BAW development, the company that made the redevelopment historical Hinchliffe Stadium in Paterson, NJ, has secured a $ 94 million mortgage loan to advance a major planned refurbishment of the former Negro League ballpark, according to the developer, who announced the Commercial Observer.
The financing package includes a $ 60 million home loan from Goldman Sachs, and $ 10 million in New Market Tax Credit and Federal Historic Tax Credit equity from a US bank Subsidiary (US Bancorp Community Development Corporation).
Daniel Alger, Managing Director and Co-Head of Goldman Sachs Asset Management‘s Urban Investment Group said the project “will provide much-needed affordable housing for seniors, create quality jobs, and revitalize one of Paterson’s historic gems and provide incredible amenity to be shared by the community for decades to come.” ”
“This project raised the bar for public-private collaboration and community development and we couldn’t be happier to be a part of it,” added Alger.
The project that officially bears the name Hinchliffe Stadium Neighborhood Restoration Project (HSNRP) one of the last remaining sites in the country is being redeveloped and restored, where Negro League baseball games were played in the early to mid-20th century.
Hinchliffe Stadium was originally built in 1932 and was home to a number of teams that played on the Negro League Baseball network. It quickly became a sports and entertainment center in Paterson for years, hosting local high school sports, comedy events, concerts, boxing, and – even at some point – stock car races. It closed in 1996 and has since fallen victim to neglect and vandalism as the city sought ways to revitalize and use it.
BAW, run by Baye Adofo-Wilson, is involved in the project with RPM development groupwho directed the management and organization of the funding, said the company. For the past few years, Adofo-Wilson has worked with the city of Paterson – his hometown – to piece the puzzle together make the development a reality.
The developer’s plans include a revitalization of the stadium with 7,800 seats and the addition of a six-story residential building with 75 residential units for senior citizens; a 5,200-square-foot preschool; and a car park with 315 spaces. The stadium will also receive a two-story restaurant and 12,000-square-foot museum showing the history of Negro League baseball, as well as honing legacy and importance to the city of Paterson, according to the BAW and the New Jersey Economic Development Authority.
US Bank’s capital was made available as part of an ongoing initiative that focused on helping minority-owned businesses and promoting colored communities, according to BAW and US Bank.
“We are looking for ways to raise funds, invest and influence to promote racial justice and this project will do that,” said Steve Kramer, a senior vice president within the US Bancorp Community Development Corporation. “It will catalyze tourism and fuel investment in Paterson, a diverse and underserved community. It will create state-of-the-art recreational facilities for Paterson’s youth. And it includes requirements to be recruited by the local community and contracts to small businesses owned by minorities and women. “
In addition to the US Bank Community Development Company, three other community development groups have come together to provide $ 21 million in New Market Tax Credit equity to support the redevelopment: New Jersey Community Loan Fund, America Consortium and RBC community investments. Goldman Sachs also has a loan from the building loan it granted Passaic County Improvement Authority.
According to the developers, Goldman’s construction loan essentially served as a bridging loan for New Jersey Economic Redevelopment and Growth (ERG) tax credits that were approved a few months ago. New jerseys EDA approved the government spending of $ 67.2 million ERG tax credits in February around $ 17.3 million more than originally planned.
The stadium was renovated in April, around the opening month of 2021 Major League Baseball Season. The builders expect a construction time of around 18 months, with delivery planned for autumn 2022.
“[This was a unique] Project that required a remarkably creative funding strategy. We had to dig deep into the community development toolbox, ”said RPM Development VP Joe Portelli. “We’ve been so focused for so long that it’s easy to forget [our partners] made their pledges during the height of the COVID-19 pandemic and a time of great uncertainty. “
Adofo-Wilson said he was grateful “for the diverse group of financial partners that have come together to fund the redesign of this historic site. … In view of the challenges of last year, driving this long-awaited infrastructure project forward required a highly complex, creative financing structure from all sides. ”
His company assumes that the development will create around 94 temporary construction jobs as well as seven full-time and 30 part-time jobs in its facilities. (A third of these jobs will be reserved for minorities and residents.)
The ballpark has been owned by the Paterson public school system since the 1960s, with BAW acquiring a controlling stake in the property that year. The new Hinchliffe Stadium will be used for a number of John F. Kennedy High School‘s Sport and, according to BAW, will also host concerts, festivals, sports camps and also some semi-professional and professional sports.