Moving towards completion at Summit Heights. Sales are going very well, with many potential buyers very excited about living in an affordable “green” building in Jersey City.

The City has installed these signs at the exit of the Holland Tunnel, which is the entrance to our City.  It really is about time that people exiting the tunnel on the Jersey side realize they are in Jersey City.

Great progress on Duncan Avenue

The congress woman would be very proud of this building.

A public meeting will be held on May 20, 2010 at 6:30 pm at the Mary McLeon Bethune Life Center, 140 MLK Drive, Jersey City.  Come learn about a comprehensive program designed to protect public health while cleanup activities occur at the Garfield Avenue chromium site beginning this summer.

For more information:  Phone:  201-777-2099

Web Site:  http://www.chromecleanup.com

This post was written for The Ground Floor by Trisha Riggs, vice president of communications at the Urban Land Institute.

In: Inner-ring suburbs. Out: Exurbs. In the years ahead, changes in demographics and consumer behavior will drive new real estate development patterns that reflect a trend toward more urban suburbs, according to industry experts at ULI’s Real Estate Summit at the Spring Council Forum in Boston.

Well-known analysts Joel Kotkin, Robert Lang, Richard Florida, and Christopher Leinberger offered different views on what’s ahead, but they all agreed that most of the growth in U.S. urban regions (more than 100 million will be added to the population by 2050) will occur not in downtown cores, but in the suburbs.

The catch: The suburbs will grow differently than they have in the past, reflecting a trend toward denser development and smaller homes on smaller lots, and less dependence on cars. The winners: close-in suburbs with an urban feel, featuring town centers as a focal point, with ample recreational, shopping and entertainment opportunities, and which are near employment centers. The losers: big houses on big lots in isolated suburbs on the edge. The reason: three major demographic groups, all of whom place high value on time and convenience, none of whom want long commutes or long errands, and at least some of whom have soured on homeownership.

The groups:
• Aging baby boomers (55 to 64 years old): Although they are nearing retirement age, many will keep working out of necessity or by choice. Some will be forced to stay in their suburban homes until values recover. Those who are able to move will not choose traditional retirement locations or senior housing, opting instead for more mixed-age living environments that cater to their active lifestyles. Suburban town centers with a walkable urban "feel" will appeal to this group.  
• Younger baby boomers (46 to 54 years old), now in or entering their prime earning years: This group will also face a tough time selling suburban homes, hampering the ability of these boomers to move. Because the recession has left many younger boomers with flat incomes and less home equity, their ability to purchase second homes will be greatly diminished, curbing prospects in general for the second home market. However, like their older counterparts, they will be drawn to more connected, compactly designed communities when they are able to switch houses. 
• Generation Y: This tech-savvy generation has a population of about 86 million, more than the baby boomers. Gen Yers place high value on community; on diversity; on places (either virtual or actual) to gather; and share information, ideas and opinions. As they enter the housing market, they will be far less interested in homeownership than their parents were when they were young adults. Gen Y will gravitate toward walkable, close-in communities, choosing housing on outer edges only as a last resort because it is the most affordable.

One point repeated in several presentations: The housing collapse is a major factor behind some of the change in attitudes about where and how to live. Despite the recovery that is occurring in some housing markets, the number of foreclosures and "underwater" mortgages (loan amounts that are higher than the current value of the homes) continues to rise. The growing number of consumers who are choosing to walk away from those mortgages suggests a fundamental change from the long-held notion of homeownership as the ultimate "American Dream." This disillusionment over homeownership as a way to build wealth could persist for decades to come, as those entering the housing market will be more apt to rent longer, and to place more emphasis on buying for shelter rather than investment purposes.

Describing the new suburban development pattern as "smart sprawl," author and a fellow at Chapman University Kotkin said, "We can solve the problem of sprawl within sprawl itself." Mid-size cities, he said, will prove attractive to Gen Y, not only because they are affordable, but because many have transformed themselves into recreational and/or entertainment hubs, providing an urban lifestyle that is within their means.

According to Florida, author of The Rise of the Creative Class and other books on social trends, the "engine" that powers the next economic boom will be human creativity, and the places that meet the needs of the most talented and innovative workers from all types of employment sectors will be the most successful. "Place will be the organizing economic and social unit," he said.

The different lifestyles of both baby boomers and echo boomers will require the development community to provide products that are flexible in use, and that reflect the high mobility tendencies of the younger generation. "We are at a break with the past," he said, noting that society has entered an era in which time matters most of all. "We must respond by creating efficiencies in housing and transportation."

March's job growth of 162,000 is a bright spot in the latest ULI Barometer, but, like the overall mix of economic signals, there is more than meets the eye. Included in this number are temporary 2010 Census workers, and some sectors, such as financial and information, continue to decline. The unemployment rate remains high and unchanged at 9.7 percent.

CMBS issuance remains active but low, and CMBS delinquency rates rose to the highest rate in the history CMBS. Commercial property sales volume declined for the second month in a row. Sales in housing, both existing and new single-family homes, declined in February. Although this continues the downward trend since November when the first-time homebuyer tax credit expired, this most recent month may also be affected by the extreme winter weather.

Still, other bright spots continue the pattern of mixed signals—Consumer confidence rebounded, the final fourth-quarter 2009 GDP estimates remain high, the S&P 500 returns far surpass historical norms, and retail sales edged up despite the weather.

See below for a summary of more than 60 key indicators of the economy, real estate capital markets, housing, and commercial/multifamily investment property.


ULI Real Estate Business Barometer
Summary as of April 2, 2010

The Economy

The key economic news is the March growth in employment, with 162,000 jobs added to nonfarm payrolls. Growth was not uniform across sectors, however, with growth occurring in temporary help services, health care, manufacturing, and the federal government due to hiring 48,000 temporary workers for the 2010 Census. Job losses continued in financial activities and in information, while all other sectors, including construction and retail, remained unchanged. The unemployment rate, which had edged downward in January to 9.7 percent after two months at 10 percent, remained at 9.7 percent in March; a total of 2.3 million jobs have been lost since February 2009.

The final (third) estimate of GDP growth in the fourth quarter of 2009 remains high at 5.6 percent. As in previous estimates, this increase primarily reflects growth in four areas: personal consumption expenditures, particularly nondurable goods; private fixed investment, with an exceptional showing in equipment and software; residential investment, which showed some moderate growth; and exports. Investment in nonresidential structures was very weak, decreasing by 18 percent, a downward adjustment from previous estimates.

The Consumer Confidence Index rebounded to 52.5 in March after falling sharply to 46.4 in February from January's 56.5, the highest index reported since September 2008. February retail sales were up very slightly—a 0.3 percent increase, following a 0.5 percent increase in January. February's retail sales are the highest monthly sales since September 2008.

Inflation, as measured by the Consumer Price Index, was unchanged. Cost increases in medical care, used cars and trucks, and food were offset by declines in energy, apparel, and household furnishings.

The S&P 500 increased 6.0 percent in March while year-over-year returns at the end of February stood at 49.8 percent, a welcome improvement over 2008 returns.

Overall, many economic indicators are improving or stabilizing, but until job growth presents consistently positive monthly numbers and is based on permanent full-time jobs, it will still feel like a recession for many.

The second of several "bellwether" liability trials stemming from defective Chinese-made drywall took place last week in Federal court in Louisiana. This time, defendant Knauf Tianjin was represented in court (unlike last month's bellwether suit against defendant Taishan Gypsum, who failed to appear).

The core issue in this latest trial, however, was the same as in the previous one: How extensive a remediation effort is the homeowner entitled to receive? Expert witnesses for Knauf Tianjin argued forcefully last week that wiring and other copper elements could safely remain in the home after drywall was removed and replaced, reports the Sarasota Herald-Tribune ("Chinese drywall maker is on the attack," by Aaron Kessler). In the previous trial, a Beazer Homes executive had testified that Beazer had found wiring to be subject to corrosion even when encased in PVC insulation. But Knauf's expert, physicist Richard J. Lee, told the court he believed that there was ""nothing there except untarnished wires."

And according to another Knauf expert, fire safety expert Craig Beyler, corrosion on exposed wiring is easily removed — in fact, he told the court, just tightening up the screw where the wire attaches to the receptacle would scrape most of the corrosion off.

In closing arguments, another party came under attack by plaintiffs' attorneys: the United States Consumer Products Safety Commission. According to the Herald-Tribune, attorney Russ Herman lambasted the CPSC for not observing the trial, even though the agency has promised to come up with a protocol to define a proper remediation f or affected houses ("Bellwether drywall case in hands of judge," by Aaron Kessler).

Reports the Herald-Tribune: "'The CPSC is going to issue its rulings without observing one expert witness that's come before you,' Herman said, addressing the judge... He said during the CPSC's visit to China, it 'doesn't go to every mine, every factory -- it goes to some negotiated few that the Chinese tell them is the Chinese version. That's not the crucible of justice we have in an American court.'"

