Case Studies


Atlantic County Improvement Authority – Stockton Aviation Research and Technology Park in Egg Harbor Township

MSB has been privileged to represent The Atlantic County Improvement Authority for many years.  In 2016, we represented the ACIA in a joint undertaking among the ACIA, Atlantic County, the Casino Reinvestment Development Authority, the National Aviation Research and Technology Park, Inc. (f/k/a Stockton Aviation Research and Technology Park, Inc.) and the Federal Aviation Administration in designing, financing and constructing the first building within the Stockton Aviation Research and Technology Park in Egg Harbor Township.  This project will enable the ACIA to take advantage of the region’s unique attractiveness to the aviation industry by establishing an aviation-related research and development campus that will ultimately include 8 buildings, to be leased by aviation-related tenants.  At the same time, the project will help transform the region by drawing tenants in the science, technology, engineering and research fields, with supporting commercial interests.  The project will create new, high-paying jobs and breathe new life into the Atlantic County economy, which has been mostly dependent on narrowly-focused casino, hospitality and entertainment-related interests.

The first building within the project, containing almost 60,000 leasable square feet, is being financed by general obligation debt issued by the County, revenue-backed debt issued by the ACIA and backed by a subsidy from the County, and by a no-interest loan from CRDA.  Members of the Firm helped coordinate the efforts of representatives from each party to secure approvals from their leadership and from the State’s Local Finance Board (LFB) in connection with the ground lease of a portion of the 58 acre site on the campus of the William J. Hughes Technical Center, owned by the FAA, and the aforementioned financing structure.  We also represent the ACIA in negotiating leases with prospective tenants.  After years of struggling to overcome financial and other hurdles, the first building’s core and shell will be completed Summer 2019, with tenant fit-out to be completed December 2019 and occupancy to commence immediately thereafter.

For more details about this project, please call Members Joseph P. Baumann, Jr. or Kevin P. McManimon.

City of Bayonne – Bayonne Local Redevelopment Authority – Alexan City View

Our firm acted as redevelopment counsel to the Bayonne Local Redevelopment Authority (the “BLRA”) in the sale of land and development rights on two blocks of property located on the Peninsula at Bayonne Harbor to Trammell Crow Residential, a nationally acclaimed and recognized developer.

The Peninsula is a decommissioned U.S. Army Military Ocean Terminal conveyed to the BLRA for redevelopment. The Alexan City View consists of two luxury residential rental buildings containing 544 units with stunning views of the New York City Skyline. The total costs of the project exceeded $176 million, including the cost of the land.

For more information on this project, please contact Joseph P. Baumann, Jr., Member, at (973) 622-1800.

City of Bayonne – Bayonne Crossing

Our firm worked with The Hudson County Improvement Authority, the County of Hudson, the City of Bayonne Redevelopment Agency and the City of Bayonne (the “City”) in a multi-public body financing through the New Jersey Environmental Infrastructure Trust (the “NJEIT”) of a portion of a redevelopment project consisting of the remediation of a former petroleum site and the construction of a 356,000 square foot “big box” retail project located in the City of Bayonne.

The financing, secured by Payments In Lieu Of Taxes, a Letter of Credit during construction and guaranties of the County and City, involved ten different public entities, required over 80 public votes, 23 different public/government approvals and permits and endured multiple lawsuits, all during an economic recession. The success of the financing depended on our firm working closely with each of the public entities, the redeveloper and the NJEIT in creating solutions to questions never asked of the NJEIT in prior financings. As a result, in part, of our prior experience with the NJEIT and our working relationship with members of the NJEIT and the New Jersey Department of Environmental Protection, a severely contaminated 30-acre parcel of land has been replaced with an exciting new retail power center that generates tax revenues, urban enterprise zone revenues and hundreds of full-time jobs.

For more information on this project, please contact Joseph P. Baumann, Jr., Member, at (973) 622-1800.

City of Perth Amboy – Water and Wastewater Facilities

The City of Perth Amboy entered into a 20-year public-private partnership with Middlesex Water Company in 1999 for the efficient operation and maintenance of the City’s water and wastewater treatment and distribution facilities. Pursuant to the New Jersey water and wastewater privatization acts, the City leased the systems and sold a franchise in the systems to the Middlesex County Improvement Authority. The Middlesex County Improvement Authority issued $67,974,076.20 Utility System Revenue Bonds, Series 1999, a portion of which were capital appreciation bonds, to finance the leasehold/franchise acquisition, provide for capital improvements to the systems and refund outstanding City-system debt. The City and the Middlesex County Improvement Authority then entered into various operating and revenue agreements with Middlesex Water Company to run the systems. In 2004, the City, the Middlesex County Improvement Authority and Middlesex Water Company agreed to extend the public-private partnership for an additional 5 years through the issuance by the Middlesex County Improvement Authority of additional utility system revenue bonds that were subordinate to the original 1999 bonds issued. For more information on this project, please contact Edward J. McManimon, III, Member.

