Who will finance all these future improvements? Rating agencies have in recent months slated Harrison as one of the most shaky financially in the nation.
In part:
"The Red Bull Arena has been billed as a $200 million spark to revive the blue-collar town whose fortunes have sagged. Officials made a bet years ago that new development would sprout in the arena’s shadow. In place of empty lots and silent factories, they envisioned condominiums filled by upscale commuters on the PATH line, and millions of square feet of commercial and retail space.
Then the financial crisis hit.
Now the $39.4 million borrowing binge to buy land for the stadium and redevelop the area around it is starting to come due, but Harrison’s ability to repay it has been thrown into question.
Moody’s sounded an alarm last year after expected revenues from Harrison’s redevelopment never materialized and the town was forced to borrow another $3.1 million to make its first debt payment. The alarm grew louder this spring when a bank that held Harrison’s notes in the past balked at holding more."
Article in full:
http://www.nj.com/business/index.ssf/20 ... nd_cr.html
The 90% leased statistic can cut two ways - one that there is great potential, or two that the pent up demand was satisfied by the new building with not much demand remaining.