All posts by rahwayrising

Hearing on 2011 municipal budget tonight

City Council tonight will hold a public hearing on the 2011 municipal budget during its regular meeting tonight at 7 p.m.

The $44.9-million budget will raise approximately $31.1 million from property taxes. Officials tout that appropriations have increased only 1.3 percent over last year while being below the state-mandated caps, though the exact impact of the budget on the average assessed home is unclear.

***

Sunday’s Star-Ledger had this story that examines Rahway’s redevelopment efforts over the years and the state of downtown. I’m not sure I would call the 50-unit St. Georges Avenue apartment complex that went up in flames this month a “symbolic achievement” as much as other downtown projects, like the 222-unit Carriage City Plaza or 159-unit Park Square (which didn’t even warrant a mention in the piece). What did everyone else think?

Black box theater first, then amphitheater – maybe

Following the recommendation of the administration, the Redevelopment Agency is moving forward on a black box theater while prioritizing parking over an amphitheater in the short term.

The Redevelopment Agency on Wednesday awarded a $5.825-million construction bid to Gingerelli Bros, Inc. The Toms River-based firm was the lowest among 16 bidders to renovate the former Bell Building on Hamilton Street into a 220-seat black box theater. The award includes a base bid of $5.757 million and alternate bid of $27,112 for a folding partition and $41,200 for a metal roof instead of asphalt shingles.

City Administrator and Redevelopment Director Peter Pelissier said the city has approved $12 million for both a black box theater and amphitheater and even with the elimination of one project, more money would have to be raised for a parking facility. The 1,300-seat amphitheater planned at the former Hamilton Laundry site cost more than the original estimate and he recommended to commissioners first building the black box theater and creating parking at the amphitheater site for the time being given the economy and city’s looming debt, such as the school system’s $34-million renovation projects. Officials estimated some $2.73 million already has been spent on architect and engineering fees and other site preparation.

There were six bidders for the amphitheater, the lowest from Berto Construction at $4.734 million ($4.2 million base bid plus $487,000 in alternate bids). Other bidders included W.D. Snyder Co., $6.15 million, and CGT Construction, $6.21 million. The amphitheater project had to be re-bid after an issue arose with the original bids, challenged by one of the bidding companies, last fall.

Former Mayor James Kennedy, now executive director of the Rahway Arts District, said the merits of building the black box theater first are basic. A black box theater would have a year-round revenue stream while removing a building that’s been blighted for over a decade. If the amphitheater was pursued first but the project ran out of money, the blighted Bell Building would remain. In addition, the amphitheater site could provide needed parking for the black box theater.

Pelissier said parking is very stressed from Grand Avenue to the arts center so for the moment, parking is more important than an amphitheater. He said it will cost $300,000 to cap the amphitheater site anyway and another $150,000 would bring a parking lot that the Parking Authority could use as a temporary revenue stream.

As currently designed, the Hamilton Street arts projects would have 48 parking spaces but creating parking at the amphitheater site would add 86. The agency was presented with an option to add two lots, the first of which would gain 16 spaces behind four homes currently stand on Hamilton Street for a total of 134 spaces (design at right). The second lot would add 138 spaces, losing 16 to reconfiguring spaces behind the homes but adding about 36 in the area of the homes, for a total 170 spaces (design above). The first lot included parking behind the homes. (Click the images to enlarge).

The bid that was awarded only includes parking behind the black box theater but not the additional parking at the amphitheater site, Pelissier said. That would have to be designed and bid, which the administration recommended pursuing separate bids for as early as next month.

Mayor Rick Proctor called it the “most common sense” solution at the moment because of the year-round revenue available from a blackbox theater as opposed to the seven to eight months from an amphitheater. “It’s the best to prioritize use of the money we have available,” he said.

Dornoch ‘dead in the water’ on The Savoy

“We’re dead in the water right now.” That’s how Glen Fishman, managing partner of Dornoch Holdings, described to Redevelopment Agency commissioners his firm’s situation with The Savoy.

In a rare appearance at the agency’s meeting Wednesday night, Fishman was invited to provide an update on the firm’s stalled projects and activity at its properties. He started with the good news (filling rental properties), but we’ll get to that in our next post. For now, the bad news.

“We’re a little stuck here, I wish I had better news,” Fishman told commissioners, adding that they’re still negotiating with Wachovia. Rahway’s real estate fundamentals still exist, with its location and proximity but housing prices have made it hard to get people to invest. “People are still confident in Rahway, it’s just the economics,” he said. Condos can’t be built when they’re selling for $150,000 a unit, he said, but expressed confidence in “getting something there” in 12 months.

