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.
12 Comments:
tax payers take it again
10Y touched 5.21%..
grim
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
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.
Ultimately, don't listen to what people say [metaphorically], look at the market. The market always tells the real story.
By the way this works for real estate too, the problem is that it is so hard to get good data!!!
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
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
O.K. me too.
paranoia: *poof*
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!!!!
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.
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