September 6, 2008  

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Developer withdraws from redevelopment

(by Karen F. Mrnarevic - December 05, 2007)

 

Hekemian & Co.

Millennium Homes

305 residential units
300 residential units
84,750 square feet of commercial space
113,400 square feet of retail and office space
Train station will not be moved
NJ Transit station to move north to Locust Avenue
Plan calls for 4.5-story buildings to the area south and east of the train tracks, and a four-story parking garage to the west. Other buildings will be two to three stories.
Approximately 1,200 parking spaces
 
Project developing Kinderkamack from Lozier Avenue to the north, and Alma Avenue/Palisade Avenue to the south
 
Main shopping and residential section would center around train station

*information provided prior to the borough's selection of Atkins as its redeveloper. 
The borough of Emerson, already under pressure to move its lagging redevelopment plan along, faces a new obstacle. The borough’s chosen redeveloper, Atkins Cos., formally withdrew from the project on Thursday, Nov. 29. The news of its withdrawal came five days short of the deadline the borough had imposed for Atkins to sign a revised developer’s agreement.

Over the past weeks, the borough became concerned that Atkins was unwilling to adhere to the timeline or perform within the guidelines set forth in the redevelopment plan. According to Mayor Louis Lamatina, Atkins was prepared to focus only on the southern end of the zone, concentrating on residential construction. “Atkins said, ‘We just can’t do both sections of the [redevelopment] zone simultaneously,’” said Lamatina, who reiterated that the redevelopment plan was primarily for the purpose of rejuvenating the commercial center of the town in the area north of Linwood Avenue.

Atkins also cited concerns that the residential density called for in the redevelopment plan was not sufficient to make it economically feasible. As a result, Atkins, which had previously stated it would be able to do the redevelopment according to original plans, said over 100 residential units would need to be added. Councilman Chris Heyer referred to Atkins’ revelation as a “bait and switch.” The borough was also concerned that Atkins was dragging its feet on the project and had submitted an incomplete road reconfiguration plan to the county, which the county ultimately rejected.

According to Lamatina, the next step of the process will be for the town to meet with its planner, Burgis Associates, and the two other developers who previously bid on the project. Lamatina already met with Bryan Hekemian of Hekemian and Co. on Monday, Dec. 3 and plans to meet with Larry Pantere of Millenium on Dec. 10.

The borough is now at an impasse, and the mayor and council, in cooperation with Burgis Associates, may have to rework its redevelopment plan to include greater density. According to Council President Anthony Loffredo, “We now have two developers who are willing to work with greater [residential] density than I think we would want… We have to make a decision as to what is realistic in terms of our redevelopment.”

At the Dec. 4 council meeting, Councilman Ken Hoffman brought up an economic analysis produced by Burgis Associates in 2005, which appears to suggest that a developer working with the density set forth in the original redevelopment plan would lose money. The current mayor and council was unaware of the existence of the document until early November. “We have a planner here who didn’t provide us with information that would have changed [the redevelopment plan],” said Hoffman, who stated the issue would need to be addressed in order for the town to move forward.

Councilman Frank Milone echoed the sentiment asking rhetorically, “Why didn’t Burgis bring up density concerns when prospective developers’ plans had greater density than the town wanted?”

Following the public comment, Joe Burgis addressed the issue of the document. He claimed it was merely a “working document,” and stated “the delineated area she [Brigette Bogart of Burgis Associates] was looking at when she prepared the document is different than the area we are working with today.” He made a point of saying that in his opinion, the redevelopment plan, with its current density, “is still a solid document.”

Also present at the Dec. 4 council meeting were the owners of several business properties within the redevelopment zone, who expressed their interest in instituting their own development plans. According to Joe Burgis, “Much of what [the business owners] want to do is already in the current plan.” In response to questions from the business owners about why the borough wanted to continue seeking a redeveloper to complete the entire project, Lamatina responded, “If you have a redeveloper do the whole thing, there is continuity,” to the project.

Lamatina also pointed out that in February of this year, the borough had set a deadline for business owners to submit their own plans for development of their properties, but received no workable plans. “We wanted that to happen,” said Lamatina, “It’s much easier for someone who already owns the property to develop it than to sell it.” Now, he points out, if business owners wish to develop their own properties, “they must do so within the guidelines of the redevelopment plan.”

In the upcoming weeks, Lamatina plans to consult with the Office of Smart Growth to discuss possible revisions to redevelopment plan. He also stated that the borough would work with Burgis Associates to produce a new analysis of the property values in the zone to come up with a more workable residential density figure.

“We need a good planner,” said Lamatina, “and we also need help from the state.” He went on to state, “I am angry… I have spent a lot of time working on a plan that doesn’t have the proper density to work.” However, Lamatina maintains that the mayor and council is still dedicated to the redevelopment project and making it work to serve the needs of the town.

Scott Fishbone of Atkins Cos. was not available for comment.

Karen F. Mrnarevic's e-mail address is Mrnarevic@northjersey.com


 

 

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