Dornoch spent a lot of money acquiring properties along Main Street for the four-story, 36-unit development, many of which were razed. Archaeological and historical issues relating to cisterns at the Savoy site cost Dornoch $1 million and a year’s time, he claimed, which “blew the budget on the Wachovia loan.” At one point there was a possibility of financing from Valley National for rental apartments but the deal could not get done, he said.

Fishman told commissioners he hopes “at some point the economics make sense, whether selling to another developer who can make it work” or otherwise. Dornoch has fielded offers from some local developers, he said, but so far three offers that have been made “have not been acceptable to the lender.”

(By my estimate, via PropertyShark and other sites, Dornoch acquired almost 20 downtown parcels at a total cost of almost $9 million or more — mine may be an incomplete list — pretty much the height of the real estate market in 2006.)

Redevelopment Agency Chairman William Rack asked if the steel beams, which went up at The Savoy site in summer 2008, might be taken down at some point, assuming they probably won’t be used in whatever ends up at the site. Fishman said it’s not necessarily a certainty that the steel would go unused. Steel doesn’t really go bad so it still has value, he said, adding that Dornoch doesn’t have the money to remove it anyway, and doing so might actually reduce the value of the property.

State of the City 2011

In this first State of the City address, Mayor Rick Proctor pledged to continue redevelopment focused on the arts, remove barriers to stimulate revitalization and recruit new business and redevelopment projects while beginning to actively market the city.

Continue reading State of the City 2011

Blaze rips through apartments under construction

A four-alarm blaze that drew firefighters from many neighboring towns this morning tore through a three-story apartment building that was under construction since early last year.

At least three helicopters hovered overhead this morning, capturing video of the roof fire and some reports indicated reached as far as Manhattan’s West Side Highway. St. Georges Avenue was closed for most of the day from West Hazelwood Avenue and/or West Milton Avenue to West Grand Avenue, with traffic jamming side streets during the morning rush.

This story from Patch.com quotes the fire chief as calling the building “finished” after Tuesday’s fire. Mayor Rick Proctor, who was sworn in Monday night, told MyCentralJersey.com: “I’ve got to figure it’s a total loss.”

We posted an update about the project in October and in August, when Jim Sisto, president of Fanwood-based Sisto Realty, said he expected it would be mostly done by October and completed by the new year. In recent weeks, the building took on a new look, with the dark-colored mansard-type roof. Many of the initial reports called the building a condo complex but it was actually planned as rental apartments. Of the 5o units, 37 were planned as two-bedrooms, with 13 one-bedrooms.

The 5-acre site was a wooded area for years before trees were cleared in summer 2009 to make way for construction. Plans to build there go back even farther though, when the Zoning Board rejected a 60-unit application for the site in March 2003 (.pdf). The builder appealed before 50 units were approved in 2004. The Zoning Board granted extensions each year through September 2009 as the developer awaited approvals from the state departments of environmental protection and transportation (St. Georges/Route 27 being a state highway).

For more photos or video of the blaze, keep an eye on Facebook or our Twitter updates (top of the page on the right).

Amphitheater bids to be awarded next week

Construction bids for the amphitheater and black box theater were opened Dec. 15 and likely will be awarded by the Redevelopment Agency at its Jan. 5 meeting.

The City Council recently awarded a contract of $5,750 to Whitestone Associates to conduct survey and prepare report of “asbestos containing materials” at 324-326 Hamilton St., one of several homes that are planned to be acquired and razed for the project. The Redevelopment Agency last summer authorized acquisition of the 2 1/2-story home for $240,000, and the City Council OKed another $160,000 for asbestos surveys and other engineering-related work.

Construction bids had to be re-bid after a judge ruled there was some ambiguity in the original bids this past fall. The Redevelopment Agency originally awarded a nearly $5-million bid in October. The City Council last spring approved borrowing a $8.5 million for the Hamilton Street arts projects.

Breakdown of SID taxes

Catching up on some older items during this slow week, the City Council last month approved a 2010 budget of about $130,000 for the Special Improvement District (SID).

Continue reading Breakdown of SID taxes

Little Portugal ‘coming soon’ to former Nile space

A restaurant called Little Portugal is “coming soon” to the former home of The Back Porch and The Original Nile.
Continue reading Little Portugal ‘coming soon’ to former Nile space