U.S. District Court Judge Eldon E. Fallon, presiding over the case, told both sides that a quick resolution was imperative. "He said the effects of the drywall are 'going to get worse the longer it stays in' homes, and further meandering cannot stand," reports the Herald-Tribune. For his part, Fallon promised to start working immediately to review the evidence and reach a decision. But he also urged the contending parties to work on reaching a compromise settlement, saying, "It's one thing to theoretically analyze a case, but there's nothing like putting it before a court. I think after you do that, both sides need to take a look at this matter.  This article appeared in the on-line newsletter Costal Connections.

Our friend, Leonard Zax, president of the Hamilton Partnership for Patterson. With all the rain, the Great Falls are at an all time high in terms of water volume. Check out the Falls at its best at http://www.hamiltonpartnership.org/great-falls. I think Patterson gives us a great idea of what a terrific asset the Great Falls is not just to the City of Patterson, but to New Jersey. If you’re not familiar with the Great Falls and the surrounding area, come visit the new National Park. If you are not aware of the great work of the Hamilton Partnership for Patterson please visit them at http://www.hamiltonpartnership.org/.

It is terrific and gives you an good idea of how historically important the falls are not just to New Jersey but the country.

" Snow, Rain and Mud, have not stopped progress at Mary Norton"

The first homes that Jersey City Episcopal Community Development Corps has purchased using NSP 1 (Neighborhood Stabilization Program) funds are now being marketed. As you can see from the ad below, there are some extraordinary details and the Agency would like to tip its hat to John Restrepo and the JCECDC for doing a great job, hitting the ground running with the NSP program.

Along the same lines, Crescent Court, another Agency project, is now marketing their condominiums from the low $300,000 to the low $500,000. As you may know, Matzel & Mumford is a division of K. Hovnanian Companies. Model grand openings are Saturday & Sunday, March 13 and 14, 2010. The quality of M & M is exceptional.

Both JCECDC and M & M are offering different ranges of housing, however, both of them are significantly more affordable today than three years ago.

There are times that New York City can seem overwhelmingly large -- this video is not one of them. Using tilt-shift photography, an artist named Sam O’Hare has transformed real footage of the city into a miniature world that looks as though it was created with modeling glue. Scenes from the video seen on Gothamist include tour boats leaving a dock, visitors walking in and out of the Metropolitan Museum of Art, people walking along the High Line, views of building rooftops, traffic careening past Madison Square Park and along the West Side Highway as well as a series of images depicting sites under various stages of construction.

Moving toward a sustainable city. Kudos to G&S Investors, the developers of Metro Plaza in Downtown JC. Greg Wasser and Larry Traub are forward-thinking developers who clearly understand the importance of using "green strategies" in their projects today. Nice work guys.

Clear Skies Solar Signs $1,300,000 Jersey City Project Posted By Betsy Kraat

MINEOLA, NY

--Clear Skies Solar, Inc., a full-service renewable energy provider to commercial, industrial and agricultural clients, announces its second fully financed project for 2010, a 324 kW solar power project to be installed on the ShopRite building located in the Metro Plaza in New Jersey. The new project is being financed by G&S Investors of New York City, bringing the total currently announced and financed CSS backlog to $2.1 million or more than half a megawatt in just the first six weeks of the New Year 2010.

"Our business pipeline for 2010 is already shaping up to be very strong. There are many positive industry factors contributing to this growing pipeline including strong government incentives, attractive component pricing and the increased availability of financing for such projects," said Ezra Green, CEO of Clear Skies Solar.

On March 2nd, Clear Skies Solar will break ground on their first major project of 2010, installing 185 kWs on the old Linens & Things building located in the Livingston Shopping Plaza. The ShopRite project will get underway shortly thereafter.

Clear Skies Solar

www.clearskiessolar.com

The nature of infill redevelopment is working in tight quarters, as can be seen on Mary Norton Manor.

Working through the winter is not easy, especially laying brick; however, Franklin Development Group, placed scaffolding around the building and heated the screened area to continue work. The masons on the job have done  excellent work on the brick facade. Nice work guys.

From our friend, Susanna Sirefman, President of Dovetail Design Strategists, who handled this competition for Sidewalk Sheds. This international design competition, was a seven month long competition for new prototypes for the scaffolding that goes around a building while work is being done on the facade. Nice work Susanna.

NORTH JERSEY.COM'

Crystal Point receives 'Community of the Year

Saturday, January 30, 2010

JERSEY CITY

The following is from Smart Growth America. Its an interesting read and insight into how the stimulus dollar have been spent. 

 New SGA stimulus study: Transit creates twice as many jobs as highway construction

The new study referenced above, produced by Smart Growth America, the Center for Neighborhood Technology and U.S. PIRG, shows that in the first ten months of 2009's economic stimulus package, investments in public transportation created twice as many jobs per dollar as investments in highways.

Throughout 2009 (and now 2010), Smart Growth America has been working with state partners to provide sound advice and recommendations on how to spend transportation stimulus money to provide the greatest bang for our buck. As the money was obligated through 2009, we continued examining whether or not states were effectively addressing the embarrassingly large backlogs of road and bridge repairs and inadequate and underfunded public transportation systems - and provided recommendations on how more possible stimulus spending could be better spent.

Read the new study and look at our most useful stimulus resources here.

From Urban Land Institute (ULI)  February 2, 2010 
 

Housing

Total housing starts decreased 4 percent to 557,000 in December from 580,000 starts in November, continuing a see-saw pattern ranging between 500,000 and 600,000 starts over the last eight months. In April, total housing starts had reached the lowest point since 1970. Multifamily starts actually increased in December, rising from 80,000 in November to 92,000 in December, but starts remain well below historic monthly norms of 362,000 starts (since 1970). Single-family starts decreased 7% from 490,000 in November to 456,000 in December.

Prices for new homes increased in December and are now just 3.6 percent below where they were one year ago. Prices for existing single-family homes also increased from the previous month, according to the National Association of Realtors (NAR), and are 1.4% percent lower than in December 2008. The S&P &P /Case-Shiller Index for existing homes has been relatively stable for the past three months (September through November), with few or no changes, following four months of small increases, and, prior to that, 38 months of declines. (This index is reported monthly as a three-month moving average, with a two-month lag.) Prices of existing condominiums increased in December, according to NAR, and are now just 1.5% percent lower than last October. Housing affordability remains near historic highs.

Total existing single-family home sales (seasonally-adjusted) decreased 17% in December after growth in seven of the eight previous months (the exception a slight dip in August) and the supply increased to 6.9 months, still lower than the historic average (since 1982) of 7.2 months' supply. The number of new single-family homes sold also decreased in December and the supply increased from 7.6 months to 8.1 months, substantially above the historic average of 6.3 months' supply (since 1970).

Home mortgage rates (30-year fixed) were at 4.93 percent in December. Foreclosure filings — —default notices, scheduled auctions, and bank repossessions— —increased in December after declining for four months. Foreclosure filings are 15.2 percent higher than in December 2008.

These housing trends in total suggest a sluggish housing market that has yet to return to strong growth patterns.
 

There was an article in this past Sunday’s New York Times Real Estate section that discussed the Bonus Bounce, which relates to the large bonuses that the bankers usually receive this time of year. The story referred to a buyer at the Mercury Lofts which are located at The Beacon and gave it a great plug. If you’re not aware The Beacon was voted the 2009 Project of the Year by the Urban Land Institute of New Jersey.

"A hundred times every day I remind myself that my inner and outer life depend on the labors of other men, living and dead, and that I must exert myself in order to give in the same measure as I have received and am still receiving."

- Albert Einstein (1879-1955)

Utility work progressing at Mary Norton Manor - Duncan Avenue.

Work at Summit Heights is moving along very quickly and work is continuing through the winter.  The building has been completely scaffoled and shrouded with plastic so that the masons can work in a heated environment and continue to lay brick.  We anticipate the fully furnished model to be opening on site in April.

This week the Agency finally finished the last of the land transfers and swaps that made Liberty National Golf course a reality. How many years did this take? Twenty five years. Why so long? That is a very good question...why any land swap would take that long. In this case the Army Corps of Engineers would not take title to a property that was not completely environmentally clean, so that delayed this last transfer. But perhaps a better question is why does it take that long to get the environmental clearance? Well that is an issue for not just this project, but many in Jersey City. But we will discuss that at a later date.

Atlantic Yards moves forward and wins important legal challenge.

http://www.globest.com/news/1546_1546/newyork/182359-1.html

Advice from Robert P. Antonicello, Executive Director - Jersey City Redevelopment Agency

• Finally, realize you are working in someone’s city and community. Be respectful and mindful, this is someone’s home!

Views from roof at Summit Height. As you can see, the top floors of Summit Heights will have great views of both New York and Jersey City. The brick work is also beginning to rise.

Special equipment was brought in to protect the neighboring properties during foundation work at Mary Norton. Clearing the rain didn't slow work down this week. I give these workers a lot of credit, they work in all conditions. Great work guys!"

