'The Smoldering Hedge Fund' and Rahway

A fellow local blogger in Plainfield alerted me to a Fortune magazine story from several weeks ago. "The Smoldering Hedge Fund", a three-month-long investigative story details the troubles of Greenwich, Conn.-based Plainfield Asset Management. What's this got to do with Rahway?

P & F Management was founded in 2005 as a joint venture of Plainfield Asset Management (PAM) and Glen Fishman of Lakewood-based Fishman Real Estate Enterprises. Fishman is managing partner with Dornoch Holdings, which is owned and operated by P & F Management. Dornoch had multiple projects in the works -- The Savoy (photo below), The Westbury -- and bought up several other properties downtown for millions at the height of the real estate boom in 2006 with plans for redevelopment. Dornoch also has a project in Plainfield.

Plainfield Asset Management once managed $5 billion but today oversees $3.3 billion, according to Fortune, and "has faced a wave of withdrawal requests, which it contained only by invoking a contract clause and refusing to let investors withdraw money." Of the $3.3 billion, $2.7 billion represents money from investors who weren't permitted to leave, and won't until 2012. As the Fortune story puts it, only $560 million managed by PAM is from people who "actually want the firm to run their money." The fund continues to charge investors management fees.

Without getting too much further into it, PAM is "fending off suits from borrowers," according to Fortune, and its "lending practices are now being examined by the New York City's district attorney." I encourage you to read the Fortune story in its entirety.

How does this all affect Dornoch's Rahway projects? It's unclear exactly but it can't possibly be good. I'd ask someone at Dornoch but the number to their Hillside offices has been disconnected. Maybe I'll pay them a visit. Asked about the report in Fortune, Mayor James Kennedy said he never heard of P&F Management and doesn't know who Fishman's partners are, while City Administrator and Redevelopment Director Peter Pelissier said he was aware of a Holland-based hedge fund backing Dornoch.

'Eye candy' planned for downtown areas

A variety of public art will grace downtown areas as part of the plan to show that Rahway is "All About the Arts."

In a post-State of the City interview last month and a public presentation before the Redevelopment Agency last week, Mayor James Kennedy talked about murals and sculptures scattered around the downtown loop as part of an overall plan focusing on the arts. He described the visual arts piece as a complement to performing arts initiatives such as the amphitheater and black box theater planned for Hamilton Street and gallery space in the YMCA and Elizabethtown Gas building. The "eye candy," as the mayor describes it, is expected by mid-summer.

As examples, Kennedy noted the walkway connecting Main Street and the parking lot behind River Place as an ideal spot for a mural or a sculpture, in addition to some areas connecting Hotel Indigo to the Lewis Street parking deck. "The whole arts picture has been growing in many pieces that ultimately is coming together now," he said.

A committee will determine about two dozen quirky spots downtown for sculptures, which then would be cataloged into a booklet for a sort of sculpture garden. The city would be responsible for the footings but artists would cover the cost of their own sculptures. "The advantage to artists is not that they're paying for their own sculpture but the advantage is that it gives them exposure and exhibition space," Kennedy said.

Another program will copy what was done in Ithaca, N.Y., where The Sagan Planet Walk at Sciencenter pays homage to the Rahway native and noted Cornell astronomer. A scale model of the solar system would station planets at specific locations between City Hall and the Arts Guild. The program also would incorporate the high school physics program, the mayor said, while the educational piece would include brass descriptions of the technical data about the size and composition of planets. The sculptures would be to scale so some might be as small as a tennis ball while others might be much larger.

"The neat thing is that it brings a sense of community, it's a something-to-do kind of thing," Kennedy said, adding that these initiatives aim to create a pleasant atmosphere but also catch the attention of passersby.

A third aspect of the visual arts piece is a window treatment program like one that was done for the Carriage City Plaza sales office. People looking into the windows can see the image or art while those on the inside can clearly see outside. Rather than have paper covering up vacant storefronts, Kennedy said the city also is trying to encourage empty stores to allow the space for use by artists until they are leased.

