Mayor says Prism to resume construction on Edison project this year, in latest timetable

Mayor Robert Parisi said tonight that he had met with Prism Capital Partners, the designated downtown redeveloper, on Wednesday and that now Prism is saying that it obtained financing and plans to resume construction sometime this year.

Prism’s apparent inability to secure $50 million in construction financing appears to be one of the challenges that has slowed the company’s plan to create 334 apartments, a garage and 18,000 square feet of retail space on the site of the Edison Battery Factory at 175 Main Street. The project stopped construction efforts in 2008.

Mayor Parisi made his comments at tonight’s community meeting at Washington Elementary School.

This is the latest timetable that Prism has provided. In January, the company projected a spring 2013 project restart in a news release. More recently, Prism principal Eugene Diaz was quoted in local news media that the company would resume construction in September or early October. That now appears unlikely in the wake of the mayor’s comments.

Mayor Parisi said Prism is also planning to lease part of its empty retail space next the CVS 215 Main Street to a small supermarket. The mayor did not address information from Prism’s financial statements indicating it is in default on its mortgage secured by the property where the CVS is located.

Also, as of tonight, town records indicate Prism is still delinquent on about $250,000 in property taxes within the redevelopment zone – down from about $450,000 after making partial payments in late September. The 2006 Redevelopment Agreement specifies that delinquent taxes are an event of default that allows the town to withdraw its exclusive redeveloper designation. 

Since March, the mayor and administration have refused to ask the town’s redevelopment lawyers and financial advisor to address questions I’ve asked about Prism. (A reader asked for the questions. They're in the comments, but here's an easier to read pdf version -- http://bit.ly/18tP5kK.)

I’m a West Orange Township councilman since 2010, reachable at jkrakoviak@westorange.org. I'm a business communications consultant in my spare time.