New Brunswick: Maximizing the Benefit of Publicly-Owned Property

New Brunswick: Maximizing the Benefit of Publicly-Owned Property

Panelists:

Mitchell Karon, Executive Director – Parking Authority of the City of New Brunswick (NBPA)

Cheryl J. Oberdorf, Esq. – Wilentz, Goldman & Spitzer, P.A., Bond Counsel and Special Counsel

Parking Projects Undertaken by the Parking Authority of the City of New Brunswick In

Redevelopment Areas

2

Case Study I - Spring Street Project

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Case Study I - Spring Street Project

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Two contiguous surface parking lots owned by NBPA in government business district redevelopment area; 91 spaces, land underutilized, not subject to taxation

Two surface lots purchased by Redeveloper from NBPA

Redeveloper owned and privately financed Redevelopment project in redevelopment area consisting of 422 parking spaces, office space and 121 residential units

Case Study I - Spring Street Project

5

Project completed, awaiting final CO’s

Tax abatement – 15% - Annual Gross Revenue Method

NBPA to lease 94 spaces for daily/hourly parkers from Redeveloper

NBPA will receive revenue generated from those spaces and will be responsible for general maintenance and housekeeping of those 94 spaces

Case Study I - Spring Street Project

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Case Study II - New Street Deck

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Case Study II - New Street Deck

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Surface lot owned by NBPA

NBPA constructed 430 parking space deck next to family courthouse

Middlesex County College owns office space within the footprint of deck

Redevelopment project in redevelopment area

Additional land acquired by NBPA and Redeveloper

Land swap to assemble remaining parcels for deck

Case Study II - New Street Deck

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No condemnation

Construction contract publicly bid by NBPA

NBPA issued revenue bonds to finance the deck; revenues from operation of all facilities of NBPA are pledged to pay debt service on bonds

County paid for judges’ spaces and associated construction

County college paid for construction of its officespace

Case Study II - New Street Deck

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Case Study III - Morris Street Deck

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Redevelopment project in redevelopment area

Land acquired by Redeveloper and NBPA

Land swap to assemble parcels for deck

No condemnation

Tax abatement – 15% - Annual Gross Revenue Method (contiguous dormitory facility owned by 501(c)(3) entity)

820 space parking deck constructed to service dormitory, publicly owned hotel/conference center and public uses

Case Study III - Morris Street Deck

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Issues – demand study assumptions and timing for construction and completion

Developer’s Agreement executed with Redeveloper for construction of deck

GMP

No fixed completion date

No liquidated damages

NBPA financed land acquisition costs and deck through the issuance of revenue bonds

Case Study III - Morris Street Deck

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Case Study IV - Plum Street/French Street Deck

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Redevelopment project in redevelopment area

Land acquired by NBPA and Redeveloper

Land swap with Redeveloper to assemble

parcels for construction of deck

No condemnation

Tax abatement – 15% Annual Gross Revenue Method (office and residential components)

854 space deck constructed to meet public parking demands in redevelopment area

Case Study IV - Plum Street/French Street Deck

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Developer’s Agreement executed with Redeveloper

GMP

Scheduled completion date – March 31, 2007

Liquidated damages equal to daily debt service in the event deck is not open by scheduled completion date

In the event of construction savings, savings shared between Contractor, Redeveloper and NBPA

NBPA is an obligee on construction contract in the event of a default by either Contractor or Redeveloper

NBPA financed land acquisition costs and construction of deck through issuance

of revenue bonds

Case Study IV - Plum Street/French Street Deck

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Basis for Transactions

N.J.S.A. 40A:12A-39(f)Any public body may do all things necessary or convenient to and in the planning, undertaking, construction or operation of redevelopment projects

N.J.S.A. 40:11A-6Any parking authority is authorized to plan, design construct…such parking project as, in the opinion of such authority, will provide an effective and satisfactory method of promoting the purposes of the authority

Any parking authority may sell, transfer and dispose of any property or interest therein at any time acquired by it upon such terms and conditions as it may determine, with or without public bidding

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Points to Consider

Allocation of costs between Redeveloper and NBPA

Economic viability of project and assumptions related thereto

Defaults of Redeveloper – construction and performance

Remedies of Redevelopment Agency in the event of a default by Redeveloper

Can a Parking Authority be designated a Redeveloper?