Recent studies paint bleak picture for the arts

Two items got my attention recently that are relevant to Rahway given the mayor's plans to make it "All About the Arts."

The first National Arts Index released last month by Americans for the Arts indicated that while the "number of arts organizations increased rapidly over a recent 10-year span, the percentage of people attending arts events declined." Here's The Washington Post's take on the study. Among the points that jumped out to me:

"'Audience demand has failed to keep pace' with this boom in opportunities for arts participation, said Randy Cohen, the vice president for local arts advancement at the Americans for the Arts. 'There is a new arts organization created every three hours.' Straitened financial circumstances and audience drift are issues that have been festering for years, and the recent recession didn't help."

It's worth the quick read and is a national look at what nj.com examined in Sunday's story, "Recession devastates N.J. nonprofit arts scene," that details some of the deficits faced by theaters and museums around the state:

"Ticket sales were down, donations plummeted, state funds were slashed and investments tanked, creating a state of continuous crisis for the state’s theaters, museums, orchestras and arts centers. And that pain spread out into communities like Red Bank, New Brunswick, Millburn and Newark. These downtowns rely on arts patrons to spend money in their restaurants and shops. Fewer performances and smaller audiences hurt more than just the theaters’ bottom line."

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Here's an abbreivated report on last month's green building meeting between the Environmental Commission and Planning Board.

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.

Concerts the clear choice for arts center

So judging by the most recent blog poll, y'all want concerts at the Union County Performing Arts Center (UCPAC).

The question becomes what kinds of concerts are you most interested in? Obviously, UCPAC has plenty of concerts throughout the season, but what kinds of concerts would you prefer? There's also the question of what two voters consider to be "other." Magic shows?

With now more than 250 readers subscribing by email and the average number of daily visitors creeping toward 200, I thought for sure we'd hit triple digits on the number of votes. After posting it, I realized I could've been a little more creative and added more options. I blame myself mostly; I just copied what we used in the last UCPAC poll. We could have added some other offerings, like kids' shows or dance, for instance.

"What would you like to see at the Union County Performing Arts Center?"
Concerts, 43 percent (22/51 votes)
Comedy, 23 percent (12/51)
Movies, 19 percent (10/51)
Plays/Musicals, 9 percent (5/51)
Other, 4 percent (2/51)

Results weren't radically different from when we asked this poll question two years ago, but for about twice as many votes and a more decisive margin for concerts.

Happy hour: Friday, Feb. 26 at Flynn's

As kind and benevolent dictator of this fine blog, I hereby decree that the next Rahway Rising happy hour will be Friday, Feb. 26 at Flynn's Irish Pub, 1482 Main St. Let's say, 6-ish?

Thanks to readers who offered their suggestions in comments and emails on where to meet. We decided to keep it downtown but rotate the location, and since we were at The Waiting Room the last time, we'll just sashay over to Main Street.

We had a nice turnout in November and I hope to see some more readers who couldn't make it the first time around. Come meet your neighbors and fellow Rahway Rising readers -- see you there!

Woodruff Building changes hands for $775k

The Woodruff Building netted $775,000 in a sale that closed recently, according to this Jan. 22 report (now behind a subscription pay wall) on GlobeSt.com.

The two-story, mixed-used building on the corner of Irving and Lewis streets hit the market last fall with an asking price of $799,000. The previous owner paid $800,000 in September 2007, according to property records.

There are two retail units and one residential unit on the first floor and 11 office suites on the second floor, with almost 8,500 square feet in all. Assessed at about 300,000 the building at 1439 Irving St. (Block 317, Lot 11), pays more than $15,000 in property taxes. It was built in 1920.

Sales associate Ted Brown of Woodbridge-based The Kislak Company represented the seller, who provided financing, and vice president Robert Squires represented the purchaser, both Kislak clients. "Rob and I were able to put this deal together in one week and close it in less than two months," Brown tells GlobeSt.com, adding that the investor "was coming off of a 1031 exchange and needed to close within 60 days." Squires adds that the buyer was able to pay all cash, according to the report.

No word from Kislak on who's the buyer.

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.