Bayonne Local Redevelopment Authority – Peninsula at Bayonne Harbor Redevelopment

The firm has been actively engaged with the City of Bayonne and the BLRA in the redevelopment of the Peninsula at Bayonne Harbor which was decommissioned by the United States Army and transferred to the BLRA.  We represented the BLRA in the negotiation and execution of several conditional designation agreements, four redevelopment agreements, a project development agreement and an infrastructure improvements redevelopment agreement along with a wide variety of financial instruments and other supporting agreements.  For more information on these projects, please contact Joseph P. Baumann, Jr., Member.

Bayonne Local Redevelopment Authority – Harbor Station Neighborhood

We represented the BLRA in connection with the proposed construction of a 102-acre parcel that will support at least 1,793 residential units, 500,000 square feet of office space, 134,000 square feet of retail space and 117,600 square feet of civic space. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Bayonne Local Redevelopment Authority – Bayonne Bay Neighborhood

We represented the BLRA in the simultaneous negotiation of two redevelopment agreements and associated notes, mortgages, access agreements, and an infrastructure improvement redevelopment agreement. One redeveloper will construct approximately 1,300 condominiums and town homes and the other redeveloper will construct approximately 540 rental units and a clubhouse. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Bayonne Local Redevelopment Authority – Maritime Industrial Neighborhood

We represented the BLRA in the negotiation of a redevelopment agreement with a global shipping company for construction of a roll-on roll-off facility for the importation and exportation of vehicles. We represented the BLRA in its efforts to win a motion for summary judgment in the law division and, after an appeal was filed, the successful motion requesting that the Appellate Division expedite the matter. Currently we are awaiting oral argument. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Borough of Carteret – Carteret Tomorrow

We serve as redevelopment counsel to the Borough in connection with a project that will consist of the construction of an approximately 250,000 square foot warehouse that, together with surface parking facilities, will serve as the engineering control, or “cap”, for certain contaminated property. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Borough of Carteret – West Carteret Minue Street Redevelopment

We serve as redevelopment counsel to the Borough in connection with the proposed construction of over 400,000 square feet of retail, office and warehouse space, a portion of which will be exempt from taxation under the Short Term Tax Exemption Law. We also represented the Borough in litigation, in the Superior Court of New Jersey, with the owners of some of the properties initially included in the designated redevelopment area. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Borough of Carteret – Lower Roosevelt Avenue Redevelopment

We serve as redevelopment counsel to the Borough in connection with the proposed construction of over 400 market rate residential units, some of which will be leased and some of which will be offered for sale, as well as over 40,000 square feet of retail space. All of these improvements have been exempted from taxation under the Long Term Tax Exemption Law for the purposes of financing a portion of the costs of the project. This project required the use of eminent domain and the relocation of a number of individuals, families and businesses under applicable State and federal laws. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Borough of Carteret – Waterfront Redevelopment

We serve as redevelopment counsel to the Borough in connection with the proposed construction of approximately 500 residential units and the construction of a terminal for a ferry service that is expected to serve the Borough and surrounding communities. The project will require the remediation of an environmentally-challenged area that is a designated Brownfields Development Area. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Borough of Carteret – Community Health and Wellness Center

We serve as redevelopment counsel to the Borough in connection with the proposed construction of a 36,000 square foot community health and wellness center, including weight and exercise rooms, an 8,600 square foot multi-purpose sports room, a 7,000 square foot aquatics center with a swimming pool, physical therapy facilities, a café, and related office space. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Borough of Carteret – Middlesex Avenue Residential Redevelopment

We serve as redevelopment counsel to the Borough in connection with the proposed construction of a high-density housing project consisting of integrated market rate and affordable units offered for sale. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Township of Edison – Ford Plant Redevelopment

We served as redevelopment counsel to the Township in the successful negotiation and redevelopment of the former Ford Plant Site, consisting of over 100 acres. The project will consist of a lifestyle center with a hotel, theater, restaurants and shopping anchored by two large-format commercial retailers. We also successfully negotiated the donation of 7.5 acres of the property for the expansion of an adjacent park and the payment of $1,500,000 in development fees to the Township. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

