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Thread: Newark Development

  1. #9721
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    Quote Originally Posted by 66nexus View Post
    Other than a couple of developments in those areas (as you mention) nothing has really been developed there so, no offense, but what were you expecting to find?

    The traditional downtown development footprint is well underway, but let's not kid ourselves here: there is way more than enough blight to go around.
    Of course we want them to build and build (I know I do), but it's a process and, in Newark's case, a long one. The pieces have to come together, and they will. You've already seen it happen, you just have to realize that you have.
    Time will tell, but I think Newark made it an even longer process with their new inclusionary zoning ordinance. In order for new projects to pencil out in the areas covered by the inclusionary zoning ordinance, market-rate rents will have to rise substantially (or the state will have to pitch in huge subsidies and tax credits. At current rents, it'll be very difficult to cross-subsidize the large number of deeply affordable units they're asking from new projects. Very few towns require as much affordable housing as Newark is asking for, and most of those are very high-rent places. Even San Francisco, where rents are very high, had to lower its inclusionary zoning percentage from 20% down to 15% after construction crashed in the wake of the implementation of 20% inclusionary zoning. It's too bad. The huge number of empty lots just shows how absurd it is to think that new construction will 'displace' long-time residents anytime soon. There's plenty of empty land to redevelop before any displacement happens.

    The inclusionary zoning ordinance doesn't cover most of Newark, just the area near Penn Station and the riverfront for now. I predict that we'll see developers focus on the lots that don't require affordable housing and not build much on the lots that require affordable housing, but we'll see. I think they'd get a larger *total* number of affordable units built if they *lowered* the affordable percentage because more projects would be financially feasible. That's what happened in San Francisco.
    Last edited by Hamilton; October 24th, 2017 at 07:18 PM.

  2. #9722

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    Ras basically thinks just because NYC has these affordable housing lotteries that it means it can work here too. No it can't. No proponents of this bill(which can be altered) has stated who exactly is being priced out of downtown and the immediate area with the new development rising.

  3. #9723
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    ^^^There are a couple of loopholes in the bill that could make it work. It's possible to pay a fee instead of providing the affordable apartments, and it's possible to get reductions in the fee by building street-level retail/mixed use. The fee is much lower than the cost of building the housing units that would otherwise have to be provided. But these loopholes are completely at the discretion of the mayor's administration. If the administration is permissive, I think the ordinance has a chance of working OK.

    But if the administration is unwilling to compromise and makes every project build the full 20% of units rather than pay the fee, you'll see a lot of dead projects that are proposed and gain approval, but never get financing or a shovel in the ground.

    Even in NYC the affordable housing lotteries aren't really making a dent in the problem. For every affordable housing lottery you have 100 people who apply for each apartment. It's depressing and it's a far cry from a solution to the shortage of affordable housing. We need a solution that works on a massive scale.
    Last edited by Hamilton; October 24th, 2017 at 09:37 PM.

  4. #9724

    Default Saw this posted on reddit, we're moving along

    Construction Underway to Expand Newark’s Riverfront Park

    By
    Jared Kofsky -

    November 1, 2017


    Construction progress | Credit: The Trust for Public Land

    Over the course of a decade, Newark will have gone from having barely any public access to the city’s waterfront along the Passaic River to being home to a large swath of parkland with a variety of amenities for residents and visitors.

    Construction is underway for the newest parts of Riverfront Park in New Jersey’s largest city. The park opened to the public five years ago, and is currently a 15.5-acre facility along Raymond Boulevard just east of the Jackson Street Bridge. With playground equipment, a dock for boat tours, a boardwalk along the river, sports fields, and more, such a recreation area along the waterfront was unprecedented in the city when it opened.

    Now, Riverfront Park is being expanded further upriver from the Ironbound neighborhood of Newark’s East Ward towards Downtown Newark, and possibly beyond. Contractors began working on Phase 3 of the project last year, and a groundbreaking ceremony for Phase 4 was held by Mayor Ras Baraka, Essex County Executive Joseph DiVincenzo, Jr., and other officials on October 26th.

    In fact, according to the Trust for Public Land, parts of the park’s landmark orange boardwalk and seats are already being installed. When completed, the expanded 30.5-acre Riverfront Park will stretch from the existing park to the Bridge Street Bridge near the proposed new mixed-use neighborhood at the Bears and Eagles Riverfront Stadium site.

