Tag Archives: Redevelopment Agency

Black box theater first, then amphitheater – maybe

Following the recommendation of the administration, the Redevelopment Agency is moving forward on a black box theater while prioritizing parking over an amphitheater in the short term.

The Redevelopment Agency on Wednesday awarded a $5.825-million construction bid to Gingerelli Bros, Inc. The Toms River-based firm was the lowest among 16 bidders to renovate the former Bell Building on Hamilton Street into a 220-seat black box theater. The award includes a base bid of $5.757 million and alternate bid of $27,112 for a folding partition and $41,200 for a metal roof instead of asphalt shingles.

City Administrator and Redevelopment Director Peter Pelissier said the city has approved $12 million for both a black box theater and amphitheater and even with the elimination of one project, more money would have to be raised for a parking facility. The 1,300-seat amphitheater planned at the former Hamilton Laundry site cost more than the original estimate and he recommended to commissioners first building the black box theater and creating parking at the amphitheater site for the time being given the economy and city’s looming debt, such as the school system’s $34-million renovation projects. Officials estimated some $2.73 million already has been spent on architect and engineering fees and other site preparation.

There were six bidders for the amphitheater, the lowest from Berto Construction at $4.734 million ($4.2 million base bid plus $487,000 in alternate bids). Other bidders included W.D. Snyder Co., $6.15 million, and CGT Construction, $6.21 million. The amphitheater project had to be re-bid after an issue arose with the original bids, challenged by one of the bidding companies, last fall.

Former Mayor James Kennedy, now executive director of the Rahway Arts District, said the merits of building the black box theater first are basic. A black box theater would have a year-round revenue stream while removing a building that’s been blighted for over a decade. If the amphitheater was pursued first but the project ran out of money, the blighted Bell Building would remain. In addition, the amphitheater site could provide needed parking for the black box theater.

Pelissier said parking is very stressed from Grand Avenue to the arts center so for the moment, parking is more important than an amphitheater. He said it will cost $300,000 to cap the amphitheater site anyway and another $150,000 would bring a parking lot that the Parking Authority could use as a temporary revenue stream.

As currently designed, the Hamilton Street arts projects would have 48 parking spaces but creating parking at the amphitheater site would add 86. The agency was presented with an option to add two lots, the first of which would gain 16 spaces behind four homes currently stand on Hamilton Street for a total of 134 spaces (design at right). The second lot would add 138 spaces, losing 16 to reconfiguring spaces behind the homes but adding about 36 in the area of the homes, for a total 170 spaces (design above). The first lot included parking behind the homes. (Click the images to enlarge).

The bid that was awarded only includes parking behind the black box theater but not the additional parking at the amphitheater site, Pelissier said. That would have to be designed and bid, which the administration recommended pursuing separate bids for as early as next month.

Mayor Rick Proctor called it the “most common sense” solution at the moment because of the year-round revenue available from a blackbox theater as opposed to the seven to eight months from an amphitheater. “It’s the best to prioritize use of the money we have available,” he said.

Dornoch ‘dead in the water’ on The Savoy

“We’re dead in the water right now.” That’s how Glen Fishman, managing partner of Dornoch Holdings, described to Redevelopment Agency commissioners his firm’s situation with The Savoy.

In a rare appearance at the agency’s meeting Wednesday night, Fishman was invited to provide an update on the firm’s stalled projects and activity at its properties. He started with the good news (filling rental properties), but we’ll get to that in our next post. For now, the bad news.

“We’re a little stuck here, I wish I had better news,” Fishman told commissioners, adding that they’re still negotiating with Wachovia. Rahway’s real estate fundamentals still exist, with its location and proximity but housing prices have made it hard to get people to invest. “People are still confident in Rahway, it’s just the economics,” he said. Condos can’t be built when they’re selling for $150,000 a unit, he said, but expressed confidence in “getting something there” in 12 months.

Dornoch spent a lot of money acquiring properties along Main Street for the four-story, 36-unit development, many of which were razed. Archaeological and historical issues relating to cisterns at the Savoy site cost Dornoch $1 million and a year’s time, he claimed, which “blew the budget on the Wachovia loan.” At one point there was a possibility of financing from Valley National for rental apartments but the deal could not get done, he said.

Fishman told commissioners he hopes “at some point the economics make sense, whether selling to another developer who can make it work” or otherwise. Dornoch has fielded offers from some local developers, he said, but so far three offers that have been made “have not been acceptable to the lender.”

(By my estimate, via PropertyShark and other sites, Dornoch acquired almost 20 downtown parcels at a total cost of almost $9 million or more — mine may be an incomplete list — pretty much the height of the real estate market in 2006.)

Redevelopment Agency Chairman William Rack asked if the steel beams, which went up at The Savoy site in summer 2008, might be taken down at some point, assuming they probably won’t be used in whatever ends up at the site. Fishman said it’s not necessarily a certainty that the steel would go unused. Steel doesn’t really go bad so it still has value, he said, adding that Dornoch doesn’t have the money to remove it anyway, and doing so might actually reduce the value of the property.

