The city acquired three lots at the corner of Irving Street and Seminary Avenue earlier this year for $500,000.

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The sale of 1646-48 Irving St. (Block 162, Lots 5, 6 and 7) closed on July 1 , according to property records. The three lots are assessed for $183,700, generating property taxes of almost $13,000 this year.

City Council had tabled two ordinances in December that ultimately came back for approval in March. The first ordinance (O-29-19) authorized the purchase of the property and the second ordinance (O-32-19) appropriated $550,000 for the acquisition.

The three lots (in orange above) are adjacent to six properties that recently were included in a plan for redevelopment (in yellow above), including the former St. Mark’s Church property. Both areas are within the Arts District Redevelopment Plan.

In a concept plan presented to the Redevelopment Agency last month, AST Development proposed 36 townhomes on the former St. Mark’s Church property and surrounding lots, with a park situated at the corner of Seminary Avenue and Irving Street. The agency passed a resolution awarding conditional designation of the site to the Lavallette-based developer.

Combined, the three lots to be acquired currently generate a property tax bill of about $13,000 based on tax assessments of $183,700.

An Aug. 29, 2019 memo from Hoboken-based Stack, Coolahan & Stack to the city valued the property at approximately $515,000 and suggested that “demolition of the existing improvement to pave way for redevelopment best reflects the mindset of the most likely buyer in today’s market.”

For years, there were plans to  bring a ground-floor jazz club and restaurant topped by second-floor apartments to the site. The Planning Board approved plans in 2007 but ultimately those fell through. One issue is that part of the property is located within a flood plain.

LELAS 4, a Cranford-based LLC, acquired the property in February 2016 for $125,000 from Highlander Investment Company, with the deed noting “Zoning influence not included in assessment redevelopment zone.” In 2015, Highlander had acquired the site through bank transfer in lieu of foreclosure ($552,752), from Union-based ET Buildings, LLC.

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