PATERSON, NJ - Healthcare giant St. Joseph’s Health will pay the City of Paterson more than $6 million over five years under a settlement negotiated by the Administration of Mayor Andre Sayegh and approved by the City Council earlier this week.

Sayegh took to Facebook to tout the legislative body’s approval of the agreement which settles litigation that has been in the works since 2016, and brings a temporary end to a discussion about whether or not Paterson’s largest employer, a non-profit, and therefore property tax exempt, entity, pays its fair share of costs associated with municipal services. 

“St. Joseph’s is a valued partner, and we are proud to announce that we reached an agreement that will provide Paterson with a new revenue stream,” Sayegh added in a further statement issued Thursday. “This long sought agreement contains many benefits, and I would like to thank members of the municipal council for supporting this significant achievement.”

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Referring to St. Joseph’s as a “landmark”, 6th Ward Councilman Al Abdelaziz was the first council member to lend his affirmative vote to the agreement, saying that the final settlement is reflective of the outcome of a good negotiation. “Could we have gotten more,” Abdelaziz asked rhetorically, concluding that it’s important not to be greedy and offering this is a good “first step towards moving forward.”

With First Ward Councilman Michael Jackson lamenting that the agreement represented another “self-inflicted wound” on Paterson before casting one of two dissenting votes, and Councilman-At-Large Flavio suggesting more time was needed to discuss it, especially in the context of sewer rates, Councilwoman-At-Large Lilisa Mimms voted “yes” passing the measure 6-2.

“When revenue can be generated to lift the burdens off taxpayer’s shoulders it’s a good day for the City of Paterson,” Mimms told TAPinto Paterson. 

“We are pleased to come together with the city in order to reach an agreement that benefits the Paterson community,” says Kevin J. Slavin, President and CEO of St. Joseph’s Health. “We recognize that the hospital utilizes city services and, working closely with Mayor Andre Sayegh and his administration, has enabled us to achieve a sound resolution. We applaud the mayor and City leaders for their foresight in resolving this complex issue so we can all continue to focus on the health of our community.”

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