Development at 110 First Street

July 2009

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[MCA]

Apparently Lloyd Goldman is poised to become the controlling developer at the World Trade Center. I wonder how that impacts his Jersey City projects?


Meet the Other Trade Center Builder
Larry Silverstein's Deep-Pocketed Partner, Lloyd Goldman, Is Likely to Take Over the Office Towers One Day
By ALEX FRANGOS and PETER GRANT
September 11, 2008

Ever since the Sept. 11 attacks, New York developer Larry Silverstein has been the public face of the private real-estate group battling with insurance companies, architects and government agencies to rebuild the office space at the World Trade Center.

But behind the scenes another powerful player is emerging: Lloyd Goldman, Mr. Silverstein's deep-pocketed partner, who someday will likely take control of the monumental office towers. A group led by Mr. Goldman provided most of the $125 million in equity used by Mr. Silverstein to acquire a 99-year lease on the World Trade Center just weeks before the terrorist attack.

Seven years later, as they prepare to finally start construction on their three skyscrapers, Messrs. Silverstein and Goldman will probably need to invest more money -- a possibility Mr. Silverstein has acknowledged. The three towers, which are potentially highly lucrative, will cost about $6 billion to build, and the partners face a tough economy, limited insurance proceeds and a credit crunch.

This next development and financing phase is likely to put the unusual partnership to the test once again. The two proved to be good allies after the destruction of the Twin Towers. But the Silverstein-Goldman team had a rocky start as the two argued over fees and control until minutes before signing a $3.2 billion contract to take control of the complex.

While Mr. Silverstein has a reputation as a tough negotiator in New York's rough-and-tumble real-estate industry, the 50-year-old Mr. Goldman hasn't shrunk from asserting himself. He has arranged so that he, rather than Mr. Silverstein's heirs, will likely take over the project when Mr. Silverstein, now 77, steps down. And in 2006, when Mr. Goldman had the opportunity to cancel Mr. Silverstein's management contract, he was able to increase his share of the net development fees -- after expenses such as salaries -- to 50% from 25%. The partnership will collect about $120 million in gross fees for managing the construction of the towers. In that same deal, Mr. Silverstein got to continue as the head of the development team for another 10 years, according to people familiar with the project.

Mr. Goldman praised Mr. Silverstein's leadership of the partnership. But Mr. Goldman also said there's an understanding between the partners that he will take over when Mr. Silverstein steps aside. "It's clear I'm in the business of doing this sort of work," he said.

Mr. Silverstein declined to comment on the details of the partnership. In a written statement, he described Mr. Goldman as a "steadfast supporter" of the rebuilding effort and said he was "proud to have him as my partner."

Both Mr. Silverstein and Mr. Goldman stand to make enormous profits from the World Trade Center some day by owning three of the five office buildings on the site. Their original investment is no longer at risk because they were repaid the original equity from insurance proceeds in 2003 in exchange for agreeing to new development plans with their landlord, the Port Authority of New York and New Jersey. (The Port Authority will build two more office towers, including the signature Freedom Tower. The site will also include a memorial, a transit hub, a performing-arts center and shopping.)

Mr. Goldman was born into real estate. His uncle, the storied Sol Goldman, was a highly successful New York investor who accumulated hundreds of properties. Lloyd Goldman's father, Irving, was also an active investor, and the younger Mr. Goldman remembers riding around to visit sites when he was a child.

Lloyd Goldman inherited a small fortune in New York City real estate and expanded it greatly, partly by buying distressed properties at government auctions in the early 1990s. Today his low-profile BLDG Management controls property valued at more than $2 billion throughout the U.S. and is involved in several major developments, including a $400 million mixed-use project in Jersey City, N.J., designed by the futuristic Dutch architect Rem Koolhaas. (more)

[MCA]

Powerhouse abatement pact ready
Tuesday, May 27, 2008
By CHARLES HACK
JOURNAL STAFF WRITER

The City Council is set to stamp its approval tomorrow on a 10-year-tax abatement for a 35-story rental building in the Powerhouse Arts District.

Council members introduced the tax-abatement ordinance with an 8-0 vote - Councilman Michael Sottolano was absent - at their last meeting and the planning board approved site plans for the building at 110 First St. in January.

