Tag Archives: condos

Apartments, Carriage City Plaza, Condos, Downtown

101 units accounted for at Sky View

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More than 100 units are either rented (43) or sold (58) in Sky View at Carriage City Plaza, as of the end of last month. That would account for 101 of the 222 units in the 16-story complex. (Remember when half were under contract?)

City Administrator and Redevelopment Director Peter Pelissier told Redevelopment Agency commissioners during their meeting Wednesday night that another unit has closed and two more are under contract and may close soon. Pelissier said he was told by Carlos Silva of Carriage City Properties to expect a letter shortly regarding payment to the agency for the latest unit closing. It would be the first unit to close since early this year, with the most recent appearing in property transactions in April.

The agency’s settlement agreement with Carriage City Properties, however, remains unsigned. Pelissier told commissioners he would have more information at next month’s meeting and likely would require an executive session meeting to discuss “sensitive issues” and determine a course of action.

Carriage City began marketing rentals almost a year ago ($1,250 for a one-bedroom at the time, which has since increased to $1,350), in violation of their redevelopment agreement, which prompted discussions with the agency and ultimately a settlement.

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Condos

Riverview Manor taking shape

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Excuse the recent hiatus, there have been a few things going on, between a side project, computer issues and fighting crime. It’s officially summer too, so it’s been a little slow, but there should be some new posts this week — stay tuned.

Continue reading Riverview Manor taking shape →

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The Savoy: “Not dead”

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The developers of The Savoy are still in search of financing, but the project is “not dead,” according to City Administrator and Redevelopment Director Peter Pelissier. Briefing commissioners during last week’s Redevelopment Agency meeting, Pelissier said Hillside-based Dornoch/Maplewood Homes is still waiting to get a financial commitment.

The 36-unit project proposed at 1562 Main St. hasn’t seen any activity since last summer.

Not dead yet. Sort of reminds me of the Will Ferrell character from the 1997 movie, Austin Powers: “No, not dead. Burned. Badly.”

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Settlement reached on Carriage City

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The Redevelopment Agency last night approved a settlement with Carriage City Properties (CCP) that will allow the developer to continue to rent unsold units at the 16-story condo/hotel.

CCP has sold about 57 units and began marketing vacant units for rent as early as last fall. Five are occupied by tenants and the city has issued 76 temporary Certificates of Occupancy in all at the 222-unit complex.

The two sides have been in discussions since the Agency declared CCP in default of its redevelopment agreement two months ago.

Here’s a summary of the settlement:
* CCP will execute a note and mortgage to secure the outstanding $2,285,250 in development fees and purchase price payments. The agency will get 10 percent of rent from each rented unit, which will be deducted from the $13,850 development fee until the unit is sold, at which time CCP will pay the balance. There are 165 remaining units.

* Infrastructure improvements, namely the East Milton Avenue and Irving Street realignment, cost approximately $1 million, of which CCP was liable for $368,562. The agency accepted CCP’s offer of $150,000, to be released immediately.

* Professional fees of $19,913 and water connection fees of $71,981 owed by CCP will be paid no later than April 1, 2010.

* Construction permit violations totaling $168,000 will be waived upon abatement of all issues identified by the city’s construction official.

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5/17 UPDATED: Between the intersection improvements and construction penalties waived upon correction, CCP got about 15 percent knocked off what it owed in total. City Administrator and Redevelopment Director Peter Pelissier described that as “small to the potential of a bankrupt redeveloper,” adding that the site pays almost $1 million in property taxes. Meanwhile, construction penalties usually are waived if violations are corrected as a matter of business, with the point to get conformance and have the building safe for occupancy.

Many builders, renters and retailers are trying to renegotiate contracts to stay solvent, he said. “This is no different. The RRA and the city need to work together with redevelopers and sometimes although not popular with the critics public improvements not private improvements have to be paid for by the taxpayer to receive acceptable returns.” While CCP has taken a lot of heat for not adhering to the redeveloper’s agreement, Pelissier said, they did complete construction.

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Settlement discussions with Carriage City

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City officials are in discussions with Carriage City Properties to resolve their dispute over payments related to Sky View at Carriage City Plaza. The Redevelopment Agency claims almost a half-million dollars is owed by Carriage City while the developer has threatened bankruptcy.

Declared in default of their agreements last month by the Parking Authority and Redevelopment Agency, Carriage City Properties had about 30 days, until April 8, to rectify the situation or they could be taken to court. Redevelopment Agency attorney Frank Regan said after Tuesday’s City Council meeting that any litigation is essentially on hold as they discuss a resolution.

According to written correspondence between the two sides, the Redevelopment Agency is claiming Carriage City Properties has not paid fees of about $458,000 related to at least 11 condo sales ($74,250), reimbursement for professional costs ($15,351), and a “reasonable contribution” toward the cost of intersection improvements at East Milton Avenue and Irving Street ($368,562).

Carriage City has paid the agency $323,000 to date but has not received closing-related fees since December. Payments on the 11 units ($74,250) would push them over the deferred $331,194 threshold set last summer and revert to the full $11,750 fee per unit owed the agency upon each closing. About 58 units have closed and appeared in tax records while the agency claims that fees have been paid for only 47 units.

According to that same letter, Carriage City has expressed concerns about the Redevelopment Agency’s financial ability, requested the agency’s audits for the past three years, and has “repeatedly stated in meetings with city and agency officials that it cannot meet its financial obligations and may lose the hotel flag and have to file for bankruptcy,” Regan wrote.

Representatives of Carriage City Properties/Silcon have not returned my email messages in months, but in this report last week its president of real estate suggested an unspecified change in the redevelopment agreement proposed by the city last year. He also claimed city officials turned down an offer to meet late last month to resolve the situation and that they have more in escrow than what the city claims it’s owed, according to the report.

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Townhomes rise on Lennington Street

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Townhomes are taking shape on the site of the former Lennington Tea House property, behind the Best Western off Routes 1/9 north. Several can be seen in the photo to the left, while the foundation for the remaining units can be seen below (which is to the left of the pictured units).

The project broke ground sometime last spring with an anticipation of 18 months for construction. The three-quarter acre site sold last May for $800,000, according to PropertyShark.com. Signs near Route 1 and East Milton Avenue advertising “custom waterfront townhouses” indicate a starting price of $390,000. Each unit will have two bedrooms, with a one-car garage and one parking space.

The builder, Colonia-based GMM Associates, also has constructed four new homes on Sterling Place and rehabbed several others in Rahway. The Planning Board gave initial approval for the redevelopment project at 1797 Lenington St. (Block 353, Lot 2) in late 2006 (.pdf).

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The Savoy to resume in the spring?

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The Savoy apparently has been approved for financing and the hope is that construction will resume this spring on the 36-unit project. There’s been virtually no activity on the site since last summer.

City Administrator and Redevelopment Director Peter Pelissier told the City Council and Redevelopment Agency this week that Mayor James Kennedy received a phone call from Glen Fishman, managing director with Dornoch, that financing had been approved. Dornoch had been re-negotiating with Wachovia.

Hillside-based Dornoch Management also is completing The Monarch, a senior housing/condo project in Plainfield. That project, which appears much further along, apparently has units starting at $199,000, a 45 percent correction over the $360,000 asking price when ground was broken 18 months ago. Banners adorning the fencing at The Savoy as recently as last summer boasted of units starting at $315,000.

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