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.
Carriage City Plaza will pay almost $1 million annually in property taxes under a tax appeal settlement reached with the city.
The settlement, which is expected to gain City Council approval Monday night, calls for Carriage City to pay $350,000 in taxes for its partial assessment for 2008. In addition, it will pay $100,000 toward the approximately $350,000 that’s owed to the city as part of intersection improvements and signalization, among other things.
Starting with 2009, property taxes for the site will be about $978,000 at full assessment, City Administrator/Redevelopment Director Peter Pelissier after Tuesday night’s conference council meeting. The total assessment for the property is about $59 million, with $2 million for the retail space, $6 million for the hotel and the remainder for the 220 residential units. By comparison, Pelissier said, Merck & Co.’s property is assessed at about $277 million.
The reduced assessments primarily came in the residential components of the project, Pelissier said, adding that once the retail portions are fully developed, those parts will see increased assessments. The original assessment was about $60 million, which would have generated $1.2 million in property tax revenue.
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
Good news for some Sky View residents: They get to keep their view. The Parking Authority passed on the idea of adding two levels to the existing parking deck at Lewis and Main streets.
Executive Director Donald Andersen said commissioners had concerns about the cost effectiveness and shutting down a large portion of the garage during construction, as well as possibly Main and Lewis streets. Construction probably would have last four to five months in either case and two levels of the garage would be closed.
Adding one level would have cost $2.6 million and created another 85 spaces ($31,000 per) while two levels would have cost $4.8 million and added 170 spaces ($29,000 per). The existing six-story parking deck, which opened four years ago with 524 spaces, cost $11 million (which works out to about $21,000/space).
Commissioners discussed the “Vertical Expansion Feasibility Draft Report,” prepared by Tim Haahs & Associates of Blue Bell, Pa., at their November meeting.
Andersen said the parking study commissioned last summer will hopefully be completed by the end of March.
Though I was unable to attend Monday’s City Council meeting, I did get a copy of Mayor James Kennedy’s State of the City address. The mayor is among a long list of officials looking for help from the feds.
“I retain optimism that this slowdown will only be temporary and the incoming administration of President-Elect Obama will provide long-overdue federal funds to invest in our roads, sewers, parks and other vital elements of our infrastructure,” Kennedy said. “Unlike other municipalities, Rahway has many projects that are already approved by the authorizing boards and agencies. Our improvements and investments will enhance our redevelopment opportunities. So that the ‘shovels can hit the ground’ as soon as the economy rebounds and our continuing redevelopment efforts will restart in a period of months instead of years,” he said.
Among the projects Kennedy cited as “ready to begin” are the 88-unit Renaissance at Rahway and 116-unit Station Place. The Savoy, he said, will “restart construction when additional financing is obtained.” (Photo at left)
As for other redevelopment-related highlights in his remarks, the mayor reviewed the various ongoing projects that you’ve read about here before:
— New ratables increased the tax base by $30 million for the nine-month period in 2008. A full year on the books is expected to create $42 million in 2009. A little perspective: ratables increased by about $30,000,000; the city’s total valuation is about $1,500,000,000 ($1.5 billion). The added ratables — mainly attributed to Carriage City Plaza, Luciano’s and Riverwalk — generated about $900,000 in additional tax revenues for the city.
— In addition to the planned 1,000-seat amphitheater at the former Hamilton Laundry site, and development of the former Bell Telephone building into a performing arts space and black box theatre, the former Elizabethtown Gas building is expected to be purchased and house a “first-rate art school as well as a co-op gallery venue.”
— “The 40,000 square feet of condominium space above the library was sold last year, and will be conv
erted into office space sometime this year.” The library opened in 2004 with the idea of eventually selling the top two floors for office space. No word on whether the sale netted the $3.5 million that was expected at the time to help offset the cost of the $7.4-million facility. [UPDATE: SDI Technologies already paid $3.2 million to the city for this project, according to City Administrator Peter Pelissier.]
— The city is “exploring a partnership with the Parking Authority to construct a 300- to 500-space parking deck on Lot B, to complement the proposed Westbury housing/retail development next door.” We wrote about this study in August but there was never any mention of the number of spaces. Originally, The Westbury was planned with a five-story, 324-space parking facility.
For some historical perspective, there are a few paragraphs about the mayor’s 2005 State of the City address here.
We took a peek at the top posts of 2008 by number of page views over the weekend. Tonight we’re bringing back the poll after a months-long absence and letting you vote: What was the biggest story of 2008 on the blog? Obviously, the decline in the housing market and the collapse of the economy in general had an effect locally, but what was the most significant development locally?
* The opening of Carriage City Plaza/Hotel Indigo
* Work at The Savoy coming to a halt
* Tabulation of the Rahway Survey
* The reopening of the Union County Arts Center
* The slow pace of redevelopment in general
* The fast pace of redevelopment in general
* Other
There’s always that “Other” category, so feel free to explain what that might be to you.
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.