The Redevelopment Agency voted unanimously last night to declare Carriage City Properties in default of its redevelopment agreement. Carriage City has 30 days to rectify the situation or the matter could head to Superior Court, Redevelopment Director and City Administrator Peter Pelissier said.
Continue reading Carriage City declared in default of agreement
City Council approved a tax appeal settlement Monday night with Carriage City Properties. Details on the settlement can be found in this earlier post.
During the Feb. 3 pre-meeting conference of City Council, Third Ward Councilman Jerry Scaturo raised the issue of Carriage City Properties leasing its unsold units. Sky View began marketing a lease-to-buy option, starting at $1,250 a month for one-bedroom units.
Pelissier said it’s not a concern from the standpoint of wanting to see people moving into the community. “It’s better than having…units sitting empty,” he said. If the units are occupied, the $10,000 fee owed to the Redevelopment Agency should be paid, said Pelissier, adding that the agency is seeking is a formal request from the developer to clarify the redevelopment agreement. Originally the developer, Elizabeth-based Silcon Group., was to pay the $10,000 fee upon closing of each unit.
Blog readers voted overwhelmingly for the opening of Carriage City Plaza and the Hotel Indigo as the biggest redevelopment story of 2008.
Opening of Carriage City Plaza, 54 percent (37/68)
The slow pace of redevelopment, 19 percent (13/68)
The Savoy coming to a halt, 8 percent (6/68)
Reopening of the Union County Arts Center, 8 percent (6/68)
The fast pace of redevelopment, 5 percent (4/68)
Tabulation of the Rahway Survey, 2 percent (2/68)
While most readers pointed to Carriage City, there were almost a third of them who pointed to signs of the slowing economy, like The Savoy coming to a halt and the slow pace of redevelopment. Keep in mind that the survey is far from scientific at all.
The new poll will be up after the Super Bowl. It’s a repeat from last year but we have a few more readers so I thought it’d be interesting to take another look.
“Who makes your favorite pizza in Rahway?”
Brooklyn Pizza
Gino’s
Michelino’s
Nancy’s Townhouse
Papa Vito
Rahway Pizza
Ted’s
Tony’s
Back in June, Cuppy’s signed a lease for one of the first retail spaces at Carriage City Plaza. At the time, its Web site touted locations “coming soon” to East Brunswick, Phillipsburg and Whippany. Earlier this week, when I checked their Web site, they were down to zero locations “coming soon” in New Jersey. Last night, they were just down. Trying to get to the site, I was greeted with a “Page Load Error.” Not sure if that’s temporary but fear not, the Cuppy’s MySpace page is still active (although he hasn’t logged in since September).
A quick Web search reveals quite a bit of info about Cuppy’s, some of it dating back well over a year. And not much of it good, if it’s accurate, especially if you consider the Web sites are called Ripoff Report and Unhappy Franchisee. Here’s some franchise info, which indicates required liquid capital of $100,000 and net worth of $50,000. The complaints pre-date a change in ownership this past May.
It’s not all bad news though. Apparently, Cuppy’s can make it in South Africa, Mechanicsburg, Pa. and Wilmington, N.C., among others.
Informative story in Sunday’s New York Times about condo projects turning to rentals, namely the state law that says after 75 percent of units are sold, “management shifts control to a homeowners’ association.”
It’s definitely worth a read, and particularly timely and relevant in Rahway. Apparently, it’s not uncommon in this market to go from condo to rental:
Developers often decide to switch from condo to rental, or vice versa, depending on which way the market is turning. Mr. Stolar said that he was aware of several condo developers who were contemplating the switch at buildings where sales are going slowly — or are even stalled — right now. And he isn’t the only market watcher to see this as an issue for a number of builders.
Switching to rentals is “a way to create cash flow,” he said, “and the rental market is still strong” compared with the condominium market.
Not only have two projects originally planned as condos shifted to rentals this year, bu
t I’ve been asked a few times whether Sky View at Carriage City Plaza is converting to rentals. Not likely. While individual unit owners can rent their apartments (and several units have been purchased by the same owner, by my count), Silcon Inc. would have to seek approval from the Redevelopment Agency to amend the redevelopment agreement. And I’ve heard nothing to even hint that such a move would be sought — much less gain approval.
With 209 units in Sky View, 75 percent of the building would be 157 units. By my count, almost three dozen units officially have sold and appeared in property transactions, but I’ve heard that as many as 65 percent of the units have closed.
Happy Thanksgiving!
The Redevelopment Agency is expecting a payment of $202,000 in fees for the sale of units at Sky View at Carriage City Plaza, Redevelopment Director/City Administrator Peter Pelissier said at last night’s agency meeting. Based on the redevelopment agreement and a new deferred payment schedule, that would mean about 40 units have closed so far.
I’ve heard that as many as 60 units have closed but only about two dozen have appeared in property transactions so far. The average for the 23 units closed so far is about $288,272, with a low of $233,050 and a high of $444,000. There were three purchasers with the same last name who bought two units in the building, according to real estate transactions.
The redevelopment agreement with Elizabeth-based Silcon Inc. calls for the agency to receive $10,000 per unit upon closing of each unit. This past summer the agency agreed to defer half the payment until it reached the level of water connection fees paid in June ($331,194). At $5,000 per unit, that would mean about 40 units have closed, given the $202,000 payment.
There have been 34 temporary certificates of occupancy (TCO) issued for units at Sky View at Carriage City Plaza, according to City Administrator and Redevelopment Director Peter Pelissier. Elizabeth-based Silcon Construction, which built the hotel, has paid $649,000 in water connection and permit fees, Pelissier reported at last week’s City Council pre-conference meeting.
More than half of the 209 condominium units at Sky View at Carriage City Plaza are under contract with the first 30 expected to close this month and the rest by the end of August, according to representatives of Silcon Group.