The abatement is part of a settlement worked out in U.S. Federal courts in 2006 between New York-based Goldman Equities Corp. and the city, which also includes neighboring 111 First St. where the developers plan to build the Rem Koolhas-designed 52-story "vertical city." The agreement ended a years-long struggle between Goldman and artists with studios in 111 First St., who had sought to preserve the former warehouse.

Under the agreement with the city, property developers Athena BLDG 110 Urban Renewal, LLC - a partnership between Athena and Goldman Equities Corp. - have agreed to pay the city around $1.59 million in lieu of taxes to the city- at least 10 percent of its annual revenue.

However, former Assemblyman Lou Manzo accused the city of playing a "shell game" with the public, saying that other Jersey City taxpayers are hit by higher taxes, because property owners in tax abated properties do not contribute to the school district and pay just 5 percent of county taxes.

City officials counter that the tax abatements allow the city to keep more of the money raised by the properties, and lower municipal taxes offsets any increase in burden on taxpayers for school and county taxes.

The city originally agreed to 345 units, with 10 percent of those units set aside for low-income artists. The project now has 420 units, with 25 affordable units on the site and another 25 in another development.

The second reading will be held at the Frank R. Conwell Middle School 4, at 107 Bright St., at 6 p.m.

[Rooster]

These design renderings are really becoming one dimensional/bland, no?

I happen to think it is the perfect building.  It looks just like a big warehouse, fits in perfect for a recreation of what the PAD used to look like only bigger.  Also that parking garage is AMAZING...

[VV]

These design renderings are really becoming one dimensional/bland, no?

[MCA]

From the JC Reporter, a rendering of the building (above) and accompanying story: 35-story tower for 110 First St.

[bdlaw]

Same old shit.

If you or I kept records as crappily as this city we'd be jobless, homeless, or in jail.  Or some combination thereof.

Frustrating.  When do I get my slice of the magic beans the city is selling out the PAD for?

[MCA]

From today's JJ:


110 FIRST GETS OK
107 more units approved at 'Powerhouse' district tower
Saturday, February 02, 2008
By CHARLES HACK
JOURNAL STAFF WRITER

The Jersey City Planning Board has given a unanimous thumbs up to the first of two First Street luxury towers proposed by Lloyd Goldman in Powerhouse Arts District.

And with 452 rental units, 110 First St. will contain 107 more units than was allowed in a settlement agreement between the city and the developer.

The developer is also pumping in $2.5 million into an affordable housing project in the Heights.

Lloyd Goldman's BLDG Management and the Athena Group plan to build the tower next to the Rem Koolhaas-designed 52-story "vertical city" at 111 First St. - which was also part of the federal settlement.

The Planning Board decision effectively lifted a limit of 345 units for 110 First St. stipulated in a settlement agreement hashed out in the U.S. District Court of New Jersey between the city and attorneys for developers New Gold Equities Corp., an affiliate of BLDG Management.

The additional rental units are needed because of current market conditions, said the developer's attorney, Daniel Horgan.

City officials said a mistake was made when the settlement was signed with the lower number of units.

Kenneth Browne, of Athena Group, said the developer always envisioned having at least 420 units at the building, and those units were shown on site plans attached to the settlement agreement.

Pursuant to the settlement agreement, the developer must provide one affordable housing unit for every eight market-rate units built, half of which must be on-site. So of the 452 units at 110 First St., 25 will be affordable units and the developer is contributing $100,000 per unit for 25 units off site.

In 2006, the city settled multiple lawsuits after New Gold Equities sued to be allowed to build a high-rise development in the place of the immense Lorillard Tobacco Warehouse at 111 First, which was home to scores of artists who used the building as work/live studio space, and had been protected until a Superior Court judge ruled the Warehouse Historic District invalid.

The deal was widely viewed as a blow to the Powerhouse Arts District, which was planned to be a low-density arts center filled with live-in studios.

[super_furry]

A handful of PAD residents were at the Planning Board meeting. Reposted from wirednewyork.com:


I went to the Planning Board Meeting this evening. A few speculations were resolved.

See Item 12 of agenda - 110 First is looking for approval for 450+ units AND 343 parking spaces.

Apparently-- The New Gold Settlement specifically states that at 110 First Street, "Residential uses and amenities shall not exceed 345 dwelling units, with gross residential floor area of 360,00 square feet."

