Newark: Real Estate, Development, News, & Politics

**Marv95** · February 22nd, 2011, 09:23 AM

Originally Posted by mrl23

So how do you make these things "economically sustainable"? What has to happen first? There comes a point when you cannot just say we need more middle income housing or residences downtown. What is the real impetus to make Newark come alive? It seems like we continue to say that all the right factors are in place, however what is holding everyone (private sector) back? (Im guessing the red tape crap that forced Aurthur Stern out and the judgements by the court) Why in NJ, where we spend tons of money developing farmland into office complexes and mcmansions do we not spend money on our urban centers?

You just answered your own question. Not only the state has never been business friendly, they don't give a damn about the cities, otherwise they wouldn't be be in the shape they are in.

**Newarkguy** · February 22nd, 2011, 09:59 AM

Nj has always been a barrel tapped at both ends. Since the 19th century, Jerseans have worked in Nyc and philly. Nj was their bedroom state. However Cities such as Newark,Jersey,Camden,Elizabeth,and Paterson emerged as potent industrial powers.
NYC became the white collar capitol of the world. Newark was the home of"famed industrial arts" ,independent of NYC influence, and the second most industrial major US city in America,second only to Detroit. [*]

Suburban New Jerseans hoping to prevent major cities from growing in NJ,voted in anti city representatives and senators. Also, the rules for political representation were based on square mileage,instead of population.This favored the rural townships with their hundreds of vacant square miles. It was a deliberate tool to rob the boundary strangled cities of political force. As a result,when cities needed to annex and expand,pass bonds,or anything..they needed permission from the suburban controlled state legislature.
[LIST]

*

When Newark and Camden tried to annex by fiat(still legally possible today because Camden won the Greenwald vs Miller annexation case,but no politician has the guts to support)to compete with NY and Philly,Nj came up with the home rule sham.They also restricted" in city "founded banks from expanding beyond the county. This is why Newark never developed a financial skyscraper district. National Newark and Essex was the only bank big enough to build a skyscraper for itself and the (1180) Lefcourt tower.""
[LIST][*]*
If Newark,for example,were allowed to reunify with all Essex, the bad areas plus Irvington,East Orange,Orange,and old Newark proper only occupy 1/5 of Essex's land area. Thats a prosperous city with the average bad older core.Not only that, but the 500,000 wealthy/middle class new Newarkers from formerly suburban Essex would clean house in city hall and open Downtown Newark to real redevelopment and gentrification.
Nj is directly responsible for the fall of its cities.

**scrollhectic** · February 22nd, 2011, 08:39 PM

Originally Posted by Marv95

How do you get Edison Parking to agree with this and ship out?

They'll never leave. That's part of their stategy and it's made them a fortune. Consider the Highline in the Meatpacking District. They made a KILLING! Just sitting on land. They're very patient, long-term (non) developers.

**scrollhectic** · February 22nd, 2011, 09:12 PM

Originally Posted by mrl23

So how do you make these things "economically sustainable"? What has to happen first? There comes a point when you cannot just say we need more middle income housing or residences downtown. What is the real impetus to make Newark come alive? It seems like we continue to say that all the right factors are in place, however what is holding everyone (private sector) back? (Im guessing the red tape crap that forced Aurthur Stern out and the judgements by the court) Why in NJ, where we spend tons of money developing farmland into office complexes and mcmansions do we not spend money on our urban centers?

I don't think Newark is an attractive investment for the private sector. Not for large scale developments anyway. I think Cogswell's woes with both 744 and Eleven80 demonstrate that. Smaller developments seem to be more sustainable. And the small developments happening along Market and Broad are important. Their profitability will give developers the confidence again to pursue larger and larger developments cause I'm sure large developers are leery after Metro Homes and Cogswell. Consider how even with low vacancy rates near Penn Station, there hasn't been a new office building in decades.

What sucks about small developments is that they don't have the critical mass that you need to really change the area. (I mean, I live in Newark and I wouldn't live on Market in the current condition it's in. Would you?) Without some sort of significant subsidy, it's too expensive and too risky. Since you can't force the owners of the buildings on Broad and Market to renovate their buildings, some sort of government issued super low financing might encourage renovations. Those buildings are beautiful. They'd make fantastic lofts. And the city has GOT to get its crime rate under control, both violent and non violent.

**block944** · February 22nd, 2011, 09:51 PM

Originally Posted by mrl23

So how do you make these things "economically sustainable"? What has to happen first? There comes a point when you cannot just say we need more middle income housing or residences downtown. What is the real impetus to make Newark come alive? It seems like we continue to say that all the right factors are in place, however what is holding everyone (private sector) back? (Im guessing the red tape crap that forced Aurthur Stern out and the judgements by the court) Why in NJ, where we spend tons of money developing farmland into office complexes and mcmansions do we not spend money on our urban centers?

