Friday, June 23, 2006

Old Bridge Bail Out

From the Star Ledger:

Old Bridge bail out is for local open space trust

Middlesex County officials last night agreed to reimburse Old Bridge for $9 million in loan payments that threatened to cripple the township's open space trust fund.

Old Bridge Mayor Jim Phillips, who also is the county treasurer, thanked the freeholders for their unanimous support. "You're bailing us out," Phillips said.

The mayor stressed the county's reimbursements will go to the local open space trust -- not the township's general coffers. He wanted the public to know his plea for help was not a gimmick to balance his municipal budget.

"Not one penny will go into our operating budget," Phillips said in his brief remarks to the board.

The freeholders last night agreed to reimburse Old Bridge annually for the $600,000 to $700,000 debt payments it will be making for the next 18 years to pay off the $9 million loan from the New Jersey Environmental Infrastructure.

The township borrowed the money to acquire a 196-acre tract, known as Cedar Ridge II, off Morganville Road near the township high school.

A prior administration seized the property through eminent domain to block a developer from building 139 houses on the land. Originally, the township expected the land would cost $6 million and Old Bridge secured a $2 million grant from the county open space trust to help acquire and preserve it.

During the condemnation proceeding, however, the courts concluded the land's true value was $18 million. Phillips said that when he took office he had attorneys review the case to determine whether an appeal could succeed. The attorneys advised against it, he said.
...
Phillips said now that the county agreed to reimburse Old Bridge, the township can pursue its goal of acquiring the Cottrell Farm near the municipal complex, where a developer proposes to build commercial space, townhouses and apartments.

17 Comments:

Anonymous Anonymous said...

tax payers take it again

6/23/2006 06:25:00 AM  
Blogger Shailesh Gala said...

Home sellers, builders feel pinch of slowdown

The above article talks mainly things in Cinncinati area. I wonder if this is situation in Cinncinati, the things could get worse here. The price rise in NNJ was much steeper, and hence price fall also will be steeper.

6/23/2006 08:23:00 AM  
Blogger RentinginNJ said...

From Today's WSJ:

9:51 a.m.: With the federal-funds futures traded on the Chicago Board of Trade increasingly pointing to yet another rate increase in August (making the assumed June increase the fourth in the parade of "one and done" calls that the market has failed at), Comstock Funds questions whether Ben Bernanke hasn't gotten himself cornered. "The Fed's problem is that even before any additional rate increases, a number of important indicators already point to an impending economic slowdown with the potential for a hard landing," they wrote in weekly commentary. "The Fed has already raised rates by [four percentage points], and a large number of nations throughout the world are in the process of tightening as well."

As of this morning, the August futures contract had bumped up odds on an August increase to 89%, from 82% at the close of trading yesterday. While those odds can change, it is a level of certainty that investors didn't expect to see after the Fed reached about 4.75% on the federal-funds target. But by now, the Fed is stuck, Comstock analysts said. "The problem is that after allowing a late 1990s stock-market bubble and a 2003-2006 housing bubble, the Fed has basically lost control," they wrote. "It feels the necessity to fight inflation until further signs of economic softening show up, and by that time it is too late to avoid a likely recession."

--David A. Gaffen

* * *

6/23/2006 09:33:00 AM  
Blogger grim said...

10Y touched 5.21%..

grim

6/23/2006 09:49:00 AM  
Blogger chicagofinance said...

Rent:

Ignore that stuff.

I think there is a legitamate shot that Bennie Boy goes 50 bips to shut everyone up [not the real reason ;)]. Don't be distracted by all the talking heads that are paid to "talk". Bennie certainly doesn't care what they think. Ultimately, he only cares that people start making all manner of bets on different scenarios. He wishes everyone would just sit and wait, but people aren't going to do that, because they are being paid 1%-3% of assets to look busy.

chicago

6/23/2006 10:19:00 AM  
Blogger chicagofinance said...

I find this commentary more objective....

Market Fears Fed May Grow
More Aggressive on Inflation;
Yields Revisit 4-Year High
By MICHAEL S. DERBY and RANDALL SMITH
June 23, 2006; Page C4

The Fed might push interest rates even higher than thought, some economists are starting to say.

With the inflation environment looking less benign, a small vanguard of major investment banks project the Fed will push its overnight target rate as high as 6% in coming months, from 5% currently.

Not everyone agrees. The consensus view among forecasters still holds that the Fed will end its tightening cycle when it reaches 5.25%, very likely at next week's two-day meeting of the Federal Open Market Committee.