Borough of Avalon – Potable Water and Wastewater Systems

In 2002, the Borough of Avalon solicited proposals for the operation, maintenance and management of the Borough’s potable water and wastewater systems. McManimon, Scotland & Baumann, LLC assisted the Borough in the Request for Qualifications and Proposals under the competitive contracting provisions of the Local Public Contracts Law, the evaluation of such proposals and the eventual contract. The Borough entered into a 10-year agreement with American Water Services, Inc. In 2011, McManimon, Scotland & Baumann, LLC worked closely with the Borough, to publicly bid a new ten year operation, maintenance and management agreement with a private operator. Working with the Borough, we prepared a request for proposals that was made available online to potential bidders. The Borough was able to successfully negotiate and enter into a new ten year agreement with a subsidiary of the Middlesex Water Company. Additionally, the Firm negotiated a transitional contract with the American Water Services, Inc. and has been advising the Borough on its transition efforts. For more information on this project, please contact Joseph P. Baumann, Jr., Member.

City of Elizabeth – Wakefern Food Corp. Warehouse

On December 30, 2010, MSB closed a $46,800,000 financing transaction for Elberon Development Co., L.L.C. which included the issuance of $44,499,000 in Recovery Zone Facility Bonds. The project includes the demolition and construction of a 524,000 sq. ft state-of-the-art warehouse for Wakefern Food Corp. in Elizabeth. Wakefern, operating under the names ShopRite and PriceRite, is a member-owned wholesale distribution cooperative, supplying over 200 stores with groceries and other merchandise along the eastern seaboard, including New Jersey, New York and Pennsylvania. The new warehouse will replace an existing structure that has housed Wakefern’s operations for over 50 years. For each of those 50 years Elberon Development Co. and its affiliate, Elberon Development Co., L.L.C., has owned and managed the site while maintaining a strong commitment to the City of Elizabeth.

The Recovery Zone Facility Bonds were issued by the Union County Improvement Authority under the federal 2009 American Reinvestment and Recovery Act which terminated after December 31, 2010. The RZFBs were a federal bond program permitting governments to issue tax-exempt, private activity bonds to spur private investment in new projects. Despite the State of New Jersey’s sizable allocation of volume cap for RZFBs, many projects were not able to take advantage of the benefits of the RZFBs due to a variety of factors, including project readiness, credit worthiness of the borrowers, and the time constraint on the issuance of the RZFBs.

In spite of these obstacles, the project received volume cap allocation from the City of Elizabeth ($3,931,000), the County of Union ($15,568,000) and a reallocation of volume cap from the State ($25,000,000). The construction loan was secured through TD Bank, N.A., which purchased the RZFBs and provided a construction term loan and a revolving line of credit to assist in the construction of the Project.

For more information on this project, please contact Joseph P. Baumann, Jr., Member, at (973) 622-1800.

 

Bayonne Municipal Utilities Authority – Water and Wastewater Facilities

The Bayonne Municipal Utilities Authority entered into a 40 year Concession Agreement with Bayonne Water Joint Venture, LLC (a joint venture between KKR and United Water Operations Contracts, Inc.) at the end of 2012 for the operation, maintenance and management of the Authority’s water, wastewater, combined sewer overflow and stormwater systems. Under the terms of the agreement the private entity will undertake the operation of all of the systems, including the implementation of a comprehensive capital improvement program that will result in upgrades to new water meters, new SCADA system, upgrades to the GIS system, asset management programs and other required improvements to maintain the integrity and quality of the systems. The private operator is entitled to a specific revenue stream that will cover its costs for operations, fund capital improvements and satisfy its lenders and investors. In return for the agreement, the Authority will retain ownership of the systems and land, receive an annual fee to address on-going Authority costs and had all of its long and short term debt retired. The agreement was the subject of many articles and received numerous awards, including the Partnership Performance of the Year at the 2012 American Water Summit. Attached are some articles highlighting the agreement and a presentation made by Joseph P. Baumann, Jr. describing some of the details of the agreement.

http://vimeo.com/unitedwater/review/72507568/727c91afed

Township of Bloomfield – Bloomfield Parking Authority

For almost two decades, Bloomfield Township sought to address a shortage of parking in — and to breathe new life into — its downtown, taking advantage of its proximity to major thoroughfares like the Garden State Parkway and Bloomfield Avenue, and to the Bloomfield Train Station.

MSB worked with the Township to create the Bloomfield Parking Authority in 2003, which set about realigning existing public parking facilities in the Township and creating new ones, establishing rational parking rates and administering sensible parking enforcement.

We served as bond counsel to the Township and the Parking Authority in connection with the Township’s general obligation debt and with the Authority’s revenue-backed debt that helped finance the construction of the parking garage. We also served as redevelopment counsel to the Township during negotiations with the designated redeveloper. The site formerly contained a variety of small, disconnected retail stores and apartments, and surface parking facilities. It now includes 224 high-class rental apartments over almost 60,000 square feet of retail/commercial space surrounding a four-story parking garage, and has brought a sense of vitality and life to this critical area of the Township.

