Part of a continuing series that appears every other week in the Sun Journal: June 16, 2013
The City of New Bern had tried unsuccessfully to redevelop the remaining 12.5 acre urban renewal vacant parcel on the Trent waterfront for 13 years. Many plans and efforts to redevelop the property never generated any productive proposals. Developing a high quality waterfront redevelopment project was needed to establish a new market of recreation and tourism, critical to downtown’s revitalization effort.
In early 1983, in partnership with City Manager Tony Hooper, Swiss Bear under the leadership of Harold Talton, chairman, and Marvin Davis, executive director, began to aggressively solicit and recruit a developer to construct a hotel with a national franchise. Knowing the numbers were weak, a UDAG was fundamentally necessary to make a project possible. Developers were solicited showing special financing as to how this could be a marginally profitable development, with potential gain over the long term. Although several developers put proposals together, of four proposals received, only two were considered viable enough for the city’s consideration.
In November 1983, following the developers presentations, the Board of Aldermen selected and granted Maurice Elledge and Associates 120 days for the exclusive right to complete a market analysis, secure a franchise, and develop a project financing plan. In May 1984, Maurice Elledge and Associates submitted a letter of commitment to Mayor Paul Cox on behalf of the Trent Development Associates for development of a 100 room Sheraton Hotel with a meeting/conference center and retail space, a 100 slip boat marina and a pedestrian river walkway to be located on 8.5 acres of the City’s redevelopment land with a total cost of $10.1 million, creating approximately 160 new jobs. The commitment was contingent upon the City getting a $2.5 million Urban Development Action Grant (UDAG).
Without it, the project would not move forward.
The UDAG program (only cities could apply) was designed for projects that otherwise could not take place without the grant. If the city did acquire a grant, the project would be financed with a $5.5 million conventional first mortgage debt, $1.6 million in developer equity and $2.5 in UDAG funds. The City would facilitate the acquisition of the project site by taking back a $520,000 purchase money mortgage on the property. The Maurice Elledge as the developer, J.C. Faw and Richard Vaughn, would be the primary investors.
In October 1984, the UDAG grant amount was reduced to $1.5 million. To strengthen the City’s chance of getting it approved, the project plan continued to have modifications. The project required the less typical UDAG because there was substantial piling and fill associated with the waterfront development project and the developer would be paying the entire cost of the convention center and waterfront promenade for the public’s use. The mix of private financing and below market UDAG would induce private investment and make this very important project possible.
In 1984, 330 cities submitted UDAG applications in the 4th quarter of the federal fiscal year. New Bern placed eighth on the list of cities not receiving funding in the first round and was among a very few carried over to the next quarter of funding to be considered the end of October 1984.
Although politics didn’t normally enter into the Urban Development Action Grant selection process, being an election year, a great deal of work took place behind the scenes. U.S. Senators Jesse Helms and John P. East, U.S. Representative Walter B. Jones and Floyd Lupton were inundated with letters from local and state community leaders and elected officials encouraging their support of the pending UDAG application, critical to the creation of 160 new jobs and the future growth of the city.
On Thursday, Nov. 1, 1984, the front page headlines in the Sun Journal announced, “City wins $2 million development grant.” City hall officials were ecstatic. “This is a great day for the town,” said Mayor Cox. “There’s only one way to feel – glorious.” City Manager Tony Hooper said, “If everything goes smoothly, the city could receive the UDAG funds by Jan. 1, 1985.” Swiss Bear Chairman Joe Stallings said, “This project received 100 percent support from the community and the long term efforts of putting together a comprehensive project of this nature is a tribute to our area.”
“This will be the seed of a tremendous amount of development. It’s really just the tip of the iceberg,” said Marvin Davis. Chamber Director Mike Tiddy said, “The grant may be the most important project since the restoration of Tryon Palace.”
Under the terms of the award, Elledge was to repay the city at six percent interest in the project’s sixth and seventh years and eight percent interest for the rest of the 25-year loan. The city was required to use the developer’s pay back money for other economic or community development projects.
The next steps required submission of a design and site plan for the proposed structure and landscaping to New Bern’s Historic Preservation Commission committee (HPC) and the N.C. Department of Cultural Resources (DCR) to determine the proposed project’s effect on New Bern’s Historic District. Archaeological investigations conducted in 1981 by Archaeological Research Consultants in that general area discovered stratified archeological remains of some historical significance. Since this portion of the Trent River waterfront was heavily used for wharf and waterfront activities, a thorough program of archeological testing was required. The Kellenberger Foundation funded this phase of the project.
By May 1985, the conditions were met and approved, the Board of Aldermen closed on the redevelopment property, the ground breaking was held in June. When the hotel and marina opened in December 1986, the city and Swiss Bear received a Certificate of National Recognition for Waterfront Development for its strong public-private partnership from the Federal Housing and Urban Development.
Tourists filled the hotel and marina slips. One year later, a new Ramada Hotel and marina graced the opposite side of the Trent River shoreline on a parcel of land that was a storage site for used tires.
The two decades of energy and leadership the city, county, Swiss Bear and many others invested in getting a hotel and marina built on the Trent waterfront served as a catalyst in bringing new life, sparkle and activity back to the waterfront.
