Tag Archives: Redevelopment Agency

Irving St. restaurant slowed by sewer fee dispute

A dispute over sewer connection fees apparently is holding up development of an Irving Street restaurant and bar.

City Administrator and Redevelopment Director Peter Pelissier told commissioners Wednesday night he was told by partners in the Station Bar & Grill that they could not do the project if they had to pay the city’s total calculation. The city doesn’t want to stop the project, he added, but is willing to work within the confines of the ordinance.

The calculation for the connection fee range, set by city ordinance, is based on a property’s historic data and previous occupants. The amount the developers want to pay, according to Pelissier, is about a quarter of the calculation by the city’s construction official. The developers, he added, have shared their calculation with the city and what they think they should be charged.

The Planning Board approved a minor site plan for the 6,900-square-foot project last June.

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In case you somehow haven’t yet heard about “Rahway’s snow babe,” it first appeared Saturday via CNN’s iReport, before getting picked up in Wednesday’s Star-Ledger, and then on and on.

Final approval for amphitheater funding Monday

The City Council is scheduled to vote next Monday night to borrow $8.5 million for three projects planned within the city’s Arts District. A public hearing is scheduled during the council’s regular meeting, which begins at 7:30 p.m. (Click on the image above to enlarge to full screen.)

The ordinance would cover the cost of construction of the 1,000-seat amphitheater; renovation of the Bell Building for a 200-seat black box theater; acquisition of the Elizabethtown Gas building, and acquisition of related arts equipment. The city already has bonded about $3 million for earlier site work and acquisitions, including $2 million to purchase the former Hamilton Laundry building for the amphitheater. The gas building is eyed for a co-operative gallery space, and an adjacent property for artist housing. “It will add a true presence of artists living and working in town,” said Mayor James Kennedy.

The Hamilton Street arts projects aim to become self-sustaining, between naming rights and fee- and non-fee based programming, to pay off the debt, according to City Administrator and Redevelopment Director Peter Pelissier. They will feature a different type and level of programming than the Union County Performing Arts Center (UCPAC), the mayor said.

One of the four 2-1/2 story homes between the Bell Building and former Hamilton Laundry site is scheduled to be demolished this spring. Ultimately, the four remaining homes will be acquired and razed to provide more parking for the area, according to Kennedy, ideally within two years.

The site is ideally tailored by the river for an amphitheater, according to Michael Farewell of Princeton-based Farewell Mills Gatsch Architects. “It’s hard to find a better site for an amphitheater,” he said during a presentation to the Redevelopment Agency last month. The project will include stabilizing the bank in the natural curve of the river. The structure, he said, must be designed to withstand floods as well as being exposed to the elements while the lower area of the amphitheater will have removable seating. The only part of the site not within the flood plain is the Bell Building itself, according to City Engineer James Housten

Housten said remediation should take place over the next four to six months. The city, he added, already has a $500,000 state grant for investigation and remediation will be done through the state Brownfield Development Area funding.

If the UCPAC is ever going to be successful, the city must be able to accommodate 800 to 1,000 people with a 400- to 500-space parking deck closer to the arts center, the mayor said. The city is looking at two potential sites for a parking structure: the corner of Elizabeth Avenue and Main Street and the Cambridge Court Apartments on Main Street.

Also at Monday’s meeting, the council is scheduled to give final approval on an ordinance that would shift management of the Special Improvement District from the Rahway Center Partnership to the Arts District board.

City moves to buy Beverage Shop building

The City Council last week introduced an ordinance to purchase the vacant Beverage Shop building from the Rahway Center Partnership (RCP) after Dornoch defaulted on its agreement to acquire it. A public hearing and final approval is scheduled at the council’s regular meeting on March 8.

The Partnership bought the one-story structure at 52 E. Cherry St., (Block 318, Lot 18) in April 2001 for $130,000, and had an agreement in July 2006 to sell it to Dornoch. The property was to be part of the developer’s downtown plans and RCP, as I understand it, acquired it at the time as a way to control problem properties/tenants, with the intention of it becoming part of the larger plan. In late 2007, Dornoch presented plans to the Planning Board to knock down several East Cherry Street properties — including The Beverage Shop — and build a new four-story structure as part of what’s sometimes referred to as Dornoch II 1/2.

Dornoch, which also planned two other projects that have since stalled — The Savoy and The Westbury — has defaulted on its agreement and payments of almost $8,000 to RCP. Annual property taxes on the building are more than $6,700, according to property records, which haven’t been paid for the last two quarters, according to City Administrator and Redevelopment Director Peter Pelissier.

The City Council also approved a contract with Prime Appraisal to appraise the property and the ordinance opens the door for negotiations. The building has been vacant for a few years and its condition is unclear, Pelissier said. The city plans to assume the agreement with Dornoch, put a lien on the property and likely list it for sale.

