Category Archives: City Council

City Council

Bond sale included $7.8M for redevelopment

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It’s long overdue for some details about the city’s bond sale this past spring that I promised last month when I posted the city’s top 10 property taxpayers.

The city borrowed almost $12 million in general improvement bonds, including almost $8 million for redevelopment- and arts-related items.

Ten of the 22 items in the $11.765 million bond sale were related to redevelopment, totaling $7.78 million for redevelopment, more than half of it related to the Hamilton Street arts projects. About $783,750 was authorized in 2007, which covered architectural concept plans, planning and engineering, surveying, DEP permitting, floor plans and elevations, and demolition of the Hamilton Laundry building. Another $4.5 million was authorized last year, but only $3 million borrowed so far, for the Arts District’s amphitheater, which would cover the renovation of the Bell Building (now referred to as the Hamilton Stage), construction of the amphitheater, acquisition of arts related equipment and eventual acquisition of the Elizabethtown Gas building (Block 167, Lot 1).

A breakdown of the 10 items, some dating back to 2000, can be found in this Excel file, including the amounts authorized and bonds issued, along with a brief description. At the April bond sale, the city secured a rate just below 4.51 percent over 20 years from J.P. Morgan (UBS Financial was the other bidder, coming in at under 4.59 percent). The bonds mature annually on April, beginning in 2012 at $350,000, increasing to $450,000 in 2015, $550,000 in 2016, $560,000 in 2017 and $640,000 in 2018, before leveling out at $700,000 annually through 2030. The complete maturity schedule can be found in this Excel file.

In tomorrow’s post, we’ll take a look at what Standard & Poor’s had to say in its report on the city.

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NJ Monthly magazine’s Table Hopping with Rosie paid a visit to Patria Restaurant and Mixology Lounge. She called it “a place in NJ that should be on your must-try list.” Overall, she had quite a few good things to say, calling the garlic shrimp better than anything found in Newark, and advising not to miss some entrees (including Patria pork, and I must agree) as well as dessert.

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City Council

East Cherry Street demolition tab = $75,000

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The City Council tonight approved an emergency contract for the demolition of 65 E. Cherry St., which occurred last month. Frank Lurch Demolition Co. of Asbury Park was awarded the $75,000 contract.

Continue reading East Cherry Street demolition tab = $75,000 →

City Council, taxes

Almost $42k in property taxes canceled

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Almost $42,000 in property taxes have been canceled for 2011 in connection with redevelopment projects downtown and the Arts District.

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City Council

Bell Building a shell of its former self

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Construction began last month to turn the Bell Building on Hamilton Street into a black box theater, a little at a time (photo left), until last week when several of walls were knocked out (photo below).

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City Council

Interim parking coming soon to Lot B

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The City Council tonight awarded a $30,000 contract for the construction of an interim parking lot on Main Street, which should be completed within several weeks.

Matawan-based Esposito Construction was awarded the contract in the amount of $29,652.95. Funds for the interim lot were included within a $200,000 bond ordinance also approved tonight that also will fund demolition of 65 E. Cherry St. and installation of a fence around The Savoy site at Main and Monroe streets. Mounds of asphalt millings have been staged at the site for the resurfacing, which must be completed in time for next month’s Hot Rods & Harleys event, according to Redevelopment Director and City Administrator Peter Pelissier.

The interim lot is expected to add about 100 spaces to the existing 65, which the Parking Authority will lease from Dornoch Holdings — the developer which originally proposed to build The Westbury — for $1 annually in exchange for property taxes on the site being waived. The idea for an interim lot was proposed in fall 2009 when it became clear the mixed-used development wasn’t coming online anytime soon. [Link in italics added 4/16]

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An advisory issued last week by NJ Transit indicated that construction of the center stairs at the train station — which have been closed for a year — is expected to begin in “mid-April.”

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City Council

$165k for police assistance center

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A multipurpose bond ordinance to be considered by City Council next week includes $165,000 for equipment and improvements for a police community assistance center currently undergoing renovations on East Cherry Street. The governing body is scheduled to approve several bond ordinances at its meeting on April 11.

The $1-million bond ordinance, which includes the purchase of various equipment and improvements, calls for a down payment of $8,250 and issuing $156,750 in bonds. The city acquired the former Beverage Shop building at 52 E. Cherry St. last spring from the Rahway Center Partnership for $80,000 and plans for the police center were announced last fall.

