South Jersey town seeks hotel developer

By JOEL LANDAU • GANNETT NJ• October 19, 2010

MILLVILLE — The city is taking tighter control of the
next step in its downtown development efforts.

Millville officials hope to find a developer for a
private-public partnership to build a downtown
hotel on city-owned land near the Maurice River.
Officials have tried to advance the project for a few
years, but now they're taking a more aggressive
approach.

"We've decided not to just sit on our hands," Mayor
Tim Shannon said. "We're still moving forward."

The city is working with the National Development
Council -- a national, nonprofit agency that
provides loans for economic development projects
-- to build a hotel with more than 100 rooms and a
restaurant, plus a 200-space parking garage and a
new 15,000-square-foot library.

The NDC would issue bonds and contract with a
private developer to build the project and operate
the hotel. Once construction is complete and the
bonds are paid off, the city would own the parking
garage and library.

City officials estimate the project would cost 10
percent to 30 percent less through this approach
because they could secure financing at a lower rate
than a private developer would obtain.

The city has several financing options, including:

-Through the NDC, it could offer a developer loans
and federal tax credits to help finance the project.

-The city has money in its Urban Enterprise Zone
accounts, but Shannon said using those funds is
less likely due to an ongoing state review of the UEZ
program that might result in that money being
unavailable.

-The city could use funds from its Revenue
Allocation District to offer loans to a developer. The
hotel, in turn, would generate more revenue for the
district, which allocates half the tax on new
development and uses it for restoring properties in
Center City and the 3rd Ward or other projects.

City officials note the project is still in its planning
stages.

"We're working on a number of concepts," Vice
Mayor Joe Derella said. "We're not there yet."

The hotel is the centerpiece of Millville's efforts to
revitalize the area around the Maurice River. The city
currently is extending its boardwalk, and in 2008, it
used public grants to install a pedestrian bridge
allowing people to walk to Waltman Park.

Through Revenue Allocation District money, the city
this year also purchased and demolished a building
on the 200 block of Buck Street to provide better
waterfront access.

Officials hope a hotel would serve people visiting
New Jersey Motorsports Park and the Levoy Theatre,
which is set to reopen next year, and encourage
them to spend more time patronizing downtown
shops and restaurants.

"It's more than just a hotel," Shannon said. "We're
looking long-term for the city."

Last year, the city put out a request for proposals
for a new hotel, but received only one application.
The city then decided to actively seek a developer
instead of rebidding the project.

Other hotel plans also are in the works in Millville.

In July, construction started on a Fairfield Inn &
Suites by Marriot on Bluebird Lane behind the Union
Lake Crossing shopping center. There also are
plans to build a Marriot TownPlace Suites at that site,
and a Home2 Suites by Hilton behind Wawa on
North 2nd Street.