2-minute read

PATERSON — Moody’s has placed Paterson’s finances “under review” because of the city’s delinquent 2022 audit, officials said.

Paterson was one of 37 local governments around the country that the credit rating group put on review “due to insufficient information” on their finances. Moody’s ratings affect the interest rates that local governments get when they borrow money.

“If the information is not received over the next 60 to 90 days, we will take appropriate rating action, which could include the withdrawal of the issuers' ratings,” Moody’s said in a press release.

Among the other places under review by Moody’s are Hyde Park, Deerfield, and East Fishkill in New York; Starkville, Mississippi; Manhattan, Kansas; and Paris, Texas. Only one other local government from New Jersey was on Moody’s list: Tabernacle Township in Burlington County.

Members of Paterson Mayor Andre Sayegh’s administration said the move will not affect the city’s day-to-day finances or its ability to borrow money.

“It’s literally just a timing issue,” city Business Administrator Kathleen Long said about the delinquent 2022 audit.

She said the COVID-19 pandemic knocked Paterson off schedule for its 2021 audit and there was a ripple effect that delayed the 2022 financial analysis as well.

Long said city auditors have completed a draft of the 2022 audit and she expected the Sayegh administration would seek City Council approval of the audit soon.

Council members express concern

Some members of the governing body were not happy about Moody’s putting Paterson under review. Councilman Shahin Khalique called it “deeply concerning.”

“It reflects a lack of confidence in our fiscal management and is simply unacceptable for our community,” Khalique said. “We must demand better accountability and transparency to protect Paterson's financial future."

Just five months ago, Moody’s upgraded Paterson’s credit rating to Baa3, which indicates moderate risk. At the time, Sayegh called the upgrade “a pivotal moment for Paterson.” Even after the upgrade, the city’s credit ratings remained so low that municipal officials conducted all borrowing through the Passaic County Improvement Authority to get lower interest rates.

Minutes before the mayor’s State of the City speech on Thursday, Paterson Press asked Sayegh about the Moody’s decision to place the city under review. He referred questions to his staff.

The overdue city audit also prompted the New Jersey Health Department to freeze some Paterson grants, including funding for childhood lead prevention programs. City officials said the freeze was lifted earlier this year.

Milton Still a Monster Storm, Florida Landfall Expected Late Wednesday

After reaching maximum sustained winds of 180 mph on Monday, Major Hurricane Milton will slowly weaken until landfall late Wednesday or early Thursday along the west-central coast of Florida. However, it will still be extremely dangerous and a major hurricane at landfall, posing a significant threat to life and property. It is the last full day for residents to get their families and homes ready and to evacuate if told to do so by local officials.

As of 10 a.m. CDT, Major Hurricane Milton was located near 22.7 N and 88.4 W, or about 130 miles northeast of Progreso, Mexico, and 520 miles southwest of Tampa, Fla. Milton is traveling east-northeast at 9 mph, with maximum sustained winds of 150 mph, making it a Category 4 hurricane on the Saffir-Simpson Hurricane Wind Scale. The storm also has a central pressure of 929 mb or 27.44 inches of mercury.

A Hurricane Warning has been issued for:

A Hurricane Watch is in effect for:

A Storm Surge Warning is in place for:

A Storm Surge Watch is in place for:

A Tropical Storm Warning is in effect for:

A Tropical Storm Watch is in effect for:

Major Hurricane Milton is expected to maintain its current intensity today, likely remaining a high-end Category 4 or even low-end Category 5 hurricane. It will gradually begin to weaken late today or early Wednesday and will continue to weaken until landfall late Wednesday night or early Thursday. This is due to the storm encountering drier air and stronger wind shear along a stalled cold front. As drier air moves into it, Milton will also expand in size as it approaches the west coast of Florida. The cold front will also cause Milton to make a turn to the northeast and its forward speed will also accelerate.

Milton will most likely make landfall on Wednesday night or early Thursday morning over or very close to the Tampa metro area. The most likely scenario would also be for Milton to be a low to mid-end Category 3 hurricane at landfall. From there, it will zip across Florida Thursday morning and enter the Atlantic Ocean by midday or early afternoon. Milton will likely weaken to a Category 2 hurricane over the Florida Peninsula by Thursday morning, then continuing to weaken to a Category 1 hurricane over the Atlantic Ocean. It will most likely lose its tropical characteristics completely by early Friday and should be a post-tropical cyclone as it tracks to the south of Bermuda.

Regardless of the exact track and strength of Milton, it will bring extreme to catastrophic impacts to central Florida, especially along the west-central coast near Tampa.

