Ce diaporama a bien été signalé.
Nous utilisons votre profil LinkedIn et vos données d’activité pour vous proposer des publicités personnalisées et pertinentes. Vous pouvez changer vos préférences de publicités à tout moment.

NJ Future Redevelopment Forum 2017 Reigniting Stalled Projects

Reigniting Stalled Projects

  • Identifiez-vous pour voir les commentaires

  • Soyez le premier à aimer ceci

NJ Future Redevelopment Forum 2017 Reigniting Stalled Projects

  1. 1. REIGNIGHTING STALLED PROJECTS DIANA R. ROGERS Director Housing and Economic Development City of Trenton
  2. 2. Arena District Roebling Complex Redevelopment Area City of Trenton #1
  3. 3. Foundry on 129 134,000 SF of Entertainment Based Retail 90 Predominantly Market Rate Apartments Nightclubs, Restaurants and Retail Outdoor Performance Area for Festivals 650+ Car Parking Garage
  4. 4. Foundry on 129 The Trenton Foundryon 129 2004: Proposed - Trenton Foundry $37millionEntertainmentbased retail & housing New market tax credits MCIA to hold mortgage Large project 2005: Executed RedevelopmentAgreement Developer NJRA Loans for acquisition& soft costs Pursuing New Market Tax Credits Properties acquired, some conveyed to developer ObtainingLocal Board Approvals Obtainingbank financing 2006: Terms with Developer to move project forward 2008: Defaulted Developer 2010: Fully unwound project, litigation, etc. Properties under MCIA control
  5. 5. The Redirection Scaled back on site for development. Consolidated properties-made developable. Kept development on street frontage. Fee simple sale. Still opportunity for additional development. New Jersey Association of Realtors
  6. 6. New Jersey Association of Realtors NJ Association of Realtors Corporate HQ 2012: NJ Association of Realtors “interested” 2014: Executed Redevelopment Agreement Site consisted of 8 separate properties 3 lots subject to NJRA Liens from former development 12 Amendments to Redev Agreement 2015: NJAR Ground Breaking 2016: NJAR Moved in
  7. 7. New Jersey Association of Realtors
  8. 8. Arena District Roebling Complex Redevelopment Area City of Trenton #2
  9. 9. Manex Entertainment Manex Studios 2003: Executed Redevelopment Agreement Plans movie studio equipment rental company All properties conveyed to developer Note held by MCIA 2006: Defaulted Developer Properties were in developer control Tax Liens on properties Did not convey properties back 2008: Completed terminating agreement Recovered properties Cleared liens
  10. 10. The Redirection Issue “Request for Expression of Interest” Considered a Multi-phase project. Convey properties in phases. Hold mortgage - first phase purchase. Mortgage taken out at permanent financing. No “False” Starts. Manex Entertainment
  11. 11. Roebling Center
  12. 12. Roebling Lofts Roebling Center: 2009: Issued Request for Expression of Interest Received 6 proposals Reviewed, interviewed unanalyzed proposals 2010: Selected Developer to begin detailed discussions 2011: Executed Redevelopment Agreement Multi-Phased Project Properties conveyed in phases 2016: Ground Breaking on Roebling Lofts – (Phase 1) 138 Residential Lofts 2017: Anticipated Completion (Phase 1)
  13. 13. Transformative Urban Redevelopment Case Study: 662-758 South Second Street Plainfield NJ
  14. 14. School of Nursing ABC Supply, Plainfield/ The Station At Grant Avenue Commercial: • 44,000 sf warehouse • 2 acre concrete staging area
  15. 15. School of Nursing The Station at Grant Avenue Residential: • 5-story building: 4 residential floors over covered parking • 90 Residential Units (LIHTC)
  16. 16. Site Location Site • South Second Street, Plainfield NJ (Between Grant Avenue and Plainfield Avenue) • Access to transportation (less than 0.5 miles from up 14 bus routes)
  17. 17. Site Conditions Site • 30 years+ vacant site with illegal dumping and historic fill • Open environmental issues • Blighted site
  18. 18. Mixed Used Development: Commercial/Retail Tenant Goal: Identify a viable long term tenant and create a compelling incentive package to make the location advantageous The Problem: Rents at a cost that does not support a traditional conventional transaction. Our Process: • Unconventional financing tools and incentives (New Market Tax credits, UEZ) • PILOT Agreements • Shorter project timelines. In this case, agreement to complete the project by December 31st, 2016 - within one year of agreeing to the project but, before any
  19. 19. Mixed Used Development: The Municipality Goal: Negotiate the pre-development approval p process in a timely, effective and efficient manner from designation to planning board approval Major agreements • Redeveloper’s designation • Redevelopment Agreement (RDA) • PILOT Agreement • Planning and Zoning Board Approvals Problem: Perception that most urban municipalities are “difficult” to work with can result in this process extending over an extremely lengthy period of time - 3-10 years.
  20. 20. Our Solution: Work the Process • Held twenty-one separate meetings with City Council members  One on One training session on PILOT agreements  Agreement to move forward with a PILOT  City Council Buy-in that the Project is good for the neighborhood Planning and Zoning • Redevelopment Plan amendment to create zoning envelope to accommodate 44,000 sf distribution center and 90 units of Housing • Preliminary and Final Site Plan Approvals • Minor Subdivision Special Conditions • Agreement to take over environmental Remediation ( RAO, January, 2017) • Work with NJRA as a partner in negotiations with the NJEDA and the City of Plainfield to obtain subordination of open lien position from NJRA and the NJEDA Mixed Used Development: The Municipality
  21. 21. Mixed Used Development: The Financing Goal: Structure project (financing) to maximize IRR by utilizing tax credits, debt financing, and other municipal and governmental subsidies to minimize project risk factors. Problem: Rents at a cost that does not support a traditional conventional transaction Our Process: • Significant upfront sponsor’s equity • Conventional debt financing • New Market Tax Credits (as gap fund filler) using a complicated structure • LIHTC for affordable housing
  22. 22. Mixed Used Development: The Outcomes Goal: Stick to your timeline and make everyone happy! Problem: Easier said than done Our Outcomes: • First major redevelopment project in Plainfield, NJ in over thirty years • Successful PILOT agreement with the City of Plainfield • New 44,000 sf Distribution Center that retains ABC Supply, a national brand in Plainfield with Phase I completed on time December, 31st , 2016 • Proposed new 90 units of affordable housing utilizing a combination of sponsor’s equity, LIHTC and conventional debt financing
  23. 23. Mixed Used Development: The Team Goal: Select professionals who understand your goals and get results from all agencies/players involved in the process Our Team: 9 Municipal Bodies and Departmen ts including the Communit 8 Developme nt Professiona l groups (developers , legal, 3 Funding Institutio ns Including sponsor’s equity 4 State Agencies
  24. 24. School of Nursing The Station at Grant Avenue Residential: • 5-story building: 4 residential floors over covered parking • 90 Residential Units (LIHTC)
  25. 25. ABC Supply, Plainfield/ The Station At Grant Avenue
  26. 26. Mixed Used Development: The Players THE WOOLRIDGE LAW FIRM
  27. 27. Harvard Printing Orange, New Jersey

×