1980s UDAG Program: Did It Help Gloucester City?
William E. Cleary Sr. | CNBNews
The Urban Development Action Grant program was introduced to Gloucester City residents in 1984. People living near the marine terminal at the time were against the idea from the very start. Several public meetings hosted by the mayor and council were held beginning in 1984. At those meetings, residents gave their reasons for opposing the expansion of the that property.
At the time the Holt Family was just beginning to build their monstrous 125-acre marine terminal.
Gloucester City News article written by William E. Cleary Sr., published October 10, 1985
The UDAG program was promoted in 1978 by President Jimmy Carter. The purpose was to help distressed cities attract private investment, create jobs, and redevelop blighted industrial or commercial areas. UDAGs were awarded competitively and required substantial private‑sector participation. HUD’s regulations describe the program’s core mission as assisting cities facing severe economic distress by stimulating economic activity needed for recovery.
The public’s objections included:
Read more: THE HOLT FILES: PART TWO*The large trucks entering and leaving the facility made a lot of noise and created a lot of dust.
*There was a constant noise coming from the refrigerated warehouses.
*They felt that the marine terminal was growing too big.
*The public was afraid they would be pushed out of their homes by the terminal. They pointed to the demolition of five homes on King Street and five homes on Essex Street as proof that the Holt family was going to force them to move.
According to the October 10, 1985, Gloucester City News article, the people who voiced their opinions pointed to those demolitions as evidence that the terminal would one day swallow up their houses too. They didn’t want to move but felt they had no other alternative because of the expansion.
The fear those residents felt nearly 50 years ago was justified.
Historic Charm Meets Industrial Reality: Holt Terminal Shapes Mill Block Property Values
Photos courtesy of Christoph Chaoss
The historic Mill Block homes along King Street stand as a beautifully preserved piece of Gloucester City’s working-class heritage. Extensively refurbished in the 1980s, these compact row homes and detached twins offer an affordable entry point into the local housing market. However, their unique location—situated just 50 feet from the 24/7 Gloucester Marine Terminal—creates a complex financial and environmental reality for local property owners.
While these historic homes remain highly desirable for budget-conscious buyers, their immediate proximity to heavy industry shapes their market value, liquidity, and daily quality of life.
The “Proximity Discount” on Historic Real Estate
While the broader Gloucester City real estate market sees median home values hovering between $243,000 and $250,000, the Mill Block homes closest to the waterfront face a unique ceiling.
Real estate data indicates a clear pricing trend:
- The Value Gap: Homes sitting directly adjacent to or facing the port sell at a 10% to 20% discount compared to identical historic properties located further inland.
- Price Caps: Upgraded Mill Block homes generally max out between $220,000 and $300,000, even when featuring modern kitchens and central air.
- Market Friction: These properties typically experience extended Days on Market (DOM)because many traditional buyers rule out living next to an active shipping hub.
Living 50 Feet From a 24/7 Giant
The lower price tag reflects the daily trade-offs of living next to Holt Logistics, a massive, non-stop shipping operation.
Residents on these blocks experience continuous urban-industrial externalities:
- Constant Noise: Low-frequency engine hums, backup alarms, and container clanging persist 24 hours a day, 365 days a year.
- Skydrop Obstructions: Massive, 20-story cargo cranes dominate the immediate skyline, blocking natural river views.
- Traffic and Emissions: Heavy diesel truck traffic moves continuously down King, Ellis, and Hudson streets, causing localized exhaust, vibrations, and bright stadium lighting at night.
The Ongoing Battle: Industry vs. Residential Growth
The pricing of the Mill Blocks is also tied to a larger, ongoing legal and zoning debate in Gloucester City. Holt Logistics has historically protected its operational footprint by actively opposing dense residential expansion near its borders.
A prime example is the port’s legal pushback against proposed waterfront projects like Meridia on the Pier. Industry leaders argue that mixing heavy, 24/7 commercial shipping with residential housing creates severe logistical, safety, and liability friction.
For the historic Mill Blocks, this means their future will always be bound to the fortunes—and the footprint—of the industrial giant next door.
The Mill Block homes were refurbished in the 1980s. Some of the properties are about 50 to 100 feet from Holts Marine Terminal, a 24/7 operation.
HAS THE HOLT MARINE TERMINAL AFFECTED THE PUBLIC’S QUALITY OF LIFE?
Driving along Ellis Street, which runs parallel with the Marine Terminal, we were surprised by how high the stack of cargo containers was when you are next to them. There was a time when you could see the river from that area, but no longer. The cargo containers block your view. Approximately 150 feet away are the Mill Block homes, which were refurbished both outside and inside in 1980. One of the selling points for those properties was a view of the river. As we sat in our car taking pictures, there was a constant humming noise emitted from the Marine Terminal. Since this port is a 24/7 operation, that noise at some point must be unbearable at times. Or maybe you get used to it.