Susan Moffat-Thomas Executive Director
Swiss Bear Downtown Development Corporation.
 |
| A new waterfront Sheraton Hotel and marina broke ground in 1985 with the help of a $2 million grant. |
 |
| This new offering helped bring new life to New Bern's waterfront. |
The City of New Bern had tried unsuccessfully to redevelop the remaining 12.5 acre urban renewal vacant parcel on the Trent waterfront for 13 years. Many plans and efforts to redevelop the property never generated any productive proposals. Developing a high quality waterfront redevelopment project was needed to establish a new market of recreation and tourism, critical to downtown’s revitalization effort.
In early 1983, in partnership with City Manager Tony Hooper, Swiss Bear under the leadership of Harold Talton, chairman, and Marvin Davis, executive director, began to aggressively solicit and recruit a developer to construct a hotel with a national franchise. Knowing the numbers were weak, a UDAG was fundamentally necessary to make a project possible. Developers were solicited showing special financing as to how this could be a marginally profitable development, with potential gain over the long term. Although several developers put proposals together, of four proposals received, only two were considered viable enough for the city’s consideration.
In November 1983, following the developers presentations, the Board of Aldermen selected and granted Maurice Elledge and Associates 120 days for the exclusive right to complete a market analysis, secure a franchise, and develop a project financing plan. In May 1984, Maurice Elledge and Associates submitted a letter of commitment to Mayor Paul Cox on behalf of the Trent Development Associates for development of a 100 room Sheraton Hotel with a meeting/conference center and retail space, a 100 slip boat marina and a pedestrian river walkway to be located on 8.5 acres of the City’s redevelopment land with a total cost of $10.1 million, creating approximately 160 new jobs. The commitment was contingent upon the City getting a $2.5 million Urban Development Action Grant (UDAG).
Without it, the project would not move forward.
The UDAG program (only cities could apply) was designed for projects that otherwise could not take place without the grant. If the city did acquire a grant, the project would be financed with a $5.5 million conventional first mortgage debt, $1.6 million in developer equity and $2.5 in UDAG funds. The City would facilitate the acquisition of the project site by taking back a $520,000 purchase money mortgage on the property. The Maurice Elledge as the developer, J.C. Faw and Richard Vaughn, would be the primary investors.
In October 1984, the UDAG grant amount was reduced to $1.5 million. To strengthen the City’s chance of getting it approved, the project plan continued to have modifications. The project required the less typical UDAG because there was substantial piling and fill associated with the waterfront development project and the developer would be paying the entire cost of the convention center and waterfront promenade for the public’s use. The mix of private financing and below market UDAG would induce private investment and make this very important project possible.
In 1984, 330 cities submitted UDAG applications in the 4th quarter of the federal fiscal year. New Bern placed eighth on the list of cities not receiving funding in the first round and was among a very few carried over to the next quarter of funding to be considered the end of October 1984.
Although politics didn’t normally enter into the Urban Development Action Grant selection process, being an election year, a great deal of work took place behind the scenes. U.S. Senators Jesse Helms and John P. East, U.S. Representative Walter B. Jones and Floyd Lupton were inundated with letters from local and state community leaders and elected officials encouraging their support of the pending UDAG application, critical to the creation of 160 new jobs and the future growth of the city.
On Thursday, Nov. 1, 1984, the front page headlines in the Sun Journal announced, “City wins $2 million development grant.” City hall officials were ecstatic. “This is a great day for the town,” said Mayor Cox. “There’s only one way to feel – glorious.” City Manager Tony Hooper said, “If everything goes smoothly, the city could receive the UDAG funds by Jan. 1, 1985.” Swiss Bear Chairman Joe Stallings said, “This project received 100 percent support from the community and the long term efforts of putting together a comprehensive project of this nature is a tribute to our area.”
“This will be the seed of a tremendous amount of development. It’s really just the tip of the iceberg,” said Marvin Davis. Chamber Director Mike Tiddy said, “The grant may be the most important project since the restoration of Tryon Palace.”
Under the terms of the award, Elledge was to repay the city at six percent interest in the project’s sixth and seventh years and eight percent interest for the rest of the 25-year loan. The city was required to use the developer’s pay back money for other economic or community development projects.
The next steps required submission of a design and site plan for the proposed structure and landscaping to New Bern’s Historic Preservation Commission committee (HPC) and the N.C. Department of Cultural Resources (DCR) to determine the proposed project’s effect on New Bern’s Historic District. Archaeological investigations conducted in 1981 by Archaeological Research Consultants in that general area discovered stratified archeological remains of some historical significance. Since this portion of the Trent River waterfront was heavily used for wharf and waterfront activities, a thorough program of archeological testing was required. The Kellenberger Foundation funded this phase of the project.
By May 1985, the conditions were met and approved, the Board of Aldermen closed on the redevelopment property, the ground breaking was held in June. When the hotel and marina opened in December 1986, the city and Swiss Bear received a Certificate of National Recognition for Waterfront Development for its strong public-private partnership from the Federal Housing and Urban Development.
Tourists filled the hotel and marina slips. One year later, a new Ramada Hotel and marina graced the opposite side of the Trent River shoreline on a parcel of land that was a storage site for used tires.
The two decades of energy and leadership the city, county, Swiss Bear and many others invested in getting a hotel and marina built on the Trent waterfront served as a catalyst in bringing new life, sparkle and activity back to the waterfront.
Susan Moffat-Thomas Executive Director
Swiss Bear Downtown Development Corporation.
No comments:
Post a Comment