Mill Street Square at Mill and Ellison streets in Paterson — Courtesy: WinnCompanies
By Joshua Burd
A development team has unveiled 74 new apartments in Paterson as part of a project that included new construction and the restoration of a historic mill property.
The partnership, which includes WinnCompanies and developers Owen Tonkins and Daryll Tyson, welcomed public officials this week to debut what’s known as Mill Street Square, a $26 million investment that will provide housing for lower-income families. Those on hand saw the transformation of the Argus Mill in the city’s Great Falls Historic District — a 150-year-old, 7,700-square-foot complex that’s now home to six loft-style homes — as well as a new four-story building with 68 units and a parking garage for the Paterson Parking Authority.
The complex at Mill and Ellison streets also includes space for the nonprofit Grandparents Relatives Care Resource Center and the restoration of the historic Thompson and Ryle Houses as the offices of the nonprofit Paterson Music Project.
“Mill Street Square showcases how strong public-private partnerships can come together to meet Paterson’s pressing need for affordable housing,” WinnCompanies President Gilbert Winn said. “We’re excited to begin leasing a development that has been a priority for the city for many years. Our local partners at ART-JIUS Enterprises, backed by catalytic financing from state and private sources, were critical to making this unique project a reality.”
In a news release, the developers noted that all 74 apartments are supported by Low Income Housing Tax Credits, adding that 52 of the homes are aimed at multigenerational households with grandparents raising their grandchildren and earning less than 50 percent of the area median income. Families meeting the grand-family definition will be eligible for project-based rental assistance from the Paterson Housing Authority, while the remaining 22 units are for families earning below 80 percent of AMI, also under the LIHTC program.
The partners also sought to create space and flexibility for larger families in the city, they said, having designed 54 of the new apartments with two- and three-bedroom floorplans.
“We are proud to celebrate the completion of Mill Street Square, a $26 million construction effort that exemplifies the power of collaboration between public and private sectors,” Paterson Mayor Andre Sayegh said. “This development addresses Paterson’s urgent need for affordable housing and provides a haven for grandparents raising their grandchildren. It’s a testament to our commitment to our community’s wellbeing and inclusivity.”
The developers completed Mill Street Square using a complex capital stack, including construction and permanent financing from Bank of America and Citi Community Capital, tax-exempt bonds and 4 percent Low-Income Housing Tax Credits issued by the New Jersey Housing & Mortgage Finance Agency, according to a news release. The project also leveraged tax credits under the state’s Economic Redevelopment and Growth program and an ERG bridge loan from New Jersey Community Capital and BlueHub Capital.
Additionally, the joint venture used ERG credit equity syndicated by Fallbrook Financial Services Co., U.S. Housing & Urban Development project-based vouchers administered by the Paterson Housing Authority and HOME and local funding from the city of Paterson.
“Multigenerational households are an often overlooked and underserved family type,” said Melanie R. Walter, HMFA’s executive director. “Mill Street Square not only addresses our state’s critical affordable housing needs but does so for grandparents who are the primary caretakers of children We are proud to have contributed $37.9 million in financing for this project, which is a testament to how innovative public-private partnerships can make a lasting impact on Paterson families.”
WinnDevelopment Senior Vice President David Ginsberg and Senior Project Directors Laura Manville and Lindsay Finkenstaedt led the partnership with Tonkins and Tyson, the principals of ART-JIUS Enterprises, who were both born and raised in Paterson and who have also led successful development efforts in Maryland and Georgia. The team noted that the four-story Argus Mill, a brick and wood frame structure that’s listed on the National Historic Register but had been vacant for years, now serves as the gateway to the development.
“The redevelopment of the Argus Mill has returned it to its former status as an economic asset to the Great Falls community,” said Tim Sullivan, CEO of the state Economic Development Authority. “Mill Street Square meets a longstanding need for attractive affordable housing options while offering specialized resources for grandparents caring for their grandchildren. This kind of public-private investment. in communities where it’s needed most aligns with Governor Phil Murphy’s vision for a stronger, fairer New Jersey economy, by prioritizing the well-being of multigenerational Paterson families.”
The developers awarded more than $5 million in contracts to Section 3 and minority- and women-owned business enterprises, or MWBEs, exceeding project goals by more than 35 percent, the news release said. Nine MWBE businesses were hired during construction and 20 percent of all construction spending went to such businesses.
Working with its partner, Renaissance Groups, WinnDevelopment also helped four existing local businesses become certified and registered as MWBEs in New Jersey, expanding their access to public-sector business opportunities, the news release said. What’s more, 31 Paterson residents were hired during construction.
The project team included:
- Coppa Montalbano Architects of Totowa
- PS&S of Warren as the civil engineer
- Public Archaeology Laboratory Inc. as historic consultant
- ACME Heritage Consultants of Larchmont, New York, providing archaeological services
- Renaissance Groups of Buffalo, New York, leading efforts to recruit local and MWBE businesses
- Friend and Wenzel of Clifton as local legal counsel
- Berman Indictor of Philadelphia as transactional counsel.
“Argus Mill is terrific example of the important impact that affordable and middle-income housing can have on the families and neighborhoods in Paterson,” said Mary Thompson, senior vice president of Community Development Banking at Bank of America. “WinnDevelopment and partner ART-JIUS had the vision to create a unique housing experience that prioritizes grandparents’ role in raising grandchildren while contributing to a growing, vibrant community.”
Developers break ground on housing, nonprofit space at Paterson mill property
