Baysave Plans for 2020

Baysave is committed to a plan for 2020 that emphasises activating diverse community interests at Money Island NJ.

GOVERNMENT– After an intense year of dealing with government, we anticipate that government will play a decreased role as we move forward. The board of directors adapted rules specifically designed to avoid the need for government integration and we do not anticipate that government support will the largest factor in future sustainability plans.

DOCKS – We will emphasize the use of the Money Island site as a port for large vessels. The demand is growing and our facilities are less expensive than other options. While smaller boats are welcome here, dry dock is more affordable than boat slips. In general, the cost of boat slips (costs imposed by government, not by us) exceeds the amount that small boat owners want to pay and exceeds the price of other docks in the region. For all boat sizes, we will emphasize long term relationships rather than single season arrangements.

CRABS – Commercial operations will remain in Delaware until New Jersey updates its laws to allow transfer of crab license and the use of online cooperative marketing. We hope to expand support of recreational crabbing with boats and rafts if public interest is sufficient.

OYSTERS – There is growing interest in recreational oyster tonging. We have no specific plans at this time

INVESTORS – Private investments are available. A significant goal is to create long term tax-free investment gains.

CHALLENGES – The largest challenge for founder Tony Novak is balancing the desire to make facilities available to as many people as possible with the need to reduce financial losses. In 2018 the losses to to abuse and vandalism were substantially more than public donations. That is obviously unsustainable. We will continue to try different approaches, technologies and operating practices to deal with these challenges.

Another long term challenge is building engagement with the community. The trend toward depopulation has been going on for decades and now we see only a few people each day. A key to sustainability is connecting with the fewer but more interested individuals who have an interest in the bayshore.

Comments and feedback are welcome.

Update on restorative development at Money Island

As we approach the Memorial Day traditional opening of the Money Island community’s seasonal activities, there are many different stakeholder groups operating with increased energy here. Lately we see an almost daily parade of dump trucks, construction equipment, engineers and government officials. The total redevelopment project will exceed $30 million and will take years. Yet that’s a small price to pay for the $40 million per year economic benefit of our local seafood industry, not even counting the recreational and public uses, that is expected to grow rapidly in the years ahead. We need to plan for increasingly hostile environmental conditions and rising tides that will soon put all of our land areas underwater at high tide.

Baysave’s role is to help coordinate the efforts of the various stakeholders. That’s not an easy job. Recent events highlight that cohesiveness is lacking and, in fact, some government agencies are actually sometimes working against each other.

trucks at Money Island

We focus our work with the various stakeholders on addressing the problems stemming from the long history of environmental injustice. The combination of neglect, local poverty, incompetence and government corruption have taken a significant toll on our community. Still, we manage to retain the title as the second most productive seafood landing port in the state with the potential of increasing economic contribution by more than tenfold over the coming decade. In order to achieve these goals, we need leadership from the top to end the infighting among government branches. That, in turn, will inspire confidence among private entities to invest in restorative and sustainable redevelopment projects here at Money Island.

These are some of the groups currently active at Money Island:

Group 1. Community redevelopment group – Our local mayor is working with a group to bring investment funds to redevelop the front end of Money Island for some public use (“Bayshore Welcome Center”) or educational use. Baysave is working directly with one University that is planning to expand its coastal resiliency program.  The mayor is working with a second University. We can offer accommodations to either one or both schools. Downe Township officials are clear that they believe that the financial survival of Downe Township may depend on favorable resolution of the Money Island issues. We encourage Mayor Campbell to continue to pursue this redevelopment option but we have not discussed any details. The mayor led the group that completed work on Stage 1 of the Money Island seawall construction two years ago. The future of Money Island quite literally depends on our ability to complete Stage 2 of the sea wall project within the next few years. Without this, we will lose use of our only roadway into the community. On Wednesday April 17 a group of high level people (two in of them in limos) arrived here to inspect the marina property. They did not, to my knowledge, look at the commercial docks.