The city's counsel has come to a deal with New Gold to allow them to increase the number of units but NOT the height [still set at 350 ft], and still using the same square footage; more smaller units than before and the minimum size for a unit is smaller. So don't expect any big loft like apartments or three bedrooms. It will be rentals. 35 stories total.

A whopping nine-story parking garage, but the goal is for it to look like the building, not like a parking lot. Hope they can pull it off. There will be an open area with a pool on top of parking garage for residents only.

The whole presentation seemed a bit rushed... they weren't completely prepared to present... didn't have crucial paperwork regarding 345 up to 452 units AND they are piggy backing on to the Toll Brothers amendment to be able to build half the lower income units off-site, although they might just be giving a bunch of money to whomever will build these lower income units. [never heard the word artist]

The planning staff didn't seem to have had enough time to prepare either... the water, and power and traffic studies haven't occurred, they haven't had time to review the plans. The planning board was ready to table the whole presentation, because of this outstanding items and the lack of approval and permits to create a valet-like drop-off in front of the main entrance (lack of traffic studies). The developer said that he would drop that option... they REALLY wanted approval tonight. And they got it [6-0]. There will be changes and follow up, but for the most part... looks like a new building will be on its way soon.

Restaurant (under/behind parking garage) on east side overlooking "sculpture garden/ pathway/ dog run" and [squealing] light rail. Gallery space and retail also on the ground floor. They talked about some 50x60 foot panel of "TBD artwork" that will drape in the restaurant? it will be seen from the pathway. The renderings might be able to explain that one.

The design looks a lot like the "A" building next door. Brick with glass. Planning board wasn't very wowed by the design... they hope that some style might be added on top for those who look at the high-rise from far away.

The "A" condo bldg. next door is 33 stories, approx. 250 units, 238 parking spaces to help with scale.

The "construction" we were all seeing this past week was actually driving "test" pilings. Somebody should put up permits stating the fact, so we don't go making assumptions about site prep... especially since the construction office had no idea any activity was going on at the site.

BTW
The new space next to light rail is a parcel at Block 109, built by "A" building; complying with the PAD redevelopment plan's required "public sculpture garden with passive recreation space, landscaping..., pedestrian pathway connecting First St. to Second St."

http://wirednewyork.com/forum/showthread.php?s=9aa82e1679fae90a443c3e8dec044273&p=212253#post212253

[super_furry]

They've already started work at 110 First.

A member of the audience brought up the construction, and had photos shot today.  Turns out the "construction" is actually test pilings, and according to City Planners at the meeting, complies with city construction code.

The development (with a dog run and affordable housing in a different part of the city), was approved. The tower is ugly as &$%^ but whatever. Looking for a studio, one or two BR to rent? The project should be completed next year.

[Hurtle]

They've already started work at 110 First.

[super_furry]

On the Planning Board agenda for TONIGHT - 110 First Street:

Planning Board, scheduled for Tuesday, January 29, 2008 at 5:30 p.m. in the 14th Floor Conference Room at 30 Montgomery St., Jersey City, New Jersey.

This is the last item on the agenda, but the order is subject  to change.

12. Case: P07-157 Preliminary Major Site Plan
Applicant: Athena Bldg Urban Renewal , LLC
Attorney: Angela M. Gurrera
Review Planner: Maryann Bucci-Carter
Address: 110 First Street
Block: 109 Lot: W.A
Zone: Powerhouse Arts Redevelopment Plan
Description: Construction of a 452 dwelling unit residential high rise containing 343 parking spaces and 13, 970sf. of retail

Planning Board Agenda, Tuesday, January 29, 2008 (PDF)

[Hudson County Now]

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[What is Jersey City's best brunch spot?]

What is Jersey City's best brunch spot?
Simple Cafe
	2 (8%)
Ox
	0 (0%)
Bistro La Source
	0 (0%)
The Merchant
	0 (0%)
Light Horse Tavern
	4 (16%)
Skinner's Loft
	4 (16%)
Marco & Pepe
	3 (12%)
The Embankment
	1 (4%)
Beechwood Cafe & Market
	0 (0%)
Madame Claude Cafe
	5 (20%)
Liberty House Restaurant
	0 (0%)
Amelia's Bistro
	0 (0%)
Ria's Cafe
	0 (0%)
Taqueria Downtown
	2 (8%)
White Star Bar
	0 (0%)
Other
	3 (12%)
Total Voters: 24

city hall sun setting Posted by designknob