City of Asbury Park Delcares IStar Financial in Default

The City of Asbury Park, hoping to keep the redevelopment of the beachfront moving foward, has declared IStar Financial (NYSE:SFI) in default of the master redeveloper agreement originally penned by Asbury Partners LLC.

IStar Financial inherited the master redeveloper rights and 70 to 80 waterfront properties last December after Asbury Partners defaulted on a $70 million dollar loan.

While IStar now owns the rights, they also own the obligations to complete various infrastructure improvements that were to be completed or need to be redone.

The original Asbury Partners, prior to the default, bought in Madison Marquette to manage the boardwalk retail component. They immediately took what was left of the boardwalk and sparked some new life - what some like and some don't.

Coupled with great spirit and entrepreneurship from new businesses, the boardwalk has come to life over the past 3 years.The new boardwalk has a miniature golf course, water playground and several renovated pavilions with restaurants, an arcade and the temporary home of ReVision Theatre. see more on asburyboardwalk.com for a look at old and new Asbury Park Boardwalk or apboardwalk.com for Madison Marquettes marketing of the boardwalk.

Is it here we go again - with Asbury Park's past experience in litigation with original developer Joseph Carabetta - or is the City making the right decision by declaring IStar in default? What does it really mean?

We do know it means the City has to bond $250,000 to hire James Aaron as attorney to pursue and defend in litigating this should the need arise.

Will IStar rollover and hand back these "rights"? Will they =sell their rights - or be forced to? Will they sell off parcels on their own? Will they fight attempts to their rights - or will they work with the city and avoid costly litigation and further delay redevelopment?

Over the past four years, the City of Asbury Park has come out of its shell. Renovated homes, a downtown that is full of new stores, eateries and much more. No master developer - just hard work, success and failures. The long awaited of work along Springwood Ave if finally underway.

This is Asbury Park.

Asbury Park, one interesting place.