The Mercury Lofts at the Beacon is getting ready to go to market and the model is spectacular. This is one unique building, full masonry lofts with panoramic views of New York and our city. This project, added to the other Beacon buildings just continues the trend to create one of Jersey Citiy's most unique communities.

According to the New York Daily News, the City of New York is getting ready to buy several more blocks of an elevated train line to expand the very successful High Line park. The first section of the High Line was opened this past summer and it stretches from Gansevoort Street to West 20^th Street in Chelsea.

This past August, myself, Mayor Healy, Deputy Mayor Rosemary McFadden, Planning Director, Bob Cotter and other members of the planning office as well as members of the Save the Embankment Coalition toured the High Line with one of the founding members of the High Line. To say the least, we were very impressed. We have a video which will be posted to the web site shortly.

It is interesting that New York, which is poised to open the second section from 20^th to 30^th Street next year is already considering a third phase that would stretch to 34^th Street and wrap around the MTA westside elevated rail yards and the offices and apartments that may eventually be built there. This would put the High Line at approximately 1.5 miles.

Another interesting point is the first two sections of the High Line were purchased for a nominal fee. I’m sure the third phase will cost the City of New York considerably more money.

Our embankment is actually a more significant structure than the elevated freight line that is the High Line and has the potential for being an extraordinary park. It doesn’t take a great imagination at this point to see all the reinvestment that is now taking place around the High Line. On a very warm afternoon in August it was interesting to note that there were hundreds of European and South American tourists that made a trek to the High Line and were enjoying the views from the park and the shops and stores below.

Obviously the City’s commitment to the embankment is steadfast, so going forward we have something to look forward to considering the success of the High Line.

Foundation work moving swiftly at Mary Norton Manor on Duncan Ave.

 

Facade and brick work begin to take shape at Herbermann Manor.

These are photographs taken from the fifth floor.

Work on the footings for Mary Norton started this week.

Congratulations to Honeywell for their partnership with "Rebuilding Together".  Honeywell employees and contractors donated their time to Rebuilding Together to improve living conditions of those in need.  Honeywell's partnership with Rebuilding Together Jersey city  is part of Honeywell Hometown Solutions; the company's corporate citizenship initiative that focuses on areas of vital importance:  Family Safety & Security; Housing & Shelter, Science & Math Education and Habitat & Conservation.

As you can see by the recent photographs, Margaret Herbermann Manor, the Agency’s newest workforce housing project is rising on Summit Avenue. We lost some time this summer with all the rain, but the developer, Franklin Development Group, is making up for lost time. If you know anyone who is interested in the units, they may contact (973) 345-0800 ext. 133

The Agency’s third workforce housing project, 24 units to be constructed on Duncan Avenue is in honor of former Congresswoman Mary T. Norton (1925-1951). This is a very exciting project and not just for the fact that it will create 24 units of workforce/affordable homes, but for the fact that it honors former Congresswoman Mary T. Norton

For those not familiar with Mary Norton her story is extremely interesting.

www.njcu.edu/Programs/jchistory/Pages/N_Pages/Norton_Mary.htm

She is an important part of our history in Jersey city and this project is following in the footsteps of Harriet Tubman Homes and Margaret Herbermann Manor in that they honor strong women who have played an important role in Jersey City and have clearly been the backbone of this great city.

Most recent Mean Streets' study findings include:

In 2003, 4,827 Americans (11.3 percent of all traffic fatalities) died while crossing the street, walking to school or work, going to a bus stop, or strolling to the grocery, among other daily activities. Over the ten-year period 1994-2003, 51,989 pedestrians have died on U.S. streets.

Source: "Mean Streets 2004: How Far Have We Come?

Eighty percent of everything ever built in America has been built in the last fifty years, and most of it is depressing, brutal, ugly, unhealthy and spiritually degrading.

– James Howard Kunstler, The Geography of Nowhere[

London is the most expensive city in the world while Zurich is home to the highest wage earners.

The JCRA announces the 2009 Jersey City Green Awards. This year’s event will include green businesses, green residential and commercial developments and individuals who play a significant role in fostering green and sustainable standards in Jersey City. You may nominate any individual or business you feel is deserving of this recognition. Nominations will be open until July 1, 2009. The selection committee will meet in early July to notify the winners. The Jersey City Green Awards Ceremony will take place in July 28th at City Hall.

Beginning this week you will begin to see the Agency’s City Power posters appearing on the PATH trans and throughout the City. The City Power posters are announcing the start of the stabilization program at the Powerhouse. This is a significant piece of the Powerhouse Redevelopment program.

The Port Authority, this summer, will be winding up its relocation report regarding the relocation of the PATH substation. With the report will be a recommendation (by early this fall) on where the Port Authority will move the Powerhouse substation. Once this decision is made, the design and engineering of the substation will need to be completed and that process could easily consume nine to ten months. Once design is completed, construction of the new facility could take anywhere from 48 to 60 months. In the meantime our concern is that the Powerhouse will continue to deteriorate over the years which will create a situation where saving it is impossible. To prevent that from occurring, the Agency along with the City of Jersey City and the Port Authority have initiated a stabilization program that will put a temporary roof on the Powerhouse, have the inside cleaned removing the debris and any environmental issues, boarding up the windows and addressing any dangerous conditions on the facade beginning with the restoration facade. We anticipate the process beginning summer, 2009 and will be an on-going process.

The Agency established a web site, www.jcpowerhouse.org, which will monitor the progress of the stabilization as well as other important projects within the Powerhouse Arts Retail, and Entertainment District.

Needless to say everyone at the City, Agency and Port Authority is excited about starting this process. As the City Power poster says "the Powerhouse will re-energize Jersey City," and we think it is an understatement.

For those of you following developments in closing Times Square to vehicular traffic, you may find it interesting to learn that before the closing of Times Square was announced by Mayor Bloomberg, Jersey City’s Journal Square Plan had called for a similar process of beginning to close Journal Square to traffic and create more of a pedestrian friendly environment. The element of street closure was addressed in the Plan by widening the sidewalks on Kennedy Boulevard, Bergen Avenue, Tonnelle Avenue and begin the process of slowing down traffic. New York is essentially following the lead of Copenhagen, Denmark in closing the commercial business district to traffic ten years later.

As the New York Times points out on its front page article of last week, there is always some fine tuning and tweaking that will take place over the next few weeks and months.

If we move forward in Journal Square, we anticipate this same kind of fine tuning and tweaking will take place but we are encouraged because in one of the busiest intersections in the world, Times Square, Mayor Bloomberg and the Commissioner of the Department of Transportation, put the pedestrian first and vehicles second.

For more information, contact: Trisha Riggs at 202-624-7086, priggs@uli.org

The following is a statement from Richard M. Rosan, Chief Executive Officer, Urban Land Institute Worldwide, regarding a proposal by the Obama Administration to raise vehicle fuel efficiency requirements and impose new auto emission standards by 2016.

WASHINGTON (May 22, 2009) -- The higher vehicle fuel efficiency requirements and new federal emissions standards proposed by the Obama Administration represent a key step toward reducing greenhouse gas emissions, but they are only part of the solution. To really make a dent in climate change, a three-part solution is needed that includes: 1) improved vehicle efficiency, 2) cleaner fuels and 3) reducing the need to drive by improving urban growth patterns.

At least two-thirds of the development expected to exist in the U.S. by 2050 is not yet built, and the bulk of what’s coming will be built on the outer edges of urban regions. Sticking to sprawling development patterns of the past will leave us spending more time behind the wheel, and even if we’re spending that time in more fuel-efficient cars, we’re putting more cars on the road and adding to gridlock. That’s not a good answer to climate change. Responsible land use is a much better response.

The Urban Land Institute’s publication, Growing Cooler, states that if 60 percent of new development is built in a way the minimizes driving – and instead encourages walking, biking and using public transit – up to 85 million metric tons of carbon gas emissions could be saved each year by 2030. That’s the equivalent of at least a 28-percent increase in current federal vehicle fuel-efficiency requirements, reaching a level of about 32 miles per gallon. It’s a substantial impact that can be achieved by getting people out of their cars, and by building housing closer to jobs and shopping.

The greenest car is the one that is not needed for every trip to get from one place to another. Well-planned, compact development that reduces auto dependency is as critical to protecting the environment as cars that use less fuel.

About the Urban Land Institute
The Urban Land Institute (www.uli.org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has nearly 38,000 members worldwide representing all aspects of land use.

The EPA has selected the Jersey City Redevelopment Agency for three brownfields cleanup grants {$600,000; three $200,000 grants} to clean up the 75 Woodward Street site, which has a long history of industrial and commercial use; the Garfield Junkyard site on Garfield Avenue, which was used primarily for auto repair and salvage; and the JR Transportation site at 1000 Garfield Avenue, which was used as a seed storehouse for more than 50 years and later bacame a bus maintenance facility. All three sites are contaminated with polyaromatic hydrocarbons and metals. Grant funds will be used to dispose of contaminated soil, place a two-foot cap on the properties and file deeds of notice for the sites.

