Just a Little Short – $50 Million
The proposed development for the Officers Row homes at Fort Hancock to preserve history hit a major snag, Jen Nersesian, Superintendent of Gateway National Recreation Area at Sandy Hook, told the Fort Hancock 21st Century Advisory Committee this week.
The Superintendent reported that plans for what would be the largest renovation and restoration of historic structures on Fort Hancock are $50 million short of what is now estimated to be the cost to rebuild the first two of the 21 buildings planned to reserve.
The superintendent explained to a disappointed committee at its meeting that after completing the design process for two of the 21 buildings, planned to be the prototype for future renovations to the rest, the Stillman Company has advised the National Park Service it is now in the area of $100 million, twice what the developer had planned to invest.
“What their financial analysis at this point has shown is that this project is upside-down, and we have a large financial gap,”
Nersesian said at the meeting. She explained Stillman originally had indicated a $50 million investment would enable them to see a return on their investment, but following the design process, it would take at least $100 million to break even and make it viable for a private investor.
Since the superintendent explained the developer is not withdrawing from its original proposal, nor is the park service giving up on its consent, it is up to the Park Service now to face the crossroads and see if it can figure out a strategy to enable all plans to go forward.
“This is going to call for a different model for how we approach getting a project like this done…. ($50 million) This is a big, daunting gap, but we are still committed to the preservation of these buildings. It just means we need to figure out what the next phase of our strategy is going to look like,” the superintendent said.
Adding to the present problematic situation, the Commission is aware that both environmental organizations and Congressman Frank Pallone, in whose district Sandy Hook belongs, are opposed to renovations of the buildings and the influx of residential use of the historic site for fear of damaging the natural environment.
Commission members suggested several ways they hoped could be considered to assist in covering the $50 million gap, including grants, assistance from other organizations, state, county or local assistance or other means.
“We are committed to preservation,” Nersessian said, as she and commission members appeared to indicate their ultimate goal is still achievable and Stillman is still willing to move forward.
The Committee formed a committee within itself to explore the situation in more detail, make inquiries and report back with their ideas or possibilities. Commissioner Lillian Burry reminded other members she had been largely responsible for the $15 million Tinton Falls apartment complex constructed two years ago for homeless veterans, and wondered if that a similar plan at Fort Hancock could be a possibility. Patrick Calen questioned whether the Park Service “is too tight on Stillman” and whether specifications for construction might be altered or if there was room for any flexibility. Anthony Mercantante was asked about the possibility of local stakeholders.
Looking towards the bright side despite the $50 million hole the project is now facing, Nercessian reported the Park Services’ work to restore the roofs of all of the homes on Officers Row has been underway and now 70 per cent complete on 15 buildings and BOQs and anticipates that the work will be completed by February. She stressed the Park Service made the decision to complete the project with permanent as opposed to temporary roofs and historically correct wooden rafters and sheathing, together with copper flashing and weather barrier shingles.
She also reported the resurfacing on the highly used bike and walking path should be completed within a few weeks, and the $4 million water well replacement is underway. Dredging by the Army Corps of Engineers at the tip of Sandy Hook should also be completed with a few weeks, she said.
The Park Service started the leasing program at Fort Hancock several years ago in its attempt to restore the historic structures through a public-private partnership. The buildings have fallen into serious stages of deterioration since the Army vacated the base in 1978.
In addition to the buildings currently under lease by non-profit groups, including MAST, the Marine Academy of Science and Technology, seven Fort Hancock buildings are currently under lease by private investors, including two eating establishments, McFly’s, which has been opened for several years, and the Mule Barn Tavern, which opened in August to much acclaim and continued popularity and lodging accommodations. There are continuing plans for another bar and restaurant in the former YMCA and lodging possibilities for the former Officers Club.
While Roy Stillman, president of Stillman Development International, was not present for this week’s meeting, he has indicated in the past his commitment to historic preservation and his plans for three floors of renovated apartments within each of the houses, with five units in each house along with shared storage space. He has also indicated the possibility of using one of the buildings as a wedding chapel including a sundries store in the midst as well to complement the residential uses and make the project more financially viable and convenient for year-round renters.
Under Stillman’s plans, though there would be 95 apartments and other uses included in the buildings, all of which are not on Officer’s Row, the exterior of the buildings would remain exactly the same to preserve the historic appearance of the army site. The company has extensive experience in preserving historic sites, having completed renovations at The Schumacher, a Romanesque building in new York that was built in 1885, and the 1920 Times Square Theater also in New York.
At the time his agreement with the Park Service was signed nearly two years ago, the company president termed it an exciting project, and tone that “is an unusual combination of civic, patriotic and commercial elements,” saying he was thrilled to be a part of the balance.
