The Redevelopment Agency earlier this month adopted a resolution that will allow the city to issue Redevelopment Area Bonds (RAB) to reimburse a developer for part of the cost of extending Monroe Street.
The agency adopted a resolution (No. 21-18) during its regular, public monthly meeting on Oct. 3 that amends a redevelopment agreement with Dornoch II Rahway for Main & Monroe, a two-building 196-unit rental project by Slokker Real Estate Group.
RABs will cover a significant part of the Monroe Street extension, which will lengthen Monroe Street from Main Street to East Cherry Street, between the two Main & Monroe buildings. The original financial agreement stipulated that Slokker was to pay for the street extension but that was before R2-N2 came on the scene with The Gramercy. The adjacent 45-unit project, expected to open shortly, will pay a portion of the cost of the Monroe Street extension and the city also will provide a share.
In September 2016, the agency entered into a road and utility improvement agreement with the two developers which addressed contractual obligations as to Monroe Street and East Cherry and Monroe streets.
Deputy Redevelopment Agency Director and City Administrator Cherron Rountree explained to commissioners that the resolution will allow the city to reimburse Slokker for the city’s portion of the street extension project. RABs are issued after the work is completed.
The 196-unit Main & Monroe project originally was planned to be built all at once but now will be erected in two phases. The south building, closer to the Greek American Deli on Main Street will be completed first, before the north building, closer to the railroad tracks across from Luciano’s, is constructed in phase two. There’s been some difficulty in getting Amtrak approvals, according to Rountree, and the developer may change the footprint to avoid dealing with Amtrak.
The south building, now under construction, is aiming for a fall 2019 completion, she said, adding that a majority of the Monroe Street extension should be completed along with phase one.
In the original financial agreement with Slokker approved by City Council in 2014, the developer budgeted $250,000 for the extension of Monroe Street in addition to site improvements of $575,000 and soil removal of $375,000. Environmental investigation and remediation was estimated to cost about $1.375 million, including remediation of about $1 million.
The concept plan was presented to the Redevelopment Agency in January 2013 which was updated in October 2014. The project received approval of a 30-year Payment In Lieu Of Taxes (PILOT) in April 2014, followed by Planning Board approval in March 2015.