The DEP and Garden State Preservation Trust (GSPT) have approved Jersey City’s application for a Green Acres matching grant of $1,000,000. Preserving open space and improving and expanding local parks are critical components of New Jersey’s efforts to combat sprawl. This project represents a great step toward achieving our goal of protecting New Jersey’s most important recreation and conservation lands and our quality of life.

"Gritty City" T-Shirt Sales - $12.00. All proceeds from the custom, 100% cotton Tee Shirts will go to benefit ONE CITY, INC. the Jersey City Redevelopment Agency’s not-for-profit charity. Since 2006 One City has fed thousands of needy families throughout the year. Supported in part through the generous donations of the development community, One City’s mission is to eliminate hunger in Jersey City.

Last fall the Agency participated with the Schack Institute of Real Estate and the Robert F. Wagner Graduate School of Public Service, both of New York University, in a redevelopment challenge. Two teams of students evaluated two projects in Jersey City, Thomas Jackson Estates on Martin Luther King Drive and the Powerhouse. Working with the NYU graduate students from Schack and the planning students from Wagner was a tremendous experience for my Agency. The students brought a fresh, disciplined approach to the analysis of two very thorny redevelopment sites; and their knack for thinking out of the box has generated some useable ideas. As a result of the students involvement at Thomas Jackson estates, we have re-thought our approach in phasing this project and clearly the students got the "urbanism" right in both in the land use and the design. In the case of the Powerhouse project, the students energy and curiosity clearly generated ideas that we are working towards implementing in the adaptive re-use of this important Jersey City icon.

Last week Mayor Healy gave the students, faculty member, Claude Shostell and Professor Mike Rushman a Proclamation indicating:

WHEREAS, New York University’s Schack Institute of Real Estate and the Robert F. Wagner Graduate School of Public Service of New York created a joint venture with Jersey City Redevelopment Agency to work on two active redevelopment projects in Jersey City; and

WHEREAS, the Jersey City Redevelopment Agency challenged the graduate students of New York University’s Schack Institute of Real Estate and Robert F. Wagner Graduate School of Public Service to conduct comprehensive feasibility studies for Thomas Jackson Estates and The Powerhouse project; and

WHEREAS, the students and professors of the Schack Institute of Real Estate and Robert F. Wagner Graduate School of Public Service readily accepted this redevelopment challenge; and

WHEREAS, both schools created financial and development models for each project from which the Jersey City Redevelopment Agency gained valuable insights; and

WHEREAS, the City of Jersey City and the Jersey City Redevelopment Agency wish to thank the Schack Institute of Real Estate and the Robert F. Wagner Graduate School of Public Service for their hard work and professionalism with these projects for the betterment of the City and its citizenry.

NOW, THEREFORE BE IT RESOLVED THAT I, JERRAMIAH T. HEALY, MAYOR of the City of Jersey City and the Jersey City Redevelopment Agency greatly appreciate and extend our sincere gratitude to the 2008 graduate students of New York University’s Schack Institute of Real Estate and Robert F. Wagner Graduate School of Public Service for their involvement in the Powerhouse and Thomas Jackson Estates Projects located in Jersey City and for fully embracing these projects and the challenges that are inherent in urban redevelopment.

I want to thank NYU, Schack Institute, Wager School and the students for the great job they did in this redevelopment challenge and playing " full out" on these projects.

If you can believe it, according to the Michigan Association of Realtors, the average sales price of a Detroit home fell to $12,669 in February (Year-to-Date), a -42.5% decline from the $22,016 average home price during the same period last year. Last May I had an opportunity to spend a week in Detroit and the housing stock in many of the neighborhoods is strong and with terrific architecture, but when the economic opportunities decline in a city, it doesn’t make any difference how strong and well built the housing stock is if there is no purchasing power of the residents to purchase homes and maintain homes. This is clearly evident in Detroit and more so in the inner suburbs of Detroit such as Highland Park, where Clint Eastwood’s movie, Gran Torino was filmed. Over the last couple of months I tried to give readers of this blog an opportunity to see the southern California, central Florida and Phoenix, Arizona home sales and now Detroit, Michigan. All of these markets are troubled markets but clearly you’re seeing rebounds although prices have declined in California, Arizona and Florida, but Detroit is the classic definition of a market that has completely bottomed out. Can it go any lower than $12,669? Time will tell. However, on a positive note, I do know of people who are purchasing in Detroit under the belief that the market can only go higher. Again, time will tell!

This appears to be the shape of things to come within the home building industry.  Pulte has had very little involvement in Jersey City, one project in Paulus Hook.  Centex has also had limited involvement in Jersey City doing a project in Westside station.  We will continue to monitor this considering we've had some of the largest home builders doing projects in Jersey City.

http://phx.corporate-ir.net/phoenix.zhtml?c=147717&p=irol-newsArticle&ID

More market dynamics from a troubled market. This time Phoenix. Courtesy of Arizona State Realty Studies Program.

The following was published in the March, 2009 issue of Raw Deal Magazine. It gives you a very good window into what is happening in the New York Metropolitan area market crisis.

 The percentage of all home loans provided in the past five years in the U.S. that are underwater (mortgages with negative equity, where a home is worth less than the mortgage): 41.2%

The percentage of all mortgages provided in the past five years in the New York City, Long Island and the Northern New Jersey Region that are underwater: 23%

The percentage of loans that were underwater in the fourth quarter in Nevada, the top state for mortgages with negative equity: 48%

The percentage of loans that were underwater in the same period in New York, which had the fewest borrowers with negative equity: 4.4%

The maximum negative equity a homeowner can have to refinance under the Obama administration’s Homeowner Affordability and Stability Plan, which offers limited support for underwater loans: 105%

The number of homeowners in the U.S. that could be holding underwater mortgages by the next year, compared to 10 million today: 15 million

The dollar volume of mortgage fraud cases tracked across the country last year, up from $4 billion in 2007: $5 billion

The percentage increase in mortgage fraud activity in the U.S. in the fourth quarter of 2008, compared to the prior-year quarter: 300%

New York’s ranking in the fourth quarter of 2008 for dollar volume of mortgage fraud activity, its first appearance on the list of top 10 states: 2

The dollar volume of mortgage fraud activity in California, which ranked first overall and nearly tripled New York’s volume in the fourth quarter: $1.1 billion

The percentage of all mortgages made in the U.S. by the end of 2008 that were either delinquent or in foreclosure: 9%

The percentage of all subprime, adjustable-rate mortgages in New York that were either delinquent or in foreclosure by the end of 2008: 32%

The number of homes expected to go into foreclosure across the country in 2009, up from 1.4 million last year and 750,000 in 2007: 1.5 million

The number of foreclosure auctions scheduled for New York City in January, up 64 percent from the month before but still lower than in metro areas like Miami and Los Angeles: 278

The number of weeks during which Fannie Mae and Freddie Mac suspended foreclosure sales across the country in late 2008: 9

The number of New York nonprofit groups that last month called for an eight-week moratorium on foreclosures statewide to support President Obama’s $275 billion mortgage relief plan: 143 

If you haven’t heard of this issue as yet, you should Google Chinese Dry Wall. As if the housing industry wasn’t in enough trouble, the issue of decomposing Chinese dry wall which was used in as many as 60,000 homes throughout the country during the building boom in Florida, Arizona and Nevada is something that is going to be a huge issue tantamount to the mold issue of the nineties. Needless to say the dry wall could have been purchased closer to home where the standards and the quality control is not in question. Just another interesting footnote of the last housing boom.

Rates on 30-year mortgages plunged this week to the lowest level on record after the Federal Reserve launched a new effort to assist the troubling U.S. housing market. Mortgage finance giant Freddie Mac said Thursday that average rates on 30-year fixed-rate mortgages dropped to 4.85% this week, from 4.98% last week. It was the lowest in the history of Freddie Mac's survey, which dates back to 1971 (see chart above). The previous record low of 4.96% was set in the week of Jan. 15.

As you may have noticed if you passed through Journal Square, the demolition has started to clear the site for what will be One Journal Square, the MEPT/Harwood project and everyone is invited to the ceremony on Tuesday, April 7, 2009 at 10:00 a.m. The site preparation for the base and these two towers is an important first step in making this project a reality and a further indication of the financial commitment towards Journal Square.

As previously blogged, our Gritty Cities program this year is a full day of events. This year to raise money for the Agency’s "One City" not-for-profit entity, which has fed thousands of needy families over the last three years, we will be selling "Gritty Cities" tee shirts for which we are very proud and feel look really great! In addition the theme, which we believe will be an on-going theme is "the future is urban." The lapel button which has become a hot ticket item for fans and people who love cities as we do and will also be available at the Gritty Cities conference. I think this is just another neat way to promote not only Jersey City but cities in general.