The $165,000 is for “pretty much everything we need to open the building as a police facility,” said Police Chief John Rodger, including furniture and equipment, such as IT infrastructure, for a 30-capacity conference room. Rodger said the interior has been slightly redesigned and the Juvenile Detective Bureau will be moved into the building full time. The video system for East Cherry Street also will be moved there and cameras will be added for Lot B and the driveway accessing it from East Cherry Street.

Renovations to the center have counted on donations to this point, said Rodger, estimating that less than $15,000 has been spent so far. Pending expenses including flooring, ceiling and Sheetrock work, the chief said, adding that he’s working on getting all material donated for the electrical work as well as volunteers from an electrical union to do the work.

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This Wall Street Journal story from last week, All Not Cake on Hoboken’s Washington Street, indicates that even everyone’s favorite cool city is having some difficulty when it comes to retail tenants. About a dozen storefronts along an eight-block stretch of downtown are currently closed, though some new tenants are on the way, according to the WSJ story. Rents vary, with spaces closer to the train station more expensive, as much as $100 per square foot while uptown locations rent for as little as $2 or $3 per foot.

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City Council

Council to vote on another $1.6m for arts projects

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The City Council last week introduced an amendment to add $1.6 million to a bond ordinance to cover additional costs associated with the Hamilton Street Arts District projects. A public hearing and final adoption is scheduled at the April 11 council meeting.

The governing body approved two bond ordinances and introduced six others last Monday to borrow funds for various improvements or equipment. We’ll break down the ordinances related to redevelopment projects in  the coming weeks.

An $8.5-million bond ordinance, originally adopted in March 2010, was amended to $10.1 million. The extra $1.6 million would cover additional expenses that were presented to the Redevelopment Agency earlier this month, . The original ordinance included funds for the renovation of the Bell Building into a 200-seat black box theater and related equipment, acquisition of nearby homes for eventual parking, and the future acquisition of the Elizabethtown Gas building at the corner of Hamilton Street and Central Avenue. The $1.6 million would cover, among others things, construction of a parking lot behind the Bell Building and a temporary lot where an 1,100-seat amphitheater is planned.

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A pretty wonky read, Next American City magazine offers a roundtable entitled The Art of Change, with three experts discussing, among other things, what cities can do to support the arts. Not too long but relevant considering Rahway’s efforts to make the arts a cornerstone of redevelopment efforts. One of the roundtable participants is president of Americans for the Arts, which recently released a study indicating that 41 percent of nonprofit arts groups last year failed to meet a balanced budget, up from 38 percent in 2008, with the “health of the sector at a 12-year low.”

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City Council

E. Cherry St. eyesore may come down by summer

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The City Council Monday night awarded a contract to install a fence around Dornoch’s dormant Savoy property on Main Street and moved forward on demolishing the developer’s East Cherry Street eyesore.

First, the governing body unanimously approved a $16,820 contract to Pollock Installations, Inc. of Woodbridge to install a fence at Dornoch I, a.k.a., The Savoy, at Main and Monroe streets. The council then introduced a $200,000 bond ordinance to cover the cost of the fence installation, as well as the demolition of 65 E. Cherry St., and improvements to Parking Lot B, a.k.a., Dornoch II/The Westbury.

The council is scheduled to approve the bond ordinance at its April 11 meeting. If all goes well, bids for demolition would be awarded by June and demolition could come by summer, according to City Administrator and Redevelopment Director Peter Pelissier. The property paid about $1,040 in property taxes last year, according to PropertyShark.com.

During a meeting in December, Redevelopment Agency officials asked Glen Fishman, managing partner of Dornoch, about the possibility of at least installing a fence around The Savoy site, since it’s sitting there just waiting to be vandalized. Given Dornoch’s financial situation, his suggestion was for the city to install the fence and place a lien on the property.

The wall that collapsed at the property last month was not load bearing, according to Richard Watkins, director of the Department of Building, Planning and Economic Development. The building was declared unsafe and the owner was ordered to demolish it, however, he has refused, Watkins said. The city plans to place a lien on the property to recover the cost of demolition.

Dornoch purchased the East Cherry Street property from the Parking Authority for $65,000 (less than the likely cost of demolition) and had proposed renovations to the Planning Board in 2007.

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