This infrastructure work would be some as-yet-undetermined combination of underground work on the Second Street blocks, the relocation of the DPW operations at New Jersey and K and demolition of that block, and the construction of I Street between Second and New Jersey. These projects were originally expected to be funded by the sale of unrated municipal bonds, but the current Economic Difficulties have made those sorts of bonds all but extinct, and additional attempts to secure loans from banks for the money have been fruitless as well.
Now, a
bill is expected to be introduced at Tuesday's city council session amending the
2006 Capper PILOT law to allow for bonds to be issued, guaranteed by the CFO's office (and thereby able to reflect the city's rating on the bond markets), which would be "supported" by real estate tax revenues being collected from various existing TIF projects in the city. If the expected timeline of council approval is met, the bonds--totalling somewhere in the neighborhood of $28 million--could be issued by the end of 2009.
(But don't look out your window on Jan. 1, 2010 expecting to see the trash transfer station's smokestack being smacked by a wrecking ball--they still have to find somewhere for the DPW operations to relocate to, which I'm guessing is more difficult than finding somewhere to move a bunch of schoolbuses, and everyone knows how long that took.)
The proceeds won't all be used for construction, since there are loans to be repaid and other high-finance maneuvers that are well above my level of understanding. But this influx of funding, along with the
HUD grant, would give Capper's redevelopment a push forward at a time when few projects are seeing any sort of progress, and would get the money-hungry city closer to being able to start reeling in the property taxes from all these blocks that aren't currently generating any revenue.
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F says: (Oct 5, 2009 09:59 PM)
JD,
This may be a good time to check with William C. Smith Company and see if they have refined their plans for 800 New Jersey (Whole Foods, 2 buildings, 600 residential units, 600,000 sq-ft office, etc.).
I thought the small piece of land known as Reservation 17A was transferred to them, but can't locate the story. Can you confirm if that's happend or not.
Many thanks as usual.
JD says: (Oct 5, 2009 10:23 PM)
Reservation 17A was transferred to the city from the Feds on Nov. 13, 2008. WC Smith doesn't get all of it, since some of 17A will be the new I Street, and some will go to DCHA as part of the DPW block.
(800 New Jersey in its current conceptual form is actually four buildings--two residential and two office. But this is not an era where original concepts are guaranteed to be the final product. And Whole Foods is still technically just a rumor--there's never been an announcement.)
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