Less is more."
-Ludwig Mies van der Rohe, architect
 
"Less is only more where more is no good."
-Frank Lloyd Wright, architect

Another mile stone for the M.S. Herbermann Manor, which is located at the corner of Summit Avenue and Hague Street, a 45 unit workforce housing project. Franklin Development Group, the redeveloper of the project, have made great headway this month even though we’ve had snow and some inclement weather. The site is completely clear and this week foundations will be poured. As you can see by the photographs, this is a terrific site for a workforce housing project and one that will be a fitting addition to the City’s affordable housing portfolio.

I would like to thank those individuals responsible for alerting me to the "Cartoon Caper."

It appears that this Agency was victimized by this City’s penchant for political mischief. The lesson learned is that even the "all powerful" Redevelopment Agency, and I say this facetiously, is not insulated from those forces who wish to exert both the time and energy to misrepresent the Agency and the Administration’s positions.

While some web visitors took the cartoon bait, I did feel a level of comfort from a number of people who were quick to recognize the absurdity of the Agency posting the condemnation artwork. While the Agency isn’t perfect, we are not in the business of creating self inflicted wounds and if you think about it the only party taking a hit for this is the Agency.

Be assured that the Agency will be taking the necessary steps to prevent this mischief from occurring again. However, also rest assured that this incident will not deter me from continuing to champion the Agency’s website in an effort to inform the public of the status of redevelopment projects as well as personal musings which readers might find interesting.

On a positive note, since this appears to be the work of an individual that wants to undermine the City’s efforts in Journal Square,  it does give me the opportunity to state that the Journal Square Vision Plan does not call for the use of Eminent Domain to assemble property for private development and it never has called for Eminent Domain to be used in the Journal Square Study Area for the purposes of taking owners’ property and giving it to a developer.....but more on this later.

I'm not sure if you have been tracking either Florida or Southern California residential sales lately, but it does prove an interesting lesson. First, let the market work. In both So Cal and Florida, we are seeing an increase in sales of existing homes over the same period last year. Why the increase, well price reductions has a lot to do with it. These homes are now being priced to sell and people are stepping up and buying them. Its what a friend of mine has always said, "there is a ass for every seat." In other words, at the right price someone will always step up and buy it. We are now seeing that in So cal and Florida. Florida’s existing home sales rose in January, making it the fifth month in a row that sales activity showed increases in the year-to-year comparison, according to the latest housing data released by the Florida Association of Realtors (FAR). Existing home sales rose 24% last month with a total of 8,450 homes sold statewide compared to 6,810 homes sold in January 2008, according to FAR (see chart above). Florida’s median sales price for existing homes last month was $139,500; a year ago, it was $206,900 for a 33% decrease.

http://www.floridarealtors.org/NewsAndEvents/n1-022509.cfm

The following is an interesting story athat foresaw the mortgage crisis we are in presently.  Coming from Warren Buffet and concerning on of the companies that he owns, it was as Buffet says, "it should have served as a canary in a coal mine" warning.

http://www.marketwatch.com/news/story/story.aspx?guid=%7B3CF33D43%2D7ED9%2D4110%2D8196%2D8742807C763D%7D&siteid=rss

In honor of Women's History Month, the Agency honors, through its workforce housing projects, three remarkable women.  These women help shape and build not only our City but the Country and the Agency would like to memorialize them through these Workforce Housing Projects.

Harriet Tubman, (1820-1913) a runaway slave from Maryland was a conductor for the Underground Railroad. Known as the "Moses" of her people, Ms. Tubman was resposnible for freeing as many as 600 slaves. The Harriet Tubman Homes, constructed in honor of Ms. Tubman, is an affordable/workforce housing project located on Martin Luther King Drive.    http://www.thejcra.org/index.php?p=project-details&pid=82

Dr. Margaret Sullivan Herbermann (1878-1963) was the founder of the School for Crippled Children at Clifton Place in Jersey City, which later became the A. Harry Moore School. Dr. Herbermann was influenced by the Progressive Era reform of the time and so the Agency’s second Workforce Housing Project honors Dr. Herbermann. Known as The Margaret S. Herbermann Manor, the Project is located at Summit Avenue, Hague Street, Kennedy Boulevard and Secaucus Road.   http://www.thejcra.org/index.php?p=project-details&pid=85

(^{From L to R, Leslie Anderson, Executive Director, New Jersey Redevelopment Authority; Karim Hutson, Laverne Webb-Washington, Mayor Jerramiah T. Healy; Councilwoman Viola Richardson; Councilman Peter Brennan; and Marge DellVecchio, Executive Director, New Jersey Housing & Mortgage Finance Agency)}

Needless to say, some of the most rewarding work we do is the construction of and facilitation for the development of affordable housing. There are many different definitions of affordable housing; there is housing that is geared toward people making 50-60% of the area median income. There is housing that is geared to those making 80% of the area median income; or in the case of workforce housing, at 120% of the area median income. Some of the most difficult deals are Tax Credit deals which are aimed at those residents making 60% of the area median income.

We were fortunate last week to celebrate the opening of the Webb Apartments, developed by Karim Hutson and Genesis Companies and sponsored by Laverene Webb Washington, a community activist for many years. We are indeed fortunate to have a young developer like Karim whose focus and attention is centered on these complicated Tax Credit deals. As such, I think it is fitting that we include Karim’s comments at the Ribbon Cutting which were very appropriate as well as the biography of this talented young developer.

The Agency looks forward to working with Karim and Genesis Companies on other projects for the construction of much needed affordable housing.

******

Karim A. Hutson                                                                                                                        Managing Member, Genesis Companies                               

Webb Apartments Ribbon-Cutting Remarks     February 25, 2009

Good morning, I want to first thank many of those who have been financial supporters of this project. Certainly, without your commitments, this beautiful building would not be possible. I have to start with our Mayor, Jerramiah Healy. Your administration has gone above and beyond to make this happen, and Mr. Mayor, it started with a rock solid commitment from your office. And let me say this and be very clear, Laverene Webb and I, when we approached you, probably were not the typical development team. However, what was more important at that time was that we didn’t sound very typical either. We came to this endeavor with a vision of energy efficiency and sustainability that focused on empowering residents and delivering healthier living environments, which is what "Green" means at Webb Apartments. Additionally, we wanted to bring it to a neighborhood that needed and deserved this vision. Thus, Mayor Healy, it is clear to me that in order to buy into a vision, you must first have vision. You had that vision for this project and for this neighborhood, and so for that, we thank you and honor you.

With the Mayor’s commitments, this project progressed well. Led by Darice and her staff at Community Development, JCRA and the Planning Department, the City worked with us for a revised vision of height and bulk. This vision has been a catalyst for other development in the area. Moreover, we were generously given Federal HOME funds to fill the cracks in the budget, and we are thankful for the presence of HUD today. JCRA helped us assemble land and drive this process and how can I forget the City Council, and Ward F councilwoman Viola Richardson, whose swift action and support helped us meet those strict deadlines that come along with public-private partnerships.

To the State, we are no less grateful. Thank you again to HMFA, DCA, NJRA. I am sorry my friend, Governor Corzine, could not join us today as he would be proud of what his administration has accomplished here. Your dollars and tax credit program have delivered homes for low-income families where they can save more than 20% on utility bills and live with the confidence that their apartments will not expose them to respiratory illness such as asthma or sick building syndrome. These sicknesses are prevalent in low-income communities.

This public commitment has been matched by private funding. I want to thank: PNC bank, Federal Home Loan Bank and Bayonne Community Bank whose commitment we very much appreciate.

Laverene Webb, without you none of this would have been possible. When we first started this project you said that "you wanted to do something good in your community," and I was reminded of these words when I was thinking about how I wanted to end this talk. My grandmother turned 92 years old last September. She is an inspiration for me along with my mom and my whole family. Dad, stand-up and thanks for coming here today. The thing about my grandmother is that she reminds me of the rejuvenating power of joy. Weaved into the fabric of this building are some powerful stories of joy:

-Jerome walked into our office on a winter day a single father of 4 children – every single one of them under the age of sixteen – Jerome grew up in Jersey City and had taken on the responsibility to raise his kids. He held a job as a superintendent of a building in New York City but when he was laid off last year he was not only out of a job but out of a home that he could afford. Determined to take care of his responsibilities he found a new job, which he still has today, but had to move his family into a homeless shelter until they could find a new place to stay that they could afford. Well, Jerome came to us living in a homeless shelter, but his hard work and commitment to his family has paid off. He is back on his feet with a job and with his own place in his hometown. He and his children are some of Webb Apartments newest residents!

-Walter is a Vietnam veteran who has lived in Jersey City his entire life, but has never had a place of his own. He previously rented a room in his sister’s house. When he first came to us, we worked eagerly on his application but he did not qualify financially for an apartment in Webb. Walter was extremely dismayed when we told him this information. But because of the thoroughness of Amy at the Doe Fund, we referred him to a local not for profit, Building an Empire, to see if he could qualify for more funds. Building an Empire noticed that he could and successfully helped him apply to have his benefits increased. Well, Walter, you now have a place of your own, and on behalf of all of us, welcome to Webb Apartments. Walter now proudly, has his own apartment and Building an Empire helped him with the apartment deposit and furniture for his new place.

