Tag Archives: Sky View at Carriage City Plaza

Apartments, Carriage City Plaza, Condos, Downtown

101 units accounted for at Sky View

Leave a comment

More than 100 units are either rented (43) or sold (58) in Sky View at Carriage City Plaza, as of the end of last month. That would account for 101 of the 222 units in the 16-story complex. (Remember when half were under contract?)

City Administrator and Redevelopment Director Peter Pelissier told Redevelopment Agency commissioners during their meeting Wednesday night that another unit has closed and two more are under contract and may close soon. Pelissier said he was told by Carlos Silva of Carriage City Properties to expect a letter shortly regarding payment to the agency for the latest unit closing. It would be the first unit to close since early this year, with the most recent appearing in property transactions in April.

The agency’s settlement agreement with Carriage City Properties, however, remains unsigned. Pelissier told commissioners he would have more information at next month’s meeting and likely would require an executive session meeting to discuss “sensitive issues” and determine a course of action.

Carriage City began marketing rentals almost a year ago ($1,250 for a one-bedroom at the time, which has since increased to $1,350), in violation of their redevelopment agreement, which prompted discussions with the agency and ultimately a settlement.

_uacct = “UA-2976232-1”;
urchinTracker();

Uncategorized

Skyview settlement remains unsigned

Leave a comment

It’s been a pretty quiet summer over at Carriage City Plaza — apparently a little too quiet. The Redevelopment Agency approved a settlement agreement with Carriage City Properties (CCP) in May but the developers still have not signed it and have provided little information to the city, according to City Administrator and Redevelopment Director Peter Pelissier.

The developer has until this month to execute the agreement or the city will reach out to the financing bank for information, said Pelissier, adding that they’ve heard little from Carriage City about how many units have been rented or sold. No units at Carriage City have appeared in property transactions since early in the spring.

There have not been any new temporary certificates of occupancy (TCO) issued for the building, according to Pelissier. Under the agreement, the Redevelopment Agency is supposed to receive 10 percent of the rent from each rented unit — only the city doesn’t know how many are rented and has yet to receive a dime from rents. Last we heard, there were about 57 units sold and about five rented while 76 TCOs had been issued at the 222-unit development.

_uacct = “UA-2976232-1”;
urchinTracker();

Uncategorized

Settlement reached on Carriage City

Leave a comment

The Redevelopment Agency last night approved a settlement with Carriage City Properties (CCP) that will allow the developer to continue to rent unsold units at the 16-story condo/hotel.

CCP has sold about 57 units and began marketing vacant units for rent as early as last fall. Five are occupied by tenants and the city has issued 76 temporary Certificates of Occupancy in all at the 222-unit complex.

The two sides have been in discussions since the Agency declared CCP in default of its redevelopment agreement two months ago.

Here’s a summary of the settlement:
* CCP will execute a note and mortgage to secure the outstanding $2,285,250 in development fees and purchase price payments. The agency will get 10 percent of rent from each rented unit, which will be deducted from the $13,850 development fee until the unit is sold, at which time CCP will pay the balance. There are 165 remaining units.

* Infrastructure improvements, namely the East Milton Avenue and Irving Street realignment, cost approximately $1 million, of which CCP was liable for $368,562. The agency accepted CCP’s offer of $150,000, to be released immediately.

* Professional fees of $19,913 and water connection fees of $71,981 owed by CCP will be paid no later than April 1, 2010.

* Construction permit violations totaling $168,000 will be waived upon abatement of all issues identified by the city’s construction official.

***
5/17 UPDATED: Between the intersection improvements and construction penalties waived upon correction, CCP got about 15 percent knocked off what it owed in total. City Administrator and Redevelopment Director Peter Pelissier described that as “small to the potential of a bankrupt redeveloper,” adding that the site pays almost $1 million in property taxes. Meanwhile, construction penalties usually are waived if violations are corrected as a matter of business, with the point to get conformance and have the building safe for occupancy.

Many builders, renters and retailers are trying to renegotiate contracts to stay solvent, he said. “This is no different. The RRA and the city need to work together with redevelopers and sometimes although not popular with the critics public improvements not private improvements have to be paid for by the taxpayer to receive acceptable returns.” While CCP has taken a lot of heat for not adhering to the redeveloper’s agreement, Pelissier said, they did complete construction.

_uacct = “UA-2976232-1”;
urchinTracker();

Uncategorized

Settlement discussions with Carriage City

Leave a comment

City officials are in discussions with Carriage City Properties to resolve their dispute over payments related to Sky View at Carriage City Plaza. The Redevelopment Agency claims almost a half-million dollars is owed by Carriage City while the developer has threatened bankruptcy.

Declared in default of their agreements last month by the Parking Authority and Redevelopment Agency, Carriage City Properties had about 30 days, until April 8, to rectify the situation or they could be taken to court. Redevelopment Agency attorney Frank Regan said after Tuesday’s City Council meeting that any litigation is essentially on hold as they discuss a resolution.

According to written correspondence between the two sides, the Redevelopment Agency is claiming Carriage City Properties has not paid fees of about $458,000 related to at least 11 condo sales ($74,250), reimbursement for professional costs ($15,351), and a “reasonable contribution” toward the cost of intersection improvements at East Milton Avenue and Irving Street ($368,562).

