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Housing authority approves assignment of Sears-site parcel to developer affiliate for financing
Summary
The New Brunswick Housing Authority approved a resolution assigning a portion of redevelopment site Block 707.04, Lot 7.05 from RTF NB Urban Renewal LLC to an affiliate labeled RTF NB Urban Renewal B LLC to accommodate the developer's construction financing; commissioners voted by roll call.
The New Brunswick Housing Authority board voted July 25 to approve the assignment of a portion of redevelopment site Block 707.04, Lot 7.05 from RTF NB Urban Renewal LLC to an affiliate, RTF NB Urban Renewal B LLC, a move the developer says is part of its construction financing.
Board members approved the measure by roll call after a brief explanation from a staff presenter. "This is identical to a resolution we approved about a year ago," a staff member explained. "It's for the second section of the project located on the Sears site... This section consists of 262 residential units, some retail, some parking, a leasing office, and some amenities."
The staff presenter told commissioners the transfer is a financing mechanism and that the affiliate is wholly owned by the redeveloper, adding the banks insist on estoppel certificates for the authority's executive director to sign. "Basically, all they say is that there is a redevelopment agreement and they're not in default," the presenter said.
Why it matters: the assignment clears a procedural step the developer said it needs to secure construction financing for the second section of the large Sears-site redevelopment. Commissioners asked only clarifying questions about the role of the affiliate and whether unit mix had changed; staff said the unit types and counts remain as previously proposed.
Supporting details: the staff presenter said the first section of the project (272 apartments and related elements) is nearly complete and the assignment relates to the next 262-unit section. Commissioners recorded a unanimous "yes" vote among those present; one commissioner was absent.
Board action and next steps: the board approved the assignment by roll call, and the authority's executive director was authorized to sign the estoppel certificates the lenders asked for. The staff presenter said construction financing would proceed once the financing documents are in place.
Notes: The board discussion limited itself to the financing transfer; no amendments or additional conditions were attached to the approval.
