A developer who last year purchased two East Cherry Street properties plans to acquire two more neighboring properties and raze them all, replacing them with a five-story mixed-used building.
Continue reading Developer plans to raze East Cherry buildings
The Police Department is expected to begin moving into the new police assistance center on East Cherry Street this week. Police Chief John Rodger said the Police Auxiliary, which had typically used the basement of City Hall, already has started using the facility.
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.
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.
The city will buy the former Beverage Shop for $80,000 — $50,000 less than what the Rahway Center Partnership (RCP) paid for it nine years ago.
The City Council last week introduced an ordinance to purchase the vacant Beverage Shop building from the Rahway Center Partnership (RCP) after Dornoch defaulted on its agreement to acquire it. A public hearing and final approval is scheduled at the council’s regular meeting on March 8.
The Partnership bought the one-story structure at 52 E. Cherry St., (Block 318, Lot 18) in April 2001 for $130,000, and had an agreement in July 2006 to sell it to Dornoch. The property was to be part of the developer’s downtown plans and RCP, as I understand it, acquired it at the time as a way to control problem properties/tenants, with the intention of it becoming part of the larger plan. In late 2007, Dornoch presented plans to the Planning Board to knock down several East Cherry Stre
et properties — including The Beverage Shop — and build a new four-story structure as part of what’s sometimes referred to as Dornoch II 1/2.
Dornoch, which also planned two other projects that have since stalled — The Savoy and The Westbury — has defaulted on its agreement and payments of almost $8,000 to RCP. Annual property taxes on the building are more than $6,700, according to property records, which haven’t been paid for the last two quarters, according to City Administrator and Redevelopment Director Peter Pelissier.
The City Council also approved a contract with Prime Appraisal to appraise the property and the ordinance opens the door for negotiations. The building has been vacant for a few years and its condition is unclear, Pelissier said. The city plans to assume the agreement with Dornoch, put a lien on the property and likely list it for sale.
In addition to Dornoch defaulting on its agreement, the Partnership lost funding from Merck and NJ Transit and faces some major structural changes in its future which will be detailed in the next post.