Cleary’s Notebook News video
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Yes, proximity to the Gloucester Marine Terminal (Holt Logistics) definitely impacts the prices and buyer pool of the Mill Block homes. Holt Logistics
While the 1980s refurbishment successfully preserved their historic charm, their position just 50 to 100 feet away from a massive, non-stop shipping operation creates a classic “negative externality” in real estate value.
The terminal affects these properties across several distinct categories.
The Gloucester Marine Terminal operated by Holt Logistics Corp. affects the historic Mill Block homes (located near King, Hudson, and Mercer Streets) in Gloucester City, NJ, primarily by shaping the industrial character, local economy, and environment of the surrounding waterfront.[1, 2, 3, 4, 5]
Economic and Community Factors
- Employment Proximity: The terminal provides stable, unionized jobs and economic activity within Gloucester City, which can appeal to local workers who prefer living close to the port facilities. [1, 2]
- Industrial Zoning and Land Use: The continuous presence and expansion of port-related cargo handling permanently limit residential or recreational growth along sections of the adjacent riverfront, anchoring the neighborhood in a heavily industrial rather than a mixed-use residential zone. [1, 2]
- Legal and Development Clashes: Ongoing local disputes and legal actions between terminal operators, local partnerships, and city development plans (such as nearby multi-use projects on King Street) influence how fast the immediate historic corridor is revitalized or integrated with public waterfront access. [1]
Environmental and Quality of Life Factors
- Traffic and Noise: Heavy truck traffic and logistics operations associated with the port generate ambient industrial noise, light, and road usage patterns common to working harbors.
- Visual Impact: The proximity of large-scale terminal operations, cranes, and container storage alters the historic visual connection and openness of the Delaware River shoreline for nearby older structures. [1, 2, 3]
Ai contributed to the information above. If you see a mistake, contact wecleary@gmail.com
Cleary’s Notebook News photo—
In recent months, the buildings across from Freedom Pier were demolished and replaced with cargo containers. Also demolished was the small park built in 1983 by the Holt family for filling in the Newton Creek under the WW Bridge without the proper permits. The court fine for that arrogance of power was $30,000. Before the containers appeared in the area, you could see the river the ships docked at the marine terminal, and the Walt Whitman Bridge. The change in the scenery makes the area less desirable for the plans to construct 350 apartments, shops, and a restaurant. CNBNews photo
Driving down Hudson Street towards the Delaware River and the Holt Marine Terminal, we were taken aback by the giant cranes that engulfed the sky. I wondered to myself if I could stand living in the residential neighborhoods with the sky blocked by 20-story-high cranes. When I reached Ellis Street, which borders the Holt terminal, there was a constant humming noise being emitted from that property. Residents living near the terminal have had to deal with dust pollution, noise pollution, and ongoing truck traffic.
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UDAG projects are typically funded:
- Waterfront and port improvements
- Industrial redevelopment
- Commercial construction
- Infrastructure upgrades tied to private expansion
Cities had to demonstrate economic distress—high poverty, unemployment, aging housing, and population decline—to qualify.
GLOUCESTER CITY MET ALL THOSE REQUIREMENTS AND STILL DOES
Gloucester City had no problem qualifying for the UDAG program. In the 1980s there was economic distress in the City. Today, the distress could be even worse. Also, there is STILL high poverty, unemployment, aging housing, and population decline. In the 1960s, there were 16,000 living in Gloucester City. Today that number is around 11,000. In 1985 the once vibrant industrial park located in the city’s Southport area was slowly disappearing. Today, that acreage is barren.
The UDAG monies did provide funds for the local business community.
The Gloucester City News 1985 Interview of Thomas “Tom” Holt
In 1985, William E. Cleary Sr., editor and publisher of the Gloucester City News, interviewed the president of Holt Cargo Systems. At the time, Holt was applying for federal money through the Urban Development Action Grant (known as UDAG). The Urban Development Action Grant (UDAG) program was a major federal economic‑development initiative administered by the U.S. Department of Housing and Urban Development (HUD) from 1978–1989. Its purpose was to help distressed cities attract private investment, create jobs, and redevelop blighted industrial or commercial areas. UDAGs were awarded competitively and required substantial private‑sector participation. HUD’s regulations describe the program’s core mission as assisting cities facing severe economic distress by stimulating economic activity needed for recovery.
That interview was held in Holt’s office at the marine terminal. At the meeting were Bernie Gelman, who was the Chief Financial Officer (CFO) for Holt Cargo Systems (associated with the Holt terminal operations). John Evan, who served as the controller and corporate accountant for Holt Hauling & Warehousing (associated with the Gloucester Marine Terminal in Gloucester City, NJ). In this role, he managed accounts receivable and payable, set up accounting books, and handled financial record-keeping. And publicist Nelson Fellman of Spiro and Associates, a public relations business in Philadelphia. Fellman, who was hired by the Holts, was there to promote the Marine Terminal and Tom Holt.
