LIBRARY MAY NOT SEE $100G PAYMENT

PASSAIC -- Two partners in a development company, one a mayoral appointee to the Passaic Valley Water Commission, promised to pay the library $100,000 as part of a developer's agreement with the city.

But now the city's library, strapped for cash, may never see the money.

George Capodagli and Rigoberto Sanchez own River Edge at Passaic Urban Renewal LLC. The two entered into an agreement in 2005 with the city's Redevelopment Agency to develop a six-acre parcel of land into a 138-unit residential community along the river.

Sanchez is a close friend of Mayor Samuel Rivera, who appoints all members of the Passaic Redevelopment Agency and all but one member of the city's Planning Board.Rivera, who can appoint two members to the Passaic Valley Water Commission, appointed Sanchez in January 2005.

The developers were supposed to enter into a contract with the owners of the six acres by April 30, 2006. The contract stipulated that the company would pay the library $50,000 after receiving final approval for Phase I of the project and an additional $50,000 after construction was finished.

The Planning Board approved site plans for the project in May 2006. The developers never paid the first installment. The developers were unable to negotiate a purchase price with the property owners, Walter Jurczak and Matt Realty of Branchville in Sussex County. They have been in default of the agreement for more than a year. The Redevelopment Agency, whose members are appointed by the mayor, has taken no formal action against the developers.

In June, River Edge asked the Redevelopment Agency for a three-year extension. Last Thursday, the Redevelopment Agency commissioners formed a subcommittee to negotiate the extension and other changes to the agreement.

Redevelopment commissioner Miguel Frias said Tuesday that no action was ever taken against the company because the city did not want to lose its business.

"If we sent them a default letter, and we start charging penalties, I think that's just going to turn them off," Friassaid in a telephone interview. "I don't think the best move of the city is to have them just leave and not do anything."

Clause likely to be amended

Redevelopment Agency Director Glenn Carter said Tuesday that the clause requiring River Edge to donate to the library will most likely be amended in any new agreement.

"There's just no nexus between building 120 units and having to contribute to the library," Carter said. "You want to have some relationship between what the developer is doing and what you are getting."

Former Redevelopment Agency director Donna Rendeiro said she put the clause in the contract upon the suggestion of a City Council member.

"It's typical in redevelopment for a municipality to negotiate in benefits to the community," Rendeiro said. "Given the financial state of the library, it made sense."

Library Board President Craig Miller said he had no idea the developers owed the library money.

"We were never officially informed about this agreement," he said. Miller said he would look into what could be done about ensuring that the developers comply with the original agreement.

In the spring, library officials said they could not afford to keep the Reid Memorial Branch Library open because repairs to its leaky roof were too costly. Library officials said they would need $155,000 to keep the librarian open. Mayor Rivera said he would start a private foundation to save the library.

But library officials contend the Reid requires a lot more money than the $13,500 Rivera said was needed to repair the roof.

"If someone makes a commitment to the children, the seniors and to the reading public, we expect the pledge to be fulfilled," Miller, of the library, said.

Developers got stalled

Rosario Presti, River Edge's general counsel, said the developers were unable to move forward with the project because of the poor real estate market. He said the developers did not believe they were obligated to pay the installments mentioned in the redevelopment agreement because they had not received approval from the state Department of Environmental Protection for the project.

"The way we interpret it is that we haven't received the final approval to trigger that installment," Presti said. "The time isn't ripe for us to make the installment."

Both Sanchez and Capodagli have contributed to city elected officials, according to campaign finance reports. Capodagli gave $2,000 in campaign contributions to Jonathan Soto, a former councilman who is a member of the Passaic Redevelopment Agency and its former chairman.

Soto and Rivera were arrested on federal corruption charges earlier this month accused of accepting bribes in exchange for influencing local and regional governing boards. Rivera allegedly bragged that he controls five of the seven commissioners on the Passaic Valley Water Commission, according to a federal corruption complaint.

On Wednesday, Soto refused to comment for this story.

Sanchez, who owns Apolo Taxi, gave the mayor $2,200 for his 2005 re-election campaign. Capodagli Property Co. gave $2,200 to the campaign.

Neither Capodagli nor Rigoberto returned calls for comment Wednesday.

Rivera denied involvement in the negotiations.

"Rigo(berto Sanchez) is very close with me, I put him on the water commission," the mayor said Wednesday. Rivera said that he had nothing to do with the Redevelopment Agency's decision to consider a new contract with the developers.

"I have a lot of close friends, and I never do nothing for them," Rivera said. "Any contractor who makes a contract with the city should live up to it."

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