1. New Brunswick:
Maximizing the Benefit of
Publicly-Owned Property
Panelists:
Mitchell Karon, Executive Director – Parking Authority of the City of New
Brunswick (NBPA)
Cheryl J. Oberdorf, Esq. – Wilentz, Goldman & Spitzer, P.A., Bond
Counsel and Special Counsel
Parking Projects Undertaken by the Parking
Authority of the City of New Brunswick In
Redevelopment Areas

2. 2
Case Study I - Spring Street Project

3. 3
Case Study I - Spring Street Project

4. 4
Two contiguous surface parking lots owned by
NBPA in government business district
redevelopment area; 91 spaces, land underutilized,
not subject to taxation
Two surface lots purchased by Redeveloper from
NBPA
Redeveloper owned and privately financed
Redevelopment project in redevelopment area
consisting of 422 parking spaces, office space and
121 residential units
Case Study I - Spring Street Project

5. 5
Project completed, awaiting final CO’s
Tax abatement – 15% - Annual Gross Revenue
Method
NBPA to lease 94 spaces for daily/hourly parkers
from Redeveloper
NBPA will receive revenue generated from those
spaces and will be responsible for general
maintenance and housekeeping of those 94 spaces
Case Study I - Spring Street Project

6. 6
Case Study II - New Street Deck

7. 7
Case Study II - New Street Deck

8. 8
Surface lot owned by NBPA
NBPA constructed 430 parking space deck next to
family courthouse
Middlesex County College owns office space within
the footprint of deck
Redevelopment project in redevelopment area
Additional land acquired by NBPA and Redeveloper
Land swap to assemble remaining parcels for deck
Case Study II - New Street Deck

9. 9
No condemnation
Construction contract publicly bid by NBPA
NBPA issued revenue bonds to finance the
deck; revenues from operation of all facilities of
NBPA are pledged to pay debt service on bonds
County paid for judges’ spaces and
associated construction
County college paid for construction of its office
space
Case Study II - New Street Deck

10. 10
Case Study III - Morris Street Deck

11. 11
Redevelopment project in redevelopment area
Land acquired by Redeveloper and NBPA
Land swap to assemble parcels for deck
No condemnation
Tax abatement – 15% - Annual Gross Revenue
Method (contiguous dormitory facility owned by
501(c)(3) entity)
820 space parking deck constructed to service
dormitory, publicly owned hotel/conference
center and public uses
Case Study III - Morris Street Deck

12. 12
Issues – demand study assumptions and timing
for construction and completion
Developer’s Agreement executed with
Redeveloper for construction of deck
GMP
No fixed completion date
No liquidated damages
NBPA financed land acquisition costs and deck
through the issuance of revenue bonds
Case Study III - Morris Street Deck

13. 13
Case Study IV - Plum Street/French Street Deck

14. 14
Redevelopment project in redevelopment area
Land acquired by NBPA and Redeveloper
Land swap with Redeveloper to assemble
parcels for construction of deck
No condemnation
Tax abatement – 15% Annual Gross Revenue
Method (office and residential
components)
854 space deck constructed to meet public
parking demands in redevelopment area
Case Study IV - Plum Street/French Street Deck

15. 15
Developer’s Agreement executed with
Redeveloper
GMP
Scheduled completion date – March 31, 2007
Liquidated damages equal to daily debt service in the
event deck is not open by scheduled completion date
In the event of construction savings, savings shared
between Contractor, Redeveloper and NBPA
NBPA is an obligee on construction contract in the
event of a default by either Contractor or Redeveloper
NBPA financed land acquisition costs and
construction of deck through issuance of revenue
bonds
Case Study IV - Plum Street/French Street Deck

16. 16
Basis for Transactions
N.J.S.A. 40A:12A-39(f)
Any public body may do all things necessary or
convenient to and in the planning, undertaking,
construction or operation of redevelopment projects
N.J.S.A. 40:11A-6
Any parking authority is authorized to plan, design
construct…such parking project as, in the opinion of
such authority, will provide an effective and satisfactory
method of promoting the purposes of the authority
Any parking authority may sell, transfer and dispose of
any property or interest therein at any time acquired by
it upon such terms and conditions as it may determine,
with or without public bidding

17. 17
Points to Consider
Allocation of costs between Redeveloper and
NBPA
Economic viability of project and assumptions
related thereto
Defaults of Redeveloper – construction and
performance
Remedies of Redevelopment Agency in the
event of a default by Redeveloper
Can a Parking Authority be designated a
Redeveloper?