While we wait, may be the green screen can be put on the fence so that it does not
look as bad as it looks!
Jerry

Don't understand why the answers are so hard to get....
Concerns a lot of people when the word "gate" appears.

The article leaves out that apparently Prism stil lhas not acquired Phase I financing, something the Town/public was led to believe it had. What is telling is that all this information that is so concerning to the Council now was not uncovered BEFORE the Council voted on the agreements and bond ordinance with Prism, and that were it not for members of the public researching and bringing things like the Barton Press foreclosure before the Council, the Town would not have stopped to assess the situation like it is now. Prism was in foreclosure proceedings months before the votes on this project--why didn't the Town know? Was the administration negligent in not finding out about this, or did it know and keep it from the Council? EIther way looks bad....

"Gate" is just a silly journalism term used to try and get people to read the article.

Anyway, I don't understand why the town would approve this project if Prism has no proof of financing to begin contstruction. Without knowing any details, who knows, it could take months, even years to get the financing they need. I have the feeling this whole project will fall apart and nothing ever gets built.

I am glad the issues will be addressed

By the way I don't believe Prism has invested 60 million in the project. If they have they have lost their investment. I would appreciate proof of the 60 million investment before it is reported.

We should all consider ourselves lucky? What stupid thing to say!

I just wish Gary and every one else what call it what it is: A really bad real estate deal with an unhealthy tax brake to politically connected entity at the expense of the other honest people and business who actually pay the sky high taxes in this community. Unfortunately their is no other way to explain it.

Until we see contstruction equipment and workers on site I don't think we should be considering any aspect of this project a success. It doesn't matter what Prism has invested so far. Until we have a building with occupied apartments it's all pretty meaningless.

Does anyone agree with Gary's position?
Do you consider yourselves lucky?
Or do you believe Prism's investment is lost?
What do you think of the Barton press foreclosure?

Wohopeful:

Absent from your nonsensical and completely inaccurate little diatribe is just exactly how you think "mov(ing) on without Prism" would work?

Please do share with us just how quite prematurely declaring Prism in default will benefit the Township, improve its position (financially or otherwise) and/or possibly bring redevelopment any closer to fruition?

While I'd love to hear you expound on these topics...and have challenged you (and others) to do so on a number of occassions...the silence has been deafening.

I guess only time will tell. I know one of us are going to be really shocked in due time...

I am no big fan of Wal-mart as a corporation for many reasons. 3 questions: Are there or why aren't there any Wal-marts in this area, and would this space/location work for them? I imagine that while they might be a better deal for the taxpayers than this Prism venture, that they'd be bad for local businesses. Any comments.

Alan Sanders:

What was and wasn't appropriate for the battery factory...and for what anyone was willing to make an investment in...was pretty much put to rest when the published Requests for Proposal resulted in three interested parties proposing the same type of mixed use, residential commercial project...with Prism's specific vision being chosen from the three.

Neither the roadway infrastructure, nor the building itself, was deemed suitable for a stand alone retail destination and the parking necessary to support the square footage is simply unavailable.

Adam Kraemer:

With reference to your contention that Prism is "politically connected" due to "McKeon's and Parisi's" support and that "political(ly) powerful names" are on their list of investors is just the height of ill-informed nonsense.

First, if there was a sentimental favorite among those vying to be named as the designated redeveloper, it would have been Larry Pantirer and Millenium Homes, with whom the Township/McKeon Administration already had a long and cordial relationship with.

Second, the developer who was chosen from the three proposal submitted (Prism) was selected by the Township Council in an open, public process and NOT by either Mayor McKeon or Mayor Parisi.

What these two men HAVE done is to acknowledge practical realities and understand that Prism remains the best horse to bet on getting this project done as quickly as possible.

Have you or anyone else provided a viable alternative?

No.

Lastly, the allegation that anyone with a fiduciary responsibility to the Township is linked to, or will gain financially from, Prism or this project is without any basis in fact.

Anyone know the details/reasons of the foreclosure of the Prism's Barton press location in West Orange?

