Phase one of The Brownstones would have to be completed in its entirety by September while phase two would begin construction by July, be completed by the end of 2022, and include six affordable units, according to changes approved to the redevelopment agreement.

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During its Nov. 18 meeting via Zoom, the Redevelopment Agency adopted a resolution (24-20) approving and authorizing a third amendment to the redevelopment agreement between the city and Meridia Brownstones and as well as a resolution (25-20) recommending City Council authorize the execution of the third amendment.

The concept for The Brownstones first was presented to the Redevelopment Agency in 2012 by Capodagli Property Company and approved by the Planning Board in 2014. Some 487 rental units would be built in phases on the former Wheatena and Quinn & Boden properties along Elizabeth Avenue, between West Grand and West Scott avenues.

The amended redevelopment agreement established clearly delineated milestones that the developer has to hit, according to City Administrator and Redevelopment Director Robert Landolfi, and delineated penalties for failing to hit those milestones.

Attachment A to the redevelopment agreement outlines the timelines. In addition to end dates, there are a series of interim dates that must be hit. Completion of the entire exterior and site features, including the pool, for phase one must be completed by year’s end. Construction permits must be obtained by Feb. 1 for phase two and demolition permits must be applied for by Feb. 28 for Block 228, Lot 1.02, with the tenant in that space vacating by Feb. 16. 

Some of the penalties for failing to meet many of the 2021 and 2022 milestones include admission of violation to the amended redevelopment agreement and penalty fees owed of $100,000.

“Here’s the problem, and I’m being very open about it, the original timelines were never reduced to a formal agreement,” Landolfi said during a telephone interview earlier this week. “The project in our opinion should’ve been completed by now and wasn’t. When it became obvious that redevelopment agreement needed to be negotiated, something we did was hard dates, measurable accomplishments, and financial penalties if they were not met,” he said.

“If you’re going to fine someone and ultimately find them in default in that type of agreement, you need those milestones, and agree that they are reasonable,” Landolfi said.

The agency went into executive session for about 40 minutes during the Nov. 18 meeting, which Landolfi confirmed was primarily about the redevelopment agreement amendments. The project is “way behind schedule, and everybody knows that and understands that. No one’s happy with it,” he said.

The developer had been looking to renegotiate the redevelopment agreement since earlier this year.

“COVID slowed them down tremendously,” Landolfi said, and one of the Capodagli’s developments in Bound Brook was destroyed in a fire though they said that did not have an impact.

The original redevelopment agreement was approved by the Redevelopment Agency in 2013 and stipulated that the last phase be completed within five years of acquisition, which was 2015. Phase one didn’t break ground until 2018.

Capodagli recently requested a temporary certificate of occupancy (TCO) for 171 units for phase 1A; Phase 1 includes 298 apartments in all.

The Linden-based firm has constructed three other projects in Rahway: the 88-unit Meridia Grand on East Grand Avenue; the 115-unit Meridia Lafayette Village at Main and Monroe streets, and the 108-unit Meridia Water’s Edge at City Hall Plaza.

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