The outer bands of Milton are expected to bring 2 to 4 inches of rain across portions of the northern Yucatan Peninsula, western Cuba and the Florida Keys. However, isolated totals up to 6 inches cannot be ruled out. Heavy rainfall streaming ahead of the storm may begin impacting parts of Florida between the I-4 and I-75 corridors on Wednesday, with more significant rainfall associated with the storm expected Wednesday night into Thursday morning. By the time Milton passes, rain gauges could be up to 6 to 12 inches, with isolated totals up to 18 inches possible. This rainfall will lead to life-threatening flash and urban flooding along with moderate to major river flooding. Storm surge will be dangerous, especially to the northeast of the center of Milton. The combination of a dangerous storm surge and the tide will cause normally dry areas near the coast to be flooded by rising waters moving inland from the shoreline. The water could reach the following heights above ground somewhere in the indicated areas if the peak surge occurs at the time of high tide:

Tropical storm-force winds (39-73 mph) will begin across western Florida starting late morning or afternoon on Wednesday and will spread southwest-to-northeast through Wednesday evening. Hurricane-force (>74 mph) will be found closer to the center of Milton where it makes landfall on Wednesday evening and very early Thursday morning. Peak sustained winds of 85-110 mph and wind gusts of 100-130 mph will be likely, with isolated, briefly higher winds possible. Winds will slowly ease for the rest of Thursday.

As if that wasn't enough, a few tornadoes or waterspouts will be likely as Milton comes ashore. This threat for tornadoes or waterspouts begins late tonight across central and southern Florida and will continue through Wednesday night or early Thursday morning.

Residents along the Florida Gulf Coast, especially those in low-lying areas, should begin preparing for potential impacts from Milton, including heavy rainfall, life-threatening storm surge, and strong winds. Coming just two weeks after Hurricane Helene ravaged the Cedar Key-Tampa Bay region, be sure to not allow hurricane fatigue to prevent you from taking this system extremely seriously.

WeatherBug meteorologists will continue to monitor Hurricane Milton, so check for the latest information in your app.

3-minute read

PATERSON – With more than 150 couples planning to hold their wedding receptions at the Art Factory in Paterson, the financially troubled banquet hall’s owners on Tuesday night announced they will stop hosting events.

A woman whose wedding reception is scheduled for Oct. 19 said she received a statement from the Art Factory owners late Tuesday saying they had planned to continue holding parties when they filed for bankruptcy on Aug. 23.

“Unfortunately, since it filed for bankruptcy, the company has been unable to maintain the expense of its operation,” said the written message from the Art Factory. “On September 23, 2024, the Bankruptcy Court directed the company to discontinue hosting any further events.

“Accordingly, we regret to inform you that effective immediately, the Company will host no further events,” continued the message. “Until further notice, the company is unable to admit any customers or guests onto the premises.”

The Art Factory told people seeking refunds for payments they made in booking weddings and other events that they should file their claims with the federal bankruptcy court.

Prior to Tuesday’s message, the Art Factory’s mounting financial problems – including the bankruptcy and a $10.8 million court judgment – already had begun causing disruptions for couples who had scheduled their wedding receptions at the Paterson business’ banquet rooms.

A woman married last Friday reportedly claimed in a private Facebook group that much of the Art Factory’s staff didn’t show up for her party, leaving no one to operate the old industrial-style elevators or to drive the trollies that are supposed to bring guests from parking areas.

On Saturday, wedding planners pooled their own money to pay Art Factory workers to avoid a recurrence of Friday’s fiasco, according to an event planner.

Story continues after photo gallery

One soon-to-be bride told Paterson Press that Art Factory representatives stopped responding to her inquiries as she asked about the weekend mess. Fearful of a wedding nightmare in Paterson, the woman said she booked a different hall on Tuesday for her mid-October wedding.

The Essex County woman, who asked that her name not be published, said she probably will end up losing her $14,000 payment to the Art Factory. “I didn’t want to take the risk,” she said.

The Art Factory is a complex of old industrial buildings along Spruce Street in Paterson. Some of the structures have been converted into studios for artists, in addition to the four banquet rooms.

Art Factory owner David Garsia has blamed his main creditor, Bergen County investor Bill Procida, for the problems. He recently began distributing Procida’s personal cellphone number in correspondence with couples who have weddings at the venue.

More:Can tax credits revive $100M plan to turn old Paterson factory into apartments?

Garsia called Procida a bully who refused to cut the Art Factory a break on its loan payments when COVID forced a temporary shutdown of the events business. “They have directed us and drained our business of resources, aggressively inflated our debt to steal our properties,” Garsia said.

Art Factory owner got $12.5 million loan — minus $4 million?

But Procida said Garsia has been ducking his financial responsibilities for years and argued that the banquet hall should have stopped booking weddings when it went into foreclosure earlier this year.

Procida had provided Garsia a $12.5 million loan about six years ago, a transaction that became the basis for the $10.8 million judgment imposed by a judge last month. Garsia asserted on Monday that Procida never provided the full $12.5 million, claiming the lender held back about $4 million.

“If that’s true, why didn’t he say that in court?” Procida responded.

The investor said the Art Factory’s finances and its ongoing operation are in the hands of the bankruptcy judge.

“I don’t have any control over the building,” Procida said.

After Garsia gave out his number, Procida said he has spoken with some of the brides who fear their wedding receptions are in jeopardy.

“I feel bad for them, this is something he shouldn’t do to people,” Procida said of Garsia.

