Category Archives: Rahway

Nail salon expands to former dance space

Paris Nails last month expanded into the former Union County Dance Academy at 1542 Irving St. The dance academy left last spring for a new space in Linden.

No word on details of the lease, but the property last exchanged hands in 1998 for $600,000, according to PropertyShark.com.

 

Thanks to Bob Markey of the Chamber of Commerce for the photo. I’ll be catching up on a few things, so look for multiple posts this week.

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In another look at what other towns are doing with respect to their downtown or other commercial areas: Cranford considers pulling pay stations from Centennial Avenue parking areas. In this case, it’s not the downtown area – a point the mayor makes in the story – but also, the pay stations generate $7,000 in annual revenue but cost $9,000 to operate. The story quotes the mayor as saying the pay stations “place a burden on the business district that is still attempting to gain its footing.”

Dornoch updates agency on retail properties

As promised, the remainder of the briefing the Redevelopment Agency received last week from Glen Fishman, managing partner of Dornoch Holdings.

Fishman was invited to provide an update on the firm’s activities and while the “bad news” portion consisted of an update on the lack of activity at The Savoy, the “good news” portion, as it was described, concerned Dornoch filling its rental properties along Main Street.

Temporary surfacing parking eventually will take over the rest of Lot B on Main Street, adding about 100 spaces in a deal with the Parking Authority and Redevelopment Agency. How temporary the parking is likely will depend on when the economy rebounds. The space originally was planned for 152 residential units with retail-residential mix and parking component known as The Westbury.

Dornoch has been able to rent all but two of its buildings along Main Street, Fishman said. Residential apartments above its properties at 1513 Main St. and 1469 Main St., are rented while they’ve had some interest in the retail components. A New York tenant abandoned 1469 Main St., Fishman said, but a clothing store (headed up by his stepmother) has moved into 1513 Main St. (photo above) while 1501 Main St. has two potential tenants, including a Westfield attorney who may come before the agency and/or Planning Board with changes to the interior, and another tenant who may be interested in the entire building. He’s hopeful to have the spaces filled by February or March.

“People continue to have faith in the town and are willing to spend,” Fishman told commissioners.

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Here’s an idea that might be worth copying. Summit’s merchant association, Summit Downtown, Inc., issues an annual report of sorts, the going vacancy rate and detailing the past year of openings and closings. While Summit may be vastly different in terms of demographics, like Rahway, it also has a Special Improvement District (SID) tax.

Perhaps an effort such as this may be undertaken by the reorganizing Rahway Center Partnership, which is revamping its website, the fledgling Chamber of Commerce, or be included in the mayor’s pledge to market the city.

By the way, Summit reported a vacancy rate of 4.8 percent, 10 vacancies, down from 7.6 percent, 16 vacancies, with 21 new stories and seven expansions/relocations, and five new openings anticipated early this year.

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.

Improvements spotted at Kings Inn

It looks like some long-awaited improvements got under way this month at the Kings Inn Motel that ultimately will turn it into a Super 8.

 

It’s been almost a year since the Redevelopment Agency reassigned the redevelopment agreement on the site along Route 1&9. The plan at that time was to turn the building into a Motel 6 but is now back to a Super 8.

Director of Community Development Cynthia Solomon confirmed that the permits have all been approved but no word on a timeline for completion.

A Howard Johnson had been planned to replace the Kings Inn two years ago before that plan fell through and at one point there was a proposal for an addition as a Super 8. (Thanks to all the eagle-eyed readers who tipped me off to the activity at the Kings Inn site.)

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A story in NJ Biz last month detailed how a Newark nonprofit uses GPS-based bar code system to allow staff, and the public, to send alerts on damaged downtown improvements. It also can “help users locate parking garages, stores, restaurants and parks in the area.”

Salon, bakery sought for East Cherry Street

Hoping to fill two vacant storefronts, a local property owner came before the Redevelopment Agency last month for assistance but it looks like the locations will remain vacant for now.

Continue reading Salon, bakery sought for East Cherry Street

Poll results: Favorite breakfast place

You wake up late on a Saturday morning and you don’t feel like making breakfast. Where do you go?

Continue reading Poll results: Favorite breakfast place

New poll: What’s your favorite place for breakfast?

Thanks to all who offered suggestions on the next poll and/or places that should be included in the next poll.

Continue reading New poll: What’s your favorite place for breakfast?

‘The Smoldering Hedge Fund’ and Rahway

A fellow local blogger in Plainfield alerted me to a Fortune magazine story from several weeks ago. “The Smoldering Hedge Fund”, a three-month-long investigative story details the troubles of Greenwich, Conn.-based Plainfield Asset Management. What’s this got to do with Rahway?

P & F Management
was founded in 2005 as a joint venture of Plainfield Asset Management (PAM) and Glen Fishman of Lakewood-based Fishman Real Estate Enterprises. Fishman is managing partner with Dornoch Holdings, which is owned and operated by P & F Management. Dornoch had multiple projects in the works — The Savoy (photo below), The Westbury — and bought up several other properties downtown for millions at the height of the real estate boom in 2006 with plans for redevelopment. Dornoch also has a project in Plainfield.

Plainfield Asset Management once managed $5 billion but today oversees $3.3 billion, according to Fortune, and “has faced a wave of withdrawal requests, which it contained only by invoking a contract clause and refusing to let investors withdraw money.” Of the $3.3 billion, $2.7 billion represents money from investors who weren’t permitted to leave, and won’t until 2012. As the Fortune story puts it, only $560 million managed by PAM is from people who “actually want the firm to run their money.” The fund continues to charge investors management fees.

Without getting too much further into it, PAM is “fending off suits from borrowers,” according to Fortune, and its “lending practices are now being examined by the New York City’s district attorney.” I encourage you to read the Fortune story in its entirety.

How does this all affect Dornoch’s Rahway projects? It’s unclear exactly but it can’t possibly be good. I’d ask someone at Dornoch but the number to their Hillside offices has been disconnected maybe I’ll pay them a visit. [Feb. 10 UPDATE: Since this original post, I was able to get through on the phone, if only to a maze of voicemail menus and greetings. So apparently the phone is not disconnected.]

Asked about the report in Fortune, Mayor James Kennedy said he never heard of P&F Management and doesn’t know who Fishman’s partners are, while City Administrator and Redevelopment Director Peter Pelissier said he was aware of a Holland-based hedge fund backing Dornoch.