limos at Money Island

Group 2. New Jersey Attorney General – The NJ Attorney General is working through the local Superior Courts to prosecute the individual members of the restoration coalition. There is no ‘carrot’; this is only a ‘stick’ approach. This legal action caused all of the previously approved redevelopment funding to be withdrawn and triggered the resignation of most of our Baysave board members. My initial concern was that the claims are based on faulty underlying information and misunderstandings by NJDEP staff personnel that has never been discussed in a setting that could lead to resolution. I am certain, based on conversations with the various engineers who have worked here in recent years, that some of the premises assumed by the state are incorrect. We have factual evidence of decades of errors in official documents. Unfortunately, the court process is unsuitable for local stakeholders. We cannot get fair treatment in that courtroom environment while higher powers are operating in conflict. Given the past and ongoing bad acts by some within NJDEP, it is difficult to distinguish between those who are trustworthy and the bad actors. We are advised to be patient until higher level people take control of the matter.

surveyors

Group 3. Aquaculture redevelopment group – An experienced professional group meets regularly with various departments within government and outside government and plans to invite us to a meeting soon. They have a solid proposal supported by strong economic potential.

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Group 4. Environmental research partnership – An environmental partnership led by The Nature Conservancy has obtained grants for ongoing research here and, right now, are the most active users of Money Island properties. They are not owners but have access to a land use agreement at no cost.

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Group 5. The oystermen – Led by the Shellfish Commission, our oystermen have been able to get necessary road repairs completed and recently gained approval for channel dredging by the Army Corps of Engineers. The members have determined that our location is the best site in the state to expand oyster aquaculture but will not move forward while the state has open land use litigation based on decades’ old oversights by NJDEP. Four companies have already asked for docks for expansion after the current litigation is resolved.

oyster boat

Group 6. The crabbers – The crab industry is expanding and it’s no surprise that the older established crabbers do not welcome the younger new harvesters. Most of the new crabbers have temporarily moved away this season due to surprise prosecution by Fish and Wildlife over their cooperative marketing plan. The crabbers generally prefer to act quietly in their own interests and do not welcome the input of other stakeholders. That’s a challenge for Baysave but eventually we will accomplish our mutual goals.

crabs in basket

Group 7. The recreational marina – The marina is closed for this season. A local marina owner has agreed to combine the Money Island Marina with his other existing operation and rebuild/restore the marina with appropriate permits. That agreement is ‘on hold’ waiting for resolution of current legal issues. Various agencies and private parties have expressed willingness to invest in the project after the current legal issues are fully resolved. While recreational boating was important in the past, we expect that it will be only a small part of Money Island’s future.

dock fishing at Money Island Marina

NEW JOBS PAC

Tony Novak CPA will represent Baysave at the 2019 NEW JOBS PAC “The Voice of Business” Annual South Jersey Legislative Reception for the New Job Political Action Committee as a member of the NJCPA and supporter of its PAC. The annual event attracts local lawmakers to discuss local business and economic development opportunities and hindrances.

New Jobs PAC logo

The group focuses on legislation to improve the business climate in New Jersey by supporting pro-business political candidates. Baysave is involved in revitalization of the bayshore economy and last year received funding from the NJ Community Capital THRIVE Grant to promote the local crab industry through a multi-state marketing cooperative. That effort was stymied by legal action by state government.

Baysave is focused on spreading the word about the huge growth potential of our local aquaculture industry, especially blue claw crabs and oysters at the Delaware Bay region. Advanced and technology open the door to a tenfold increase in total seafood production in the years ahead. That growth means moe infrastructure needed, more jobs created and more tax revenue for South Jersey government.

Phone call with two PhDs

In the realm of ‘firsts’, this was one that I could not have predicted. A surprise phone call came in Friday from our government relations liaison, a PhD with a background in economic development in the office of another PhD Director of Coastal Resiliency at Rowan University.

Government relations and coastal resilience: what a team! That’s exactly the combination we need around here.

It’s not appropriate for me to get into a “he said…” situation in a public blog post like this. But is is useful to say that I am learning about new areas of public policy that were previously invisible to me. The entire topic of what government needs to do in terms of long term planning largely escapes public view. I was introduced to the topics of what is a “win” in the eyes of government, its impact on future elections and even the survival of our economy and society. Simple topics like planning for enough food to feed ourselves is really a big deal. Yet it isn’t something that makes the newspapers every day.

