Don't forget to VOTE on Tuesday

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Permalink Reply by Kyle on June 10, 2010 at 6:36pm

Eric for some whom donated to a campaign and received a board sit, we wouldnt call it filth. But beining the president of POG, we would think you know better>

Not the 1st time pay to play accusations flew:

http://www.hudsonreporter.com/view/full_story/2412012/article-Candi...

Candidates forced to explain campaign flyers T...financing
by Michael D. Mullins Reporter staff writer May 08, 2007

When one pair of council members held a press conference on the steps of City Hall Tuesday to charge that their opponents were telling lies about them, the aforementioned opponents appeared at the event to try to answer some of the questions raised.

First Ward Councilwoman Theresa Castellano and 3rd Ward Councilman Michael Russo, who are running for re-election to the nine-member City Council this May 8, complained about a misleading flyer handed near by the local ShopRite last weekend. The flyer came from the joint campaigns of 1st Ward candidate Ron Rosenberg and 3rd Ward candidate Frank "Pupie" Raia.
...

Raia and Rosenberg responded by saying that while Raia had recently put $5,000 in their joint campaign fund, he took it back out a week ago.


Can a developer fund himself?

When Castellano introduced the press conference on Tuesday, she said she was exposing what "may be an illegal act committed by Ron Rosenberg and Frank Raia."

Castellano then referred to the fact that the candidates had filed blank ELEC reports, which are state campaign financing reports.

In response to the councilwoman's charges, Rosenberg said that when the first ELEC report was required, which was 29 days prior to the election, there were no campaign funds or expenditures put into Raia and Rosenberg's joint account.

Rosenberg added that later, Raia contributed $5,000 of his own money to the joint account. However, the week before the press conference, Raia removed the funds, so their joint account now has "not a single penny" from Raia.

Rosenberg said the account now has only Rosenberg's money, and friends' donations.

Castellano charged that Rosenberg and Raia's reluctance to reveal their campaign finances was because it could be perceived as a violation of the recently passed "pay to play" reform ordinances that limit developer contributions to candidates.

The ordinances were put forth by the People for Open Government (POG), a non-partisan political committee dedicated to promoting open transparent government. They are an attempt to control the influence companies have over politicians when it comes to contracts being awarded.

Eric Kurta, who is the president of POG, took a leave of absence from POG to be Rosenberg's campaign manager.

"Mr. Rosenberg and Mr. Kurta are running a political campaign financed by Mr. Raia, an admitted developer," Castellano claimed. "This is an insult to all Hoboken residents who supported the effort to reform campaign funding on a local level."

Rosenberg said that the withdrawal of the $5,000 from the account stemmed from a mutual agreement between both candidates that Rosenberg would bear the financial burden this time around, since Raia funded much of a previous campaign in which the two took part two years ago.

Castellano noted that recently, Rosenberg and Raia changed their campaign literature from "Paid for by Raia and Rosenberg for Hoboken Council" to "Paid for by Rosenberg for Hoboken Council."

Rosenberg attributed it to a printing error.

Rosenberg also pointed out that his campaign literature included the required documentation as to who was providing the funding, and Russo and Castellano's literature does not always display that documentation. Rosenberg presented one piece of pro-Castellano literature that didn't display funding information.

Kurta and Raia respond

The pay-to-play reform ordinance, according to Kurta, prohibits developers who are negotiating for or redeveloping within specially designated city zones, from contributing to local candidates or political parties, in an attempt to reduce businesses' influence over politicians' decisions.

It is true that Raia is currently involved in a contract with the city in a designated redevelopment zone, which he entered into during the 1990s. But because he is not financing anyone's campaign right now, it is a non-issue, said Kurta.

He added that the ordinance does not preclude a developer from running for elected office.

Regarding his decision to be Rosenberg's campaign manager, Kurta said that he did so not as a representative of POG, but rather as a friend who agreed with the candidate's policy to achieve an open and transparent municipal government.

Another issue Russo raised is Raia's interest in the former mercury-contaminated site at 720 Grand St., a property located in the 3rd Ward that was purchased from the Environmental Protection Agency earlier this year by a development firm in which Raia is a partner.

According to Raia, the property is not located within a redevelopment zone right now. He added that his intention to build a much-needed senior building in Hoboken was not a violation of the pay-to-play reform ordinance or a conflict of interest, being that he is running for an elected office.

Rosenberg goes after Castellano

Taking the offensive after the press conference, Rosenberg asked why Castellano did not demand that her cousin, former Mayor Anthony Russo, promptly pay the money he owes Hoboken, which Rosenberg said any other private citizen who owed the city money would have to do.

As a result of pleading guilty to taking bribes in the summer of 2005 to a federal judge, Anthony Russo owes money to Hoboken, which Rosenberg approximated at $300,000.

"Why aren't you asking for the money back, Terry?" said Rosenberg.

In response, Castellano said Rosenberg was misinformed, and that the former mayor, who is currently serving time in prison, is paying off his debt monthly.


Eric Kurta said:

Kyle - I'll see your cut-and-paste and raise you fifty:


In 2004, the city’s first pay-to-play law was passed by the voters. The law limited and prohibited campaign contributions from firms receiving no-bid professional contracts with the city.

Michael Russo’s 2006 ELEC filings show a $500 contribution from a Paul Bontempo, self-employed, of Trenton, with no other information available. What is the significance of this, one asks? To understand, you have to know the following:

On July 12, 2006, the City of Hoboken granted GluckWalrath, LLP, a 12-month, no-bid professional services contract to provide special legal services as Municipal Bond Counsel. 17 days later, the aforementioned contribution was received from Paul Bontempo.

Bontempo is VP and Director of MBI Gluckshaw, a lobbying and government lobbying firm of which Hazel Frank Gluck is a partner.

Hazel Gluck is also a partner in the Gluck/Shaw Group, a lobbying firm, in which Michael Gluck, who is Hazel’s son, is a principal.

Michael Gluck is also a partner in GluckWalrath, LLP, the firm that was awarded the no-bid contract.

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Permalink Reply by Eric Kurta on June 10, 2010 at 8:08pm

Kyle - the reason the first R/R ELEC filing showed no contributions or expenditures was because there were NO contributions or expenditures at that point (their campaigns got a late start). It's unlikely that the redeveloper pay-to-play would have applied to Raia as he entered into his agreements long before the ordinance was adopted - such ordinances are not typically retroactive. This was just another example of Russo and Castellano making idiotic accusations and never bothering to back up their claims.

As for Mr. Raia, I know he hasn't been too popular with the reform crowd as of late, but I'd take him in a heartbeat over Russo.

Keep trying, Kyle. I've got nothing to hide.

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