    These phases of the park are being designed by James Corner Field Operations, which is known for its other regional projects like Manhattan’s High Line and Staten Island’s upcoming Freshkills Park.

    According to a legal notice from last year, the additions to Riverfront Park will include pedestrian and bicycle pathways, benches, a boathouse, athletic fields, habitat areas, a new floating dock, a stage, an amphitheater, exercise courses, fitness equipment, playground equipment, restroom facilities, and decorative fences. According to a statement from the City of Newark, there would also be an “urban beach,” “riparian gardens,” and an “art wall.”

    Most of the properties along the Passaic River where Phases 3 and 4 are coming have either been vacant lots or have been used for parking. City records show that the municipality has recently been going through the process of obtaining the additional lands needed for development, whether “by purchase or condemnation.”

    In the years to come, there is a possibility that Riverfront Park will be expanded even further north, making it one of the largest waterfront parks in the state. The Newark Community Economic Development Corporation held a public meeting last September regarding possibly expanding the park to what is currently an industrial part of the North Ward between Clay Street and Fourth Avenue. Plus, the City’s statement showed that those plans are still active, mentioning that the finished walkway would be three miles long.
    --

    https://jerseydigs.com/newark-riverfront-park-construction-progress/

  5. #9725

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    Quote Originally Posted by Hamilton View Post
    Time will tell, but I think Newark made it an even longer process with their new inclusionary zoning ordinance. In order for new projects to pencil out in the areas covered by the inclusionary zoning ordinance, market-rate rents will have to rise substantially (or the state will have to pitch in huge subsidies and tax credits. At current rents, it'll be very difficult to cross-subsidize the large number of deeply affordable units they're asking from new projects. Very few towns require as much affordable housing as Newark is asking for, and most of those are very high-rent places. Even San Francisco, where rents are very high, had to lower its inclusionary zoning percentage from 20% down to 15% after construction crashed in the wake of the implementation of 20% inclusionary zoning. It's too bad. The huge number of empty lots just shows how absurd it is to think that new construction will 'displace' long-time residents anytime soon. There's plenty of empty land to redevelop before any displacement happens.

    The inclusionary zoning ordinance doesn't cover most of Newark, just the area near Penn Station and the riverfront for now. I predict that we'll see developers focus on the lots that don't require affordable housing and not build much on the lots that require affordable housing, but we'll see. I think they'd get a larger *total* number of affordable units built if they *lowered* the affordable percentage because more projects would be financially feasible. That's what happened in San Francisco.
    It's not that I don't think some affordable could be included, it's just that I think Newark is too early in the game to implement this type of zoning. But who knows, it might work out (this excerpt from the Verizon reno article posted earlier):

    The venture and its financing partners are no strangers to complex historic redevelopment projects. L+M, Prudential and Goldman Sachs Urban Investment Group teamed up to redevelop the Hahne & Co. building, where Rutgers University, Whole Foods Market and a bookstore operated by Barnes & Noble Education Inc. are tenants. The project included 160 apartments, 40% of which are designated affordable. Marketing began last winter, and those apartments were quickly leased, Mr. Cortell said.

  6. #9726
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    Quote Originally Posted by 66nexus View Post
    It's not that I don't think some affordable could be included, it's just that I think Newark is too early in the game to implement this type of zoning. But who knows, it might work out (this excerpt from the Verizon reno article posted earlier):

    The venture and its financing partners are no strangers to complex historic redevelopment projects. L+M, Prudential and Goldman Sachs Urban Investment Group teamed up to redevelop the Hahne & Co. building, where Rutgers University, Whole Foods Market and a bookstore operated by Barnes & Noble Education Inc. are tenants. The project included 160 apartments, 40% of which are designated affordable. Marketing began last winter, and those apartments were quickly leased, Mr. Cortell said.
    Hahne's is a special case because received heavy heavy subsidies from the state (via the Economic Development Authority and Housing and Mortgage Finance Agency)--over $106 million for a project that cost $174 million! That's 60% of the project's financing; more than $1 million in subsidies for each affordable apartment!

    The renovation was financed through a partnership among public, non-profit and private groups. The sources of funding include: $66 million from the New Jersey Housing and Mortgage Finance Agency (HMFA); $40 million from the New Jersey Economic Development Authority; $67 million of private equity and tax credit equity from Goldman Sachs; as well as financing from Prudential Financial, Citi and sponsor equity.

