From: Robert A. Altenkirch
Date: Tuesday, December 8, 2009
RE: Gateway Project Update
I am pleased to announce that the Gateway Project is now moving into a new phase, one of execution. Following Central Planning Board and Municipal Council approval of the Gateway Plan and Council designation of NJIT as Redeveloper for the properties located within the Gateway Project, the City of Newark and NJIT entered into a Redevelopment Agreement. NJIT now has the rights and responsibilities to redevelop the properties within the Gateway Project and, importantly, access to financial benefits provided by various government and development entities to support execution of the Project. On December 4, 2009, NJIT entered into a Development Agreement with Jones Lang LaSalle, Inc. (JLL) as previously provided as part of the terms in the Request for Qualifications by which JLL was selected to develop the Plan. The Development Agreement details the schedule of payments from JLL to NJIT that repays the cash advance NJIT put forward to support development of the Plan. The first payment was received on signing of the Development Agreement.
Additionally, JLL has established a joint venture partnership (JV) with a private equity investment and asset management company with interests in a diverse portfolio of commercial real estate, including major urban office buildings, shopping centers and undeveloped land. The JV will be responsible for execution of the Development Agreement with JLL. The Project is planned in three Phases, the first of which entails development of the first phase of a multi-level, structured parking facility on the St. Michael’s parking lot on MLK between James and Orange Sts. for use by St. Michael’s and NJIT and development of the first phase of the Greek Village on the NJIT parking lot bounded by Warren and Colden Sts. and Raymond Blvd. The three Phases are planned over a ten year period.
We will keep you posted on significant Project developments as they occur. Reaching this point in the Project is a significant milestone representing movement to enhancement of the neighborhood next to campus for the benefit of the community and NJIT.