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
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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
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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?