Coaster Photo
Ocean Township Councilman Chris Siciliano is pictured at the unfinished site of an office building planned by Solomon Dwek.
By GARRETT STASSE
The burgeoning real estate scandal swirling around Solomon Dwek has some Ocean Township officials wondering if taxpayers might have to cover some of his arrearages.
Dwek, a prominent real estate buyer, has been charged by federal officials with writing $23 million in loan payments against a $25.2 million check that bounced. He is free after posting bail.
Published reports said Dwek owns, controls or manages at least 129 properties throughout Monmouth County and elsewhere.
He is also the center of intense scrutiny and speculation in court and at dinner tables as people try to predict how his tangle of purchases and the companies that control them will be resolved.
Superior Court Judge Alexander Lehrer, sitting in Freehold, froze Dweks holdings last week then gave control to a lawyer while the court unravels the story behind the charges.
Deputy Mayor J. David Hiers said there might not be much tax impact but the township is going to keep an eye on his properties to ensure theyre properly maintained.
Im very disappointed in Sol Dwek for what hes done, Hiers said. He was highly recognized in the community. Hes a mogul who was philanthropic and an investor who lost a lot of faith and trust in this community. As far as taxes, I dont know how much of an impact he could have Ocean Township is a strong community. The housing markets solid and I dont see how one individual could take us down. There might be some shock, but Ocean Township will be fine.
The township is researching tax records and other documents to see just how many properties Dwek controls or has an interest in. Property taxes were current on Dwek properties the tax collectors office had identified as of Thursday, Township Manager David Kochel said.
He could not say how long it might take to identify them all because many are lasted as owned by limited liability corporations under the name of each property. For instance, one building on Monmouth Road is listed as owned by 259 Monmouth Rd., LLC, he said.
Kochel said he is uncertain there would be tax implications because banks pay property taxes to protect their investments. A more thorough search is required, and that could take weeks, and even then state and federal investigators have greater access to information than local officials, he said.
If we tried to make that determination now it would be an educated guess at best, he said.
Dweks partners in the LLCs could also pay the taxes, but who they are remains to be seen. Kochel was asked if Dwek ever told the township who his associates were or if Dwek said his residential purchases would be jointly owned rentals.
When he does (discuss properties with officials) were not necessarily provided with who the partners are. There are properties where we may have interacted with Sol Dwek but we dont know if he was owner, managing agent or both. To the best of my knowledge hes never been involved in seasonal rental business, Kochel said.
Dweks seeming collapse is leading to much concern about the real estate market, especially in Ocean where Dwek has substantial holdings. Housing sales are soft because of rising interest rates and what some say are inflated prices, and dumping Dweks properties on the market would depress sales further.
Noting that Dwek has unfinished projects on Monmouth Road, Hiers said, Well have to monitor the properties he has to make sure theyre not a disgrace to the community. We cant let his ventures take the town down. We dont want an ugly township and we wont allow that to happen.
Township Councilman Christopher Siciliano said Dwek exposes property taxpayers to another cent on the municipal portion of the tax rate should Dwek, his partners or lenders stop paying taxes.
`Im very concerned about the tax consequences to the township now with Mr. Dweks many holdings, he said. He could blow a hole in our side as far as the consequences of non-collectible taxes. Im hoping some of his partners will step up and pay taxes on these properties.
``Then there are projects Dwek began but hasnt completed or has Planning Board approvals for, he said.
Theres a foundation on Monmouth Road intended to become an office building, but the construction company stopped work and removed the portable bathrooms. Siciliano fears a smaller version of Asbury Parks previous collapse, with residents staring at unfinished projects like the citys C-8 building on the beachfront, which stood a rusting skeleton for more than 15 years, a symbol of failed redevelopment.
It could take time to sort it all out, he said.
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