Hotel Indigo has plans to re-launch its restaurant, explore the possibility of expanding its meeting space, and finally get its long-anticipated rooftop bar off the ground.
A new hotel just off Routes 1&9 finally broke ground last month.
A four-story, 93-unit Candlewood Suites gained approval from the Planning Board in March 2009, which was later changed to become a Home2 Suites by Hilton extended stay hotel. Originally, the plan was to construct a Sleep Inn just off Routes 1&9 at the corner of East Milton Avenue and Lennington Street.
The vacant 4.4-acre site was acquired in June 2008 for $2.35 million and currently pays about $6,000 in property taxes as two parcels (Block 338, Lots 3.01 and 3.02).
The city continues to see increased revenues from the local hotel tax enacted almost a decade ago. About $55,000 was realized in the transitional year 2011 budget, covering July to October 2011. Pro-rated, that would be about $110,000, compared to $103,000 in Fiscal Year 2011, $99,000 in 2010, $58,000 in 2009 and $36,000 in 2008, according to municipal budget documents.
The state imposes a 5-percent hotel tax and municipalities are allowed to impose an additional levy of their own of as much as 3 percent. The hotel tax was created during the McGreevey administration in 2003 and Rahway enacted the local tax effective Nov. 1, 2003.
Two years after getting state approval, the city has installed red light traffic cameras on Routes 1&9 and East Milton Avenue.
The cameras went into effect Aug. 11 after a warning phase in July. Construction is supposed to start this week on cameras at St. Georges and Maple avenues, according to Police Chief John Rodger.
A survey by the Police Department at the time state approval was sought indicated as many as 60 violations per hour at Routes 1/9-East Milton Avenue, or almost 200 a day.
8/24 UPDATE: Based on 3,000 violations per month, Rahway would receive $1.6 million in revenue each year from paid violations, according to Rodger. Originally, both intersections combined were projected at 3,200 violations per month but he said Route 1 is far exceeding initial estimates and may do 3,000 monthly on its own. Some drop-off would be expected as people get acclimated, he said. Projections for the next applications the city will submit are close to 200 per day and 150 per day, respectively, though Rodger declined identify those until they are approved.
The $55 fine is split between the county and city, which receives another $18.50 for court fees (for a total $46). An additional $55 goes to the State Highway Trust Fund, according to Rodger, and the Safe Corridor violation (along Routes 1&9) is $140.
The vendor, which is responsible for equipment, software and notification costs, will receive monthly fees of $18,200 for East Milton and $17,000 for Maple, with the city and county splitting the total $35,200 monthly fee ($422,000 annually).
It’s long overdue for some details about the city’s bond sale this past spring that I promised last month when I posted the city’s top 10 property taxpayers.
The city borrowed almost $12 million in general improvement bonds, including almost $8 million for redevelopment- and arts-related items.
Ten of the 22 items in the $11.765 million bond sale were related to redevelopment, totaling $7.78 million for redevelopment, more than half of it related to the Hamilton Street arts projects. About $783,750 was authorized in 2007, which covered architectural concept plans, planning and engineering, surveying, DEP permitting, floor plans and elevations, and demolition of the Hamilton Laundry building. Another $4.5 million was authorized last year, but only $3 million borrowed so far, for the Arts District’s amphitheater, which would cover the renovation of the Bell Building (now referred to as the Hamilton Stage), construction of the amphitheater, acquisition of arts related equipment and eventual acquisition of the Elizabethtown Gas building (Block 167, Lot 1).
A breakdown of the 10 items, some dating back to 2000, can be found in this Excel file, including the amounts authorized and bonds issued, along with a brief description. At the April bond sale, the city secured a rate just below 4.51 percent over 20 years from J.P. Morgan (UBS Financial was the other bidder, coming in at under 4.59 percent). The bonds mature annually on April, beginning in 2012 at $350,000, increasing to $450,000 in 2015, $550,000 in 2016, $560,000 in 2017 and $640,000 in 2018, before leveling out at $700,000 annually through 2030. The complete maturity schedule can be found in this Excel file.
In tomorrow’s post, we’ll take a look at what Standard & Poor’s had to say in its report on the city.
NJ Monthly magazine’s Table Hopping with Rosie paid a visit to Patria Restaurant and Mixology Lounge. She called it “a place in NJ that should be on your must-try list.” Overall, she had quite a few good things to say, calling the garlic shrimp better than anything found in Newark, and advising not to miss some entrees (including Patria pork, and I must agree) as well as dessert.
Red light cameras could be up and in use sometime next month at two Rahway intersections: Routes 1&9 and East Milton Avenue, and St. Georges and Maple avenues. There would be a 30-day “warning phase” after installation, to get the public accustomed to them before tickets are issued, according to Police Chief John Rodger. He expects them to be installed at some point next month.
With foreclosure looming for Carriage City Plaza, one two short sales in the building went on the market two weeks ago within the past month. A check of Realtor.com shows at least four units in the 16-story building on the market by owners.
About 62 of the 222 units were sold since the building opened in 2008. Another 72 leased were through the developer — Carriage City Properties (CCP)/Silcon, Inc. — leaving 88 units unsold or not leased. All 160 units owned by CCP — not the 62 owned by individuals — are expected to go into foreclosure, along with the hotel and retail space on the first three floors.
Meanwhile, New York City-based Spandrel Property Services was named this week to manage the remaining unsold units being marketed as rentals in Skyview at Carriage City Plaza.
Kennedy Jewelers will fill the final retail space at Park Square, moving four blocks from its current location.
Mayor James Kennedy said a 10-year lease is up on his East Milton Avenue and Fulton Street location and the new space, at the corner of Elm Avenue and Irving Street, is smaller, thus more affordable. “I like the street parking and cozier feeling,” he said in an email, describing it as “more ’boutique-ish.'”
The other two retail tenants at Park Square are expected to be Davis Financial, a Linden-based CPA firm, and Deisel Training Center, a strength training and tae kwon do facility. The target for occupancy is December while Kennedy Jewelers could be January of February, according to Matt Dobrowlowski of Iozzi-Williams Village Green ERA, the exclusive listing agent. All three of the tenants have signed either four- or five-year leases in the range of $22 to $23 per square feet annually.
Here’s a cool photo gallery in Crain’s New York, “Musty streets now hot strips,” featuring half a dozen “formerly forgotten streets becoming urban destinations, boasting a growing crop of trendy eateries and boutiques.” How’d they do it? “It requires daring entrepreneurs seizing the opportunities of cheap rents and an underserved market, as well as landlords hungry enough to take chances on unproven operators.”
Foreclosure proceedings will begin on Carriage City Plaza, a 16-story hotel and condo project that was the centerpiece of redevelopment efforts the past decade. Of the 222 units at Sky View at Carriage City Plaza, 62 units have closed and another 72 leased, leaving 88 units.