| | | | |  | | By Matt Friedman | Good Thursday morning! Hoboken Mayor Ravi Bhalla is running for Congress in the June 2024 Democratic primary Jersey City Mayor Steve Fulop is running for governor in the June 2025 Democratic primary They’re both positioning themselves as anti-machine, anti-corruption candidates. They’re also both from Hudson County and have governed their cities for years. Those two things can very easily come into conflict. A lawsuit filed by former Hoboken Health Director Leo Pellegrini and first reported by Hudson County View alleges, among many other things, that after Hoboken’s cannabis board approved a medical dispensary called Nature’s Touch, Bhalla said that he got an “extremely upset and very angry” phone call from Fulop and decided to kill its application “because Mayor Fulop’s wife was going to get the medicinal cannabis retail location” nearby. The lawsuit states, “in exchange, Mayor Fulop promised he would give Mayor Bhalla’s law firm contract work.” A couple fact checks here: Fulop’s wife, Jaclyn, is not a dispensary owner but rather the landlord for a proposed dispensary along with Drew Nussbaum, who’s treasurer of Fulop’s multi-million dollar super PAC. And as the Hudson County View article states, that dispensary, which hasn’t yet opened, did not apply for a medical license. Fulop told me in a phone call he never called Bhalla about this and that aside from being its landlord, his wife has no financial interest in the dispensary. “I never called Ravi. And importantly, my family has no economic interest in any dispensary. It’s a retained space. It’s no different than renting it to McDonald’s. The lease is not contingent on approvals and the zone is by right,” Fulop said. Meanwhile, the Bhalla administration is seeking to discredit Pellegrini by saying he’s a disgruntled employee just getting even now, a month before Bhalla’s closely watched primary race against U.S. Rep. Rob Menendez. The Bhalla administration accused him of corrupt conduct and, after hiring former Comptroller Matt Boxer to investigate, referred it to state and federal prosecutors. What a mess! But of course two things can be true at once. The timing of this lawsuit could be political. Anyone can say anything in a lawsuit. But there are at least some facts that line up with the complaint. For instance, in April 2022, a few months after the alleged incident Pelligrini recalled, the Jersey City Redevelopment Agency first approved a legal contract with Bhalla’s law firm, Schenck, Price, Smith & King. (Fulop showed me an OPRA request from over a year ago by another New Jersey reporter — one I consider among the best in the state — for those resolutions. The reporter never published anything on the subject.) “The well-qualified law firm — where Mr. Bhalla serves as of counsel — has a proven track record representing different local government entities throughout New Jersey and was selected in a competitive process by the Jersey City Redevelopment Agency —and Mr. Bhalla has received not a dime in compensation as a result of that selection,” Bhalla spokesperson Rob Horowitz said in a statement. “Additionally, the selection process for Hoboken cannabis dispensaries was handled professionally and according to all legal and ethical requirements.” TIPS? FEEDBACK? Email me at MFriedman@politico.com. QUOTE OF THE DAY: “I did Google, and Chunchi, Ecuador, does exist.” — Newark Councilmember Anibal Ramos Jr. on one of two new sister city agreements for the city, which last year was famously duped into signing an agreement with a place that doesn’t exist HAPPY BIRTHDAY — Cassandra Gatelein, Barry Kaufman, Tom Wilson WHERE’S MURPHY? — Leaving New Jersey for “personal travel” until Monday
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COURTING CONTROVERSY — Senate considers taking over power to appoint appellate judges, by POLITICO’s Matt Friedman: The state Legislature is considering asking voters to approve a constitutional amendment to drastically change how appellate judges are selected, giving the governor and Legislature authority over who gets the coveted positions. Since the adoption of the state constitution more than 75 years ago, the sole power of appointment of the state’s 32 appellate judges has rested with the state Supreme Court's chief justice. Current Chief Justice Stuart Rabner on Wednesday expressed concern that giving that authority to the Legislature would “politicize the appointment process.” (Rabner chooses appellate judges from existing Superior Court judges.) … Senate President Nick Scutari acknowledged that he’s considering the amendment and is "leaning toward" putting it up in the Senate. Scutari, a lawyer who is the former longtime chair of the Judiciary Committee, said giving the Legislature power to appoint new appellate judges would enable them to attract the state’s best legal minds, who might otherwise prefer to keep higher-paying private practice jobs than take a Superior Court judgeship with the slim possibility of someday being elevated to appellate court. “Top folks do not want to go to Superior Court because they don’t want to get stuck in family or landlord-tenant court with little chance to get the Appellate Division,” Scutari said. OPRA’S ON — Assembly committee set to hear OPRA on Friday, by POLITICO’s Daniel Han: An Assembly committee is scheduled to address legislation to overhaul the state’s public records