For more information on this project, please contact Joseph Baumann, Member, at (973) 622-1800.

Township of South Orange – The Village

The Township of South Orange Village worked with a redeveloper to convert a surface parking lot into a mixed-use project that includes 215 residential apartment units, a 513 structured parking deck and 3,000 square feet of retail space.

Acting as redevelopment counsel, our firm worked with the Township of South Orange Village (the “Village”) in order to expand its downtown corridor. The Village owned a 2.7 acre parcel that it previously utilized as 90 commuter surface parking spaces and the Village’s volunteer rescue squad headquarters. The Village is on the NJ Transit Midtown Direct Line and is home to many New York City commuters. The Village has a bustling Village center and sought to continue that vibrancy down Valley Street.

We assisted the Village in amending its redevelopment plan, subsequently negotiating a redevelopment and financial agreement. Our firm participated in meetings of various local design committees, Planning Board meetings and both public and closed session Village Board of Trustee meetings. Further, our firm helped the Village to relocate the Volunteer Rescue Squad and negotiated a $1.1 million payment from the redeveloper in order to build a new facility, a two-story 4,800 square foot headquarters.

The structured parking deck is shared by the apartment complex and the Village and represents in excess of a 50% increase in available commuter parking. For more information on this project, please contact Joseph P. Baumann, Jr., Member, at (973) 622-1800.

 

City of Bayonne – Silklofts

The Maidenform factory in the City of Bayonne was once a symbol of its strong industrial history. At the height of its operations, the factory employed 1,300 employees. In 2009 a new owner decided to transform the closed factory into 85 luxury residential units. With the assistance of local property tax exemptions from the City of Bayonne, the owner was able to open the building to new residents in 2014. The project boasts exposed brick and high ceilings, studios, one-bedroom and two-bedroom units with a courtyard that includes a community pizza oven. MSB worked with the City and the owner to negotiate the terms of a long term tax exemption to help lower the cost of operating the project and to make the project competitive with neighboring markets.

For more information on this project, please contact Joseph P. Baumann, Jr., Member, at (973) 622-1800.

City of Elizabeth – Seafrigo Cold Storage Refrigerated Warehouse

Seafrigo Cold Storage NA is a major importer and distributor of high-end perishable products that come into the New York and New Jersey ports. MSB assisted in securing a property tax exemption for the development of the project which was a critical component of the decision to develop the specialized freezer warehouse and was a condition as part of the lease arrangements. The project cost approximately $30,900,000.

In addition, as part of the permanent financing, the owner of the project utilized New Markets Tax Credit financing to help lower its long term cost of borrowing. The owner was able to structure a leverage loan into the financing through a business partner to help enhance the value of the tax credits. The project generated approximately 200 construction jobs, retained 50 permanent jobs and created 50 new permanent jobs.

For more information on this project, please contact Glenn F. Scotland, Member, at (973) 622-1800.

 

Village of Ridgefield Park – SkyMark Development Project

A $1 billion town center planned for Ridgefield Park could break ground by spring 2018.  The project, which has been designed as a large, multi-use, phased development encompassing more than 53 acres of retail and residential, includes a town center, a luxury high-rise and a hotel/conference center, as well as a 10-acre bald eagle habitat.  The SkyMark Development Project, which has been moving forward since 2000, sits at the crossroads of the New Jersey Turnpike, Routes 46 and 80 and Overpeck Creek.  It will consist of more than 1,500 residential units and 212,000+ square feet of retail space, and will be the largest mixed-use development in Bergen County in 30 years.  Construction on the first phase of the development, in what is expected to be a multi-phase construction process, is expected to start in late spring.

McManimon, Scotland & Baumann, LLC recently devised a series of real estate closings and related financing to effectuate SkyMark’s acquisition of a 17-acre parcel of land, which completes SkyMark’s parcel assemblage of the six parcels located in Ridgefield Park, scheduled for redevelopment and approved as the location for the project.  These closings and financing build upon the firm’s efforts to obtain certain redevelopment and land use approvals, including a redevelopment agreement and financial agreement (a.k.a. PILOT) with the Village of Ridgefield Park, a 20-year General Development Plan approval, and site plan and related approvals for the major roadway system for the project, including exit/entrance ramps to the New Jersey Turnpike, Route 80, Route 46 and a bridge over Route 46.

For more information on this project, please contact Joseph P. Baumann, Jr., Member, at (973) 622-1800.