Mar 8 2010

Lifesaving station needs saving in Ocean City

Ian Lazarus

Roy Wagner, Ocean City Councilman, and Charlie London show the outside of the Ocean City Lifesaving Station at 801 4th St. in Ocean City. Photo by: Anthony Smedile

By MARTIN DEANGELIS, Press of AC Staff Writer | Posted: Sunday, March 7, 2010

OCEAN CITY — Charlie London wants to put you in this house.

Or you. Or you.

Actually London, 51, the president of the Saving Our Station Coalition, would like to see just about anybody move into the house on the northeast corner of Fourth Street and Atlantic Avenue here, because this house isn’t just another house.

It’s the old Ocean City Lifesaving Station, which dates back to the 1880s — and which has been the subject of a series of court battles that started in the 1990s and has dragged on for a long decade since.

The station was built by the United States Lifesaving Service and then became U.S. Coast Guard property when those two agencies were merged. It was sold and became a private home in 1945 and has gone through a series of owners since, including ones who bought it in 1999, planning to demolish the building and replace it with three new duplex condos on the 130-by-100 foot corner lot.

That gave birth to the Saving Our Station Coalition, which started those court fights and tried several other plans for rescuing the building, including getting the city to buy the property for more than $3 million — a move voters rejected in a 2005 referendum.  There have also been proposals to move the building and to get the city to trade for it with an unused piece of city land, but so far, nothing has worked to guarantee that the building and its history won’t be destroyed.

In the latest court case, though, the owners agreed with the SOS Coalition and the city on a “preservation price” for the property of $887,500. But that agreement, helped along by a judge, came with a deadline: If there’s no buyer by May 14, the owners can get rid of the building.

And that pressure has turned London and other members of his coalition into committed — but no-commission — real-estate sellers of a sort. They’ve held two open houses already trying to lure the right buyers to the house, and they have two more open houses scheduled this month, on Saturday and then again March 27.

“At this point, we’re planning another two in April, and one more in May, if not two,” said London, 51, who helped lead a visitor on a weekend tour of the 135-year-old building and pointed out some of the details that its fans hope can attract a buyer who would want to live in a historic house.

They include wide-planked hardwood floors all through the home. There’s a working fireplace that dominates a front parlor, a sprawling, open kitchen with an island area topped by a butcher-block counter, four bedrooms and three and a half bathrooms.

“The building is solid,” adds Kim Baker, a retired writer and editor who lives in Egg Harbor Township, and is the SOS Coalition’s historian. “I mean, it was built to last.”

They point to the 180-square-foot greenhouse as they walk by, mention the high ceilings and “a lot of closet space,” says London, strolling down a first-floor hallway lined with closets on one side. For more storage, there’s a detatched garage outside.

London lives in Ventnor and works at Atlantic City International Airport now, but he got involved in the lifesaving station when he lived right next door for a dozen or so years. He leads the way to the upstairs, where the master bedroom — which used to be the crew’s quarters — has a bathroom that’s so big, he sees it being turned into two bathrooms to make the master suite a little more attractive.  

Above it all, on the third floor there’s a cupola that the lifesaving crew used as its lookout — and that still has an ocean view, Baker and London promise, even if the windows are boarded up now.

“And this is considered beach-block,” Baker adds — although it is a full, long block to the Boardwalk and ocean, past many homes built on the beach after the lifesaving station went up in what was then a largely empty area of town.

The terms of the historic-preservation agreement say a prospective owner can do just about anything they want inside the house — including convert it into a duplex, the tour guides say. But they warn that buyers have to protect the “historic integrity” of the building, so they’d be strictly limited in what they can do to the outside of the home.

Ocean City Councilman Roy Wagner is still pushing to get the city to do a land-swap for the building and help convert it into a maritime museum, but he’ll be satisfied with any plan that will preserve the lifesaving station.

“The firstest with the mostest gets it,” Wagner said.

London isn’t giving up hope on public preservation plans, and he looks forward to a city meeting planned for this week that could help make that happen at the new price — which is less than a third of what the city planned to buy the place for in 2005.

“We’re going on both paths, full speed ahead,” he said.

So even though the house wasn’t scheduled to be open, when two visitors on a house-hunting mission in Ocean City went to the door on Saturday, London happily let them in and showed them around.

 Jim and Kristin Kline are from Sparta, in Sussex County, but they’ve visited Ocean City for years and they’ve always wondered how the lifesaving station was on the inside.

 “It looks like a great house,” Kristin said. “Lots of charm and character.”

Her husband agreed — to a point.

“It has the character,” he said, “but it needs work.”   

The people making the sales pitch understand that. But London argues that at the court-mandated, non-negotiable purchase price, even if it takes $200,000 worth of renovations, a beach-block house on an oversized lot for less than $1.1 million qualifies as a positive bargain in today’s Ocean City real-estate market.

