By: Linda Lindner
June 7, 2021 8:08 am
BAW Development on June 4 announced it closed on the $94 million financing for the redevelopment of the Hinchliffe Stadium Neighborhood Restoration Project (HSNRP) in Paterson, which includes Hinchliffe Stadium–one of just two remaining stadium structures that was home to a Negro League baseball team.
The financing comes via a unique combination of private loans, tax credits and other vehicles, including a $60 million construction loan from Goldman Sachs and $10 million in New Market Tax Credit and Federal Historic Tax Credit equity from U.S. Bancorp Community Development Corp., U.S. Bank’s tax equity and community development subsidiary.
The financing also includes $21 million of New Market Tax Credit allocation from four Community Development Entities (CDE): Community Loan Fund of New Jersey, Consortium America, RBC Community Development and USBCDE. The Passaic County Improvement Authority also issued a bond in support of the project, purchased by Goldman Sachs through its construction loan, which serves as a bridge loan for the New Jersey Economic Redevelopment and Growth (ERG) credits.
All financing was managed by BAW’s partner on the redevelopment, RPM Development Group.
“When it comes to a project of this nature, there’s no question that it takes a strong team to put all the pieces in place, and we are extremely thankful for the diverse group of financial partners that came together to fund the reimagination of this historic site,” said Baye Adofo-Wilson, founder of BAW Development. “Given the challenges of the last year, pushing this long-awaited infrastructure project forward required a highly complex, creative financing structure from all parties. The successful closings are a testament to our partners’ belief in the vision for the future of not only Hinchliffe Stadium, but the broader impact it will have for the entire city of Paterson.”
Paterson Mayor Andre Sayegh, state Sen. Nellie Pou and Assemblyman Benjie Wimberly, as well as retired baseball stars CC Sabathia and Harold Reynolds were in attendance for the groundbreaking of Hinchliffe Stadium on April 14, 2021 – BAW DEVELOPMENT
The financing will enable the ongoing redevelopment of the stadium, which officially broke ground in mid-April. The construction process is expected to last approximately 18 months, with delivery expected in the fall of 2022.
BAW Development estimates that the project will create approximately 94 temporary construction jobs, while the completed development will create seven full-time and 30 part-time permanent jobs. At least 30% of construction and permanent jobs will be targeted to minority and/or local residents.
“We are excited to play a role in this transformative project which will provide much needed affordable housing to seniors, generate quality jobs and revive one of Paterson’s historic gems, providing an incredible amenity that can be shared by the community for decades to come,” said Daniel Alger, managing director and co-head of the Urban Investment Group within Goldman Sachs Asset Management. “This project has raised the bar for public-private collaboration and community development and we could not be happier to be a part of it.”
U.S. Bank provided capital to the stadium redevelopment as part of its ongoing “U.S. Bank Access Commitment” initiative, which focuses on supporting businesses owned by people of color, helping individuals and communities of color advance economically and enhancing career opportunities for employees and prospective employees.
The redevelopment now underway represents Paterson’s most ambitious large-scale development in many years. The initiative is highlighted by the complete refurbishment and modernization of the historic stadium, which will make the facility ADA compliant and improve the field, restrooms, lighting, scoreboard and seating areas.
In addition to the 7,800-seat athletic facility, the project also includes ground-up development of:
Hinchliffe Stadium rendering. – BAW DEVELOPMENT
● A 12,000-square-foot restaurant and event space that will pay homage to the professional and high school athletic exploits at Hinchliffe Stadium, as well as related racial issues.
● A six-story, USGBC LEED Platinum-certified affordable senior housing building featuring 75 studio, one- and two-bedroom units.
● A 5,200-square foot preschool; and
● A 314-space structured parking garage.
The ballpark was initially built with public funding during the Franklin D. Roosevelt administration and has been owned by Paterson Public Schools since the 1960s. BAW Development secured a majority stake in the ballpark in 2021.
Linda Lindner covers real estate and is the managing editor for NJBIZ.