(Photo By Derron Palmer)

Demolition is under way on the A&M Supply building on Campbell Street. The industrial building along with a neighboring residential property at the corner of Elm Avenue will come down to eventually make way for Metro Rahway, a five-story, 116-unit rental project.

Five years ago, East Hanover-based Heartstone Development shifted gears and instead of pursuing 80 condominium units for the project, sought to built 116 rental apartments. Construction is expected to begin later this year.

The Redevelopment Agency recently amended Metro Rahway’s redevelopment plan for a third time to clarify the development fee. The development fee was to have been $2,500 per unit when Metro Rahway (then Station Place) was being planned as a for-sale condominium.

Since it’s been changed to a rental project, the developer will pay half of the development fee ($145,000) at the time of the building permit is issued, and the second half ($145,000) at the time the certificate of occupancy (CO) is issued.