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At the end of this call I felt more confident of the role that Money Island will play in the future as the region’s seafood landing port. Many shore towns will need to dissolve: “strategic retreat” is the popular phrase in public policy discussions. Yet some seaports will need to remain open for our survival. We will see a deeper channel for even larger oyster boats. Heavy duty commercial docks for the expanding aquaculture industry are already in the works. Loading dock, refrigerators and freezers need to be upgraded. The seawall project will be continued. We are one of the chosen few ports that will be supported; even at the massive costs required to adapt to climate change and rising tides.

In the end, our tiny rural seafood landing port will see more than a tenfold increase in its economic contribution to the region. Of course, in a long term saga like this most of the story is yet to unfold.

Send lawyers guns and money

The redevelopment of Money Island, New Jersey, will take plenty of professional help, construction materials, equipment and lots of money. Right now we are a blank canvas, the stipped down sleepy seafood landing port that has the potential to be a regional force in sustainable aquaculture in coming decades. With removal of the former residences, and more home demolitions likely over the next couple of years, the remaining tiny marina community and working waterfront are now just positioning with the next generation of users to build a sustainable future. We are pulling support from a range of sources: private aquaculture investors, government, people with recreation/tourism business interests and local business people making in-kind contributions of time and materials. Educational institutions and nonprofits continue to play a major role in ongoing activities but, so far, are not involved financially.

The legal format and operational plan that works best here is to form a series of limited partnerships for each project as it develops and then offer the stakeholders the option to convert to qualified small business stock if they want to stay for the long term. This effectively creates a community capital fund by pooling the resources of different stakeholders with widely different interests. The first stage typically offers a fast up-front tax shelter. The second format offers long term tax-free capital gains. Nonprofit and government stakeholders have their own well-defined requirements and goals. We are especially excited about the opportunity to offer local small business people the opportunity to be equity stakeholders here based on a contribution of material, work or equipment.

We plan to host a series of meetings soon that will be open to the public to discuss progress, upcoming projects and opportunities to get involved. Meanwhile, contact Tony to learn more about the progress.


*Guns of course are a sensitive topic and already a reader questioned my choice of the title phrase and some may not be familiar with the origin of the pop culture phrase. I intended the word “guns” as metaphorical for “equipment” as was integral to the post. But I do like a the brashness and tone of the current generation of the young environmentalists this week with a revolutionary spirit who do not agree to do things the docile compliant ways of the past. I’m not saying they should take up guns per se, but maybe Greenpeace isn’t so radical on a longer term perspective. If you actually consider the narcissistic context that Warren Zevon coined the famous phrase in his lyrics, it is antithetical to this use and most contemporary uses of “lawyers, guns and money”, especially by environmentalists and lawyers.

Qualified Opportunity Zones vs. Qualified Small Business Stock at the bayshore

Community redevelopment or industry revitalization plans historically rely heavily on tax incentives to attract investment. Our local fisheries and aquaculture industries are likely to require large commitments of investment capital over the coming decades. A government program that abates taxes or exempts gains from taxation can make a project significantly more interesting to investors. Such programs can exist at the local, county, state and federal government level. This blog post focuses on the two most prominent options available at the federal level for the revitalization of the New Jersey bayshore. This blog does not attempt to explain each option, but rather focuses on the differences between them and briefly lists how I see each of them contributing to the bayshore community’s long term revitalization.

The first federal incentive programs are the Qualified Opportunity Zone authorized as part of the Tax Cuts and Jobs Act. This program is geographically restricted to a few blocks in downtown Millville and large parts of Bridgeton. Advisers see this program as most attractive to larger investors.  This program could primarily help us with commercial real estate projects in those locations, especially equipment manufacturing and seafood processing, and aquaculture equipment financing for the region. This is the investment format being considered by some institutional investors. More information is available on this new web site.

