Construction on Meridia Lafayette Village is expected to begin this week. The 115-unit project is planned at the corner of Main and Monroe streets, where The Savoy, a 36-unit condominium project had been proposed before the real estate market imploded.

Capodagli Property Company Chief Operating Officer and Project Manager Henry Szwed confirmed that the five-story rental development is expected to break ground this week. It was approved by the Planning Board in August 2012 but has been delayed by the state permitting process, among other issues. The best-case scenario anticipates about 18 months for construction (Spring 2016).

Redevelopment Agency Attorney Frank Regan told commissioners at the agency’s Oct. 1 meeting that the developer was scheduled to close on permanent financing of about $23 million for the project by Oct. 10. City Engineer James Housten told commissioners that construction permits are almost ready to be issued for Lafayette Village while a final certificate of occupancy is near on Meridia Water’s Edge. The 108-unit project began leasing in August.

The West New York-based developer was due to pay the agency $500,000 on Oct. 1 as the final installment on the Meridia Water’s Edge property at 4 City Hall Plaza (map). The developer requested an extension on the final payment until about Oct. 15, Regan said. Commissioners generally were in agreement, with Commissioners Paul Sefranka suggesting that payment shouldn’t extend past Oct. 15 or 16.

The Redevelopment Agency in early 2012 sold the roughly three-quarter-acre site adjacent to the library and Center Circle for $1 million. The developer was credited for the expense of removing soil from the property, which had been estimated at about $160,000.

The Memorandum Of Understanding (MOU) for the Water’s Edge parcel stipulated that Capodagli would pay $500,000 to the Redevelopment Agency at closing, with the remaining half due upon the final Certificate of Occupancy.

The five-story, 108-unit Water’s Edge was awarded a 10-year Payment In Lieu Of Taxes (PILOT) by City Council. Lafayette Village was awarded a 15-year PILOT.

UPDATED: City Council at its Nov. 10 regular meeting approved a resolution (AR-227-14) authorizing a settlement agreement and payment for water and sewer fees on Lafayette Village. Capodagli Property Company filed for building permits with water and sewer fees totaling $161,800, per the city’s ordinance.