So, to all those who have toiled and worked on this project, my staff, investors, contractors, my laborers, to this community that has welcomed us, what you have helped produce is this joy and countless more untold stories of joy. And for that, we should be proud, and for that, I give my thanks.

Now as we move this program to conclusion and cut this ribbon, Webb apartments is now cemented as part of this community. And to this community we entrust it, and I pray that it will not be just a building of notoriety, but a community of buildings, a community of people and neighbors that like Jerome and Walter will be moving upward and onward.

Thank you.

***

Biography

Karim Hutson is the Managing Member and Founder of Genesis Companies. Genesis aims to enhance urban communities by developing, rehabilitating and investing in multi-unit residential and mixed-use buildings that are high performing, sustainable and technologically innovative.

Karim oversees the company’s construction, development and acquisitions efforts and is actively involved in plotting the strategic growth of Genesis.  Since founding Genesis in 2004, Karim has expanded the value proposition of the firm to include an in-house construction company and expanded the company’s presence so that it now engages urban projects from Boston, MA to Washington DC. Genesis is currently engaged in over $60 million of development activity equating to the creation of close to 200 residential units and several commercial facilities within the firm’s residential buildings. All of Genesis’ development projects meet or exceed the Energy Star criteria and many of its projects achieve some form of LED certification for efficiency and sustainability.

Genesis recently completed construction on Webb Apartments, which was recognized as an "Outstanding Redevelopment Project" by the New Jersey Redevelopment Authority and is slated to be the first 100% affordable building in the State of New Jersey to achieve the LED-Homes "Silver" rating by the US Green Building Council.

Prior to founding Genesis, Karim was an investment banker with Merrill Lynch and Goldman Sachs in New York City and a private equity investor with General Atlantic in Greenwich, Connecticut.

A graduate of the National Outdoor Leadership School, Karim is an avid hiker, enjoys tennis and actively volunteers his time for non-profit organizations focused on education and housing. Karim is a member of the board of directors of Habitat for Humanity-NYC and World of money.org. He is also a member of the US Green Building Council (NY & NJ) and the Urban Land Institute.

Karim received his B.A. in Philosophy and Economics from Amherst College and received an M.B.A. from Harvard Business School.

We've posted on our home page a Power Point presentation prepared by McManimon & Scotland, entitled Understanding Revenue Allocation Districts (RADs) or in other parts of the Country what is known as TIF's (Tax Increment Financing).  The Journal Square Plan eventually calls for the establishment of a RAD.  We believe the Journal Square Redevelopment District is an excellent model for this kind of financing.

One of the issues we have today is the lack of significant financial incentives that we had in the past such as UDAG (Urban Development Action Grant) and other programs that were available in the 1980s when Newport got off the ground with a $40 million UDAG and Montgomery Gateway.

Today there are less tools in the redevelopment tool box for us to work with, but clearly TIFs or RADs are an excellent tool so we encourage you to look through the Power Point presentation and if you have any questions concerning RADs feel free to contact us.

On February 19th, President Obama issued an Executive Order establishing the White House Office of Urban Affairs.  This is actually an excellent move on the part of the President.  Having someone at the White House with the responsibility of coordinating urban affairs among the Departments of Treasury, Justice, Commerce, Labor, Health and Human Services, HUD, Transportation, Energy, Education and the Environmental Protection Agency is a win win for cities.

As the Executive Order states..."About 80% of Americans live in urban areas, and the economic health and social vitality or our urban communities are critically important to the prosperity and quality of life for Americans."

I believe this, along with the stimulus package will assist cities from coast to coast in getting the help and recognition they deserve.

Mark your calendar for April 21, 2009 for Gritty Cities II. The entire program is exciting and will start in the morning with the New Jersey League of Municipalities hosting a "Cities" revitalization forum. The curriculum has a great panel of guests including public legislators.

The Agency in conjunction with the Urban Land Institute will be sponsoring the Gritty Cities II mini-conference "A Celebration of Cities." This year there will be five tours leaving the Liberty House.....the projects are located at: Hamilton Park; Canco Lofts; The Solaire in New York City; The W Hotel in Hoboken; and the Jersey City Housing Authority’s A. Harry Moore Apartment. These five tours are aimed at giving the particpants insight and glimpses into different kinds of projects that help to make these cities exciting places to live. More information will be posted on these tours over the next week.

The Keynote Speaker for Gritty Cities II is Kenneth Jackson, a Jacques Barzun Professor in History and the Social Sciences at Columbia University. Mr. Jackson is also internationally known as an expert on the tri-state area. Mr. Jackson will be putting New Jersey cities, our challenged cities and New York in perspective.

We are excited about the second panel....Cities in 2050. ULI put together a tremendous exhibit at their Miami Conference about what it means for the City in 2050. Our panelists will discuss the future of how we are building cities, locally and internationally, and what it means to us as business people and how we conduct our business. It is important to keep in mind that these panels will take our cities from an historic perspective right through a future perspective.

Perhaps for some the highlight of the day will be the cocktail hour at 6:00 pm. We will post a link for registration over the next few days

As part of the Grand Jersey-Harbor Place Redevelopment Plan, the Turnpike Dump is finally being cleaned up after 100 years of pollution. Work will start in March and needless to say, for not only the residents of downtown and Lafayette, but for the entire City living with this contaminated parcel for twenty-five years....it’s finally going to end.

If you're not familiar with the ULI Annual Report, you should make yourself familiar with it.  Purchase it in electronic format from the ULI web site.  This year's edition which is put togehter by Price Waterhouse Coopers is must reading for anyone in the real estate/development business.  I will not get into many of the details, but say this, on the development side they are talking about :

Retrench

Financing is limited, tenants are scarce, vacancies increase, and construction costs remain high.

Reorient to Mixed Use and Infill

Energy prices and road congestion accelerate the move back into metropolitan-area interiors as more people crave greater convenience in their lives.  They want to live closer to work and shopping without the hassle of car dependence.  Higher-density residential projects with retail components will gain favor in the next round of building.  Apartment and townhouse living looks more attractive, especially to singles and empty nesters -- high utility bills, gasoline expenses, car payments and rising property taxes make suburban-edge McMansion lifestyles decidedly less economical.

Paln More Transit-Oriented Development

Metropolitan areas nationwide realize they need to build or expand mass transpoertation systems in order to oversome road congestion, which strangles economic growth and increases carbon footprints.  Increasingly, people want to drive less and seek subway, commuter railroad, or light-rail alternatives.  Developers can't miss security project sites near rail stops and train stations.

Go Green

If you think oil and electricity costs will plummet and global warming issues will disappear, then sidestepping the additional costs for intalling green technologies may make sense.  Remember how market interest in energy efficienty subsidiary quickly after the late-1970s oil price crisis faded?  But today developers roll the dice and buck current tenant demand. iIf they redline green technologies.  Cutting energy expenses should be a priority in controlling rising operating expenses.  Available government subsidies and rebates can reduce costs.

*****

Interesting that these four development items that ULI highlights in Emerging Trends 2009 are a central part of the Journal Square Plan.  Obviously, mixed-use, infill, transit-oriented and green are essential part of the Journal Square Center City Plan and we're happy to hear that

According to the AP story today by Christopher S. Rugaber, more bad news on the housing front with a steep decline in home prices.  Clearly the new administration will need their arms around this very difficult issue.  What we're looking at now in terms of stimulus with the vast majority of the money going into infrastructure, it's difficult to see light at the end of the tunnel.  Infrastructure generates jobs but not as many jobs as a healthy housing sector.  The old adage, which I believe is correct, with every home built, 100 people are to work.  Everyone from framers to roofers to realtors and carpet layers.

Now it should come as no surprise that the large nationals which have been in trouble seem to be heading in the direction of asking for tarp funds to help them weather this storm.

This article is interesting, may have seen this information before but here's the link

http://apnews.myway.com/article/20081223/D958CMJ80.html

Cushman Wakefield Sonnenblick Goldman is a market update site which is updated weekly. 

As you can see this site covers a multitude of projects at different rates and returns which I think you might find very helpful going forward.

I have always thought of Christmas time as a good time; a kind, forgiving, charitable, pleasant time; the only time I know of in the long calendar of the year when men and woman seem by one consent to open their shut-up hearts freely.

          Charles Dickens (1812-1870)

Every four months it becomes time to stop and think where you are going...and are you heading in the right direction. Things move so quickly in the City and at the Agency– we can and often do get caught up in unplanned events. So every four months we need to reevaluate our goals and direction and tack back on course. December is one of those months for us at the Agency. Everything is up for reevaluation this month. Questions like: "where are we going to focus our attention and resources in 2009?" "What are our goals for 2009?" "Where does the Administration and City Council want to focus our time, creativity and energies in 2009?" If you have any ideas or concerns in your neighborhood, please feel free to e-mail me as I welcome the feedback

Christmas is the season for kindling the fire of hospitality in the hall, the genial flame of charity in the heart.