The second program is Qualified Small Business Stock. This has been around longer as Section 1202 of the Internal Revenue Code but its attractiveness is strengthened by a series of recent tax changes. Investments may provide immediate tax benefits. The long term attraction is that smaller investors can achieve tax-free gains of up to $10 million (or more) by committing to the investment for at least five years. This is the business format that will be used by Nantuxent Corporation for the revitalization of commercial fishing and aquaculture at Money Island.

There are risks with either program. The first risk is that the investment may not achieve the gains expected. The investments could lose money. The second is that the investment might not be liquid at the time the investor wants to cash in. The third risk is that the expected tax result may not be achieved either because tax laws change or because the management of the investment did not meet the legal requirements of the incentive program.

I am happy to discuss how either option might fit into your investment plans.

Baysave announces 2019 environmental priorities: permitting and plastics

At its December 2018 meeting, the Board of Directors of Baysave Association resolved to take additional steps toward cleanup and legalization of previously abandoned properties at the New Jersey bayshore. The resolutions include an approach to federal and state government permitting and an approach to addressing plastics in local waters. These two programs – permitting and plastics – will be the focus of Baysave’s 2019 environmental agenda.

A strategy to approach permitting on a site-by-site basis was approved to allow us to partner with, sell, or gift land to others who may have similarly aligned environmental and sustainable community redevelopment interests. It is unclear whether the NJDEP and NJ Attorney General will agree to this plan since in the past the department has taken an unusual “whole community” approach at one cleanup location and has declined pre-permit requests for addressing individual site cleanup issues. The Controller is authorized to lobby local and state government to support this more practical cleanup approach.

A plan was approved to remove waste plastics that are already in our waters as well as to reduce overall future reliance on plastics in the future. This past year the NJ Fish and Wildlife bureau and some Baysave members noticed a problem with plastic shell bags used in oyster reef restoration.  We will discontinue the use of these bags on our sites and advocate for their replacement in other sites. The board resolved to commit funds and volunteer labor to remove Styrofoam floats from the water and replace the Styrofoam with more sustainable materials. This program will need additional funding. The Board authorized its Controller to seek additional grant funding for this project.

Baysave renewed its commitment to run its multi-user facilities at Money Island New Jersey provided that funding is available through future grants. The former Money Island Marina community is being converted to a nature preserve through combined action of the NJDEP Blue Acres Program and the NJ Attorney General. Public access will continue to be based on membership, however support for boating and docking activities is discontinued until and unless allowed by law.

For more information, contact Tony Novak, Controller, at tnovak@baysave.org.

 

Grant award to strengthen NJ crabbing

New Jersey Community Capital Awards THRIVE Grant to Baysave Corporation for Blue Claw Crab Industry Recovery Project

“This first community financing success brings us 1/6 of the way toward keeping the Money Island working waterfront marina community viable but only about 1% of the way to long term sustainable total community redevelopment. So the plan is to use this grant to build momentum. We have a series of meetings coming up with investors about additional funding.  In the end, I suspect that a crowdfunding will also be required to transform our community to thrive in the years ahead”. – Tony Novak

New Brunswick, NJ (October 25, 2018) – New Jersey Community Capital (“NJCC”) announced through its THRIVE South Jersey initiative, it has awarded a $15,000 grant to Baysave Corporation to support the Baysave Crab Industry Recovery Project. This investment will fund capital improvements and technical assistance to enhance the  existing  infrastructure  in  Money  Island,  New  Jersey  and  reestablish  the  blue  claw  crab  industry  for  independent commercial crabbers in the community.
As a bay shore community along the coast of New Jersey, Money Island boasts a robust blue claw crab industry. While  the  town  has  suffered  economically  from  the  effects  of  Hurricane  Sandy  and  other  climate‐related  challenges, oyster and blue claw crab fishing remain an in‐demand trade. The $15,000 grant will provide the needed funding to seed the development and operation of an independent crab cooperative.
“New Jersey Community Capital plays a vital role in helping businesses gain invaluable resources to start, grow, and succeed,” says Tony Novak, Executive Director of Baysave Corporation. “This grant further enhances Baysave Corporation’s ability to support small business practices in the blue claw crab industry while growing greater economic resiliency in our community.”
“We believe that providing access to capital is essential for driving economic growth and opportunity for local residents,” says Wayne T. Meyer, President of New Jersey Community Capital. “As mission‐driven lenders, our goal is to help ensure that communities are given the resources and technical assistance to empower and fuel small business success. Through the THRIVE SJ initiative, NJCC will be able to support the projects and activities that supplement job creation and drive long‐term economic impact.”
THRIVE South Jersey works to expand local and regional capacity to generate economic growth in the targeted region of Southern New Jersey that includes Cumberland, Gloucester, Salem, and western Atlantic counties. Through  a  combination  of  strategic  funding  and  capacity  building,  THRIVE  South  Jersey  seeks  to  support  organizations fostering community revitalization activities that generate jobs and sustain low‐income families in the four county region.