Foreclosure for Carriage City Plaza

Foreclosure proceedings will begin on Carriage City Plaza, a 16-story hotel and condo project that was the centerpiece of redevelopment efforts the past decade. Of the 222 units at Sky View at Carriage City Plaza, 62 units have closed and another 72 leased, leaving 88 units.

Continue reading Foreclosure for Carriage City Plaza

Salon, bakery sought for East Cherry Street

Hoping to fill two vacant storefronts, a local property owner came before the Redevelopment Agency last month for assistance but it looks like the locations will remain vacant for now.

Continue reading Salon, bakery sought for East Cherry Street

Amphitheater to be re-bid

A judge ruled this week that construction bids for the Hamilton Street amphitheater must be re-bid.

Redevelopment Director and City Administrator Peter Pelissier said there was some ambiguity about some portions of the lowest bid, which was rejected, and so the judge felt it should be re-bid.

Opening of new bids is scheduled for Dec. 15 and is scheduled to be awarded at the Dec. 22 Redevelopment Agency meeting.
Groundbreaking could occur as early as mid-January, according to City Engineer James Housten.

The Redevelopment Agency awarded a $4.95-million construction bid last month to Rahway-based Berto Construction, however, Kenilworth-based W.D. Snyder Company had the lowest base bid at $4.65 million but it was rejected as a “deficient bid proposal” for a “material breach.”

The facility originally was anticipated to open in May and be ready for use in July, said Pelissier, adding that the timeline could still be feasible.

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For those interested in a district-by-district breakdown of Tuesday’s election, here they are in a Google spreadsheet. Democrats carried about 60 percent of the vote in local races, with Rick Proctor carrying 16 of 24 districts for mayor against Pat Cassio, who carried the 3rd and 6th wards. Turnout was about 48 percent.

Amphitheater construction bid awarded, held up

Construction of a 1,300-seat amphitheater on Hamilton Street was on track to begin last week — until a competing construction firm filed an injunction over losing out on the bid. A judge is scheduled to hear the case on Monday, according to City Administrator and Redevelopment Director Peter Pelissier.

The Redevelopment Agency awarded a $4.8-million base bid to Berto Construction of Rahway and another $130,761 in additional alternate bids for a total $4.95 million. A lower base bid of $4.65 million by W.D. Snyder Company was rejected as a “deficient bid proposal” for a “material breach,” Pelissier said, and the Kenilworth-based firm filed an injunction. There was a third bid, from 3R Contracting for $4.89 million.

Bids were opened on Sept. 17 and City Engineer James Housten told the Redevelopment Agency at its meeting last month that construction was on track to begin the week of Oct. 11 and be completed by June 15, 2011 — in time to open by July 4, 2011. Architects were within 10 percent of the estimate — an exceptional result, according to the administration.

The largest items in the $4.8-million base bid are for concrete ($1.083 million), electrical ($708,315), and steel ($470,573). The $130,761 alternate bids include about seven options chosen, outside of the base bid. About $27,366 was included for concrete instead of grassy walkways. City Administrator and Redevelopment Director Peter Pelissier told commissioners that concrete would reduce maintenance needs and can be hosed down and eliminate the need for mowing. Another $36,300 was accepted for color-changing LED lighting, which Pelissier explained will add to the visual impact of performances.

Another $40,000 alternate bid was accepted for flood insurance, which would cover the costs of any damages should a flood occur during the construction, according to Pelissier. Flood insurance for the actual facility will not be needed since the facility is concrete, he said, adding that he will check with the city’s insurance broker once the project is completed.

An alternate bid of $82,000 was not included in the proposal for removable seats, which would account for 700 of the 1,300 seats in the facility and come in sections of five. Pelissier said it was unclear how the removable seats could be stored or how many people it would take to install them. “The logistics didn’t make sense,” he said.

The state Local Finance Board’s concerns about back-loaded borrowing by municipalities, according to this report last week on NorthJersey.com/The Record, would have no affect on the timetable for the amphitheater, Pelissier said. The City Council earlier this year authorized borrowing $8.5 million for construction of Arts District projects, including the $3-million amphitheater.

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Here’s another write-up of the New Jersey Hot Dog Tour, which stopped at Rahway Grill, this time a more detailed piece from Serious Eats, which called the Grill “a hidden gem.”

Mayoral candidate: Rick Proctor, Democrat

Note: The two major-party candidates for mayor were invited to submit a blog post (no more than 750 words) about their redevelopment platforms. Entries were edited only for spelling and style. Also on the ballot in the Nov. 2 election are three At-large City Council seats. Today’s post comes from Democrat Rick Proctor. Republican Pat Cassio appeared Monday morning.

Continue reading Mayoral candidate: Rick Proctor, Democrat

Settlement agreement may be near

A resolution to finalize a settlement agreement with Carriage City Properties was pulled at last week’s Redevelopment Agency meeting.

 

Continue reading Settlement agreement may be near