Carriage City has paid the agency $323,000 to date but has not received closing-related fees since December. Payments on the 11 units ($74,250) would push them over the deferred $331,194 threshold set last summer and revert to the full $11,750 fee per unit owed the agency upon each closing. About 58 units have closed and appeared in tax records while the agency claims that fees have been paid for only 47 units.

According to that same letter, Carriage City has expressed concerns about the Redevelopment Agency’s financial ability, requested the agency’s audits for the past three years, and has “repeatedly stated in meetings with city and agency officials that it cannot meet its financial obligations and may lose the hotel flag and have to file for bankruptcy,” Regan wrote.

Representatives of Carriage City Properties/Silcon have not returned my email messages in months, but in this report last week its president of real estate suggested an unspecified change in the redevelopment agreement proposed by the city last year. He also claimed city officials turned down an offer to meet late last month to resolve the situation and that they have more in escrow than what the city claims it’s owed, according to the report.

_uacct = “UA-2976232-1”;
urchinTracker();

Carriage City Plaza, Condos, Downtown

Carriage City declared in default of agreement

6 Comments

The Redevelopment Agency voted unanimously last night to declare Carriage City Properties in default of its redevelopment agreement. Carriage City has 30 days to rectify the situation or the matter could head to Superior Court, Redevelopment Director and City Administrator Peter Pelissier said.

Continue reading Carriage City declared in default of agreement →

Carriage City Plaza, City Council, tax appeals, taxes

Tax appeal settlement approved

Leave a comment

City Council approved a tax appeal settlement Monday night with Carriage City Properties. Details on the settlement can be found in this earlier post.

Property taxes would be paid whether units are occupied or not, and the developer would be responsible for taxes on any units it owns, said City Administrator/Redevelopment Director Peter Pelissier.

During the Feb. 3 pre-meeting conference of City Council, Third Ward Councilman Jerry Scaturo raised the issue of Carriage City Properties leasing its unsold units. Sky View began marketing a lease-to-buy option, starting at $1,250 a month for one-bedroom units.

Pelissier said it’s not a concern from the standpoint of wanting to see people moving into the community. “It’s better than having…units sitting empty,” he said. If the units are occupied, the $10,000 fee owed to the Redevelopment Agency should be paid, said Pelissier, adding that the agency is seeking is a formal request from the developer to clarify the redevelopment agreement. Originally the developer, Elizabeth-based Silcon Group., was to pay the $10,000 fee upon closing of each unit.

About 57 units have closed at Sky View, according to the Parking Authority records, while the Redevelopment Agency has been paid for 46 units and 78 temporary certificates of occupancy (TCO) have been issued by the city, Pelissier said. It’s unclear how many units are rented, he said. The 16-story complex has more than 200 units in all.
By my count, about 48 units have sold (less than a quarter) at an average of almost $292,000, a high of $444,000 and a low of $216,350 (which happens to be the most recent sale I’m aware of).

_uacct = “UA-2976232-1”;
urchinTracker();

Downtown, Parking, Rahway

No go on parking deck expansion

Leave a comment

Good news for some Sky View residents: They get to keep their view. The Parking Authority passed on the idea of adding two levels to the existing parking deck at Lewis and Main streets.

Executive Director Donald Andersen said commissioners had concerns about the cost effectiveness and shutting down a large portion of the garage during construction, as well as possibly Main and Lewis streets. Construction probably would have last four to five months in either case and two levels of the garage would be closed.

Adding one level would have cost $2.6 million and created another 85 spaces ($31,000 per) while two levels would have cost $4.8 million and added 170 spaces ($29,000 per). The existing six-story parking deck, which opened four years ago with 524 spaces, cost $11 million (which works out to about $21,000/space).

Commissioners discussed the “Vertical Expansion Feasibility Draft Report,” prepared by Tim Haahs & Associates of Blue Bell, Pa., at their November meeting.

Andersen said the parking study commissioned last summer will hopefully be completed by the end of March.

_uacct = “UA-2976232-1”;
urchinTracker();

Apartments, Downtown, Redevelopment Agency

Carriage City violating redevelopment agreement

Leave a comment

Apparently in violation of its redevelopment agreement, Carriage City Properties has been advised by the Redevelopment Agency that it needs approval before renting unsold units on its own in the 16-story building. The builder also has filed a tax appeal, which could be settled shortly.

Redevelopment Director and City Administrator Peter Pelissier reported at Wednesday night’s meeting that the redevelopment agreement would have to be renegotiated. Specifically, it would be modified to stipulate payment of the $10,000 redevelopment fee to the agency at the time the unit is occupied, instead of at closing.

Of the 209 units, about 48 units have closed and a total of 76 Temporary Certificates of Occupancy (TCO) have been issued, according to Pelissier. Several units can be found advertised as rental apartments on various Web sites but those are individual owners who purchased the units, which is allowed. Last month a Rahway Rising reader pointed out a craigslist ad that clearly indicates SkyView as the rental agent, which Pelissier said prompted a Jan. 5 letter from the agency’s attorney to Carriage City Properties.

Carriage City also has appealed its tax assessment of almost $60 million (equalized ratio of about $25 million), which this year will generate $1.2 million in property taxes. That issue may be settled at Monday’s City Council meeting, Pelissier said.

Units at SkyView at Carriage City Plaza so far have sold for an average of about $296,000, with a low of $225,000 and high of $444,000.

_uacct = “UA-2976232-1”;
urchinTracker();