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Commissioners introduce $40 million storage facility plan, question lease savings
Summary
The board introduced ordinances to build a $40 million consolidated storage facility in Verona and to authorize county guarantees for lease-revenue financing; commissioners asked staff how current lease expenses compare to ownership and whether the long-term cost justifies the project.
Essex County commissioners introduced an ordinance to authorize a new $40 million capital project to build a consolidated storage facility in Verona that would house election machines, county records and senior buses.
County Treasurer Hussam Mohammed said the county presently leases three separate facilities for those functions and that consolidation and ownership are intended to create long-term savings. Commissioners asked staff to quantify current annual lease costs and the break-even period; Mohammed stated current lease payments total roughly $1.8 million per year, a figure used in the board's back-of-envelope comparison and a rationale for consolidation. Public commenter Adam Kramer had earlier questioned whether the $40 million cost and projected savings are prudent for taxpayers.
An accompanying ordinance would authorize county guarantees for lease revenue bonds issued through the Essex County Improvement Authority to finance the project. Commissioners asked staff whether the financing would require immediate debt issuance; staff said the guarantee would be in place but the county is not issuing debt immediately.
The ordinances were introduced for first reading and will be read into the record at a later date. The treasurer and staff said they will return with contract and detailed cost comparisons, including current annual lease outlays, expected operating savings and any maintenance costs after ownership.