Tom:

Prism is paying .0879 percent to finance a +/- $5.6 Million mortgage (and did so for 4 years, until 6/2011), when the prime rate fell to .0325 in 12/2008 and has remained there since.

That mortgage (with Wells Fargo, originally GMAC) restricts Prism from doing basic things it need to in order to redevelop the site; demolish the building and use its lot as a construction lay down site.

Absent our seeing the depositions in progress now, we don't know what discussions occurred between Prism and Wells Fargo but, it's safe to assume they broke down and Prism stopped paying the mortgage as a tactical business decision.

Seems like PRISM is in danger of going Bankrupt.
What will happen when or if Prism goes Bankrupt?

Perhaps the grossly overtaxed hard working homeowners of West Orange should make a "tactical decision" to stop sending quarterly property tax checks to town hall as a way to get the concessions we need to feed our families and run our homes.

The suggestion that it is a tactical decision is nothing more than nonsense as all evidence points to the fact that Prism has financial issues.

Tom and wohopeful:

Would you care to share any compelling evidence that (1) Prism is in danger of going bankrupt, or (2) that it has any significant financial problems?

The things that are readily apparent are (1) six years in, our redevelopment project is producing no income, (2) Prism's is meeting its obligations with income from other projects that are producing income, (3) it has had very short term cash flow problems as a result that should evaporate once all its permitting is in place and its construction financing can be finalized.

Do keep in mind that other Prism projects are moving forward without delay; the Parkway Lofts in Bloomfield and the Marcal property in Bergen County to name just two.

That doesn't suggest insolvency is close at hand.

Gary I think the evidence you just laid out is pretty compelling. I would just add that the Barton press foreclosure and Other prism properties that may be foreclosed on.

BTW compelling evidence that prism may be headimg into bankruptcy

Tom:

Well, don't know how you analyze a given situation, let alone a financial one but, on any T-graph I draw up concerning Prism and downtown redevelopment, the plus column is far longer and more substantial than the minus column.

Do you have any idea what carrying a $60 Million, non-performing investment costs each month?

At a modest 5 percent APR, it's about $300,000 per month ($3,600,000 per year) and that's in addition to the annual $800,000 in property taxes and the $1.4 Million the town has been reimbursed for expenses so far?

All that considered, do a couple of tax payments made a few weeks late spell bankruptcy to me?

No, it doesn't.

By the way, the Barton Press property has NOT been foreclosed upon; Wells Farge has filed for foreclosure and Prism is contesting the action.

Further, having stopped making payments to Wells Fargo of +/-$30K per month in June 2011, Prism's arrearage is +/- $570,000...which in the broad scheme of things is relatively insignificant.

Conversely, Prism needs to have specific mortgage restrictions lifted and the note recast at a reasonable rate and why Wells Fargo has previously refused to do either is anyone's guess.

Yes I do.
That is why they came to west orange for Bail out / Hand out.
I expect Prism to come back again and attemp to change the deal again.

A companies website can tell you much about the company. The Prism website has remained unchanged for years, still touting their unfinished projects as successes. A drive past Prism owned properties shows you how financially stable of a company it is. Most are half to 3/4's empty.

Prism's failure is a sign that West Orange should scale back its desire to build, build, build, and they will come.. Times have changed and so should West Orange.

Tom P:

Your characterization as Prism having come to the Township looking for a "hand out/bail out" is obfuscation of fact and exhibits a lack of understanding of both what the Township is obligated to do under the redevopment agreement.

Following the 2008 financial meltdown and Bank of America (teetering on insolvency) pulling its financial commitment, Prism approached the Townhsip about becoming a bigger partner in the project (and increasing its income, by the way) by issuing redevelopment area bonds in the amount of +/- $30 Million.

Why did Prism do this? Because no financing was then available and the Township agreed to consider such a proposal...when and if necessary...when Prism was chosen as redeveloper. As it came to pass, however, the Council did not even bring the proposal to a vote.

