A possible new silk lining for Paterson

Tuesday, July 12, 2005

Originally published in the Opinion section

At the end of June, Paterson balanced its budget with a $3 million loan from the state. The shortfall was caused when the Schools Construction Corp. failed to purchase four city-owned sites. The $3 million from the state Department of Community Affairs will have to be repaid after (or if) those sites are sold. Meanwhile, an ambitious proposal for the Great Falls site was announced last week. If it comes to fruition, the city would see new housing, retail and a hotel. This is a tale of two Patersons: the one that exists and the one that might be.

Patersonians have hoped for a renaissance in the Silk City. Up to date, there have been many fitful starts and stops. Many of New Jersey's struggling municipalities have seen the Schools Construction Corp. as a cash cow to be milked. The state agency charged with dispersing billions of taxpayer dollars to construct new schools in 31 special-needs districts, in addition to partially aiding other school districts in new construction projects, will be out of cash by January. About half of the needed schools will either have been constructed or committed to construction.

A state inquiry into the financial dealings of the SCC resulted in a blistering report and a halt on new projects. Paterson had counted on the SCC buying city-owned land this year on which to build schools. While the state has a legal obligation to build the remaining schools, it does not have to buy those four sites. There may be better deals and locations. Balancing the budget on possible "one-shots," non-recurring revenue, is bad planning. The city dodged a bullet - for now. But it still has to repay the $3 million to the DCA when it sells those four sites.

The possibility of a private developer sinking $275 million into the Great Falls area could be an extraordinary turnabout for Paterson and its finances. Dornoch Paterson LLC has submitted a proposal that would transform the historic area into a showplace. Principals in the corporation have been active in redeveloping Asbury Park. The details released so far show an ambitious project. The City Council will have to sort through the proposal and judge what impact it would have on the city, the environment and the historic nature of the Great Falls. On the surface, it is exactly what Paterson needs - residential, retail and a hotel and conference center.

Developers may finally be realizing the unique geography and history of the city - the Great Falls, the old mills and good mass transportation connections to Manhattan. Proposals for the Great Falls site have come and gone, as have ones for Center City. There have been proposals for housing before - everything from condos to tepees.

The Dornoch Paterson proposal could be a literal bridge to redevelopment of the area surrounding Hinchliffe Stadium. One of the sites awaiting SCC approval is Hinchliffe; the school district wants a sports academy adjacent to the stadium. Dornoch proposes a retail/entertainment complex on Alfano Island, formerly S.U.M. Island. The island sits in the Passaic River, and Dornoch would construct a pedestrian bridge from the north side of the river to the island.

Paterson cannot hope on future one-shots to balance its books. There are few suitable sites for schools, and once they have been sold, they are gone. Like much in Paterson, this new proposal is tempting, but still out of reach. There are many questions to be answered. But if indeed this proposal pans out, the Silk City's renaissance will have begun.

Reproduced with permission of North Jersey Media Group