About New Jersey Community Capital
New Jersey Community Capital is a nonprofit community development financial institution (CDFI) that creates thriving communities through strategic investments and technical assistance. NJCC supports the preservation and development of affordable housing and sustainable community development ventures that increase jobs, improve  education,  and  strengthen  neighborhoods.  For  more  information,  visit:  www.newjerseycommunitycapital.org.

A check presentation ceremony and photograph session are planned for Tuesday October 30 at 11:00. Please RSVP if interested in attending.

Six years after Sandy

The government-created “disaster after the disaster” continues to dominate much of our lives at the bayshore. After the physical effects of the storm faded in memory, we continue to battle the effects of government mismanagement that emerged after the storm. 

This month will mark six years since superstorm Sandy devastated our communities. Much of the damage has not yet been repaired and may never be repaired. The telephone line in front of my house, for example, was never replaced. I still have the downed wire that I cut down and rolled up myself during the cleanup when Verizon did not respond to repeated service calls. For most other issues it was a combination of fraud, mismanagement and red tape within the government systems that administer post-Sandy rebuilding programs are mostly to blame.

We have plans to redevelop a new type of sustainable aquaculture-based community. Funding is just beginning to flow. We still lack government approval to proceed with any part of these plans.

Many of the local people who initiated the “No retreat – Save the bayshore communities” campaign have sold their properties and moved out over the past year. Those who remain are deeply entrenched in a battle with government to negotiate a plan for recovery and sustainability.

Some of the issues that specifically hamper Money Island, New Jersey recovery are:

  1. New Jersey Department of Banking and Insurance declined to investigate sales practices of insurance companies that sold inappropriate and inadequate coverage.
  2. The National Flood Insurance Program admitted fraud and mismanagement in handling flood insurance claims but continued to deny payment on those claims anyway. Policyholders have been forced to settle for lesser amounts or give up die to high legal costs of pursuing their claim in court.
  3. Most recovery programs were denied to homeowners and businesses on the New Jersey bay shore region. We read that 98% of all post-Sandy Small Business Administration loan applications were denied.
  4. Almost all of the applications and project proposal applications for post-Sandy recovery work at Money Island have been denied.
  5. On Monday June 11, 2018 when NJ activist Doug Quinn addressed FEMA administrator Brock Long about specific policy provisions at the National Flood Conference in Washington, DC on Monday to address the Congressman’s’ letter this week, NFIP administrator Brok Long said “I’m not going to answer that”, then shut down the meeting to questioning and walked off the stage. Quinn later wrote that the event “was a learning experience. We have no friends there”.
  6. On the same day, June 11, 2018, at the public meeting of Downe Township Committee mayor Bob Campbell said that FEMA officials admit that post-Sandy projects they intend to see completed are still incomplete here in our township. There was no discussion of a timetable for the federally funded projects.
  7. Last month the New Jersey Attorney General filed a lawsuit against Tony Novak and others for failure to make progress on post-Sandy recovery despite the track record of more than ten applications and pre-application proposals to do so.