As it stands, the only financial commitment the Township has made (and it won't happen before certain performance goals are met) is to issue $6.2 Million in bonds to finance upgrading its 100 year old infrastructure (roadways, sidewalks, curbs and sewers) surrounding the Edison site.

As Prism is evev providing dedicated sources to pay for it, it's hardly a handout...and the Township routinely pays for such things out of the General Fund when done elsewhere each and every year.

Paul P:

While I haven't spent any time monitoring Prism's website, let alone explore its various projects and do occupancy surveys, its a pretty safe bet that they have been carrying Edison Lofts (for six years) with income from other enterprises.

They've also continued to acquire significant properties (Marcal last spring) while continuing to rehabilitate others (Parkway Loft in Bloomfield) all of which requires considerable resources.

I'm also rather impressed by the physical appearance of the Organon tract which has never looked better.

All that said, your suggestion that West Orange "should scale back its desire to build, build, build" ignores the fact that the Township enticed Prism into coming here and investing here and that they now own the properties we encouraged them to buy and redevelop.

We don't have the unilateral power or authority to stop this midstream and why would we and toward what possible end?

To have an eyesore remain on Main Street and further errode our tax base?

Finally, if there's a better horse to bet on than Prism to finish this race, who, what and where are they?

It is obvious Prism has financial issues.
Whether it be late Tax payments or the fact that they're not paying their mortgages.
Prism's financial issues will/has become West orange's issues.
The Barton Press forclosure should be alarming to All Residents.
I think we all can agree on that.

A lien holder asking that the building, the primary asset, they hold title to not be razed is hardly cause for Prism to be entitled to relief. If you are going to make excuses, please at least make them plausible.

Prism may have intentions to do a great many things, but it does not preclude them from meeting their obligations under a contract they signed without duress. And it doesn't make your excuses for them any more plausible.

I'm glad we agree that Prism has financial issues And would explain why their CEO Eugene Diaz was banging his head on the podium during a Townmeeting.
I would consider Prism not paying their mortgage for approximately 18 months more than just a tussle As most people would

And if I was 7 feet tall I would play for the Knicks

Tom:

Actually, being 7 feet tall won't automatically get you on the Knicks, the NBA, or even into a decent local hoops league as talent still outweighs tall.

I don't think of Prism as a benevolent mistreated benefactor of West Orange. They went into this to make a profit and they misjudged the financial (excusable) and political landscape. I think that they have been less than candid with the public and the town and that rouses suspicion and concern. Paul's comment also concerns me. If they have such abnormally high vacancies as he says, that's worrisome.

Alan Saunders:

Believe me, I have no doubt that altruism isn't Prism's reason for being but, it's also a given that a redevelopment project necessitating tax abatement to be remotely possible is a delicate balance to begin with.

As to misjudging the political climate, do remember it was far different a decade ago when the Township was encouraging redevelopers to bid on the project; Prism was invited and offered incentives to come here.

As to misjudging the financial climate, again, please keep in mind Prism's funding for the project was fully in place until the 2008 financial collapse and Bank of America's withdrawing its commitment, creating the impasse since.

As to anyone's unsubstantiated assessment of what they perceive as less than full occupancy at other Prism properties it is just that, unsubstantiated.

It's also rather clear that they are relying on income derived elsewhere to carry our downtown redevelopment.

Prism can play whatever shell games they choose with their money but that doesn't excuse them from paying their bills on time. Habitually late payment of property taxes, unfunded escrow accounts, foreclosure due to non-payment of mortgages, lack of funding for the first phases of the project, etc. are all cause for grave concern that Prism will ever be solvent enough to get this proejct off the ground.

Wohopeful:

West Orange "walking away" is neither possible nor practical as (1) Prism has an approval to build pending only final approval from the state's HPC, (2) Prism owns the subject properties and (3) there is a legally binding agreement in place.

Frankly?

I rather doubt a court would declare a default in item 3 (above) based on anything that Prism has or hasn't done thus far, which remains ample reason to stay on course.

As to the Barton Press site, it really has nothing to do with the approvals in place and its development is at least a couple of years doWn the road.

