School funding mess cuts deep

Halt to project hammers a struggling neighborhood in Camden County
Sunday, July 31, 2005 • BY RUDY LARINI AND STEVE CHAMBERS • Star-Ledger Staff

David Dankel bought his house in a run-down neighborhood of Gloucester City eight years ago, after his 32-year-old wife, Tina, died of throat cancer.

It was to have been a place of new beginnings.

Now he and his daughter have to start over again.

The Dankels are among a handful of families left in what was once a bustling neighborhood in this faded industrial city on the Delaware River just south of Camden.

These days, it is a scary place of boarded-up houses and empty streets. It is a monument to the mismanagement and waste that has crippled the state's $8.6 billion school construction program, as well as vivid proof that the funding mess has roiled struggling towns large and small, from one end of the state to the other.

"It was a real nice neighborhood; everybody knew everybody," said Lois Dankel, 24, her blond-streaked auburn hair tucked in a bun. "Now it's just depressing and scary."

The New Jersey Schools Construction Corp. planned to build a $21.3 million middle school where the neighborhood and an adjacent shuttered factory stood. But with a $25 million federal environmental cleanup of the factory site nearly complete and 70 houses purchased and emptied at a cost of $10 million, the SCC gave Gloucester City bad news Wednesday: The agency was running out of money, and the middle school would have to wait for another infusion of cash.

"They're (the SCC) going to finish the demolition, scatter some grass seed and walk away," said Lynda Lathrop, a spokeswoman for the school district.

There was plenty of pain to go around last week, as the SCC told Gloucester City and the state's 30 other distressed districts which construction projects it could fund out of a $6 billion pot set aside by the Legislature. In all, more than 200 projects already under way were placed in limbo by the agency, which was set up three years ago to manage the court-ordered school overhaul.

Legislators aren't likely to begin debating calls for more money until after the November elections.

The projects hurt the most were ones in places like Gloucester City, where houses and businesses had been shuttered in vain -- at least for the time being.

"It's a ghost town," said City Administrator Paul Kain. "It's become a rougher neighborhood because nobody lives there. We're having vagrants ... people breaking in and pulling copper from the houses. Fires are being set."

Every district seemed to have a similar horror story. In Newark, houses on Dewey Street and Ridge Avenue have been boarded up, threatening once-stable neighborhoods.

Kevin McElroy, an SCC spokesman, said the agency received a dozen demolition bids Thursday for Gloucester City, adding that bulldozers would likely be working by mid-August. He said the state also expects to buy the last four properties -- two houses and two small businesses -- but offered no timetable.

McElroy said the land will be retained in hopes another round of funding will be forthcoming. But he said it remains unclear how many partially completed sites the SCC can continue to acquire.

A land acquisition committee formed by Al Koeppe, the former Public Service Electric & Gas chief executive brought in this spring to clean up mismanagement and waste at the SCC, is expected to approve a list of projects in August.

To make matters worse in Gloucester City, the SCC also is making alterations to the high school, adding a media center and other amenities. When the work is completed in 2007, there will be no room for the seventh- and eighth-graders who now attend classes in that space.

They were to have moved to the new middle school.

"It's horrendous what they left us with," said Mayor Thomas Kilcourse. "The people are all out, the houses are all boarded up, and now there's no school coming.

"It's something they promised us and now they pulled it out from under us," he said.

Losing the new middle school was a problem Gloucester City didn't need.

The city of 12,000 once was a thriving industrial town, with a Navy shipyard and bustling waterfront. That all disappeared decades ago, taking most of Gloucester City's jobs with them.

"When they went belly up, this town just died because practically everybody worked there," Lathrop said.

Officials hoped the new school could help a modest revival just getting under way. The city recently was named an Urban Enterprise Zone, attracting a trickle of new stores and businesses with the promise of a reduced sales tax. Developers want to build $300,000 townhouses along the waterfront.

But in Dankel's neighborhood, most activities in recent months have been the regular police patrols and visits from firefighters.

Tina DeFrank, her husband, John, and two young children live in a house in the now-barren neighborhood.

"The kids, they come and party in these houses," she said. "Me, with the kids, I'm afraid something's going to happen."

As other neighbors took the SCC offers and fled, the DeFranks were left behind because of problems getting their contract finalized.

"We've been ready to move," she said. "We've done everything we had to. And the state is taking its time like we don't matter."

A few doors away on Market Street, Jack and Pat Heiser sat watching their deli business dry up like week-old bread.

"I have to call people to tell them I'm still here," Pat Heiser said.

In 1994, the Heisers bought the run-down building for $55,000 and spent three years and $35,000 renovating it. Now, they, too, have to move.

The state's best offer for the store and upstairs apartment has been $95,000 -- a price the Heisers find too low.

"Give me a fair market value, and I'm out of here," Jack Heiser said. "But you have to go around and search and find a place you're going to like. A business isn't just opening up."


© 2005 The Star-Ledger. Used by NJ.com with permission.

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