Simple ROI. People post that students are the draw when in fact the majority of NJIT and Rutgers students are commuters and live at home and want no part of living downtown in Newark. The students that live on campus are majority international students and athletics and freshman. Grad students have cars and high tail it to a shared townhome rental in Livingston or at the lowest here in Society Hill. UMDNJ doesn't help much for the cause as most students that can afford medical school aren't going to live in the ghetto. So then middle class is the next target but with no good schools they will never come. The super rich will never live in downtown newark so you have the poor and low income which is why these projects are unsustainable. 1180 got lucky as the majority of residents ARE law students at Seton Hall that high tail it out of there on weekends. You won't see them running around downtown ever and the others being employees that work in Newark like myself or people that set 1180 up as home offices(i know 2 that do that and one lives in the penthouse on the top floor, she drives and audi and is 45 year oldish with white short hair and is usually running over to the cafe next door in her tights in the morning)

Basically with all that what can you sell? Add into it violent and non-violent crime and you have a development projects that will not return any ROI for the financer hence the project stalls and dies.

Target/walmart/shopright on springfield ave is dead for the same reason as well. The only one that works is NCC/Pathmark because they get state aid and grants to stay open... as part of the white man's guilt for the riots in the 60's that happened at that intersection.... again unsustainable.

Bars all over downtown is great but when the prudential is quiet the bars are dead as there is no foot traffic or draw for people to come... again no ROI.

**arcman210** · February 22nd, 2011, 10:28 PM

The reason students don't live at the schools is because there isn't enough housing yet. Because of that, there's little campus life. More housing will improve that and thats coming in the next decade as the schools transform from commuter schools to more campus centered... and quite honestly, its pretty likely that NJIT and Rutgers Newark merge into one school in the next decade as well. They can begin to target out of state students if they become stronger and more unified, and provide a greater diversity of options for students. The schools know that and with the budget cuts, the schools merging is becoming more realistic.

As for the bars downtown, they aren't crowded like say Hoboken might be... but they do sustain business. Residents of the ironbound and surrounding neighborhoods patronize these places even on non game days. Office workers and students as well. You don't have to live in 1180 or be a Devils fan to go to one of these bars.

It's not an overnight process to transform a city. It take time, patience, and often times many attempts. Adding Panasonic downtown will be a great boost. If Theatre Square gets off the ground next year that will be a huge turning point. There are dozens of buildings downtown that 10 or 15 years ago were left for dead, not to mention we're coming out of a recession which saw nothing get built. There's lots on the board and while we might not see all of it, the fact that the private sector is designing and building in Newark says whats to come. Look at what's been accomplished... and not what hasn't.

**block944** · February 22nd, 2011, 10:37 PM

Originally Posted by arcman210

The reason students don't live at the schools is because there isn't enough housing yet. Because of that, there's little campus life. More housing will improve that and thats coming in the next decade as the schools transform from commuter schools to more campus centered... and quite honestly, its pretty likely that NJIT and Rutgers Newark merge into one school in the next decade as well. They can begin to target out of state students if they become stronger and more unified, and provide a greater diversity of options for students. The schools know that and with the budget cuts, the schools merging is becoming more realistic.

As for the bars downtown, they aren't crowded like say Hoboken might be... but they do sustain business. Residents of the ironbound and surrounding neighborhoods patronize these places even on non game days. Office workers and students as well. You don't have to live in 1180 or be a Devils fan to go to one of these bars.

It's not an overnight process to transform a city. It take time, patience, and often times many attempts. Adding Panasonic downtown will be a great boost. If Theatre Square gets off the ground next year that will be a huge turning point. There are dozens of buildings downtown that 10 or 15 years ago were left for dead, not to mention we're coming out of a recession which saw nothing get built. There's lots on the board and while we might not see all of it, the fact that the private sector is designing and building in Newark says whats to come. Look at what's been accomplished... and not what hasn't.

nope see if students wanted to live on campus they go to rutgers new brunswick or live at home with their parents. On campus are athletes that get a scholarship AND international students as home is in another continent.

nope on the merger as well, its umdnj and rutgers that MAY merge based on the latest state report. NJIT is left as is

nope on out of state too Drexel, upenn, penn state and USPS in PA are much stronger and much cheaper options for PA residents. Cuny,NYU are much better and cheaper options in NYC for NY residents. Have you seen the nyu library downtown? Its amazing and NOTHING in NJ can match that.

**block944** · February 22nd, 2011, 10:38 PM

http://blog.nj.com/njv_editorial_pag...tml#incart_hbx

House Republicans want to slash its capital fund by $1 billion for the current year as part of the budget resolution that must be passed by March 3 to avoid a government shutdown. And the future looks no better: The Obama budget cuts $1 billion from its 2012 operating budget.

This important housing stock cannot be allowed to rot on the vine. Public housing has been cash-starved for years, accumulating billions of dollars in deferred maintenance. Further budget cuts would only hasten deterioration and lead to more expensive repairs or even demolition — and the cost of replacing these units would be prohibitive. Balancing the budget on the backs of people clinging to the lowest rung of the economic ladder makes little economic sense.

About 2.3 million people live in public housing nationwide. The Treasury Department, in a housing report last week, found adequate and affordable housing for low-income renters "increasingly scarce": For every 100 extremely low-income American families, only 32 adequate rental homes are affordable.

