BAW Development, the company that manages the redevelopment of historic buildings Hinchliffe Stadium in Paterson, NJ, has secured $ 94 million in construction funding to move forward with a planned major redevelopment of the former Negro League baseball stadium, according to the developer’s information shared with Commercial Observer.
The financial package includes a $ 60 million construction loan of Goldman Sachs, as well as a new markets tax credit and a historic federal tax credit of $ 10 million from a American Bank subsidiary company (Bancorp Community Development Corporation of the United States).
Daniel Algiers, managing director and co-head of Goldman Sachs Asset ManagementUrban Investment Group said the project “will provide much-needed affordable housing for seniors, generate quality jobs and revive one of Paterson’s historic gems, providing incredible amenities that can be shared by the community for decades to come ”
“This project has raised the bar for public-private collaboration and community development and we couldn’t be happier to be a part of it,” Algiers added.
The project, officially called the Hinchliffe Stadium Neighborhood Restoration Project (HSNRP), will see the redevelopment and restoration of one of the country’s last remaining venues that hosted Negro League baseball games in the early to mid-20th century. .
The Hinchliffe Stadium was originally built in 1932 and has hosted a number of teams that have played in the Negro League baseball network. It quickly became a hub of Paterson sports and entertainment, hosting years of local high school sports, comedy events, concerts, boxing, and even at one point, stock car racing. It closed in 1996 and has since been the victim of neglect and vandalism as the city explored ways to revitalize and use it.
BAW, led by Baye Adofo-Wilson, is a project partner with RPM Development Group, who led the management and arrangement of the funding, the company said. Over the past few years, Adofo-Wilson has worked with the town of Paterson – his hometown – to put the puzzle pieces together for make development a reality.
The developer’s plans include a revitalization of the 7,800-seat stadium, as well as the addition of a six-story, 75-unit senior apartment building, a 5,200-square-foot preschool and a parking garage. 315 places. The stadium will also feature a two-story restaurant and 12,000 square foot museum, which will showcase the history of Negro League baseball and the legacy and importance of Hinchliffe to the town of Paterson, according to BAW and New Jersey. Economic Development Authority.
US Bank’s capital was provided as part of an ongoing initiative to support minority-owned businesses and advance communities of color, according to BAW and US Bank.
“We are looking for ways to lend, invest and influence capital in ways that advance racial equity, and this project will,” said Steve kramer, a first vice-president within the Bancorp Community Development Corporation of the United States. “This will catalyze tourism and stimulate investment in Paterson, a diverse and underserved community. It will create state-of-the-art recreational facilities for the youth of Paterson. And that includes requirements to hire from the local community and award contracts to small businesses owned by minorities and women. “
Alongside the US Bank’s community development entity, three other community development groups have come together to provide $ 21 million in equity capital from the New Markets Tax Credit in support of the redevelopment – New Jersey Community Loan Fund, America Consortium and RBC Community Investments. Goldman Sachs, through the construction loan it issued, also recovered a bond issued by the Passaic County Improvement Authority.
The developers said that Goldman’s construction loan was essentially serving as a bridging loan for the New Jersey Economic Growth and Redevelopment (ERG) tax credits that were approved a few months ago. from New Jersey AED approved the $ 67.2 million issue in ERG tax credits in February, about $ 17.3 million more than originally planned.
The stadium redevelopment began in April, around the opening month of the 2021 Major League Baseball season. The developers expect construction to take 18 months, with delivery slated for fall 2022.
“[This was a unique] project that required a remarkably creative fundraising strategy. We had to dig deep into the community development toolbox, ”said RPM Development. Joe portelli. “We’ve been so focused for so long that it’s as easy to forget that [our partners] made their commitments at the height of the COVID-19 pandemic and in a time of great uncertainty. “
Adofo-Wilson said he was grateful “for the diverse group of financial partners who have come together to fund the reinvention of this historic site … Given the challenges of the past year, moving this long-awaited infrastructure project forward required very complex creative funding. structure of all parts.
His company predicts that the development will create around 94 temporary construction jobs and seven permanent full-time jobs and 30 permanent part-time jobs at its facilities. (One-third of these jobs will be reserved for minorities and local residents.)
The stadium has been owned by the Paterson public school system since the 1960s, with BAW locking in a controlling interest in the property that year. The new Hinchliffe will serve as home to a number of John F. Kennedy High School sports, and it will also host concerts, festivals, sports camps and also semi-pro and professional sports, according to BAW.