signatures would be needed.
City Council has the option of rescinding the ordinance once it receives the petition to avoid a special election that could cost the city up to $26,000.
The petition committee consists of Hesel, Dr. Scott Maslow, Susanne and John Vincent McIntyre, Susanna Newman, Rita Tice and Marilyn Jo Tolley.
City Manager Luciano V. Corea Jr. told the Herald May 27 “a referendum doesn’t make any sense, all the bond did was to appropriate the needed funding that we’re going to need for a Convention Hall anyway.”
“All it’s going to do is cost the taxpayers more money if in fact they get enough signatures to get it certified to have the election,” he said. “We’re going to have to go out and get a bond again anyway, so all they are doing is adding tens of thousands of dollars to the cost of a project.”
Even if council rescinds the ordinance passed May 20, Corea said sooner or later, council will have to pass another bond ordinance to appropriate the funding.
He said the city has spent several thousand dollars getting a bond waiver put in effect.
The city received a waiver from the Department of Community Affairs (DCA) from a requirement for a $500,000 down payment on the bond, preventing a hike in next year’s budget of 2.5 cents per $100 of assessed value to cover it.
Corea predicted the waiver could apply to a future bond ordinance.
He said the bond ordinance would not impact taxes before 2010.
“If anybody wants a new convention hall, they are going to have to pay for it anyway,” said Corea.
He said the petition drive amounts to a vocal minority trying to obstruct what has been openly discussed for over two years.
“I don’t understand what the issue is with stopping the bond when there hasn’t even been a design approved for anyone to object to,” said Corea.
A number of theories are circulating throughout the city including that a large developer intends to both purchase and restore the Beach Theatre and build a new Convention Hall surrounded by national chain stores such as The Gap and Starbucks. The theory includes two parking garages in the city and expansion of the mall towards Bank Street.
Corea said he had no knowledge of anyone on council having ever entered into any discussion with developers for such a project. He said plans only call for a couple of retail stores in the front of Convention Hall and a restaurant in the rear to help offset the cost of the building