Newark Land Giveaway
From the Star Ledger
Newark leaders do land-office business
"During the last three days, the Newark City Council has considered or approved the sale of land to more than 15 different developers, some with strong political ties to city officials."
"Campaign contributors to Mayor Sharpe James such as developer Jose Lopez, the owner of Don Pepe's restaurant, and developer Will Allen, who has received several parcels of city-owned land over the last few years, were sold land from the city for a minimum of $4 per square foot. That is well below the 2005 average sale price of $29.50 per square foot for privately owned vacant land in the city."
"All of the developers are building two- and three-family homes for sale at market rates, which can range from $300,000 to $600,000 for a three-family home."
"With a little over six weeks until Mayor-elect Cory Booker takes office, and the possibility of up to seven new council members loom ing, Booker said the council should reconsider its actions."
""It's a grave concern of mine that in the final weeks of an administration, there is an accelerated rush to give away land," Booker said."
"WKA Development, owned by politically connected developer Allen, purchased more than 40,000 square feet of property on William, Halsey and Washington streets for $160,000 to build a six-story office building with four levels of parking."
"The Rev. Levin B. West, a supporter of James, is listed as the registered agent for WLB Realty. The company purchased 22,000 square feet for $89,000 to build five two- family and two three-family market-rate homes."
"LT Associates, owned by restaurateur and developer Lopez, plans to build 14 two- and three- family market-rate homes with land purchased at the city minimum of $4 per square foot for $185,595."
"Wayne Garnes, who said he represented Miami Heat basketball star Shaquille O'Neal's companies, was approved to purchase more than 114,000 square feet for $456,990 to build the "Residences at Springfield Avenue." The project also will require the private acquisi tion of land. Garnes said O'Neal, a Newark native, has a long history of helping organizations in the city. "All people have to do is ask," he said."
Newark leaders do land-office business
"During the last three days, the Newark City Council has considered or approved the sale of land to more than 15 different developers, some with strong political ties to city officials."
"Campaign contributors to Mayor Sharpe James such as developer Jose Lopez, the owner of Don Pepe's restaurant, and developer Will Allen, who has received several parcels of city-owned land over the last few years, were sold land from the city for a minimum of $4 per square foot. That is well below the 2005 average sale price of $29.50 per square foot for privately owned vacant land in the city."
"All of the developers are building two- and three-family homes for sale at market rates, which can range from $300,000 to $600,000 for a three-family home."
"With a little over six weeks until Mayor-elect Cory Booker takes office, and the possibility of up to seven new council members loom ing, Booker said the council should reconsider its actions."
""It's a grave concern of mine that in the final weeks of an administration, there is an accelerated rush to give away land," Booker said."
"WKA Development, owned by politically connected developer Allen, purchased more than 40,000 square feet of property on William, Halsey and Washington streets for $160,000 to build a six-story office building with four levels of parking."
"The Rev. Levin B. West, a supporter of James, is listed as the registered agent for WLB Realty. The company purchased 22,000 square feet for $89,000 to build five two- family and two three-family market-rate homes."
"LT Associates, owned by restaurateur and developer Lopez, plans to build 14 two- and three- family market-rate homes with land purchased at the city minimum of $4 per square foot for $185,595."
"Wayne Garnes, who said he represented Miami Heat basketball star Shaquille O'Neal's companies, was approved to purchase more than 114,000 square feet for $456,990 to build the "Residences at Springfield Avenue." The project also will require the private acquisi tion of land. Garnes said O'Neal, a Newark native, has a long history of helping organizations in the city. "All people have to do is ask," he said."
3 Comments:
This gives me mixed emotions...I've worked with Habitat in Newark and know how badly some areas can use decent housing. Optimistically, this would bring some needed housing and since I don't know these developers to well, I'll stay optimistic.
Anyone know any of these developers?
JM
As an old timer in jerzy politics I would say, several things..
First, people relax, it is still Newark...
Second, these connected developers are calling their chips.. They are betting that Newark will become a new Hoboken or downtown Jersey City.. There is along way to go before that.
Third, this happens not only in Newark , but in all corrupted machine towns. Go to Union City, West New York, etc; and you'll see new condo projects. Or my best example -> As you are coming out of the Lincoln Tunnel from Manahtaan and you are in the helix, look up to the right on top of the hill, you will see a big mansion. It's a mansion built on a former town park. Now, It is very difficult is to get something built on a park, because of Green Acres laws in NJ, but it happened in Hudson County all the time.
Finally, all of these developers count on out of area newbies to buy the condos, because no sane local will touch it. And the 2 & 3 Family houses are sold to immigrant families that get those new & improve zero down loans, which are fast dissapearing..
My bet, just like the late 80's there were a lot of empty condo buildings up and down the famous bergen/hudson gold coast -- (See 17th & palisade Avenue in Union City, that ugly thing has been taken over by many people trying to finish it since '89 and still an ugly shell) Many ugly shell will scar these lots in Newark.
Say what you will but the idea is that unlike the gold coast, developers can aquire projects so inexpensively that they severely diminish their risk. It is not a bad idea in Newark where the risk in building a new development is high and they really need the development and the rateables.
I really think booker is a good guy but we are all kidding ourselves if we really think he can reform Newark. James began his career in a similar light but being a relatively shrewd politico, came to understand that its NEWARK. Newark needs to get redevelopment done at any cost necessary, also inept corrupt municipal organizations are a necessary part of getting anything done. Cory is going to attempt to clean up Newark and as a result will basically be stonewalled by other politicians and organizations in Newark unwilling to cooperate. Cory like all other starry eyed politicians will either continue to be idealistic and disappear as an unsucessful politician or he will master the grey area and manipulate the system to fix whats wrong, using dubious means.
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