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N.J. businesses, developers strategize for Newark's economic growth
Fri, 03/05/2010 - 16:43 — admin
By Philip Read/The Star-Ledger
March 02, 2010, 6:35PM
Ron Beit will be developing property on Halsey Street in Newark called "Teacher's Village," workforce housing anchored by charter schools in the city.
NEWARK -- Ron Beit talked about the pending arrival of his “Teachers Village,” workforce housing anchored by charter schools in Newark.
Julia Gutstadt, filling in for her father, Carl Dranoff, talked up a 44-story luxury-apartment tower — what would become Newark’s tallest — opposite New Jersey Performing Arts Center.
Beit and Gutstadt were among a venerable who’s who of developers, and a business-card-toting army of construction managers and other enablers, gathered this morning to chart Newark’s hoped-for economic awakening.
“It starts to create a critical mass,” Wasseem Boraie of Boraie Development said of the big projects planned for Newark but are awaiting the first-shovel-in-the-ground.
That would include the 25-story residential tower at One Rector St., market-rate condos jointly being developed by Boraie and Newark’s own basketball star, Shaquille O’Neal.
“Newark hasn’t created market-rate housing since 1968,” Boraie told a gathering pulled together at the Robert Treat Hotel by the non-profit Newark Regional Business Partnership, a business advocacy non-profit that stages networking forums throughout the year. As a result, he said, there is “pent-up demand.”
He also pointed to the arrival of a 150-room Courtyard at Marriott, the first new downtown hotel in nearly four decades. Tucker Development Corp. intends to open the hotel next to the Prudential Center by 2012.
In the case of Philadelphia-based Dranoff Properties, Gutstadt, said the 44-story Two Center Street will leverage the arts and culture positioned by NJPAC’s president, Lawrence Goldman.
“It’s safe. It’s well-known, People come from all over,” said Gutstadt, the development manager for the Newark tower. “To make the downtown 24-7, you really need people living downtown.”
Jotting notes during the talk was Goldman himself.
“It’s so important that we have developers from all over the country interested in Newark. That didn’t use to be,” Goldman said.
The morning kicked off with a regional economic overview, delivered by Rae Rosen, senior economist with the Federal Reserve Bank of New York, in front of a projection screen of charts and graphs. It was sobering. “Less worse” was how she described the various economic barometers.
But Ted Zangari, a redevelopment attorney with Sills, Cummis & Gross of Newark, talked up two New Jersey laws that he described as game-changers: the new Economic Redevelopment Growth Grant, which can provide 20 percent of a project’s financing; and the new Urban Transit Hub Tax Credit, which can provide a 65 percent savings on rent for companies that move to a built-to-suit location in one of nine New Jersey cities.
As recently as January, Dranoff’s $190 million Newark tower was granted a $38 million tax credit under the transit-hub program.
“There is not an incentive out there as generous,” he said.
| Mayor Cory Booker packs Newark Symphony Hall for state of the city address |
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