                    Washington Irving (1783-1859)

Emerging Trends in Real Estate 2009, a survey by PricewaterhouseCoopers and the Urban Land Institute , grimly predicts: "The credit crisis and ensuing recession promise to drag commercial real estate markets into a difficult period marked by value losses, rising foreclosures, and reduced property revenue."  Yet the report offers encouraging prospects for urbanism:

• "Higher-density residential projects with retail components will gain favor in the next round of building."
• "Core urban markets with mass transportation alternatives to the car solidify their advantages over far-flung car-dependent surburban areas, and more investors and developers target infill locations for future mixed-use residential projects, especially near transit stops."
• "Metropolitan areas nationwide realize they need to build or expand mass transportation systems in order to overcome road congestion, which strangles econimic growth and increases carbon footprints."
• Smart developers of apartments will "focus on infill areas in suburban markets with traffic problems.  Mixed-use construction in urbanizing suburban nodes almost always include residential components to help create more attractive 24-hour environments."

The top five markets, the report says, will be Seattle, San Francisco, Washington, D.C., New York and Los Angeles.

After sixteen months of on-going discussions and negotiations among the Port Authority, City Council and the JCRA, we’ve entered into a Memorandum of Agreement on May 15, 2008 to begin the process of restoring the Powerhouse into a world class retail, entertainment center.

As you may be aware, the Agency, on July 18, 2009, designated the Cordish Companies of Baltimore, Maryland as the designated redeveloper for the Powerhouse. The Cordish Companies has an outstanding reputation and an economic skill and knowledge of turning around old power plant buildings as they did the Power Plant in Baltimore into an unique retail, entertainment destination. The Cordish Companies and the JCRA were in a holding pattern because neither the City nor the Agency owns the Powerhouse in its entirety. Since the early 1960's the City has owned the land under the Powerhouse jointly with the Port Authority. As a matter of fact, the property line runs straight through the middle of the property.

While I won’t get into detail on how the City wound up with ownership of this important historic site with the Port Authority, I will note that we are lucky they did. However, before this building can be converted there is a tremendous amount of work to be done with regard to the logistics and location of moving the substation and the transformers.
Without the relocation of the substation and transformers the project cannot go forward. The Port Authority is committed to working with the Redevelopment Agency and the City over the next nine months in coming up with a suitable location for the relocation. As a matter of fact, during this entire process one could not ask for a more cooperative partner than the Port Authority.

The Port Authority has gotten a lot of grief from the public over the years but in this situation we could not ask for a better partner or corporation than we have and continue to have in the Port Authority. The work to be done is going to take place on two tracks. The Port Authority and the JCRA are jointly funding a study that will start within the next four weeks to determine what is the most viable location for the substation.

While that is taking place, the JCRA will be contracting with Beyer, Blinder, Bell, an architectural firm to begin a stabilization plan for the Powerhouse. The stabilization plan is key to the long term success of this project. It will take between 36 and 48 months to complete the relocation of the substation or it may take longer. In the meantime the building continues to deteriorate under the elements.

The Agency and the Port Authority’s course over the next four months will be to outline what is needed to stop the deterioration and begin the process of stabilizing the building including temporary roofing, boarding up windows, selected demolition on the inside, cleaning up debris, starting the process of rebuilding the outside, etc. Along those lines, the City has committed $1.7 million in UEZ funds and the Port Authority has committed almost $1.7 million of funding that the Agency has control over.

As we move forward in this process, it is our intention to provide numerous updates as to where we are in the stabilization process and to answer any questions that may come up from residents concerning the Powerhouse.

Importance of Demographics

It is difficult to overestimate the importance of demographics as it relates to real estate and investment in the growth of our City. The Urban Land Institute has published a terrific new book on population growth and demographics, "Global Demographics 2008, Shaping Real Estate’s Future." by M. Leanne Lachman and Deborah L. Brett really make some central points and insights. Worldwide there are some significant trends which they identify. The following is a brief excerpt on why demographics matter

Why Demographics Matter

Nearly everyone who will be making decisions about where to live, work, shop, and play in our real estate for the next 20 years in alive now. We know a great deal about where they reside, their educational backgrounds, their family composition, their incomes, whether or not they work, where they prefer to travel, and on and on. Consequently, we can anticipate future real estate needs.

Although population growth is not an absolute prerequisite for successful investment and development, it certainly helps to work with rather than against trends.
However, even areas with minimal growth need residential units as new households are formed and as more people— young and old— choose to live on their own.

New technologies and ever-changing consumer preferences create replacement demand. Buildings switch uses, are renovated, and are demolished.
Thanks to the global communications revolution, the middle classes and the poor want what only the wealthy could obtain previously— larger housing units, more privacy, a variety of branded goods at lower prices, leisure time activities, and travel opportunities.
Meeting demands of explosive, evolutionary growth requires sensitivity to urban form and sustainable designs— new communities offering mixed uses, walkable environments, and access to jobs.

The real estate implications of demographic Megatrends around the world are enormous.

This ULI monograph is the first in an annual series that will explore global demographic trends and their real estate implications. The report consists of three main sections. The first (Chapter 1) provides an overview of international population growth to 20230 and highlights four world regions and their subregions— Europe, Asia, Africa and the Middle East, and Oceania. The second section (Chapters 2-5) focuses on 2008's key themes: worldwide aging, immigration, urbanization, and tourism as an economic generator. Each chapter concludes with a summary of real estate implications. Chapter 6 looks more closely at the Americans— North, Central, and South.
Themes in 2009 will include labor force availability and employment, movement of jobs from high-cost to low-cost countries, and the globalization of retail trade.
Although population growth is not an absolute prerequisite for successful investment and development, it certainly helps to work with rather than against trends.

The real estate implications of demographic Megatrends around the world are enormous.

This ULI monograph is the first in an annual series that will explore global demographic trends and their real estate implications. The report consists of three main sections. The first (Chapter 1) provides an overview of international population growth to 20230 and highlights four world regions and their subregions— Europe, Asia, Africa and the Middle East, and Oceania. The second section (Chapters 2-5) focuses on 2008's key themes: worldwide aging, immigration, urbanization, and tourism as an economic generator. Each chapter concludes with a summary of real estate implications. Chapter 6 looks more closely at the Americans— North, Central, and South.

Themes in 2009 will include labor force availability and employment, movement of jobs from high-cost to low-cost countries, and the globalization of retail trade.

Real Estate Implications of Demographic Megatrends

"Demographic shifts will continue to reshape the world of real estate; increasing incomes and affluence worldwide, rising life expectancy, declining family size, and growing demographic diversity."
The world’s population is aging rapidly, thanks to increased longevity and declining fertility rates. Retirement housing needs are pervasive.

U.S. senior housing models are exportable to Europe and East Asia, where the numbers of very old are rising rapidly and more seniors are living alone.

It will be 18 years before assisted living demand burgeons in Canada and th United States— when the baby boomers begin to turn 80.

Across the globe, traditional extended families and care networks for the elderly are being fractured as workers become mobile, as few children exist to look after parents, or in the case of Africa, as the middle-aged population declines because of AIDS.

Rapid urbanization of developing countries and migration within developed nations generate nearly insatiable demand for new housing and supporting services.

Developed countries like the United States, Canada, Australia, New Zealand, Ireland, and the United Kingdom, which are expanding, will have ongoing demands for new housing of all types.

Developed, nonexpanding countries like Japan and those in continental Europe only need replacement housing, though migration creates demand in some locations and causes shrinkage in others.

Workforce hosing is needed throughout the world— and creating it can be profitable.

Mid-size cities— the secondary and tertiary metropolitan areas of emerging markets— will expand rapidly, and the world’s major urban areas will support massive amounts of development.

Master-planned new communities will most efficiently accommodate the world’s growing middle class.

The availability of mortgage credit and development of securitization are crucial to expansion of real estate development in emerging markets.

This rapid urbanization of developing countries will also create strong demand for commercial and industrial facilities.

Retail demand accompanies residential development. Urban residents need furniture, appliances, clothing, medications, and the produce that rural households raise in their own gardens.

Hypermarkets are opening aggressively throughout the world, providing value pricing to city dwellers.

Office, hotel, and industrial space is of poor quality and under supplied in many parts of the developing world; and as these economies grow and become more affluent, demand grows for new, higher-quality space.

Migration across borders is changing the demographic profiles of receiving as well as exporting nations. Asia, the Caribbean and Latin America, and Africa are exporting workers to the importing regions: Northern America, Europe, and Australia/New Zealand. Remittance are increasingly important for the economies of labor-exporting regions.

