‘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. [Feb. 10 UPDATE: Since this original post, I was able to get through on the phone, if only to a maze of voicemail menus and greetings. So apparently the phone is not disconnected.]

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.”

Continue reading Recent studies paint bleak picture for the arts

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!