The Members of NJEDA are asked to approve the application of CDIP-Paulsboro Summit, LP

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CDIP Paulsboro Summit, LP has proposed to renovate an underutilized 1950’s vintage shopping center on West Broad Street in Paulsboro. Included in the renovation is the demolition and new construction of approximately half of the existing retail complex and substantial rehabilitation of the remaining building structures canadian-pharmacy24-7.com/buy-fluoxetine-online .

Project Ownership

The Applicant CDIP-Paulshoro Summit, LP is a special purpose entity created for the Paulsboro Plaza redevelopment. Lindsay-Ore. LLC has 76% ownership interest and Bancroft Construction Company has a 24% ownership interest in CDIP-Paulsboro Summit, LJ.

Lindsay-Ore is a limited liability corporation composed of two companies, Larry C. McCrae, Inc. and Artis T. Ore, Inc. Larry C. McCrae, Inc. is an electrical contracting company and Artis T. Ore, Inc. is a construction Management company. The two entities have combined development experience of 60 plus years in real estate development and construction management project business.

Bancroft Construction Company is the general contractor for the project. Bancrofi Construction Company established in 1975 employs 70 full time workers and has completed various real estate projects including office buildings, laboratories, museums, and retail establishments in New Jersey, Pennsylvania, Delaware and Maryland.

 

This project is Phase I of a four phase redevelopment plan. The project currently has an anticipated IRR of negative 0.03% without ERG and 7.30% with the ERG. The Applicant represents that the ERG incentive grant is needed for the viability of the project. Upon completion of the additional three phases, the IRR will be 14.05% which falls under the hurdle rate model provided by Jones Lang La Salle which indicates a maximum IRR of 14.53%.

 

Authority staff has reviewed the CDIP- Paulsboro Summit, LP's application and finds that it is consistent with eligibility requirements of the Act. The Treasury has reviewed the application and notified the Authority of the adequacy of the project’s estimated tax revenues and specified the percentage reimbursement of total project costs. Therefore, it is recommended that the Members approve the application and authorize the CEO of the Authority to execute an Incentive Grant Agreement with the Applicant and the State Treasurer, subject to final review and approval of the Office of the Attorney General. All disbursements under the ERG program are subject to annual appropriation by the New Jersey State Legislature.