Newark Mayor Ras Baraka said Friday that he had nothing to do with a potential $500 million deal to secure a new school in his city, a deal that involves a developer who is one of his political donors.
The builder who stands to win the contract is Scott Fields, a donor to Baraka’s campaign for governor last year who has also given smaller amounts to other politicians in Newark.
After district officials would not reveal Fields’ identity at a school board meeting Wednesday, naming only a limited liability corporation, NJ Spotlight News found it in a public records filing.
Baraka told NJ Spotlight News he did not know about this week’s vote by the school board to advance the project and had nothing to do with either the agreement to lease this building in the Ironbound neighborhood, or the selection of the developer.
“I’m being blindsided about something that I have no knowledge of whatsoever,” the mayor said. “And even if the man donated to my campaign, he could do business in the city wherever he wants it.”
Baraka added that he doesn’t speak to anyone from the district about issues like real estate deals. “I don’t call the superintendent about contracts,” he said. “I don’t speak to nobody on the board about contracts.”
“The only thing I speak to the superintendent about,” Baraka added, “is student performance.”
Fields did not return a call for comment Thursday when NJ Spotlight News first disclosed his role in the planned school development.
The potential agreement to secure the school has been sharply criticized for its unusual structure and cost. While normally the state pays to construct new school buildings in Newark and other cities, in this case, the city would be leasing the facility from a developer for $500 million over 30 years and would not own it at the end of that term. It would then have the option of negotiating to purchase the building, district officials said.
Critics called the cost staggering and questioned why the district is taking this approach, as opposed to waiting for the state to build the new school through the Schools Development Authority (SDA), the usual route, or finding another, cheaper solution.
When asked if he thinks this is a wise move, Baraka said he’d have to look into it, but that it strikes him at the outset as costly. “Do I think that that’s a lot of money? Yeah, it’s a lot of money. Absolutely,” he said.
“The best deal is to get the SDA to build the building, so that we don’t have to pay for it,” he added.
The potential lease agreement and the donor’s identity have drawn attention in New Jersey’s biggest city, which is also the largest recipient of public aid for its schools.
The budget proposed this month by Gov. Mikie Sherrill gives extra school aid to Newark. As the Legislature reviews the budget, which it must pass before July 1, Republicans are raising alarms about cuts to suburban district budgets and are pointing to what they argue is wasted money in urban districts.
Credit: Newark Public SchoolsNewark district officials argued on Wednesday that this school project is a necessary workaround to bypass the slow-moving state funding for new construction.
The Education Law Center, which won the court rulings that required the state to pay the costs of school construction in Newark and other cities, called for public oversight of this move and also noted the challenges of securing state funding for new buildings.
“The public deserves full transparency about the cost, bidding process, contract terms and long-term financial obligations,” senior attorney Theresa Luhm said in a statement.
“Situations like this also highlight the larger problem facing school districts across New Jersey: the lack of consistent, adequate state funding for school facilities, particularly in SDA districts like Newark, where the state has a legal obligation to fund school construction.”
Newark residents who spoke during and after the school board meeting objected to the “outlandish” cost of the lease, the lack of ownership of the building and the prioritization of funds for this deal when students are struggling in reading and math.
The site is home to a closed Catholic school. Plans presented by Newark school officials show the four-story school at 56 Freeman St., which would be built for 667 students. It would include a parking garage, rooftop playground, a gym and a playing field.
For the new school facility, the district would pay about $1 million per month in rent, leasing the building with an option to purchase it at the end of the 30-year term, district officials said during Wednesday’s meeting.
