REIGNIGHTING STALLED PROJECTS

DIANA R. ROGERSDirector

Housing and Economic DevelopmentCity of Trenton

Arena District

Roebling Complex Redevelopment AreaCity of Trenton

#1

Foundry on 129134,000 SF of Entertainment Based Retail90 Predominantly Market Rate ApartmentsNightclubs, Restaurants and RetailOutdoor Performance Area for Festivals650+ Car Parking Garage

Foundry on 129The Trenton Foundry on 129

2004: Proposed - Trenton Foundry $37million Entertainment based retail & housing

New market tax credits MCIA to hold mortgage

Large project

2005: Executed Redevelopment Agreement Developer NJRA Loans for acquisition & soft costs

Pursuing New Market Tax Credits Properties acquired, some conveyed to developer

Obtaining Local Board Approvals Obtaining bank financing

2006: Terms with Developer to move project forward

2008: Defaulted Developer

2010: Fully unwound project, litigation, etc.Properties under MCIA control

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

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

New Jersey Association of Realtors

Arena District

Roebling Complex Redevelopment AreaCity of Trenton

#2

Manex Entertainment

Manex Studios

2003: Executed Redevelopment Agreement Plans movie studio equipment rental company

All properties conveyed to developerNote held by MCIA

2006: Defaulted DeveloperProperties were in developer control

Tax Liens on propertiesDid not convey properties back

2008: Completed terminating agreementRecovered properties

Cleared liens

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

Roebling Center

Roebling Lofts

Roebling Center:2009: Issued Request for Expression of Interest

Received 6 proposalsReviewed, interviewed unanalyzed proposals

2010: Selected Developer to begin detailed discussions2011: Executed Redevelopment Agreement

Multi-Phased ProjectProperties conveyed in phases

2016: Ground Breaking on Roebling Lofts – (Phase 1)138 Residential Lofts

2017: Anticipated Completion (Phase 1)

Transformative Urban Redevelopment

Case Study:662-758 South Second Street

Plainfield NJ

School of Nursing

ABC Supply, Plainfield/ The Station At Grant Avenue

Commercial:• 44,000 sf warehouse

• 2 acre concrete staging area

School of Nursing

The Station at Grant Avenue

Residential:• 5-story building: 4 residential floors over covered parking

• 90 Residential Units (LIHTC)

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)

Site Conditions

Site

• 30 years+ vacant site with illegal dumping and historic fill

• Open environmental issues• Blighted site

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 approvals were

granted.

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.

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 neighborhoodPlanning 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

Mixed Used Development: The FinancingGoal: 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

Mixed Used Development: The OutcomesGoal: 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

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:

9Municip

al Bodies

and Departm

ents includin

g the Commu

nity

8Develop

ment Professi

onal groups

(developers,

legal, architec

ture, engineer

ing)

3Fundin

g Instituti

ons Includi

ng sponsor

’s equity

4State

Agencies

School of Nursing

The Station at Grant Avenue

Residential:• 5-story building: 4 residential floors over covered parking

• 90 Residential Units (LIHTC)

ABC Supply, Plainfield/ The Station At Grant

Avenue

Mixed Used Development: The Players

THE WOOLRIDG

E LAW FIRM

Harvard PrintingOrange, New Jersey