    Source:
    https://www.novoco.com/events/awards/2016/community-development-qlicis-year-awards/winners/real-estate/hahne-co-building


    On top of that, Goldman Sachs and Prudential invested in that project as a charity (for the PR/goodwill), not for profit, along with three non-profit community development financial institutions (CDFIs): http://www.goldmansachs.com/what-we-...nt-newark.html (Also see here for background on Goldman Sachs's Urban Investment Group and its 'social impact' investing.) Teacher's Village received similar financing.

    I'm glad all these entities were willing to help Newark out without seeking a return on investment, but it doesn't scale. Non-profit ventures and goodwill/social impact investments can only produce a small fraction of the housing that for-profit enterprises can produce because their capital is limited. And state tax credits are also limited--NJ is not going to spend over a million dollars per apartment to build thousands of apartments in Newark. So redevelopment will happen more slowly if you depend primarily on these streams.

    Hahne's also depended on tax credits that Goldman Sachs received for financing affordable housing. If Trump's corporate tax cuts pass, this stream of funding will diminish drastically:

    https://www.curbed.com/2017/11/2/165...rdable-housing

    Even though I'm skeptical, I am willing to keep an open mind and I hope my skepticism is proven wrong because that would be great for Newark. We'll see.
    Last edited by Hamilton; November 2nd, 2017 at 10:51 PM.

  7. #9727

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    I understand the earlier projects (NJPAC and Hahnes) were the beneficiaries of many credits and subsidies. However, the Verizon renovation and the huge stadium redevelopment project appear to be mostly privately financed. I am hoping we are already approaching critical mass where these projects can move forward with mostly private sector support.

    Maybe I drop the affordable requirement to 15% but otherwise I think it is reasonable. The key to preventing another atmosphere that led to the riots is making sure the rest of the city is not left out of the progress.

  8. #9728
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    Quote Originally Posted by Brick City View Post
    I understand the earlier projects (NJPAC and Hahnes) were the beneficiaries of many credits and subsidies. However, the Verizon renovation and the huge stadium redevelopment project appear to be mostly privately financed. I am hoping we are already approaching critical mass where these projects can move forward with mostly private sector support.

    Maybe I drop the affordable requirement to 15% but otherwise I think it is reasonable. The key to preventing another atmosphere that led to the riots is making sure the rest of the city is not left out of the progress.
    The Verizon renovation actually has government-subsidized financing as well -- Low Income Housing Tax Credits, Historic (Preservation) Tax Credits, and New Market Tax Credits. All these tax credit programs are in trouble if the Trump corporate tax cuts happen. Again you see Goldman Sachs Urban Investment Group putting in the equity (taking on the risk of financial losses) for the project:

    The New Jersey Housing and Mortgage Finance Agency (HMFA) is providing $15 million in Conduit Bond financing and federal 4 percent Low Income Housing Tax Credits (LIHTC), which in combination with historic tax credit proceeds on the affordable units are expected to generate an additional $9.4 million in private equity through Goldman Sachs Urban Investment Group.
    Citi Community Capital provided approximately $70 million in construction financing and approximately $14 million in equity through the National Trust Community Investment Corporation., in combination with NJ Community Capital, allocated $14 million in New Market Tax Credits for project.
    Source: http://rew-online.com/2017/10/25/lm-...ing-in-newark/
    The stadium redevelopment is not financed. Announcements aren't worth the paper they're printed on until there's cold hard cash financing the project.

    Anyway, how can we say 15 percent or 20 percent is the right percentage anyway? Newark never did an economic cost-benefit analysis or an impact study like San Francisco did. There's hard numbers behind these decisions (developers and banks use them to decide which projects to move forward), and Newark didn't even take a look at those numbers in a formal study.They just decided 20 percent sounded like a nice number. A study would allow us to set the inclusionary percentage at the number that maximizes the amount of affordable housing, rather than just pulling numbers out of thin air and possibly doing more harm than good.

    But I'll tell you what--even if everything goes well, the small number of affordable apartments that will be generated by the inclusionary zoning law in Newark over the next few years won't make the difference between whether the community being left behind or not. Even if we assume that the inclusionary zoning doesn't hurt development and that there's one new Shaq-sized high-rise tower per year built in Newark for the next decade (only two two high-rises have been built in the past 40 years), that's 400 affordable apartments over 10 years. There's about 104,000 households in Newark, so 0.4% of households would benefit...
    Last edited by Hamilton; November 3rd, 2017 at 05:50 PM.