It is clear that our struggle is with government, not nature. Given the history of what we call “the disaster after the disaster” I am not optimistic about any immediate change in government’s role in our future recovery. We will continue to push for our recovery and long term sustainability at a grass roots level for years to come. We are able to rebuild under the various regional and local recovery plans but we need government permission and cooperation to do so. We also need funding for those aspects of the recovery projects that benefit the public interest rather than just private businesses and homeowners. Virtually all government cooperation is still lacking at this point five and a half years after Sandy.

I anticipate at least two more years will be required to settle existing post-Sandy litigation and appeals and then return to the process of rebuilding. The legal battles are a waste of time and money that only enrich the lawyers on both sides but we don’t think that it is likely that government will act responsibly or come to our aid anytime soon.

Update: State of NJ vs Novak, et. al.

July 9, 2018 – Today is the scheduled hearing in New Jersey Superior Court for the state’s motion to show cause in State of New Jersey vs. Novak, et. al. Following is a summary of the defense:

STATE OF NEW JERSEY VS. NOVAK, ET. AL.

SUMMARY OF ARGUMENT AGAINST MOTION FOR ORDER TO SHOW CAUSE

by Tony Novak, Controller, Baysave Association

 

1)      This is a case of government behaving badly. The state is asking for a court order after having unilaterally broken two agreements with Novak over the past six years after Novak performed in good faith. Then they denied three separate requests for problem resolution in the past year where all of the parties could have sat down and worked on a solution. The state is not entitled to behave this badly and then come into Superior Court to enlist legal muscle in its actions.

2)      This is an unreasonable request. There is a coalition of government agencies, private businesses, nonprofit agencies and industry leaders – more than 20 in all – working on the sustainable and fully compliant redevelopment and compliance of Money Island Marina. Collectively, we have more than 70 active community redevelopment projects under development with more than 30 of them including land use permitting. It is unreasonable to think that any one person or entity can bring the transformation to a sustainable environmental future for this community, let alone develop those plans within a 30-day time frame requested by the state. Novak does not have the legal authority or capability to act unilaterally to take the actions requested.

3)      The facts are in dispute. The state’s filed complaint and supporting certifications are so riddled with errors that it is impossible for us to know what the prosecution intends. We need a process – whether ongoing community-based planning, alternate dispute resolution process or discovery in this ongoing legal action – to determine the facts in this matter.

4)      The admitted responsible parties are not involved yet. In this same Superior Court, before the same Judge, during questioning under oath, another person testified about her willingness to accept the legal and financial responsibility for the NJDEP violations to these properties. We expect that the responsible parties and local government will step forward but the legal process is expected to take another one to two years. It will likely take even longer for government to act on its already approved resolutions that will address compliance issues.

5)      Other parties were not notified. It appears that all pre-hearing notices were sent to Novak’s home address in Money Island New Jersey despite notification that the other parties are not here. Novak is the only resident of the western half of Money Island and there is no indication that any other parties are aware of the State’s legal action. The state is required to make reasonable efforts notify parties before it takes legal action against them.

6)      No environmental damages. The prosecution has presented ZERO evidence of any environmental damage or immediate threat to the environment. We have a stellar reputation and track record for best operating practices and environmental test results. What they are saying is that their paperwork trail wasn’t documented for decades, and internal management process has been flawed for many years before any of us were on the scene. A failure on their part does not equate to a crisis on my part. We all agree on the goal of working toward full land use compliance under new regulations that the NJDEP admits are not even promulgated yet. But this ‘crisis action’ and legal threats are not the way to do it.

7)     A new master compliance plan of action is already underway. The NJDEP Acting Director of Coastal Land Use Planning has already announced the department’s intention to “work closely with this Money Island project to promulgate new regulations that are effective for the bayshore region of Cumberland County”, per our mayors in the past month. Last week the news was released that our new NJDEP Commissioner’s Office had fast-tracked and approved funding for the #1 environmental entanglement: public sewer systems for the nearby towns. We know that we will be included in the next phase and that all parties are working as quickly as possible. There is no need for this current legal action and, in fact, the legal action is slowing down the progress toward full compliance by causing some key stakeholders to remain uninvolved until after the legal action is resolved.