laws on Friday. The decision to host a Friday meeting of the Assembly Appropriations Committee could set up a Monday vote in both legislative chambers of the controversial bill. (Board lists are not out yet for the voting sessions.) The bill is also scheduled to be heard in the Senate Budget and Appropriations Committee on Thursday. ACADEMY AWARDED — “Academy Express bus company, paying $20.5M fraud settlement, seeks NJ Transit contract,” by The Record’s Colleen Wilson: “The Hoboken-based bus company that is still paying off a historic settlement with the state Office of the Attorney General is up for another contract with NJ Transit, the public transportation agency it was accused of defrauding. Academy Express, LLC, which agreed to a $20.5 million settlement of fraud allegations in 2022, is being recommended for an $85.1 million, five-year contract to service nine bus routes in Passaic County for NJ Transit. … The attorney general’s investigation alleged that Academy employees kept two sets of books that showed the real number of bus trips that were serviced and another set that showed fabricated numbers of bus trips serviced. The latter was allegedly used to support invoices to defraud NJ Transit.” ENVIRONMENT — “Plan to move natural gas through N.J. killed as another forges ahead,” by The AP: “A major pipeline that would have moved natural gas through New Jersey and under two bays to New York has been killed, but another plan to transport liquefied gas from Pennsylvania by tanker truck is moving forward. … Tulsa, Oklahoma-based Williams Companies, which owns a nearly 10,000-mile expanse of pipelines called Transco, allowed its Northeast Supply Enhancement pipeline project to end. Williams told the Federal Energy Regulatory Commission it was allowing a key construction application to expire, saying it would not seek an extension for it. … Also on Friday … Delaware River Partners and Bradford County Real Estate Partners told the same agency that they do not intend to cancel a facility in Wyalusing, Pennsylvania, to liquefy natural gas and transport it to an export facility in Gibbstown, New Jersey, by tanker truck instead of by rail as originally proposed. Last September, federal regulators suspended authorization to transport liquefied natural gas by rail.” —“NJ Transit settles conductor’s lawsuit for $2M years after fatal Hoboken train crash” —“New Jersey approves massive studio complex in Bayonne as state pushes to attract production” —“Top N.J. lawmaker demands state investigation into school empire paying ‘outrageous’ salaries” | | BIDEN TIME | |
HOLDING ON TO JOHNSON — Reps. Rob Menendez and Bonnie Watson Coleman voted against saving Speaker Mike Johnson from an ouster last night, despite the majority of Democrats voting with Republicans to save him.
The two joined 30 other Democrats in voting to take up Rep. Marjorie Taylor Greene’s motion to vacate Johnson from the speakership. The rest of the New Jersey delegation, both Democrats and Republicans, voted to help Johnson. Prior to the vote, progressives expressed their concerns with helping Johnson due to fear from the left. Others had concerns over Johnson’s previous experience as a legal architect in overturning the 2020 election results. — Mia McCarthy WALKER RUNS — “Hudson County Commissioner Walker says he’ll run for Congress in 10th District,” by Hudson County View’s John Heinis: “Hudson County Commissioner Jerry Walker (D-3) says he’ll run for Congress in the 10th District, which will have a special primary election on July 16th following the passing of U.S. Rep. Donald Payne last month. ‘There are things I think I can get done in Washington and I think this is my opportunity to do it. Affordability is my number 1 priority, particularly in Jersey City, but for the entire 10th Congressional District,’ Walker said over the phone this afternoon. He said he would like to have a longer conversation about his candidacy, but was in the middle of a walk-a-thon for Team Walker, his local nonprofit organization.” —“Why Wildwood’s mayor invited Donald Trump to use the beach for Saturday’s rally”
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DECROCE OFF — “Dover ousts ex-Assemblywoman DeCroce as administrator, citing 'painfully obvious' failures,” by The Daily Record’s William Westhoven: “Former state Assemblywoman BettyLou DeCroce was a curious no-show at Dover's council meeting Tuesday for the public hearing she requested to discuss her termination as town administrator. Mayor James Dodd … told the council: ‘I believe the termination of Ms. DeCroce is necessary for the town to move forward in the right direction.’ Reading a long list of her alleged administrative transgressions, Dodd said he ‘had no choice’ but to place her on paid administrative leave last month and give her the required 30 days notice before the council decided her fate. … The council voted 8-0-1 Tuesday to terminate her employment. Reached by telephone afterward, DeCroce declined to comment, citing the advice of her counsel. … ‘The fact is that when Ms. DeCroce was appointed administrator, she had no experience serving as an administrator in any other town in New Jersey before she was hired in Dover at a salary of $180,000,’ the mayor said. 'Due to the actions of the prior administration, Ms. DeCroce was given an unearned raise of approximately $60,000 annually to her current salary of over $240,000.'”