  9. #9729
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    Trump is trying to do away with the Historic Tax Credit program altogether:

    https://www.curbed.com/2017/11/2/165...c-preservation

  10. #9730

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    Don't confuse the Pres with Congress on this issue. They are the ones who came up with this plan. The President can agree to it and sign it into law or veto it. Besides how much of these credits actually go towards housing vs the feds/developers anyways? Would these cuts make that much of a difference? This place wasn't getting much development with the credits available, so with gentrification slowly creeping west away from the Hudson and people finally recognizing this city has infrastructure in place(albeit overrated and can be improved upon), maybe these credits wouldn't be necessary?

    I'm with you Brick in hoping that the private sector having more of an influence in terms of funding. But like Eleven80 don't expect anything "affordable" from these developers outside of the zoning areas; unless you're comparing it to Manhattan. And honestly who can blame them? You want to establish the working class in the outer wards, fine. But the city needs a semi-prosperous downtown to survive or even thrive. No one will miss the fried chicken joints, check cashing stores, wig and pawn shops being replaced by middle-upper class fare unless you hold sentimental value for those type of places.

  11. #9731
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    If the tax credits weren't necessary, Newark's skyline would be a forest of cranes right now...the tax credits would be millions in free money, and nobody would be leaving that on the table. Instead we're seeing two high-rises under construction. Not exactly Dubai.

    The thing is, affordable housing is expensive to build. Subsidies or tax credits are necessary. Here's a helpful calculator that shows you how the numbers work out:
    http://apps.urban.org/features/cost-...dable-housing/

  12. #9732

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    Quote Originally Posted by Hamilton View Post
    If the tax credits weren't necessary, Newark's skyline would be a forest of cranes right now...the tax credits would be millions in free money, and nobody would be leaving that on the table. Instead we're seeing two high-rises under construction. Not exactly Dubai.

    The thing is, affordable housing is expensive to build. Subsidies or tax credits are necessary. Here's a helpful calculator that shows you how the numbers work out:
    http://apps.urban.org/features/cost-...dable-housing/
    To be fair, tax credits are the standard in the metro (especially considering it's nearly as expensive to build in Newark as it is Manhattan). With that said I agree that subsidized housing is expensive and the credits are necessary.

    In Newark's case it's a pretty safe bet they're trying to build the next market. A developer isn't going to build on the strength of tax credits alone, money still has to be future-proofed. As that market gets built I believe the private sector will more confidently take the reins.

    I honestly feel like Newark has to finish filling out on the ground/street level before it looks build really high (and it has plenty of ground stock that needs filling out though, I'll admit, I'm amazed at the eastern end of Market St. near Broad. It seems nearly all of the remaining 3-5 story buildings near Rock Plaza are being redeveloped.)

    ---------------------------------------------------

    Edit: Saw Rector St. getting off the ground yesterday; I didn't know it was that far along. They seem to be pretty quiet about it and who knows how the base will look.
    Last edited by 66nexus; November 8th, 2017 at 10:05 AM.

  13. #9733

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    Pretty nice photo essay of the evolution of Newark's Military Park district.

    http://jwissandsons.com/wiss-buildin...y-pictures.htm

  14. #9734
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    Default Mars-Wrigley Candy Co May Anchor Ironside

    I'd expect them to move alot of R&D/product development, marketing, and other corporate jobs to the building if they move forward with this.


    From ROI-NJ.com:


    Mars Wrigley seeks Grow NJ grant to move to Newark



    By Tom Bergeron
    November 10, 2017 at 5:25 pm




    Mars Wrigley Confectionery US LLC, the company created shortly after Mars Inc. took full control of Wrigley last fall, has applied for a 10-year, $31.5 million Grow New Jersey grant to open an office in Newark.

    The application will be heard next Tuesday at the next New Jersey Economic Development Authority monthly meeting, according to a posting of the agenda by the EDA on its website late Friday afternoon.

    Four people familiar with the application have told ROI-NJ that the company is planning to be the major tenant at Ironside Newark, the building that is the centerpiece of the recently announced Mulberry Commons project, a park that will connect the Prudential Center to Penn Station.

    All four of the sources requested anonymity as they are not authorized to speak about the potential move.

    The application is one of a dozen applications totaling more than $220 million in Grow NJ grants on the agenda for next week’s meeting.
    How many employees from Mars Wrigley Confectionary would be in Newark — and where they would come from — is unclear.