This is the population most in need of a public housing system that is safe and well-run. The average yearly income for a public housing household is $13,400; more than half of the residents are elderly, disabled or both; more than 40 percent are households with children.

Newark is bracing for the worst. Keith Kinard, director of the Newark Housing Authority, said both the House and president’s proposals are "potentially catastrophic." Under Obama’s plan, there’s a safety hatch for housing authorities with less than four months operating expenses in reserve: They’d get their full operating subsidy. As a result, Tory Gunsolley, the chief administrative officer for Newark’s public housing, said Newark may escape the operating cut.

But under the Republican plan, there is no out. Newark’s capital fund would be cut from $17 million to $10 million. Gunsolley said the authority already has $500 million in deferred maintenance, and current needs for roof repair, boilers and sidewalks would go unmet. The 24/7 security guards at buildings for senior citizens would have to be let go. It’s not hard to imagine these buildings going downhill fast.

Just last week, the Obama administration called for a new government housing policy that doesn’t promote homeownership for all, but renews the government’s commitment to affordable rental housing. For those words to have any meaning, the administration has to protect its investment in public housing with more, not less, funding.

**arcman210** · February 22nd, 2011, 10:50 PM

There's no housing. NJIT has approx 9000 students (6000 ug and 3000 grad) and only 1500 can live on campus. The international students obviously have to live on campus. Rutgers Newark has 11,000 students with housing for about 2500. There is NO room for any more students than that on campus.

The universities cant provide any more housing for students until they build it.

**arcman210** · February 22nd, 2011, 10:59 PM

Plenty of people commute to Rutgers New Brunswick too, by the way. Many times it has to do with economics and the fact that living 20 minutes from campus makes more sense than dropping $4,000 to live in a dorm. These are schools that cater to primarily in state residents, thats the reason why they are so commuter heavy.

**block944** · February 24th, 2011, 07:02 AM

Originally Posted by arcman210

There's no housing. NJIT has approx 9000 students (6000 ug and 3000 grad) and only 1500 can live on campus. The international students obviously have to live on campus. Rutgers Newark has 11,000 students with housing for about 2500. There is NO room for any more students than that on campus.

The universities cant provide any more housing for students until they build it.

apparently this is no demand as greekvillage is a 1 to 1 transfer of housing and all the additional housing in the area is for low income and hanes bld got cancelled and there are no new buyers including the universities. The reason being most students live at home as they dont feel safe around campus unlike new brunswick which has a real downtown and party scene and kids can walk around and not get mugged or attacked... and there are more things to do in new brunswick then in newark

**Nexis4Jersey** · February 24th, 2011, 07:20 AM

Originally Posted by block944

apparently this is no demand as greekvillage is a 1 to 1 transfer of housing and all the additional housing in the area is for low income and hanes bld got cancelled and there are no new buyers including the universities. The reason being most students live at home as they dont feel safe around campus unlike new brunswick which has a real downtown and party scene and kids can walk around and not get mugged or attacked... and there are more things to do in new brunswick then in newark

Its not a Crime problem , its a lack of things to do.....like at New Haven , New Orleans , St. Louis....they have higher crime then Newark and a thriving Downtown...

**arcman210** · February 24th, 2011, 07:49 AM

There are more things to do in New Brunswick because theres more beds for students. Why would anyone open a business in the area for two colleges that are highly commuter-based? The housing needs to come first. The same concept goes for downtown.

**scrollhectic** · February 24th, 2011, 12:52 PM

Pacific Group Leaves Staten Island for Newark

By Debra Hazel
February 23, 2011

60 Park Place

NEWARK-Fruit importer Pacific Group Holdings has leased 5,000 square feet for its US headquarters at 60 Park Place, the Military Park Building in Newark. Pacific Group, best known for its Bonita Bananas brand, is relocating from Staten Island, NY to the 250,000-square-foot landmark office tower, which is owned by the Berger Organization.

“This activity is a positive sign for our property, the city and the economy in general,” says Miles Berger, chairman and CEO for the Berger Organization. “We are experiencing an upsurge in interest among tenants--some of which are relocating within Newark, with others coming in from elsewhere. With the expected near-term correction and our future return to economic viability, I firmly believe that Newark will thrive based on its location, excellent transportation infrastructure and affordability.”

The 21-story, 85-year-old historic property offers onsite tenant parking and easy access to Penn Station. Other new tenants at the building, now 88% occupied, include administrative offices for TEAM Charter Schools, the Neighborhood Assistance Corporation of America, the Against All Odds Foundation, Playworks and digital marketing agency Websignia. The building also features street-level retail.

**66nexus** · February 24th, 2011, 08:13 PM

^That's actually surprising, I didn't know that building was even close to being fully occupied.

I suppose there are more things to do in New Brunswick than University Heights specifically. NB downtown is nice but it's smaller than DT Newark. And to reiterate earlier mentioned, there's a far higher cluster of live-in students in NB, more retail is a natural by-product.