SETTING THE RECORD STRAIGHT

Dear Patch Readers:

 I normally do not respond to blogs or posted comments on the Newark Patch. I realize that these are typically one person’s opinion and fact checking is not required prior to posting.  However, after reading yesterday’s Board Post by Paul Rea, I felt compelled to correct the numerous inaccuracies in his article.

The event that I was invited to speak at was a Chamber of Commerce luncheon that was scheduled and organized by the Newark Chamber of Commerce.  It is one of 4 luncheons that the Chamber hosts each year to provide its members with a variety of information they hope is relevant to their membership. Mr. Rea’s characterization of the Chamber luncheon as a “public meeting” subject to the California Brown Act is completely inaccurate.  I would suggest that Mr. Rea educate himself on the specifics of the Brown Act before he makes such claims in the future.

 In addition, Mr. Rea’s description of the attendees as a “tiny elite group” is not only inaccurate but is insulting to the 140 members of the business community and the public that attended the luncheon. During the luncheon, I spoke about a variety of topics that I thought would be of interest to the business community including the current business climate in Newark, upcoming development activities, the City’s budget, community volunteerism, and the improvement in SAT scores in the Newark School District.

 Mr. Rea’s claim that the recent Economic Incentive Agreement that the City signed with the owners of the NewPark Mall would “compromise the purpose of renovating the Mall….and would cost the City millions and require taxpayers make up the lost revenue” is completely inaccurate. The fact is the agreement is the primary reason that Rouse Properties is making a $40 million dollar investment in the Mall.  The agreement includes a sales tax sharing formula that provides Rouse with 80% of future growth of sales tax from only the “inline portion” of the Mall.  This excludes the major anchor tenants.  No existing sales tax goes to Rouse and taxpayers will NOT be required to make up lost revenue. No growth in sales tax means no incentive for the Mall.  Frankly, without the agreement, our Mall would continue to lose market share to our neighboring cities and deteriorate further.

 His claim that this was a “secret deal cut in a closed meeting” is ludicrous. The agreement that the City signed with Rouse Properties was discussed openly at the March 27, 2014 City Council meeting (with public input), and was unanimously approved by the City Council. I would have hoped that Mr. Rea would have done his homework and read the agreement before making such ridiculous and inaccurate claims.

 I appreciate the opportunity to clarify the facts regarding this matter.

 Alan L. Nagy

Mayor