Oh, and speaking of the size of the lot, near the end of the tour, London pointed out a feature of this property that could make the lifesaving station the dream property for almost anybody in Ocean City — or in any other traffic-clogged local shore town almost any summer day.

“Out back,” he said, leading the way, “you have probably 12 parking spaces.”


Mar 3 2010

Revel tax-deal protesters to rally today at landowner’s offices

Ian Lazarus

Revel Hotel and Casino in Atlantic City. Estimated opening Spring 2011

By MICHAEL CLARK, Press of AC Staff Writer | Wednesday, March 3, 2010

Unlikely forces will band together today to protest a $300 million tax-incentive plan that Revel Entertainment Group is relying on to open its $2.6 billion casino project in Atlantic City.

Steve Lonegan, a conservative gubernatorial candidate last year, and members of the powerful hotel and casino workers’ union UNITE-HERE are scheduled to protest in front of the Jersey City offices of Morgan Stanley, the financial services provider that owns the South Inlet site where Revel sits.

Lonegan said his conservative advocacy group, Americans for Prosperity, hopes to educate taxpayers outside the southern New Jersey region about the proposed deal.

“New Jersey cannot afford this bailout mania,” he told The Press of Atlantic City on Tuesday. “As people learn more and more, I don’t know how people are going to tolerate this.”

The plan would save Revel about $300 million in state sales taxes over 20 years, which could go a long way to attracting potential financiers. Lonegan said his group also is opposed to a $50 million plan that would redirect future Atlantic City property-tax revenue to fund infrastructure improvements around the half-built casino.

The Revel project remains under slow construction as company officials work to secure financing, the prospects of which have spiraled since the collapse of the financial market in 2008. In January 2009, Revel officials laid off 400 construction workers and pushed back the project’s grand opening from 2010 to 2011.

Revel Chairman and CEO Kevin DeSanctis initially had little reaction to news of the protest Tuesday, simply saying, “they’re persistent.” But he soon added to that.

“If they have a problem, I wish they would speak to the legislation,” DeSanctis said, referring to the stimulus act passed in the summer that enables abatements to qualified applicants. “I don’t recall anyone coming out like this when the legislation was passed.”

DeSanctis and his company has faced stiff opposition from Bob McDevitt, president of Local 54 of UNITE-HERE. The union leader started a petition drive against Revel’s proposal, which required Atlantic City Council approval. The group has also lobbied state legislators unsuccessfully.

Lonegan, who credited McDevitt for organizing today’s rally, said state lawmakers are describing the proposal as “a done deal.”

McDevitt, who did not return calls seeking comment Tuesday, is also the first political opponent of the plan to change the target from Revel to Morgan Stanley, a clear attempt to capitalize on widespread outrage over the banking bailouts of 2008. Morgan Stanley received $10 billion from the federal government.

Morgan Stanley purchased the city land in 2006, but Revel filed the application and is lobbying to obtain tax breaks.

“Revel made the application, not Morgan Stanley,” DeSanctis said. “There’s just too much confusion out there. The point is being lost.”


Feb 23 2010

Trump, Icahn vying in court today for Atlantic City casinos

Ian Lazarus

Associated Press & Reuters |

Lawyers for two billionaires will be in court Tuesday wrangling over which will have an ownership stake in the three Atlantic City casinos that bear the name of Donald Trump.

Trump resigned last year from the board of Trump Entertainment Resorts just before the company filed for bankruptcy.

But now he’s joined with the bondholders to emerge as the owner.

The competition is another big name in the casino business. Carl Icahn says he would wipe out all the casino’s debt if his group takes over. But it’s not certain the Trump name would remain on the casinos if that’s the case.

A federal bankruptcy judge in Camden is starting proceedings to determine which group should own the business.

Meanwhile, Beal Bank, a senior lender to Trump Entertainment Resorts (TRMPQ.PK), filed a complaint on Monday against 10 other creditors of the bankrupt casino operator, accusing them of violating an intercreditor agreement.

The complaint came on the eve of the hearing in New Jersey bankruptcy court.

On one side is a group of bondholders owed $1.25 billion who have the support of Donald Trump. On the other is Beal Bank and billionaire investor Carl Icahn with their own restructuring proposal.

In the complaint, Beal Bank — which lent $500 million in financing to Trump — said bondholders and U.S. Bank violated an intercreditor agreement by proposing an alternate reorganization plan for Trump Entertainment.

A representative for the bondholders, which includes Avenue Capital Management and OakTree Capital Management, could not be immediately reached.

A U.S. Bank representative could not be reached. U.S. Bank is the second lien collateral agent, according to the complaint.


Feb 11 2010

The truth about short sales, Last-minute concessions make or break deal

Ian Lazarus

By Dian Hymer
Inman News February 09, 2010

Buyers often shy away from considering short-sale listings, either because they’ve had a bad experience or have heard horror stories about the deals that take forever and never close. Buyers’ agents sometimes steer their clients away from sales that are subject to the lender agreeing to accept less than what they’re owed, because it can mean a lot of work for nothing.

