Tag Archives: Dornoch

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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Facade collapses at burned out E Cherry building

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The ground-floor facade of the burned out building at 65 E. Cherry St. collapsed over the weekend. It’s likely that it occurred sometime between Saturday morning and Sunday afternoon.

The Redevelopment Agency considered buying the property last summer and last spring was looking into possibly demolishing the structure. Dornoch purchased the property for $65,000 from the Parking Authority and more than three years ago had proposed renovations to the Planning Board.
The two-story building has been vacant since a fire destroyed the beauty supply shop in the summer of 2005.
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MyCentralJersey.com had this profile of Aromalicious, the new pastry shop on East Cherry Street.

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Commercial, Downtown, Rahway, Retail

Dornoch updates agency on retail properties

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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.

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Uncategorized

Dornoch ‘dead in the water’ on The Savoy

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“We’re dead in the water right now.” That’s how Glen Fishman, managing partner of Dornoch Holdings, described to Redevelopment Agency commissioners his firm’s situation with The Savoy.

In a rare appearance at the agency’s meeting Wednesday night, Fishman was invited to provide an update on the firm’s stalled projects and activity at its properties. He started with the good news (filling rental properties), but we’ll get to that in our next post. For now, the bad news.

“We’re a little stuck here, I wish I had better news,” Fishman told commissioners, adding that they’re still negotiating with Wachovia. Rahway’s real estate fundamentals still exist, with its location and proximity but housing prices have made it hard to get people to invest. “People are still confident in Rahway, it’s just the economics,” he said. Condos can’t be built when they’re selling for $150,000 a unit, he said, but expressed confidence in “getting something there” in 12 months.

Dornoch spent a lot of money acquiring properties along Main Street for the four-story, 36-unit development, many of which were razed. Archaeological and historical issues relating to cisterns at the Savoy site cost Dornoch $1 million and a year’s time, he claimed, which “blew the budget on the Wachovia loan.” At one point there was a possibility of financing from Valley National for rental apartments but the deal could not get done, he said.

Fishman told commissioners he hopes “at some point the economics make sense, whether selling to another developer who can make it work” or otherwise. Dornoch has fielded offers from some local developers, he said, but so far three offers that have been made “have not been acceptable to the lender.”

(By my estimate, via PropertyShark and other sites, Dornoch acquired almost 20 downtown parcels at a total cost of almost $9 million or more — mine may be an incomplete list — pretty much the height of the real estate market in 2006.)

Redevelopment Agency Chairman William Rack asked if the steel beams, which went up at The Savoy site in summer 2008, might be taken down at some point, assuming they probably won’t be used in whatever ends up at the site. Fishman said it’s not necessarily a certainty that the steel would go unused. Steel doesn’t really go bad so it still has value, he said, adding that Dornoch doesn’t have the money to remove it anyway, and doing so might actually reduce the value of the property.

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Does this building look familiar?

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The former Beverage Shop building on East Cherry Street has undergone a transformation of its exterior as plans continue to turn it into a police assistance center.

Police Chief John Rodger hopes to have new signage and awning completed before the holidays while a local electrician’s union will be donating resources.

The heating, ventilation and air conditioning is just about completed and there’s some asbestos abatement to be done, said Rodger, who has been pleased with the pace of progress over the last month to six weeks.

The facade would have been $15,000 if they had to pay for it, said Rodger, and still to be done are things like acquiring classroom and cubicle furniture and installing flooring and a phone system.

Rodger hopes to have the building at least partially in use by January or February and be completely finished by March.

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Robert Wood Johnson University Hospital at Rahway was downgraded by Moody’s Investors Services, according to a report in Crain’s New York last month, and expects to end 2010 with “sizable operating losses,” like it did in 2009. The rating agency downgraded the hospital’s long-term debt rating and lowered its outlook from “stable” to “negative,” citing declining admissions.

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Uncategorized

Lot B parking project coming soon

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A story in The Star-Ledger/nj.com earlier this month included a couple of tidbits about two downtown projects:

* The plan to add about 100 parking spaces to the existing 65 at Lot B could break ground this month and be ready by October. Dornoch at one point had planned to build The Westbury, a mixed-use, 152-unit residential structure with accompanying parking deck.

While that project is on hold, the Rahway Parking Authority will lease the lot from Dornoch for $1 a year in exchange for property taxes being waived, according to interim RPA director Leonard Bier. The lease is for two years, with an option for a third, but could remain for as long as five years, according to City Administrator and Redevelopment Director Peter Pelissier.

Dornoch bought up several Main Street parcels about four years ago that now make up the site. Collectively, the property taxes on the sites were about $25,000 — when occupied by buildings — according to records at PropertyShark.com. Taxes are likely to be considerably lower because the structures have since been demolished.

Pelissier said there is demand for parking and if the Parking Authority can lease each of the 100 spaces at $65 per month, it would more than make up for the property taxes that the city would split with the county and school district. (At $65 per month, 100 spaces would generate $78,000 annually). The Parking Authority sometimes sends money back to the city at the end of the year, he added, in some cases as much as $75,000.

* Glen Fishman of Dornoch said financing is still tough to come by but even if construction financing could be secured for The Savoy, “it would take three to six months before we remobilize.” A July 2009 Ledger story quoted Fishman saying work should begin on The Savoy within a month.

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Crime, Downtown

Police center to take over Beverage Shop

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A police community assistance center is in the works for the former Beverage Shop building on East Cherry Street. The city purchased the property from the Rahway Center Partnership (RCP) this past spring.

“This project is absolutely about involving the community in helping us take what is currently an underutilized and neglected structure and restoring life back into it,” said Police Chief John Rodger, for however long the building is available to use, whether a year or five years.

He hopes to have the exterior “looking like something” by November with the building functional after the new year. The plan for the nearly 2,000-square-foot interior includes a reception area, work area, large conference room or classrooms where programs could be run and a few smaller conference rooms for meetings and counseling needs. “The floor plan is evolving and we will know better as the cleanup continues,” Rodger said.

Routine patrols will be able to complete many aspects of police reporting that currently occurs at police headquarters and non-patrol staff will be assigned to do a portion of their work week there. The center is intended to be a place for “positive police activities,” said Rodger, though he declined to call it a substation. He expects the Juvenile Bureau will be there often as “it’s the perfect place for meeting with parents and children away from the traditional police environment.”

Other uses might include neighborhood watch and business watch groups, child seat inspections and installations, community relations functions, bicycle registration and youth academy, among others. The chief anticipates staffing the location from about 11 a.m. to 9 p.m. while patrol staff will be able to — and encouraged — to use the facility around the clock.

Ideally, Rodger would like to replace the facade with something more modern, similar to Park Square or Dornoch’s renovations on a Main Street property. It all depends on cost, according to Rodger, since the project must be done as economically as possible though it’s still unclear at this point how much it might cost. The department has applied to use some forfeiture funds, which can be used under specific rules, and Rodger said some local businesses already have pledged support, including RSI Bank. “We will be looking toward other business leaders to donate or provide in-kind services to complete this project,” he said.

Related:
Star-Ledger/nj.com story
Home News-Tribune/mycentraljersey.com story
Original RPD press release

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Commercial, Downtown, Redevelopment Agency, Retail

Agency may buy burned out E. Cherry property

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Although 65 E. Cherry St. may be beyond repair, the Redevelopment Agency might make an offer on the property.

City Administrator and Redevelopment Director Peter Pelissier told commissioners at their meeting earlier this month that the property may be worth $75,000 but demolition costs could run as much as $65,000.

Continue reading Agency may buy burned out E. Cherry property →