    One source indicated that the majority would be relocated from a Chicago site and would be joined there by some employees currently located in Hackettstown.

    Another source said the Hackettstown facility may also gain employees from Chicago, saying, “it will pretty much be a wash” for the employee base in the town.

    An employee at the Hackettstown facility said some senior leaders were told the company wanted to move to an urban setting near mass transit to be in a better position to attract a millennial workforce moving forward.

    Ironside Newark would fit that description.

    The building, owned by Edison Properties, is expected to open in the fall of 2018 and become one of the premiere business locations in the city.

    The Ironside building will be a seven-story, 450,000-square-foot property that promises penthouse offices, a shared roof deck, ground floor retail and restaurants as well as access to major transportation hubs and the city’s ultra-fast high-speed internet connections.

    There is no indication that manufacturing, which is done at the Hackettstown location, would be moved to Newark.

    In fact, Mars Wrigley Confectionery has applied for a second, smaller Grow NJ award for its Hackettstown location.
    Here’s a look at the two requests:

    According to the EDA agenda, application 44618 is a request:

    “To approve the application of Mars Wrigley Confectionery US LLC for a Grow New Jersey Assistance Program Grant to encourage the applicant to make a capital investment and locate in Newark, NJ. Project location of Newark, Essex County qualifies as a Urban Transit HUB Municipality under N.J.S.A. 34:1B-242 et seq and the program’s rules, N.J.A.C. 19:31-18. The project is eligible, pursuant to the statute, for bonus increases to the tax credit award for Deep Poverty Pocket, Transit Oriented Development, Jobs with Salary in excess of county average , Large Number of New and Retained Jobs, Targeted Industry of Manufacturing, Exceeds LEEDs Silver or Substantial Env. Remed. The estimated annual award is $3,153,920 for a 10-year term.”

    Application 44646 serves as a request:

    “To approve the application of Mars Wrigley Confectionery US LLC for a Grow New Jersey Assistance Program Grant to encourage the applicant to make a capital investment and locate in Hackettstown, NJ. Project location of Hackettstown, Warren County qualifies as a Other Eligible Area under N.J.S.A. 34:1B-242 et seq and the program’s rules, N.J.A.C. 19:31-18. The project is eligible, pursuant to the statute, for bonus increases to the tax credit award for Jobs with Salary in Excess of County Average, Targeted Industry of Manufacturing. The estimated annual award is $115,000 for a 10- year term.”

    In February, Mars Inc. announced its plans to combine the Mars Chocolate and Wrigley segments to create Mars Wrigley Confectionery. In the announcement, the company said Chicago would be its global hub.

    Mars Wrigley Confectionery includes some of the company’s best-known chocolate brands (including Snickers, M&M’s, Dove and Twix) and some of the company’s top gum and mint brands (including Doublemint, Extra, Orbit, Altoids and Lifesavers) as well as Skittles and Starburst.


    Link: http://www.roi-nj.com/2017/11/10/pol...side-building/
    Last edited by West Hudson; November 13th, 2017 at 06:44 PM.

  15. #9735

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    Newark Seeks to Improve Facades in Local Business Districts
    By Jared Kofsky -
    November 14, 2017


    The city of Newark and the Newark Community Economic Development Corporation (NCEDC) have launched a facade improvement program to serve corridors in Newark’s four outer wards. Earlier this fall, the NCEDC issued a Request for Proposals in order to find companies to provide construction services as part of the project.

    The areas in the North, East, West, and South wards include Bloomfield, Clinton, South Orange, and Wilson avenues.

    “As a part of Mayor Ras J. Baraka’s strategic plan along with the Department of Economic and Housing Development, the initiative is creating vibrant, uniformed commercial business corridors, complementing Newark’s diverse make-up,” NCEDC Executive Director Aisha Glover told Jersey Digs, adding that “the program works with property owners to provide forgivable loans to be used for the improvement of the exterior of their existing structures.”


    According to Glover, improvements that will be made to storefronts in the selected areas will include changes to existing signage, windows, and lighting, as well as overall building improvements. She explained that the selected locations are often overlooked but are essential points of entry and exit to the city.


    “The program will directly impact community neighborhoods where Newarkers shop, dine and play,” said Glover.


    This is not the first time that such a program has come to Newark. In recent years, the Ironbound Business Improvement District and the Newark Downtown District have both worked to improve storefronts in their neighborhoods.

    ^^
    This is definitely needed. I hope Springfield Ave is on that list.


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