Short sales will probably be a part of the home-sale market for the next couple of years. They provide opportunities for buyers, particularly those attempting to buy a home in a low-inventory market.

Before you enter into a contract to buy a short-sale listing, make sure that you understand the process and set your expectations accordingly. One of the biggest differences between a short sale and a conventional sale is that short sales take longer. Although many lenders are streamlining the short-sale process, it can still take 45 days from contract acceptance to receive lender approval.

Make as clean an offer as possible, but be sure to include contingencies for inspections and appraisal and loan approval. Your contract should also include a short-sale addendum that includes a time frame for lender approval.

Listing agents often want the buyers’ contingencies to begin when the offer is accepted by the seller. However, buyers usually prefer to pay for inspections and the appraisal after lender approval. As in all home-sale transactions, these items are negotiable.

Your short-sale offer will stand a better chance of lender approval if you are preapproved for financing. Include verification of the funds needed for your downpayment and closing costs and a preapproval letter from your lender with your offer. The ratified purchase offer and supporting documentation from the seller and listing agent will be submitted to the lender.

Short-sale approval is often contingent on the buyer and seller making concessions. This means that the lender could ask the buyers to pay a higher price. The seller could be asked to bring money into escrow so that the lender nets more from the sale than the contract provides. If either party is unable or unwilling to do so, the transaction will fail unless the lender reconsiders.

HOUSE HUNTING TIP: Regardless of how committed you are to buying, it’s not wise to bid on every short sale you come across that might work for you. Approximately one-third of the short-sale listings on the market don’t close, either because the lender won’t approve a realistic price, or because there are multiple liens secured against the property. Generally, if there are more than two liens, the likelihood of the short sale going through is slim.

Don’t look at a short-sale listing until your agent has talked with the listing agent to find how much ground work has been done. Does the listing agent have the sellers’ written authorization to negotiate on their behalf with the lender? Has the listing agent been in touch with a representative of the lender’s loss mitigation department? Have the sellers provided all the documents that will need to be submitted to the lender when an offer is accepted, such as a financial statement, hardship letter, bank statements, pay stubs, etc.

Stay away from short-sale listings where the listing agent doesn’t have the seller’s cooperation. For instance, the sellers may not have their paperwork in order to present to the lender. Understandably, it’s difficult for most people to face losing their home and good credit. But, without the sellers’ cooperation, the sale won’t go through.

THE CLOSING: Short sales require a lot of patience, a cooperative effort between the buyers, sellers and agents involved, and frequent communication to keep everyone involved in the process up-to-date.

Dian Hymer, a real estate broker with more than 30 years’ experience, is a nationally syndicated real estate columnist and author of “House Hunting: The Take-Along Workbook for Home Buyers” and “Starting Out, The Complete Home Buyer’s Guide.”


Jan 14 2010

Avalon officials ready to push forward on beach-fill project

Ian Lazarus

Avalon Beach Fill Project

By BEN LEACH Staff Writer | Posted: Wednesday, January 13, 2010 |

Avalon borough officials are anticipating a smooth ride as they prepare to do another beach-fill project before the start of the busy summer tourist season.

The major beach-fill project, first proposed in October, already is moving forward with the support of the municipalities involved, with state funding.

Great Lakes Dredge and Dock Company, LLC, of Oak Brook, Ill., already has submitted a bid of $10.4 million for the project. The price for transporting sand would be about $8.92 per cubic yard, down from $10.53 per yard in 2008.

“We would recommend that we award this contact as soon as possible and get this firm locked in,” said Tom Thornton, engineer for the borough of Avalon.

Avalon and Sea Isle City are participating in a joint beach-fill project. Avalon is expected to receive about 500,000 cubic yards of sand, while Sea Isle City will get about 700,000 cubic yards. The project would place sand on Avalon from Ninth Street to 26th Street.

While Avalon’s council members expressed their support to move the funding to a bond referendum, “I think it’s imperative that we keep the pressure on the state and the federal government to assist us,” said Charles Covington, borough council president.

Avalon already has a permit from the state Department of Environmental Protection and is waiting for the U.S. Army Corps of Engineers to modify the project so it can move forward.

Even though Avalon’s portion of the funding would only be about $4.5 million under the Great Lakes bid, the town will ask for $5.5 million in the bond referendum, in case it becomes possible to fill the beach with more sand.

“We might get another 100,000 cubic yards or so before they start working,” Thornton said.


Jan 14 2010

Vacant home in Stone Harbor damaged by fire

Ian Lazarus

A overnight fire destroyed a duplex at 275-277 94th Street in Stone Harbor Wednesday.

From Press staff reports | Posted: Thursday, January 14, 2010

Fire damaged a vacant home in Stone Harbor, Cape May County, late Wednesday night.

The fire was reported at about 11 p.m., in the 200 block of 94th Street, near 3rd Avenue.

No one was injured. There’s no word on a cause or damage estimate.