PATERSON, NJ – (BUSINESS WIRE) – BAW Development announced today that it has completed $ 94 million financing for the refurbishment of the Hinchliffe Stadium Neighborhood Restoration Project (HSNRP) in Paterson, New Jersey, which includes Hinchliffe Stadium, one of only two remaining stadium structures that house a Negro League baseball team.
Funding comes through a unique combination of personal loans, tax credits and other funds, including a $ 60 million home loan from Goldman Sachs and a $ 10 million equity and community development subsidiary.
The funding also includes $ 21 million in New Market tax credits from four Community Development Entities (CDE): Community Loan Fund of New Jersey, Consortium America, RBC Community Development, and USBCDE. The Passaic County Improvement Authority has also issued a bond in support of the project that Goldman Sachs acquired under its home loan, which serves as a bridging loan for the New Jersey Economic Redevelopment and Growth (ERG) loans.
The entire financing was managed by BAW’s partner in the redevelopment, the RPM Development Group.
“When it comes to a project of this type, it undoubtedly takes a strong team to get all of the pieces in place on the website,” said Baye Adofo-Wilson, founder of BAW Development. “Given the challenges of the past year, moving this long-awaited infrastructure project forward required a highly complex, creative funding structure from all sides. The successful closings are proof of our partners’ belief in the future vision of the Hinchliffe Stadium, but in the wider impact it will have for the entire city of Paterson. ”
The financing enables the ongoing renovation of the stadium, which officially broke ground in mid-April. The construction process is expected to take around 18 months, with delivery scheduled for autumn 2022.
BAW Development estimates that the project will create around 94 temporary construction jobs, while the completed development will create 7 full-time and 30 permanent part-time jobs. At least 30% of the construction and permanent jobs will be aimed at minorities and / or residents.
“We are excited to play a role in this transformative project that will provide much-needed affordable housing for seniors, create quality employment, and revitalize one of Paterson’s historic gems and provide incredible amenity that the community can share for decades to come.” said Daniel Alger, Managing Director and Co-Head of Urban Investment Group at Goldman Sachs Asset Management. “This project raised the bar for public-private collaboration and community development and we couldn’t be happier to be part of it.”
US Bank has provided funding to the stadium renovation as part of its ongoing US Bank Access Commitment initiative, which focuses on helping People of Color businesses, advancing individuals and communities of color, and improving career opportunities for employees and potential employees to improve.
“We are looking for ways to raise, invest, and influence capital to promote racial justice, and this project will,” said Steve Kramer, senior vice president of US Bancorp Community Development Corporation. “It will catalyze tourism and fuel investment in Paterson, a diverse and underserved community. It will create state-of-the-art recreational facilities for Paterson’s youth. And it includes requirements for hiring people from the local community and contracting out small businesses owned by minorities and women. These are all important steps in building thriving communities. ”
Hinchliffe Stadium was originally built in 1932 and was once the home of Negro League teams such as the New York Black Yankees and New York Cubans, at a time when many of baseball’s most talented players were excluded from the sport’s greatest stage was. Over the decades, the ballpark has hosted a variety of sporting and cultural events, including high school sports, as well as car races, boxing tournaments, and concerts. The ballpark fell into disrepair in the late 1990s and has been largely neglected for the past two decades, which opened the door to the redevelopment initiative led by BAW Development and RPM Development Group.
The remediation now underway is Paterson’s most ambitious major development in many years. The initiative is highlighted by the complete refurbishment and modernization of the historic stadium, making the facility ADA compliant and improving the playing field, toilets, lighting, scoreboard and seating areas.
In addition to the sports facility with 7,800 seats, the project also includes the basic development of:
A 12,000 square meter restaurant and event space that will pay tribute to the athletic successes of the pros and high school at the Hinchliffe Stadium, as well as the racial problems associated with it
A six-story, USGBC LEED Platinum certified, affordable senior living building with 75 studio, one and two bedroom units
A 5,200-square-foot preschool; and
A structured car park with 314 spaces
The ballpark was originally publicly built during the Franklin D. Roosevelt administration and has been owned by the Paterson Public Schools since the 1960s. BAW Development secured a majority stake in the baseball stadium in 2021.
The historic stadium was designed in an elegant architectural style that includes an Art Deco exterior and a classic horseshoe-shaped amphitheater-style interior that can serve as a playing field for baseball, soccer, football, athletics, and lacrosse, as well as concerts and other cultural events Events. When construction is complete, it will become the home field of John F. Kennedy High School for various sports and will also serve the wider community for concerts, festivals, sports camps, and other semi-professional and professional sporting events.
“The Hinchliffe Stadium Neighborhood Restoration Project is a unique project that requires a remarkably creative funding strategy. We had to dig deep into the community development toolbox. The way our 10 partners – four public institutions and six private institutions – have been able to work with us to handle various regulations, program rules and approval periods for carrying out this funding has been impressive, “said Joe Portelli of RPM Development. “We’ve been so focused for so long it’s easy to forget that they made their commitments during the height of the COVID-19 pandemic and a time of great uncertainty. We are particularly grateful to the Murphy Administration for their support of the project through the New Jersey Housing and Mortgage Finance Agency and the New Jersey Economic Development Authority. ”
About the BAW development
BAW Development, LLC is a real estate development and consulting firm focused on arts and culture projects, heritage conservation, sustainability and affordable housing developments in Black & Brown communities. Founded by Baye Adofo-Wilson, Esq., AICP, BAW Development’s creative approach is shaped by ideas of community, justice and history.