GLOUCESTER CITY NEWS July 11, 1985 issue
WHAT IS GOOD FOR HOLT CARGO
IS GOOD FOR GLOUCESTER CITY
Tom Holt, 44, (photo) is the president of Holt Cargo Systems, one of the largest shipping and receiving marine terminal operations on the East Coast. The company is located in Gloucester City, New Jersey.
Holt Cargo Systems began in 1926 when Tom Holt’s grandfather, Charles, started a small trucking business. His father, Charles Jr., expanded the business into warehousing and distribution. In 1968, Tom Holt took over the company and began developing marine terminal operations.
Today, Holt Cargo Systems is involved in a $37 million expansion program. The company leases piers from the Gloucester City Port Authority, Camden County Port Authority, and the South Jersey Port Corporation. Holt Cargo Systems employs more than 1,500 workers and expects revenues of $50 million by 1985.
Holt Cargo Systems is important to Gloucester City because it provides jobs and helps the local economy. The company also plays a major role in regional maritime commerce.
When asked about further expansion plans, Holt responded, “Our expansion plans are geared to our ability to co-exist with the community. To further expand in Gloucester a number of things must happen, mostly self-help, but it certainly would have to happen with the city to help the community. Obviously, Philadelphia is interested in attracting our business to come over to that side of the river since there has been a downturn here in the shipping industry for some time. Right now, however, our company is in a holding pattern while we identify our market before proceeding with any expansion plans.”
Holt was asked how the company could further expand in Gloucester City with the South Jersey Port on the north side of the complex and the city telling them the complex can go no farther south than its present border at the foot of Monmouth Street.
“No doubt during this holding pattern we will be thinking about this problem. Do we try and do something here or do we take our growth structure and move to another port? The Port of Philadelphia is nine hours up the river from the bay. A ship coming into this port drawing more than 38 feet of water — and if we expect in the near future ships will be drawing a lot deeper since they have to maximize their cargo — just 35 miles south of us you could bring in ships drawing 50 feet of water to the Port of Wilmington, Delaware, about five hours from breakwater.
When you are dealing with an individual who owns the company and is not afraid to make a major decision, it wouldn’t take me long to move in order to expand. There is a fantastic growth potential here in Gloucester City, but it has to be co-existent.
We could double the employment here and expand, or we could take that increase in business and establish a second facility someplace else. The bottom line is what makes sense economically and what generates jobs. If we don’t generate jobs then we don’t generate income.”
Expansion also depends on what happens with the South Jersey Port to the north. “We could take more area here and expand because the Port Authority might have a greater need for high-value perishable cargo, which is expanding exponentially. Did you know the South Jersey Port is opening a second terminal and second yard? We are watching to see what effect this will have on us and the way we ship in and out of our complex. When it rains hard the coal dust would settle on the cars, which will pit the paint.”
“I really question whether or not we should fight this big war of recovery with the South Jersey Port coming from a bulk terminal handling raw materials to a bulk clean cargo entity which would generate jobs. Don’t forget you have to make a big payment to the City of Camden in taxes. Or should we take the business we could put through there by expanding here in Gloucester or take it to another port? I would opt to go to another port if we cannot resolve the certain social factors we have here in the community. It would be no problem to do that.”
When asked how he felt about the recent controversy surrounding the company’s request to build a six‑lane truck‑holding area on the vacant lot it owns at King and Essex Streets, he said he was quite upset. “It reminds me of a similar situation several years ago when a large employer in another city paid its help in silver bills. Suddenly, the community realized what impact that company had on the city and they woke up.”
The company and the city settled the dispute over the holding area two weeks ago. The company has purchased several homes on King Street heading north and will be moving the entrance to the holding area several hundred feet farther north than originally proposed. Holt continued, “I wonder why people in this city have hard feelings against my company? We have no children in school so, therefore, we put no burden on the city’s school system. I like to think the police are not too burdened by our company. The fire department did a heck of a job for us when we had that big fire in ’71. Any drain we have placed on the city’s resources has been minimal. Conversely, we are here to help. We have never had anyone come knock on our door that we turned away. Actually, we go out of our way to find ways to co-exist with the community.”
The last couple of years the company has given two $1,000 scholarships to deserving graduates of both schools. It has donated to the Town Watch, sponsored a baseball computer team, Gloucester City High School’s computer program, the learn‑to‑swim youth program, and has donated money to other local charities.
In listing his comments on Gloucester City, Holt said, “We offered to buy the GAF and Gulf Western property for the city because we thought the city didn’t have the money. We would develop the area with the city in line with its proposed idea for the waterfront of a Baltimore Harbor or Society Hill type improvement. However, no one has taken us up on my offer.”