Owes city unpaid property taxes, sewer fees

The Art Factory owners also owe the City of Paterson almost $250,000 in unpaid property taxes and sewer fees, according to court records.

Danielle Rothweiler, an event planner based in Verona, said she never schedules any receptions at the Art Factory because of the venue’s track record of problems that she said go back for years. “It’s one bad review after another,” Rothweiler said.

About eight years ago, the Art Factory was planning to host a massive Christmas party until the Paterson fire department intervened, canceling the event because of insufficient sprinklers and other safety hazards.

Paterson’s controversial Community Improvements Director David Gilmore had signed off on almost 150 summonses alleging businesses at the Art Factory didn’t have requisite certificates of occupancy. Those violations eventually got dismissed by a city judge.

Gilmore has a pending lawsuit against Paterson, claiming Mayor Andre Sayegh retaliated against him for writing the tickets against Garsia, one of Sayegh’s political supporters.

Sayegh held his first inaugural ball at the Art Factory in July 2018, even though the banquet hall lacked city licenses needed for dancing and music.

(This story was updated to add new information.)

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My administration takes pride in prioritizing programs and projects that have been neglected for far too long. During my six years in office, we have reduced the number of abandoned properties in Paterson by about 80%. We have invested over $100 million in improving our parks, pools, playgrounds and athletic fields. Moreover, we have launched initiatives to address drug addiction, financial instability and reintegration into society.

In addition to the aforementioned accomplishments, we are adamant about continuing to improve our infrastructure. Our ambitious plan is to resurface more than 30 roads this year and to repave more than 20 streets next year.

The 50 streets that we are scheduled to resurface over the course of the next two years span all six wards. A vast majority of the roads have not been repaved in over 20 years.

The one road that has been the talk of the town and the topic of conversation for decades is River Street. In fact, I can’t go anywhere in my city without someone yelling, “Fix River Street.” It has been the bane of every administration’s existence for nearly a quarter of a century because the work requires more than just resurfacing the road but also calls for the sewer to be relined and repaired. This massive undertaking comes with a hefty price tag of nearly $10 million.

Sayegh:'I'm tired of being in the streets.' This critical Paterson program is making a difference

We have done our due diligence and secured all of the necessary funding to pursue this gargantuan project. However, there have been a number of delays due to unforeseen bureaucratic and legal challenges. Thankfully, we have overcome those obstacles and are ready to “fix River Street.”

The contract to repair and resurface River Street has been awarded, and the company has been given a notice to proceed. We will be hosting a press conference later this week to outline the start date and where the work will begin.

Some people in Paterson are a flat tire away from financial hardship, and we wouldn’t want that to happen, particularly because of a pothole-riddled road. That’s why we are rolling out our plan to resurface an unprecedented number of streets in our city.

When it rains, River Street is more river than street. We are determined to permanently change that outcome by this time next year. Previous administrations have kicked the can down the road when it came to River Street. My administration plans to resurface that road along with about 50 others.

Andre Sayegh is the mayor of Paterson.

2-minute read

PATERSON — City education officials saw reason to celebrate the latest public high school rankings issued by U.S. News and World Report.

Superintendent Laurie Newell during Wednesday night’s Board of Education meeting said it was a “very proud moment” for Paterson because four of the district’s high schools made it into the top 20 for Passaic County.

“These rankings are a testament to our commitment to educational excellence,” the superintendent said, a day before the district issued a press release touting its “Top 20” schools.

What neither Newell nor the press release said was that the “top 20” list was based on an evaluation of 23 Passaic County high schools.

Story continues below photo gallery

In other words, only three high schools in Passaic County didn’t get into the “top 20” rankings. And among the three that failed to make the cut were Paterson’s two largest high schools — Eastside and John F. Kennedy.

A Paterson Press review of the magazine’s rankings found that none of the city school district’s high schools were among the top third of the list. But five of the six high schools in the Paterson district were in the bottom third.

School board president Manny Martinez said he thought the city high schools’ ranking showed they were “moving in the right direction.”

“When schools get rankings that high in Passaic County, we need to highlight it,” Martinez said.

Martinez brushed aside the information about Eastside and Kennedy being at the bottom of the rankings.

“It depends on how you look at it,” he said. “It’s all a matter of your perspective.”

How Paterson high schools were rank by U.S. News

Here’s where U.S. News and World Report placed the Paterson Public Schools’ high schools:

*International High School was ninth in Passaic County, 224th in New Jersey, and 6,546th in the country.

*P-Tech, formerly called School of Earth and Space Science, was 14th in the county, 262nd in the state, and 8,086 in the country.

*Rosa Parks School of Fine and Performing Arts was 17th in the county, 310th in the state, and 10,258th in the country.

*Paterson STEAM High School, formerly known as School of Health Science, was 20th in the county, 346th in the state, and 13,120 in the country.

Eastside, Kennedy, and Passaic high schools were listed as “unranked,” falling outside the county top 20, between 349 and 406 in the state, and between 13,242 and 17,655 in the country.