SHIA REBUFFED — “Jersey Shore town bans digging large holes, burying people in sand,” by NJ Advance Medai’s Katie Kausch: “A Monmouth County beach town has banned the digging of large holes and burying of people in the sand. Sea Girt passed an ordinance in April adopting stricter rules around sand hole digging. Under the new rules, holes cannot be deeper than 12″ or the knees of the shortest participant, whichever is shorter. Holes cannot be left unattended and must be filled before leaving the area. The ordinance also bans ‘‘burying’ persons below grade or in standing position.’” CHILD’S SLAY — “Body found in an N.J. marsh was actually a lifelike doll, cops say,” by NJ Advance Medai’s Eric Conklin: “What was believed to be a child’s body dumped in New Jersey marshland and found Wednesday, turned out to be a doll with human features, according to Egg Harbor Township police. A fisherman stumbled upon the doll around 7 a.m. Wednesday. …. The doll was lying in a marshy area. … Police worked until about 11 a.m. securing the scene as an active homicide, [Police Capt. Cherie] Burgan said. Investigators discovered the presumed body was a doll upon reaching the spot where it was lying, she said. ‘It was set up to look like a homicide,’ Burgan said.” —“Paterson developer Charles Florio fined $215K over workplace safety violations” —“Libby's Lunch sale and demolition on hold as state preservation officials intervene” —“This Berkeley farmhouse has stood for three centuries. Soon it could be gone forever” —“[Piscataway] fire chief caught on video vandalizing vehicle parked near firehouse” —“Gaza protesters arrested for disrupting Teaneck council meeting, police say” R.I.P. — “Raymonde Sayegh, Paterson mayor's mother, dies at 85” | | EVERYTHING ELSE | |
THE ONLY COMMUTERS NJ POLITICIANS CARE ABOUT ARE THE ONES WHO CAN COMMUTE SENTENCES — Suburban backlash threatens country’s biggest transit systems, by POLITICO’s Ry Rivard: The nation’s largest mass transit systems are edging closer to solving their post-pandemic budget crises, but one thing is standing in their way: the suburbs. After several years of incomplete recovery from a massive ridership drop, federal relief money is running out for systems in New York, Washington, Philadelphia and other major cities. That means long-looming fiscal cliffs are at hand, prompting talk of massive fare hikes, devastating service cuts and new taxes or fees. But historic tensions between urban needs and suburban wants are colliding, as fixes for transit systems depend on approval from elected officials — and their voters — who live outside the central business districts most transportation systems were designed to serve. The head of New York’s Metropolitan Transportation Authority, Janno Lieber, has fumed over suburban politicians in New York and New Jersey standing up for drivers while doing little to help the vast majority of commuters who use the MTA to get to work. “Although the politicians seem to speak to very old school models of ‘the suburbanites hate the city’ and they don't like mass transit commuting, the numbers just don’t bear that out,” Lieber said.
DONELEA — “Former N.J. law firm CFO with taste for luxury vacations pleads guilty to $1.5M embezzlement,” by NJ Advance Media’s Ted Sherman: “Nearly a year after he was fired for allegedly taking millions in bogus bonuses and lavish trips on a corporate credit card, the former chief financial officer of one of New Jersey’s biggest law firms pleaded guilty Wednesday to embezzling more than $1.5 million from the firm and evading thousands in taxes. John Dunlea, who also served as chief operating officer of McElroy, Deutsch, Mulvaney & Carpenter of Morristown, admitted before Superior Court Judge Stephen J. Taylor in Morris County to misappropriating the money from the law firm by paying himself unauthorized excess compensation over a five-year period ending in December 2022 and not paying New Jersey income taxes on any of it. At the same time, he pleaded guilty to charging tens of thousands of dollars in hotel stays, airline flights and high-end vacations on the firm’s American Express card for himself and his family. … Under the plea agreement, the state will recommend that Dunlea be sentenced to five years in state prison and required to pay restitution to the law firm. Sentencing is scheduled for June 14.” LIVIN’ ON A PIER — “Jon Bon Jovi, and his guitar, make a surprise appearance on the Asbury Park boardwalk,” by The Asbury Park Press’ Chris Jordan: “The rocker and a small entourage were apparently filming a video around 7 p.m. Kristin O'Meara of Ocean Grove made the scene with friends Meryl Hayton and Valerie Powell after she was sent a pic of Bon Jovi at the shoot. … A small crowd of 10 to 12 people were watching, O'Meara said. He was lip-synching to an unreleased song, and a member of the entourage asked fans not to share video of the shoot.” — “Mom delivers baby in car hours before defending her Rutgers doctoral thesis” —“Trenton site identified for maternal health center” —“Dead sei whale discovered across bow of cruise ship in New York City” — “'It's nuts': North Jersey library puts a limit on wedding dress donations as gifts pour in”
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