The corporation is the largest taxpayer in the city. Last year it paid $617,607 in taxes, more than twice as much as the next highest taxpayer, according to Francis Gorman, city treasurer and tax collector. Gorman said Holt additionally pays leasing fees to the city for property it uses. He feels if the company ever moved, property taxes would go up 30 to 40 percent.
The company, in the not‑too‑distant future, will also begin paying the city money it borrowed to expand its marine terminal through the federal Urban Development Action Grant (UDAG) program. That payback to the city will total $10.6 million from Holt by 1996 when it will be paid off.
It is interesting to note that a UDAG charges more interest for the money it lends than some banks do presently. The company or individual benefits by having a grace period before the first payment is due on the loan, but it is the city that receives more money since the money is paid directly back to it with interest.
Holt was quite candid and sincere with his answers during the interview. One was left with the feeling that he definitely has the City of Gloucester at heart along with wanting to be a part of the community. All that remains is for the residents of the community to accept Tom Holt.
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Thomas “Tom” Holt Sr. Major Factor in the Development of Delaware River in SJ and Philly, Succumbs to Prostate Cancer
Mr. Holt died in 2011 of prostate cancer. He was 74 years old. According to his obituary published in the Philadelphia Inquirer, survivors included three sons and two daughters, 15 grandchildren, and four great-grandchildren.
Son Tom Holt Jr. runs Packer Avenue Marine Terminal in South Philadelphia. Son Leo is president of Gloucester Terminals L.L.C., privately owned by the Holt family. Another son, Michael, manages Delaware Avenue Enterprises, which consists of the Publicker site at Columbus Boulevard and Packer Avenue and several refrigerated warehouses. Several grandchildren, including Tom 3d and Eric, are in the family business.
“Tom Holt Sr. was a significant leader on the Delaware River over the last 30 or 40 years. He was a real entrepreneur and contributed significantly to the success of the regional ports,”
~Dennis Rochford, president of the Maritime Exchange for the Delaware River and Bay.
Mr. Holt’s father operated a regional trucking business, which Mr. Holt and his brother Leo expanded into terminal operations in Gloucester City, and on Packer Avenue.
In addition to his sons, grandchildren, and great-grandchildren, Mr. Holt is survived by his wife, Joan; daughters Melissa Fluehr and Joan Rybas; a sister, Edna White of Philadelphia; and brother Leo Jr. of Boca Raton, Fla.
Mr. Holt and his brother Leo expanded the family trucking and warehousing business into shipping and port operations, the sale and purchase of ships, and working to increase cargo and commerce on the Delaware.
Mr. Holt was born in Philadelphia in 1936 to Edna and Leo Holt and grew up in the Juniata Park section. In October 1962, he married Joan Smykal.
Mr. Holt attended Holy Innocents Elementary School, graduated in 1955 from North Catholic High School, and served in the Navy for seven years, including in Guantanamo Bay during the Cuban missile crisis.
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DOES THE CRANE & FORKLIFT NOISE BOTHER YOU? DO DUST PARTICLES FROM THE TERMINAL ANNOY YOU?
Those living next to the marine terminal and are bothered by the noise, traffic, and dust particles coming from it can contact the New Jersey Department of Environmental Protection. Local police and municipal code officials.
Under New Jersey law, commercial and industrial operations are bound by state and local noise limits. For residential zones near commercial sources, state standards restrict continuous sound levels to 65 decibels (dBA) during the day (7 a.m. to 10 p.m.) and 50 decibels (dBA) at night (10 p.m. to 7 a.m.). [1]
Your Rights and Options
- Local Enforcement: The New Jersey Department of Environmental Protection (NJDEP) delegates industrial noise investigations to local health agencies and municipalities. You have the right to file a formal complaint with the Gloucester City Housing and Building Department. [1, 2]
- Decibel Testing: Municipal code officers or health officials can measure the continuous low-frequency hum or buzzing from the terminal’s cranes using a sound-level meter to determine if it exceeds legal limits. [1]
- Nuisance Claims: If the noise substantially and unreasonably interferes with the use and enjoyment of your property, persistent industrial disturbance can form the basis of a private nuisance claim, though operating permits and the pre-existing industrial nature of the waterfront are weighed heavily by courts.
Will the project benefit one or more communities that are disproportionately impacted by air
pollution? If so, please describe.
Yes. Gloucester City (Camden County) is recognized as an Environmental Justice area (see
EPA’s Env. Justice Screening & Mapping Tool-https://ejscreen.epa.gov/mapper). It is also a
National Priority County under DERA as an area having highest emissions from diesel engines.
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RELATED:
THE HOLT FILES: From a 1981 Wetlands Violation to Today’s Battle Over a $1 Lease
AI Review of Holt Marine Terminal and its Effect on Gloucester City’s Waterfront