As emerging nations rapidly urbanize, basic infrastructure is needed a precursor to real estate development.

Tourism is flourishing globally, thanks to raising affluence, reduce travel costs, interest in "seeing the world," and healthy, adventuresome retirees.

In the Americas, many of these trends are evident. Latin America’s strong demand for workforce housing, shopping centers, offices, and hotels is enhanced by developing residential and commercial mortgage markets. In North America, smaller households, echo boomers, and continuing immigration add housing demand.

As you can see, these trends will have a significant impact on how Jersey City moves forward.. Urbanization of developing countries and migration within the developed nations generate a unsatiable demand for housing and support services. That is the good news. The bad news is how do we accommodate the growth?

The Board and staff of the Redevelopment Agency would like to congratulate the recipients of the First Annual Jersey City Green Awards. Building green has become a large part of the thought process at the Redevelopment Agency and the City and is now a major part of the psyche across the country. These four pioneering projects that cover the gamut from the world class Goldman Sachs’ office building to the new standard for constructing affordable housing projects, Harriet Tubman Homes, represent an extraordinary accomplishment on the part of these developers and the Agency.

I also want to take this opportunity to acknowledge the Housing Authority and its Executive Director, Maria Maio, her staff and the JCHA Board of Commissioners, who, from the beginning and the start of the HOPE VI projects, incorporated green building technology in the form of Energy Star appliances and components in these projects. Ms. Maio and the Housing Authority continues to raise the bar with each new project and we are happy to honor them not just with a Green Award, but as a partner of ours in reconstructing our city.

Twenty-five most popular buildings, chosen by the Public American Institute of Architects (Harris Interactive, 2007)

1. Empire State Building, New York City, 1931
2. The White House, Washington, D.C., 1792
3. Washington National Cathedral, Washington, D.C., 1907
4. Jefferson Memorial, Washington, D.C., 1943
5. Golden Gate Bridge, San Francisco, 1937
6. U.S. Capitol, Washington, D.C., 1793
7. Lincoln Memorial, Washington, D.C., 1922
8. Biltmore Estate, Ashville, NC, 1895
9. Chrysler Building, New York City, 1930
10. Vietnam Veterans Memorial, Washington, D.C., 1982
11. St. Patrick’s Cathedral, New York City, 1878
12. Washington Monument, Washington, D.C., 1884
13. Grand Central Station, New York City, 1913
14. The Gateway Arch, St. Louis, 1965
15. Supreme Court of the United States, Washington, D.C., 1935
16. St. Regis Hotel, new York City, 1904
17. Metropolitan Museum of Art, New York City, 1880
18. Hotel Del Coronado, San Diego, 1888
19. World Trade Center, New York City, 1977
20. Brooklyn Bridge, New York City, 1883
21. Philadelphia City Hall, Philadelphia, 1881
22. Bellagio, Las Vegas, 1998
23. Cathedral of St. John the Divine, New York City, 1892
24. Philadelphia Museum of Art, Philadelphi, 1928
25. Trinity Church, Boston, 1877

WELCOME to the Jersey City Redevelopment Agency Blog Site. The purpose of this Blog Site is to provide some additional thoughts and observations of topics and issues that may not appear on the JCRA Web Site. On a daily basis, the Agency is involved in dozens of projects that range from luxury sky scrapers to Berry Lane Park. Regularly important insights and observations come up which might be of interest to the general public. As time permits, we will post both small and large items that you may find helpful in understanding the redevelopment process, the rebuilding of our City or just the real estate market in general. I hope you enjoy our musings and if you have any comments or concerns, please do not hesitate to send them along.

Jersey City Deja Vu All Over Again

A lot has been written recently about the decline of the real estate market, not just in Jersey City, but throughout the country. What people might not realize is the United States is not alone in experiencing the recent downturn but that a number of countries in Europe, including England, Ireland and Spain are also experiencing a similar correction. I’m not too concerned about those countries, but wanted to point out that real estate runs in cycles and what is perhaps no better indicator for us in Jersey City than to look at the 1920's Commissioners’ Progress Report as delivered by Mayor Hague entitled: “Jersey City As It Is Today and As It Will Be Tomorrow.” It is an interesting document because Mayor Hague and the Commissioners outlined their plans for the City and from an historical perspective, it is interesting to see what their thinking was in the 1920's and where the City would heading . One thing is consistent and that is Jersey City has always had its “life line” tied to New York City. The following is an excerpt from the Progress Report under

Housing and Taxation:

“Jersey City is experiencing one of the greatest house-buying and land-selling booms in its history. Not alone are the residents buying their own homes, but sections of the city thought to be out of the commercial zones are looming up as big business centers. Office buildings are planned in the downtown section, and several of the banking institutions have already had plans drawn for the enlargement of their present homes, from two and three-story structures to twelve and fifteen-story buildings. A small hotel is to be torn down and a modern office building erected. These new and enlarged buildings are all within a minute’s walk of the tube stations and will no doubt be occupied by New York business men who are unable to get quarters in the big city across the river.”

As you can see, there was always a strong element of Jersey City being a bedroom community of New York, but not just a bedroom community, but also a strong manufacturing center and transportation hub. While there has been an exodus of blue collar jobs from New Jersey, the need to retain existing and expand the City’s blue collar jobs are an important goal of Mayor Healy and his administration. I will discuss this in more detail at a later date.

Smart Growth

Much has been said about Smart Growth principles over the last five years. It is important to have a fundamental understanding of what those Smart Growth principles are. When you consider that everything we do from a land use and development perspective is guided by the Jersey City Master Plan, which is guided by the State Master Plan. The State Master Plan relies heavily on Smart Growth principles. So understanding those core principles is key to understanding how decisions will be made to accommodate future growth.

Smart Growth Principles

The following are Jersey City’s generic Smart Growth Principles that the Jersey City Redevelopment Agency actually uses as its guiding principles when going forward with projects. I think they are useful for the general public and development community to understand how we vet decisions and how we view development projects:

10 Principles of Smart Growth

1. Make development decisions predictable, fair and cost effective. Developers wishing to implement smart growth practices should face no more obstacles than those contributing to sprawl. In fact, we should provide incentives for smarter and more sustainable development.
   
   
2. Create a range of housing opportunities and choices. Not everyone wants the same housing style or type. Jersey City should offer a range of urbanist option i.e. single family homes, multi-family, condominiums, Townhomes, mixed use and affordable homes for low, middle and moderate income families and senior housing for empty nesters.
   
   
3. Provide a variety of transportation options. People cannot get out of their cars unless we provide them with another way to get where they’re going. More communities need safe and reliable public transportation, sidewalks, and bike paths. Employ more light rail options as well as bus shuttle buses to transportation hubs. Create bike trails for in Morris Canal, Berry Land Park and Liberty Park.
   
   
4. Strengthen existing communities and direct development towards them with incentives. We should look for opportunities to grow in already built-up areas. Develop a TDR ordinance where neighborhood can benefit by from sending areas like Journal Square and Grove Street Path stations. The receiving areas such as historic sites, The Powerhouse, the reservoir and preserve urban land for Berry Lane Park and benefit are “place making” development for urbanism.
   
   
5. Preserve parks and open space areas. People want to stay connected to civic spaces, nature and are willing to take actions to create parks. The new urbanist approach would develop community centric principles for land use planning.
   
   
6. Create complete neighborhoods where daily needs are close at hand. New clustered development works best if it includes a mix of stores, jobs, and homes. Single use districts make life less convenient which sparks sprawl and this more driving.
   
   
7. Create a safe, inviting environment for walking. Places should offer not only an opportunity to walk the sidewalks, but a destination, whether it’s the corner store, transit stop or a school. New Pedestrianism should be created with a compact, walkable neighborhood, town center or main street that contributes to people with sense of community because neighbors get to know each other, not just each other’s cars. Establish police annexes, community center or CCTV to assist with safety.
   
   
8. Foster distinctive communities with a sense of community. In every community of Jersey City, there are special “place making” centers that can be created to ignite a greater sense of pride in urbanism. New construction must get the “New Urbanism” correct which is critical to fostering increased pride in all neighborhoods of Jersey City. Create small urban town centers for Lafayette, Greenville and West Side neighborhoods with special distinct identities regarding their businesses and retail make up. Urban places should be framed by architecture and landscape design that celebrate local history, climate, ecology, and building practice.
   
   
9. Make efficient use of public investments infrastructure, schools, and services. From local parks to neighborhood schools to transit systems, smart growth development is focused on getting to most out of what we’ve already built. The federal, state and local governments have invested billions of dollars on transportation; it is imperative that policies leverage these services for schools, neighborhoods and population growth.
   
   
10. Encourage citizen and stakeholder participation in development decisions. Plans developed without a strong citizen involvement don’t have strong staying power. When people feel left out of important decisions, they wont be there to help out when choices need been to be made. Development must include the neighborhood level for sustainability of development projects. This can be done transparently as well through JCRA, Housing and Economic Developments web sites and blog site.