REAL ESTATE
BAW Development Lands $ 94M for Hinchliffe Stadium Project
Capital from Goldman Sachs Asset Management and U . S . Bank will finance the Paterson project .
Compiled by John Joseph Parker Contributing Editor
BAW Development has closed on the $ 94 million financing for the redevelopment of the Hinchliffe Stadium Neighborhood Restoration Project ( HSNRP ) in Paterson which includes Hinchliffe Stadium , one of just two remaining stadium structures that were home to a Negro League baseball team .
The financing comes via a unique combination of private loans , tax credits and other vehicles , including a $ 60 million construction loan from Goldman Sachs and $ 10 million in New Market Tax Credit and Federal Historic Tax Credit equity from U . S . Bancorp Community Development Corporation , U . S . Bank ’ s tax equity and community development subsidiary .
The financing also includes $ 21 million of New Market Tax Credit allocation from four Community Development Entities ( CDE ): Community Loan Fund of New Jersey , Consortium America , RBC Community Development and USBCDE . The Passaic County Improvement Authority also issued a bond in support of the project , purchased by Goldman Sachs through its construction loan , which serves as a bridge loan for the New Jersey Economic Redevelopment and Growth credits .
All financing was managed by BAW ’ s partner on the redevelopment , RPM Development Group .
“ When it comes to a project of this nature , there ’ s no question that it takes a strong team to put all the pieces in place , and we are extremely thankful for the diverse group of financial partners that came together to fund the
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reimagination of this historic site ,” says Baye Adofo-Wilson , founder of BAW Development . “ Given the challenges of the last year , pushing this long-awaited infrastructure project forward required a highly complex , creative financing structure from all parties . The successful closings are a testament to our partners ’ belief in the vision for the future of not only Hinchliffe Stadium , but the broader impact it will have for the entire city of Paterson .”
The financing will enable the ongoing redevelopment of the stadium , which officially broke ground in mid-April . The construction process is expected to last approximately 18 months , with delivery expected in the fall of 2022 .
BAW Development estimates that the project will create approximately 94 temporary construction jobs , while the completed development will create 7 full-time and 30 part-time permanent jobs . At least 30 percent of construction and permanent jobs will be targeted to minority and / or local residents .
“ We are excited to play a role in this transformative project which will provide much needed affordable housing to seniors , generate quality jobs and revive one of Paterson ’ s historic gems , providing an incredible amenity that can be shared by the community for decades to come ,” says Daniel Alger , managing director and cohead of the Urban Investment Group within Goldman Sachs Asset Management . “ This project has raised the bar for public-private collaboration and community development and we could not be happier to be a part it .”
U . S . Bank provided capital to the stadium redevelopment as part of its ongoing U . S . Bank
A rendering of the restored Hinchliffe Stadium . A rendering for the senior housing facility .
U . S . Bancorp Community Development Corporation Senior Vice President Steve Kramer
Access Commitment initiative , which focuses on supporting businesses owned by people of color , helping individuals and communities of color advance economically and enhancing career opportunities for employees and prospective employees .
“ We ’ re looking for ways to lend , invest and influence capital in ways that advance racial equity , and this project will do that ,” explains Steve Kramer , senior vice president of U . S . Bancorp Community Development Corporation . “ It will catalyze tourism and spur 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 to hire from the local community and award contracts to minority and women-owned small businesses . Those are all important steps in building thriving communities .”
Originally constructed in 1932 , Hinchliffe Stadium once served as home to Negro League teams such as the New York Black Yankees and New York Cubans , in an era when many of baseball ' s most talented players were barred from the sport ' s biggest stage . Over the decades , the ballpark hosted a wide range of athletic and cultural events , including high school sports as well as motorcar racing , boxing tournaments and concerts . The ballpark fell into disrepair in the late 1990s and has been largely neglected for the last two decades , opening the door for
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