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Developer slams Paterson school district, says it ‘undersold’ old School 5 building | Paterson Times

Developer slams Paterson school district, says it ‘undersold’ old School 5 building

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Prominent real estate developer Charles Florio, who had expressed interest in purchasing some of the Paterson school district’s old buildings, said the school board undersold the old School 5, a building walking distance from the Great Falls.

“They sold it right out from under me. I would have paid more than a million dollars for that building,” said Florio, who met with both superintendents Donne Evans and Eileen Shafer last year to potentially buy the building, on Thursday. “It’s an inside deal. The school board was ripped off. They undersold the property to a buyer who is probably affiliated with the party.”

School board members voted 6-1 to approve the sale for $1 million on Wednesday. The school district advertised and received bids to sell the building last year. One interested buyer submitted a sealed bid that was too low and “failed to comply with the requirements of the sale.” This offer was rejected.

“I wasn’t too happy with the number of bidders,” said school board member Flavio Rivera, who is chairman of the fiscal committee. He said Florio should have bid when the property was advertised.

Florio said the building is zoned for a school. He had no plans to run a school out of the facility which has been vacant for a decade. “I was inquiring about whether we can go before zoning to see what we could put there,” he said. He said his inquiries were spurned by the district.

State law allowed the district to conduct a negotiated sale. It hired real estate broker Linton Gaines of Nicholas Real Estate to market the property to find a buyer. Rivera said an appraisal was conducted by the district that placed the property’s value at $1.7 million.

“They said this is the best offer,” said Emanuel Capers, chairman of the operations committee, referring to the school district.

“How can we reject $1 million?” remarked Rivera. He was absent from Wednesday’s meeting. “I believe it was a good deal given the information I was provided by the district.”

“Why was I not given the right to outbid this guy?” asked Florio. “The school board should be concerned about the highest value.” His attorney Michael Rubin had sent a letter to Shafer as late as Feb. 2018 expressing interest in purchasing the property.

Rubin said Florio has the option to file in court to scuttle the deal. He said his client would have to decide whether a court fight is worth it for the building.

Board members Vincent Arrington, Kenneth Simmons, Capers, Manny Martinez, Joel Ramirez, and Nakima Redmon voted in favor while Jonathan Hodges voted against.

“I didn’t have enough information about it,” said Hodges. “My concern is always who bought it? What kind of intentions [the buyer has]? Whether we got a good deal? I don’t want a charter school going in there.”

The district had its outside attorney, real estate broker, and facilities director at the meeting. However, none of the school board members present asked any questions about the sale.

“I was distracted by something else,” said Hodges. When told Florio is criticizing the sale as a dark and inside deal, Hodges replied, “I hope that’s not true.”

The school board made a bad decision approving the sale, said Florio.

“So here it is, they just gained control of the school system, and one of their first moves is underselling one of their assets,” said Florio. “Perhaps, they shouldn’t have regained local control.”

Email: jay@patersontimes.com

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  • MarquinhoGaucho

    probably sold to a charter school …corrupt BOE at it again..Florio couldve turned that building into apartments or lots

  • Plumber

    Fuck florio

  • Alex Mclovin

    I agree with Plumber in regards to Florio. He had an opportunity to bid on the property just like everyone else. The only difference between him and others is that he cries when he doesn’t get his way and now will probably hire private investigators to try to get his way. Charles Florio is a coward with money and he has to man up and take the losss.

    • Charles Florio

      Alex this isn’t a loss for me. It is a loss for the board of ed and the kids. I am saying I can pay double the price for the same terms and the board of ed would be the winner. Alex I am a lot of things a coward is not one. If you would like to have this discussion I’m easy to find and trust me I don’t need a pi to uncover the hustle that happened

      Also plumber Your a real social media tough guy.

      • Leo Sanchez

        Florio call you boy Luis Velez and Andre to see what happens they call you at deal

        • Charles Florio

          Explain to me what
          Your saying? If we are going to have a conversation let’s not
          Have it in riddles. Let’s stick to the facts. Do you think the school board did the best possible for the school board? This is not a real estate thing. Anyone selling anything should want The highest price. We reached out through attorneys over a period of approx 1 year. The school board did not even allow us to negotiate it. They under sold the property. The board members were not educated enough to understand that the process in which they put the property up for sale was flawed. I can tell
          You one thing this happens everyday in Paterson. You can say I want all the properties you can curse me off however I have never asked for anything for free. Anything I ever bought from the city was because I was in a public place and was the highest bidder.

          • Alex Mclovin

            First and foremost you are a coward. Also you had every opportunity to bid on the property and you didn’t because you were worried what you would be approved for. Stop your crying and take the loss like a man because you know that you weren’t paying more then that. All your trying to do is stir up problems which you do best. I’m sure your bid would be contingent on board approval. Take the loss like a man and stop crying.

          • Charles Florio

            I never thought I could agree with a moron but your right my offer 100 percent would have been subject to board approval. If you actually read the article or I’m sorry that is assuming you can read. You would clearly see that the original rfp that the board of education put out was for 1,750,000 with no board approval. Only
            One person bid and was rejected. Than I wrote a letter to school board explaining there was interest as long as I had the right to go for board approval. Alex they sold the school subject to board approval for 1 million. So
            Let me
            Recap because you seem a little stupid which might be a insult to stupid people. the board sold with approval for almost half the price of the original rfp. So I might be a coward but even you as a moron can see there was a back door deal?

          • Alex Mclovin

            Yea I know what it was appraised at and just because you offer more doesn’t make it a better offer because your looking for board approval first. The buyer that purchased this property might not have any contingencies which will make the offer better. Once again if you wanted the property you should have made your bid and worked on approvals after but you want things to work your way and it shouldn’t be that way.

          • Charles Florio

            Alex the bid was approved and the purchaser is buying subject to board approvals. He or she is not buying without approvals. I understand what you are saying but I am telling you the same thing. Forget me. I am telling you other investors not me for argument sake would have offered much more money if they were allowed to
            Go
            In front of the board for approvals the same way this group is allowed. If this group spent one million as is than yes that is a solid offer than I would NEVER had made. A back door
            Deal was
            Made and once
            Again forget me. The school sold this property without even trying to get the highest price. They put up for rfp your right that is a fair process. ( rfp allowed no approvals) so nobody bid accept I heard one low ball offer( not me) than instead of putting it back to rfp they sell it through a local broker with political ties. When I find out I ask how? Why? Ect. Here is the next hustle. The buyer of this school will receive tax credits. Please
            Remember I said this. Look at where this school is located! Now this only
            Closes if they get approval

  • Moefaanonoa Maluaiga Terry Mai

    I'm sure that this is not the end of this deal. i'm not sure that there was enough advertising/marketing for this building. The possibilities should have been a lot clearer as to what a potential developer could do with the building. Always wondered what would happen to that building.

  • Ilyas Oksas

    Thanks Mr. Florio for bringing this to the public attention. Underselling property is theft from the city, and theft from the taxpayers. I applaud you for this.

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