Tag Archives: Redevelopment Agency

Appraisers’ report expected this month

An appraiser’s report should be completed by the end of March so the City Council and Redevelopment Agency will know how much additional money will be needed to acquire three remaining homes adjacent to the Bell building, according to Redevelopment Director and City Administrator Peter Pelissier.

The Redevelopment Agency awarded a contract in January to Prime Appraisal of Woodbridge to appraise the three remaining properties between the amphitheater site and the Bell building that it hasn’t yet acquired.

At its meeting this month, where Pelissier briefed commissioners, the Redevelopment Agency awarded a $32,900 contract to Frank Lurch Demolition Co., LLC, of Avon By the Sea for 324-326 Hamilton St. The 2 1/2-story, multifamily home was purchased last summer by the Redevelopment Agency for $240,000. The agency bought the first of the five homes along Hamilton Street in March 2009 for $340,000 and razed it last year.

Agency awards appraisal contract for homes

The Redevelopment Agency last month awarded a contract to Woodbridge-based Prime Appraisal, Inc. to perform appraisals on three Hamilton Street properties eyed for future parking related to Arts District projects.

The contract is for $6,000, or no more than $2,000 to appraise each property, all of which are two-family homes:
* 318-320 Hamilton St. (Block 167, Lot 43), which paid about $7,500 in property taxes last year, and last sold in November 1998 for $135,000, according to PropertyShark.com.
* 332-336 Hamilton St. (Block 167, Lot 41), which last year paid about $7,000 in property taxes, but the most recent sale price was not available.
* 342-344 Hamilton St. (Block 167, Lot 40), which paid about $6,300 in property taxes and last changed hands in November 1995 for $124,000.

The Redevelopment Agency last month agreed to pursue a 220-seat black box theater for the former Bell Telephone Building, awarding a $5.825-million bid to Gingerelli Bros, Inc. of Toms River. The agency put off construction of a 1,300-seat amphitheater and instead will move forward with a parking lot on the former Hamilton Laundry site in the meantime.

One home adjacent to the proposed amphitheater site already has been razed, after the agency acquired it for $340,000 in 2008, and another is set to be knocked down after the City Council approved $400,000 for acquisition ($240,000) and demolition and related asbestos and tank removal.

Rahway gets ready for its close-up

In an effort to market the city, Rahway plans to run cable advertisements later this year.

City Administrator and Redevelopment Director Peter Pelissier told the Redevelopment Agency at its meeting last week that commissioners would be able to offer their input before a report is finalized. He met with Comcast last week to begin developing a series of professional ads to promote the downtown, invite young people to move to Rahway and showcase what it has to offer downtown – like the train station and Union County Performing Arts Center – and beyond.

Pelissier estimated the cost of the promotional campaign would be $25,000 to $30,000 and come from this year’s municipal budget, which will be up for final approval at Monday night’s City Council meeting. “It will be absolutely worth every penny,” he said, adding that production of the ads would begin by the spring, with broadcasts soon after.

***

A study released Friday indicates that the state’s Transit Village designation (which Rahway has), “is helpful, but not necessary” for towns to see an increase in property values, according to a report on nj.com. Those towns that saw the most property value increases were ones with “a commitment for mixed-used developments around the train station.”

Dornoch updates agency on retail properties

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.

***

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.

Black box theater first, then amphitheater – maybe

Following the recommendation of the administration, the Redevelopment Agency is moving forward on a black box theater while prioritizing parking over an amphitheater in the short term.

The Redevelopment Agency on Wednesday awarded a $5.825-million construction bid to Gingerelli Bros, Inc. The Toms River-based firm was the lowest among 16 bidders to renovate the former Bell Building on Hamilton Street into a 220-seat black box theater. The award includes a base bid of $5.757 million and alternate bid of $27,112 for a folding partition and $41,200 for a metal roof instead of asphalt shingles.

City Administrator and Redevelopment Director Peter Pelissier said the city has approved $12 million for both a black box theater and amphitheater and even with the elimination of one project, more money would have to be raised for a parking facility. The 1,300-seat amphitheater planned at the former Hamilton Laundry site cost more than the original estimate and he recommended to commissioners first building the black box theater and creating parking at the amphitheater site for the time being given the economy and city’s looming debt, such as the school system’s $34-million renovation projects. Officials estimated some $2.73 million already has been spent on architect and engineering fees and other site preparation.

There were six bidders for the amphitheater, the lowest from Berto Construction at $4.734 million ($4.2 million base bid plus $487,000 in alternate bids). Other bidders included W.D. Snyder Co., $6.15 million, and CGT Construction, $6.21 million. The amphitheater project had to be re-bid after an issue arose with the original bids, challenged by one of the bidding companies, last fall.

Former Mayor James Kennedy, now executive director of the Rahway Arts District, said the merits of building the black box theater first are basic. A black box theater would have a year-round revenue stream while removing a building that’s been blighted for over a decade. If the amphitheater was pursued first but the project ran out of money, the blighted Bell Building would remain. In addition, the amphitheater site could provide needed parking for the black box theater.

Pelissier said parking is very stressed from Grand Avenue to the arts center so for the moment, parking is more important than an amphitheater. He said it will cost $300,000 to cap the amphitheater site anyway and another $150,000 would bring a parking lot that the Parking Authority could use as a temporary revenue stream.

As currently designed, the Hamilton Street arts projects would have 48 parking spaces but creating parking at the amphitheater site would add 86. The agency was presented with an option to add two lots, the first of which would gain 16 spaces behind four homes currently stand on Hamilton Street for a total of 134 spaces (design at right). The second lot would add 138 spaces, losing 16 to reconfiguring spaces behind the homes but adding about 36 in the area of the homes, for a total 170 spaces (design above). The first lot included parking behind the homes. (Click the images to enlarge).

The bid that was awarded only includes parking behind the black box theater but not the additional parking at the amphitheater site, Pelissier said. That would have to be designed and bid, which the administration recommended pursuing separate bids for as early as next month.

Mayor Rick Proctor called it the “most common sense” solution at the moment because of the year-round revenue available from a blackbox theater as opposed to the seven to eight months from an amphitheater. “It’s the best to prioritize use of the money we have available,” he said.

Dornoch ‘dead in the water’ on The Savoy

“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.

Foreclosure for Carriage City Plaza

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.

Continue reading Foreclosure for Carriage City Plaza

Salon, bakery sought for East Cherry Street

Hoping to fill two vacant storefronts, a local property owner came before the Redevelopment Agency last month for assistance but it looks like the locations will remain vacant for now.

Continue reading Salon, bakery sought for East Cherry Street