Prism has stated they don't have the financing to move forward, so the project is clearly a no-go. But again you offer entertaining reading with the excuses you make up for your future employer.

Wohopeful:

It remains my mission in life to entertain you having long since concluded you are incapable of being educated.

While they (or most anyone else) would be lucky to have me in their employ, I have no relationship of any type with Prism Capital Partners LLC and don't ever expect to have one.

That said, Prism has one final piece to complete its approval process (a sign off from the state's HPC) and, once in hand, its final financing should fall into place.

Rather than spouting nonsense about what the Township should do, and absent any summary of the possible consequences, I prefer to illuminate the terrain on which we are actually deployed...warts and all.

Well you should try illuminating with facts rather than your flawed personal opinions and conjecture.

Facts remain, that Prism has stated they do not have the funding for the project, they haven't paid theri mortgage and the property has been foreclosed, they are habitually late paying their bills even when the bills were sent to them months ahead of time, etc. these folks are sliding down the failed financial insolvency slope towards bankruptcy. We need to protect the taxpayers interests and move on from this deal before WO is sucked into the failed financial abyss that is Prism.

It is abundantly clear that business with Prism is going to end up unsatisfactory as the history has already proven. We have already spent money on valuable resoruces to chase after substantial monies that were due and not paid according to the bills they were presented We have suffered through the bait and switch games that Prism has played and will be forced to accept more and more concessions the further we go forward. Based on the history with Prism it is just a matter of time before they ask for changes to the already overly generous tax abatements they are due to recieve and we have already opened the taxpayer purse when it comes to provided taxpayer obligated bonds, hust a matter of time before they want access to more of that putting those of us who own homes here at even more risk.

The time is now to sever the ties of a bad business deal that never should have gone forward to begin with. Prism own the property and can do as they wish with it within the regulations of the requisite planniing boards, but WO taxpayers should not be forced to go along for a ride which is clearly not in our best interests.

wohopeful:

Lacking both accuracy and substance you still haven't articulate just what specific course of action the Township should be taking that it isn't.

Fact: The project hasn't cost the Township a penny; all costs have been totally reimbursed by Prism.

Fact: There has been no "bait and switch" in any way, manner or form; the only change of substance being the residential units will now be rentals as opposed to condos and that is solely a function of what contruction financing is now currently available.

Fact: With or without downtown redevelopmnt, the Township will (likely sooner than later) have to bond to replace the 100 year old infrastructure surrounding the battery factory. This IS something it routinely does, year in and out, tbroughout town. It's far better to do it in concert with redevelopment as Prism will provide dedicated funds to pay for it...period.

Mr. Englert, It is clear from your comments that you choose not to keep an open mind and review the many facts myself and others have provided here, including statements by Prism Management themselves. Instead you choose to attempt to demean others and pretend like the facts have not been presented to you when they clearly have.

It is your choice to ignore the facts but it doesn't change the facts or mean that they don't exist or were never presented to you. A position of Ignorance is your choice but certainly not the position those of us who pay taxes and support the town of West Orange are likely to take up.

Here's an old but good write up on the history of the Organon - Main Street - Edison building fiasco, as written by the attorney the township hired to determine if there was a conflict of interest with township attorney working for Prism as well as West Orange.

http://pdfserver.amlaw.com/nj/trenk.pdf

Though the attorney found no conflict of interest , his so called investigation shes some light on the process that brought us to this point.

wohopeful George Orwell, 1984; "He who controls the past controls the future. He who controls the present controls the past."

All: while everyone has points + & - on this project, please go all the way back to my original message. The site looks like something out of the TV Show the Walking Dead. In fact may be Prisim can make some money using the site as a movie set. In the meantime, where are the Township's Zoning Officer and Property Maintenance
people. If any of our properties looked this bad, we would be slapped w/a fine. Make Prisim put back the green screen until they get started, so at least the site will not be
Prisim testified before the Planning Board that the pre-cast conreted components
for the Parking Garage are in the yard of the pre-caster out in PA. Has anyone from
the township actually seen these components?

Jerry
such an eye sore.