In addition to Dornoch defaulting on its agreement, the Partnership lost funding from Merck and NJ Transit and faces some major structural changes in its future which will be detailed in the next post.

Plans for Hamilton Street arts projects to be presented to City Council Monday night

The City Council will get a presentation Monday night on the plans for the Hamilton Street arts projects. A similar presentation was made to the Redevelopment Agency at its meeting tonight.

The governing body is scheduled to introduce an $8.5-million bond ordinance Monday for construction of an amphitheater at the former Hamilton Laundry site (photo, right), and renovation of the former Bell Telephone Building into a dance studio and black box theater. The ordinance also would cover funding for the future acquisition of the Elizabethtown Gas building at the corner of Hamilton Street and Central Avenue, according to City Administrator and Redevelopment Director Peter Pelissier.

The bond ordinance will supplement $3 million already borrowed for work related to the Hamilton Street projects. A follow-up presentation will take place during the public hearing and final adoption of the bond ordinance, scheduled for the City Council’s March 8 regular meeting. Pelissier said the design option that was selected was the most expensive, but meetings with the Rahway Arts District board will continue and alternatives can be considered. “We need to take a look and see that we need what was requested,” he said.

The amphitheater will seat between 1,000 and 1,300, and the black box theater about 22o. The plan is to go out to bid this summer and award contracts by September. Construction would begin in October and last about nine months, allowing for operation by sometime in summer 2011.

New commissioner for Redevelopment Agency

The City Council approved the mayor’s appointment of a new commissioner to the Redevelopment Agency during its meeting earlier this month.

Matt Dobrowloski will fill the seat vacated by Carlos Garay, who announced at the December Redevelopment Agency meeting that he’d be concluding his term as commissioner, citing personal reasons. A local Realtor, Dobrowloski is chairman of The Taste of Spring and resigned his seat from the Parking Authority, where he was replaced by Armondo Sanchez. City Council approved both mayoral appointments at its regular meeting on Jan. 11.

Redevelopment commissioners are unpaid and serve five-year terms, appointed by the mayor with approval by City Council. Other commissioners currently on the board include William Rack, chairman; Courtney Clarke, vice chairman; Councilwoman Nancy Saliga; James Farrell; Timothy Nash, and Anthony Diege.

Motel 6 now planned for Kings Inn

Under new ownership again, the Kings Inn Motel plans to become a Motel 6.

The Redevelopment Agency last week reassigned the redevelopment agreement from Ratan Rahway, LLC to Rahway Tower, LLC. Attorney Frank Regan told commissioners during a meeting last month that a new owner for the property is expecting to file building permits. They plan use the same site plans that already had been approved by the Planning Board, Regan said. About a year ago, principals in Ratan Rahway had plans to buy and renovate the property and turn it into a Howard Johnson but ran into financial difficulties.

A new individual has acquired the interests of Ratan Rahway, which has a contract to acquire the property from Rahway Tower, according to Regan, and eventually may take its name as well.

The properties associated with Kings Inn (Block 304, Lots 5-6/1360 Route 1) were acquired for about $1.2 million in September 2004 by Rahway Tower, LLC. Barry Rosner, a Somerset-based CPA listed as a principal of Rahway Tower, declined to provide any details over the phone, saying only that he’s not involved in Rahway anymore.

There’s been occasional speculation that the state Department of Transportation (DOT) has interest in purchasing the property, but a spokesman confirmed last summer that it does not.

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The Rahway Rising Facebook fan page reached 100 fans last week — woo hoo!

Carriage City settlement still not executed

Carriage City Properties (CCP) still has not finalized or executed the settlement agreement with the Redevelopment Agency, attorney Frank Regan told commissioners during their meeting earlier this month. The Redevelopment Agency approved a settlement at its meeting in May. (For details on the agreement, see this earlier post.) A representative of Carriage City Properties had no comment.

Continue reading Carriage City settlement still not executed

Board to consider concept plans presented for amphitheater and black box theater

A committee of the Arts District Advisory Board will review concept plans for projects at the Hamilton Laundry and Bell Building sites. City Engineer James Housten will present plans this week in preparation for developing cost estimates on the two projects.

Housten told Redevelopment Agency commissioners at their meeting this month that a report is expected shortly on the monitoring wells currently on the Hamilton Laundry site. Soil from some areas likely will need to be moved, he added.

Bids to demolish the home adjacent to the Hamilton Laundry site should be introduced at the January City Council meeting and approved in February, he said.

The Bell Building (photo above) might actually catch up and pass the Hamilton Laundry project depending on environmental remediation, Housten said, adding that environmental issues already taken care of at the Bell Building site.

A 1,000-seat amphitheater at the former Hamilton Laundry site is expected to break ground next year while a black box theater and performing arts space is planned for the Bell Building. The Hamilton Laundry project is among eight sites in Rahway eligible for state funding as a Brownfield Development Area.