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Yahoo! My Yahoo! Mail Yahoo! Search Search: Sign InNew User? Sign Up News Home - Help Navigation Primary Navigation Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Secondary Navigation Africa Europe Latin America Middle East North America Search Search: FBI sting sheds negative light on NJ development By SAMANTHA HENRY,Associated Press Writer AP - Saturday, August 8 NEWARK, N.J. - Federal authorities couldn't have picked a more fertile target than New Jersey's Manhattan-facing waterfront towns for a fake cash-for-development undercover sting, longtime observers say. ADVERTISEMENT The majority of those arrested in a sweeping FBI bust that netted 44 people on corruption and money laundering charges had ties _ real or feigned _ to development along the Hudson River. The criminal complaints paint a picture of building and zoning departments where influence, connections and payoffs determine who gets a prompt hearing and a smooth approval process on their applications and who is left at the mercy of a process so seemingly dysfunctional that developers sometimes budget for bribes. Jersey City, where more than a dozen of those arrested in the corruption probe either lived, worked or had connections, has been at the epicenter of a development boom that has transformed former polluted industrial rail yards and warehouses into gleaming waterfront high-rises with unparalleled views of the Manhattan skyline. Certain developers have made fortunes off the city and received tax abatements that continue today, even though there's little open space left along the waterfront, where luxury housing and office buildings housing large Manhattan firms have earned it the nickname "Wall Street West." "Everybody knows developers run New Jersey," said Joe Morris of the Interfaith Community Organization, which has been pushing for environmental remediation of contaminated land in Jersey City. "The developers run local government in every place in the state." Morris has led a lawsuit to force the cleanup of a former chromium plant site he believes is the property at the center of the recent FBI sting. The Jersey City address referred to in the criminal complaints borders one of the last undeveloped large tracts of open space in the city. "The public officials in the criminal complaints seemed like they knew the drill," Morris said. "They asked a surprisingly few number of questions about the site, such as if it was contaminated, and it shows the last thing on their minds is public safety." Brigid Harrison, a political science professor at Montclair State University, says the latest arrests point to serious problems with the way development happens in New Jersey. "In addition to targeting these municipal elected officials who clearly are steering either permits or contracts or development schemes toward developers, the other end needs to be prosecuted as well," she said. "There are developers and planners and engineers out there making payoffs, and this is indicative of how business is done." Posing as a wealthy developer, the government's cooperating witness repeatedly says in secretly taped conversations with public officials that he's neither a Democrat nor a Republican but a member of the "Green Party" _ referring to his penchant for doling out cash bribes in exchange for help. He explains to Jersey City officials with power over the planning and zoning process that he's hoping to build a large-scale apartment development worth up to $200 million in their city. He tells them he's fine with paying approximately $200,000 to $300,000 "up-front" to assist in obtaining the necessary approvals. Although the project was fictitious, the documents show various officials telling the undercover witness that he'll be granted "smooth access," a heads-up on confidential information and pending state action concerning the property, and assistance pushing through a zoning change and environmental paperwork. Another promises the informant that in exchange for cash payments, the official will make sure not to "let the bureaucracy slow things down." Jersey City Deputy Mayor Leona Beldini, accused of taking $20,000 in bribes, even tries to negotiate with the undercover witness to become the broker on his project, according to the charging documents. The Jersey City employees who were charged in the investigation have been suspended without pay by the city's embattled mayor, Jerramiah Healy. Although Healy is mentioned in the federal complaints, he reiterated that he is not charged with wrongdoing and has no plans to step down. Healy said he's proud of Jersey City's development record. "Our criterion is, is it good for our city? We're not interested in enriching private developers," Healy said. "On the other hand, if it's good for the city and that's a byproduct and they're making money on it, that's OK. I still want to bring those tax dollars to the city and bring jobs to the city. I consider that to be my job." Jersey City Councilman Steven Fulop said developers raise a lot of money for politicians in New Jersey, something he said should change. "When you have that kind of toxic mix of money and political influence, there's the potential for what could be perceived as deal making that's not in the best interest of the community," Fulop said. Several contractors and developers doing business in Jersey City declined to speak on the record because they were afraid they would hurt their business prospects. The National Builders Association and the New Jersey Builders Association also declined to comment. William Dressel of the New Jersey League of Municipalities said the state's development laws are sound, and the vast majority of the state's volunteer planning and zoning board officials are not corrupt. Fulop agreed, saying the current system often frustrates builders looking to do business in New Jersey. "I don't think the majority of the developers like raising significant money for politicians anywhere in the state," he said. "I think some transparency and changing the process, which is going to be an end result of this, is going to be a net positive for the city." ___ Associated Press Writer David Porter in Newark contributed to this report. Email Story IM Story Printable View Blog This Sign in to recommend this article » 0 users recommend Related Articles: World Peru's Fujimori to face another trial in SeptemberAFP - Saturday, August 8 Britain in Afghanistan for 40 years: next army chiefAFP - Saturday, August 8 Angry Americans disrupt town-hall healthcare talksReuters - Saturday, August 8 AP News in Brief at 5:58 a.m. EDTAP - Saturday, August 8 Salmonella product recallsAP - Saturday, August 8 Most Popular – World Viewed Scientists decode HIV genome structure: study Britain set to free great train robber Biggs State-rescued bank RBS mired in bad debts Cupcakes for reporter on Obama's birthday Manson murders back in spotlight 40 years on View Complete List » Search: Home Singapore Asia Pacific World Business Entertainment Sports Technology Top Stories Most Popular Copyright © 2009 Yahoo! Southeast Asia Pte Ltd. (Co. Reg. No. 199700735D). All Rights Reserved. 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