City Council introduced an ordinance to accept changes to the financial agreement for Meridia Brownstones, a 487-unit at the former Wheatena site that recently cut the ribbon on its first phase.
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The Redevelopment Agency in November adopted resolutions approving a third amendment to the redevelopment agreement with The Brownstones and recommending that City Council authorize its execution.
The legislation (O-01-21) was introduced during Monday’s City Council meeting and is expected to come up for final approval, after a public hearing at the next scheduled meeting, Feb. 8 (a combined pre-conference and regular meeting).
Capodagli Property Company had been looking to renegotiate the redevelopment agreement since earlier this year. The Linden-based developer recently requested a temporary certificate of occupancy (TCO) for 171 units for phase 1A. Phase 1 of the project includes 298 apartments.
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.
The amended redevelopment agreement approved by the Redevelopment Agency established milestones for the developer and delineated penalties for failing to meet them. For instance, construction permits for the second phase of the project must be obtained by Feb. 1. 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 $100,000.
A ribbon-cutting ceremony was held last month to open the first phase of 172 units at the corner of Elizabeth and West Grand avenues. The Department of Housing and Urban Development funded about $15 million for the project, and the CARES Act provided $205,242, according to a report.
Rents at Meridia Brownstones will range from $1,730 to $2,800.
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