Let me tell you about what happened.
It took me 3 years to get through the city process to get the building rezoned from a 4-family to a single family with a B&B variance. In the historic districts, B&B's are an allowed use. But, because I wanted to do events, weddings (which are not allowed per the Plainfield zoning
code for a B&B), I had to get a variance.
I went before the Planning Board, then the Historic [Preservation] Commission, then the Zoning Board of Adjustment, then back to the Historic [Preservation] Commission. The process cost me out of pocket $60,000 for architect's drawings (for the house), engineer's drawing, attorney's fees (I had to go 4 times to the zoning board meeting, because they kept putting me at the back of the agenda and "continuing" me) and a planner. I was required to change my engineer's site plan about 8 times ... Sometimes one change was put back to what it was originally, in the going back and forth between the zoning board, fire department and historic commissions. I was required to get a tree expert to analyze whether the proposed circular drive would harm the large oak tree at the street.
After I got through this process, then came the bonding. I was required to put up $60,000 in CASH as a bond for the site work. I had these funds, but I was planning to use this to do the site work. So, I had to put that money in an account and it was held by the city until the work was deemed complete. Unfortunately the engineering firm that the city used way overestimated the costs ... And after the fact, I really should have only had to put up $20,000 or so.
I also had a delay related to the fact I wanted to put in pavers at the driveway apron, instead of asphalt. The city engineer at the time (now not there), demanded I create engineering drawings. What made me angry, was in his letter to planning, he stated these drawings then could be
used as a standard for any one else who wanted to do pavers in [a] historic district. I objected, provided engineering calculations from the paver manufacturer, that the concrete pavers could meet the load requirements(in fact, better than asphalt).
So ... I went through a lot before I could even start work.
Next came getting financing. I put together a complete SBA proposal package and went to 2 local banks, and 3 other banks trying to get an SBA loan. I had $100,000 in the bank. I was turned down by all of them, citing that Plainfield was not a viable location for a Bed and Breakfast. It didn't matter that the Pillars had been there for 10 years.
I finally got a home construction loan through Wells Fargo (because a B&B is your home). This, with my cash on hand, should have been enough
to complete the project.
Then I was informed by the city and state that I required fire sprinklers throughout the building. When I did my research with the B&B association of New Jersey, they said I would not need sprinklers, so this was completely unexpected. The average price I got for this was $100,000.
Also, the city inspections department has, to date, rejected every drawing, plan, spec submitted by my architect, plumber, contractor and electrician. I went to the permit office many times, where they could not find my file, and I had to resubmit drawings and diagrams.
Also, when we got into the project, we found that the repair done [before I bought the property], right over the porch, was dangerously substandard. It is incredible to me that the city approved the architect's plans and passed it in inspection. When we opened that part of the building up, my engineer and framing contractor said eventually the house would have come down, and that the building was actively moving downward. This surprise cost a substantial amount of money, not in my original budget.
So ... Since January I have gone through approximately 18 banks looking for the additional funds to complete the project. I have been turned down by every one. The criteria:
1. In the past year, since the building was last appraised, the mansion value has dropped by $200,000. This is based on recent house sales. This was huge, because banks determine what they will loan by the appraised value. This property is especially difficult, because ther are no 15,000 sq ft single family homes ... Even when the appraiser looked up to 30 miles away.
2. Banks again did not want to invest in a B&B in Plainfield ... It doesn't have the right population mix to support such a business (that was their opinion).
3. With the bank crisis, funding that could have been available for a special project (ie, banks that would have funded a "riskier" loan for a higher interest rate) ... All that funding has dried up.
4. I went to brokers that specialize in funding B&Bs ... Much of their funding has dried up, and the few that remain are being very conservative, and did not like my project because I was the sole source of income, the location and it was a start up.
So, a post-mortem is:
The city of Plainfield's process caused me $60,000 and three years. If I had gotten through the zoning process in a few months, at that time the funding would have been available, and the B&B would be open already. My feeling is at every turn the city put up roadblocks on this project. Given that bank funding will be very tight for the next 2-3 years, I realized I would not get the funding for years, so I'm selling.
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