But the bond market is getting jittery about a potentially more-aggressive Fed. A meeting held in Washington on Wednesday between Federal Reserve Chairman Ben Bernanke and a group of Wall Street bond traders helped to fuel rumors that the Fed might go so far as to raise short-term rates by half a percentage point at next week's meeting, instead of a quarter point, which has been the increment it has used for the past two years.

The Fed wouldn't comment on the meeting, but one person briefed on the session described it as a "get to know you" occasion attended by traders from about a dozen or more Wall Street Treasury-bond dealers. Two people said Mr. Bernanke didn't broach the possibility of such an increase.

By the end of the trading session yesterday, fed-funds futures markets had priced in roughly a 12% chance that the Fed would approve a half-point rise next week, up from a roughly 8% bet at the start of the day.

Only a few weeks ago, most forecasters didn't even project an increase for the coming meeting. But their views changed after a wave of Fed speeches signaled heightened concern about inflation.

Economists at Barclays Capital say the Fed will hit a 6% funds rate by year's end. "The change is driven by recent upward revisions to Barclays Capital's core consumer inflation forecast" and the firm's view of the Fed's reaction, a research note said.

"We have become less convinced that the FOMC will be comfortable keeping rates at 5.5% after August" given the likely path of price pressures and growth, said Dean Maki, the bank's chief U.S. economist.

The J.P. Morgan analysts expect the Fed to get to 6% by sometime in "early 2007." Moreover, "given the Fed's strong anti-inflation rhetoric, the possibility that it will continue to raise rates past August and reach our 6% target earlier than expected cannot be ruled out," they wrote.

In contrast with Barclays' fairly upbeat view on growth, J.P. Morgan analysts flagged the downside of aggressive tightening. "With the Fed so focused on inflation, the likelihood of a hard landing is also increasing."

As banks have ratcheted up their bets in recent weeks that the Fed will extend its two-year rate tightening cycle beyond the summer, Treasury prices have been under pressure, sending yields higher.

6/23/2006 10:23:00 AM  
Blogger chicagofinance said...

Ultimately, don't listen to what people say [metaphorically], look at the market. The market always tells the real story.

6/23/2006 10:25:00 AM  
Blogger chicagofinance said...

By the way this works for real estate too, the problem is that it is so hard to get good data!!!

6/23/2006 10:27:00 AM  
Anonymous Anonymous said...

Yeah, real estate is a feeling.

Even though I'm a bubbler, I sometimes wonder, in my paranoid fashion, what's "in it" for some people posting here...

Does everyone instinctively know that babbling bubble will make the bulls turn, just takes longer?

And who profits if bubblers help the re market drop faster than it normally would absent bubblers?

Pat

6/23/2006 10:38:00 AM  
Blogger chicagofinance said...

Pat:

Why am I here?

I'm just a hipster poser looking to scam chicks with my bubble talk and $300 jeans.

Oh wait, I'm married with a kid on the way.

Um.....for me, this has been a logical extension of my jihad against Toll Brothers. Also my professional work is so applied, that this is a great excuse for me to keep my theoretical skills sharp and follow the markets.

chicago

6/23/2006 10:48:00 AM  
Anonymous Anonymous said...

O.K. me too.

paranoia: *poof*

6/23/2006 10:50:00 AM  
Blogger chicagofinance said...

That's It!!!!!!!!!!!!!!!!!!

I'm starting a new blog.

Northern New Jersey Jeans Bubble
-boycott $300 jeans
-boooyaaaaa
-no jeans - no nott'ing
-let the Starbucks Latte's ROT!!!!

6/23/2006 12:11:00 PM  
Blogger RichInNorthNJ said...

- And death to 20-something's who either make $200,000-a-year or have large inheritance!!!
(Apparently they're ALL over the streets in NYC! SHOCKING!)

6/23/2006 12:25:00 PM  
Anonymous UnRealtor said...

Even though I'm a bubbler, I sometimes wonder, in my paranoid fashion, what's "in it" for some people posting here...


It's a place to vent until 2007 - 2008.

Also a good place to bypass the Realtor® mafia/cartel and find actual market data and property sales data.

6/23/2006 02:29:00 PM  
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6/27/2006 02:49:00 AM  
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6/27/2006 03:10:00 AM  
Anonymous Anonymous said...

Comment

7/05/2006 09:29:00 PM  

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