The Trenton Times published the following article on March 11, 2013. To read the full article, click here.

Thomas Edison State College takes over former Glen Cairn Arms apartment complex in Trenton

By Erin Duffy/The Times of Trenton 
on March 11, 2013 at 11:16 AM

TRENTON — Trenton offiicals and Thomas Edison State College signed a disposition agreement last week turning over the former Glen Cairn Arms apartment complex to the college and outlining the terms of a land transfer that’s proven controversial at times.

The disposition agreement was signed March 1, the same day Thomas Edison, a four-year college focused on adult distance learning, submitted its application to the Secretary of Higher Education requesting $12 million in construction bonds to finance the $16.9 million nursing building slated to be built on the Glen Cairn property at the corner of West State and Calhoun Streets.

“We’re very excited about that process,” Thomas Edison spokesman Joe Guzzardo said. “We’re optimistic, we’re confident and we’re looking forward to it.”

Several other nearby colleges, including Rider University, The College of New Jersey and Mercer County Community College are putting the finishing touches on their own applications for a share of the higher education bonds.

Thomas Edison’s one-two punch of signing the disposition and submitting its bond application could bring the blighted site one step closer to demolition and redevelopment.

Two months ago, Thomas Edison announced plans to partner with the city to acquire the dilapidated, vacant apartment complex on West State Street, tear it down and replace it with a 27,000-square foot building to house its growing nursing program.

The city, which seized the 0.9-acre site through eminent domain in 1997, agreed to turn over the site to Thomas Edison in exchange for $1 and a one-time payment of $300,000 to compensate for future property tax losses, in a deal approved by council last month. As a state college, Thomas Edison is tax exempt, so the new nursing building cannot be taxed.

As part of the deal, the college also committed to demolishing the two five-story apartment buildings still on site and cleaning up lead, asbestos and other materials on the property, at an estimated cost of $1.2 to $1.4 million.

While the deal was hailed by many as a smart way to clean up the Glen Cairn site and add an impressive new building to the city’s downtown, others feared the city was short-changing taxpayers by allowing Thomas Edison to acquire and develop a valuable plot of land for very little money.

Walter Denson, the city’s director of housing and economic development, said the city put certain clauses into the disposition agreement to shield its liability and loss in case the nursing project fails to succeed.

“We put a couple of things in there to protect the city in case Thomas Edison tries to sell the property without the nursing facility being built in five years, a windfall profit clause,” he said.

The agreement establishes Thomas Edison as the owner of 301 West State Street and the exclusive developer of the land. Both parties also agreed the city was selling the property to Thomas Edison “as-is” — lead and asbestos and all — and cannot be held responsible for any environmental hazards found on site or the costs for cleaning up the site.

If Thomas Edison determines it can do the clean-up for $1.4 million or less, the city gives the college two years to demolish and complete all remediation work. If it turns out that process costs more, the schedule can be extended, but Thomas Edison must provide the city with quarterly progress reports.

If the college makes no good-faith effort to demolish the site within two years of closing, the city can find it in default and demand the property be transferred back to Trenton for $1.

The state bonds are expected to cover 75 percent of the cost of the project, with Thomas Edison picking up the remaining 25 percent, or about $4 million.

Guzzardo said Thomas Edison is preparing to see bids from demolition companies and could start razing the site by this summer if the state grants the bond funding.

“Regardless of whether we get the funding or not, the building comes down,” Guzzardo said. “The college is committed to that.”

A closing date for the property has yet to be scheduled, but should happen sometime within the next 90 days. Thomas Edison appeared before the city planning board two weeks ago as a courtesy, but will not require further planning approvals from the city, Denson said.