The City Council will consider another 15-year Payment In Lieu of Taxes (PILOT), this time for the 115-unit Meridia Lafayette Village. The PILOT would call for an annual payment to the city of about $156,000, or about $1,356 per unit, based on 10 percent the project’s annual gross revenues, according to the ordinance (O-24-12).
Continue reading PILOT proposed for Meridia Lafayette Village
Almost two dozen more spaces will be constructed under an alternate parking plan to accommodate the 108-unit Meridia Water’s Edge project. The developer, Capodagli Property Company, will pay $25,000 for 3,700 square feet (in red on this accompanying map) to build spaces for the rental project, in addition to constructing 22 spaces (in green on the map) for use by the Rahway River Condominium Association.
The 22 spaces will be created along the levee in the outdoor parking lot adjacent to the library building, which is owned by the condo association. The Redevelopment Agency, which is a 50-percent owner of the association along with Rahway Office Center, approved the sale of the property at its meeting last week. The City Council is scheduled to introduce an ordinance next week that would grant an easement to allow construction on city property.
The $25,000 sale price was based on the sale of land for the five-story Water’s Edge project. The Water’s Edge plan that gained approval proposed the use of 21 existing parking spots out of the roughly 160 spaces, which the newly created spaces will replace, along with 87 spaces on the ground floor below apartments.
The condo association needs the parking for future tenants of the commercial space above the library and could not provide for parking related to Water’s Edge unless additional parking would be provided and paid for by the developer, according to Redevelopment Director and City Administrator Peter Pelissier. “The intent is to have a zero loss of spaces for the condo association while providing the spaces needed by Meridia, at no cost to the condo association.”
The 10-year Payment In Lieu of Taxes (PILOT) for Meridia Water’s Edge will reduce the property tax bill on the rental development by anywhere from about $85,000 to $160,000 annually. Over the next decade, that could mean a minimum savings of $1 million to $1.6 million, and likely much more as taxes rise.
The Redevelopment Agency last month closed on the $1-million sale of a three-quarter-acre parcel where a 108-unit rental complex will begin construction this spring. Pompton Plains-based Capodagli Property Company will undertake the project under the name Meridia Water’s Edge Urban Renewal, LLC.
Continue reading Agency closes on sale for Water’s Edge parcel
The developer of the proposed Meridia Water’s Edge will pay $216,000 annually — roughly $2,000 per unit — to the city for 10 years in lieu of regular property taxes that normally would be split among the city, county and school district.
The City Council unanimously approved the Payment In Lieu Of Taxes (PILOT) at its meeting Dec. 12 [Ordinance 29-11], with no comment or discussion among members of the governing body. The lone public comment during the meeting came from Patrick Cassio, the local Republican chairman former mayor candidate, who bemoaned the fact that the PILOT avoids any payments to the school district. Union County will get some portion of the payment.
How much the property would have normally paid in property taxes, or how the $216,000 figure was arrived at, is unclear. Currently, the vacant land is assessed at $161,700 but generates no tax revenue since it’s owned by the Redevelopment Agency, which does not pay taxes. (Theoretically, the assessed value would generate a property tax bill of about $9,322, based on the current overall tax rate of 5.765 per $100 of assessed value).
Capodagli Property Company will acquire the three-quarter acre property (Block 305, Lot 5.04) from the Redevelopment Agency for $1 million, minus a credit for removing soil on the site left from the construction of the library a decade ago. The agency approved a redevelopment agreement at its meeting this month. Principal George Capodagli told the Redevelopment Agency this month that the cost of soil removal was about $160,000, which would make for a final sale price of about $840,000. City Administrator and Redevelopment Director Peter Pelissier initially anticipated the cost would be upward of $250,000.
The five-story, 108-unit Water’s Edge will have about 87 parking spaces on the ground floor and will use 21 parking spaces in the adjacent lot owned by the condominium association that operates the library building. The rental development will have 56 two-bedroom units and 52 one-bedroom units.
The Planning Board gave its approval of the plan last month, and the City Council amended the redevelopment plan to include the site. Only one council member objected at the time, based on concerns about not requiring some type of LEED-certified construction.
Water’s Edge will be the second project undertaken by Capodagli Property Company in Rahway. The Pompton Plains-based firm completed Meridia Grand, an 88-unit rental complex last year, which sold for $19 million several months ago. Capodagli also is in negotiations to acquire the former Savoy property, which has been stalled for many years. The firm is expected to present a concept plan for The Savoy site to the Redevelopment Agency early next year.
The Planning Board unanimously approved a major site plan and parking exceptions for Meridia Water’s Edge after about two hours of testimony Tuesday night.
The City Council will consider a 10-year Payment in Lieu Of Taxes (PILOT) for Meridia Water’s Edge, a 108-unit rental project proposed on land adjacent to Rahway Public Library and The Center Circle.
The City Council last month approved the proposed Meridia Water’s Edge project for inclusion in the Lower Main Street Redevelopment Plan, paving the way for an application to be heard by the Planning Board later this month.
Fifth Ward Councilwoman Jennifer Wenson-Maier was the lone dissenter during a special meeting Oct. 24 when the council adopted the ordinance (O-26-11) by an 8-1 vote. An ordinance (O-29-11) regarding a Payment In Lieu of Taxes (PILOT) for the Water’s Edge project is scheduled to be introduced at Monday’s regular meeting of the City Council.
Capodagli Property Company has proposed 108 units adjacent to the city library and The Center Circle. The Planning Board is scheduled to take up the application at its Nov. 29 meeting and a redevelopment agreement is expected before the Redevelopment Agency at its Dec. 7 meeting.
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Wenson-Maier was among the council members who raised concerns in September about density and size of units, pushing to have the ordinance tabled. While there may be a trend for smaller units in new developments, she said she didn’t like the room sizes but understood the concept. The proximity of Water’s Edge to the library, recreation center and downtown restaurants could address locally some of the amenities offered at similar projects around the country, such as lounges, pools and party rooms, she said.
“What was unacceptable for me as a registered architect and liaison to the Environmental Commission was that the developer refused to obtain a silver LEED rating,” which she said is very attainable. “LEED eventually will become a requirement of the international building code,” Wenson-Mailer, who sites on the Environmental Commission, said via email. The sustainablilty element of the city’s master plan, adopted by the Planning Board in spring 2010, encourages LEED building elements.
Redevelopment Agency attorney Frank Regan said the developer has a loan commitment and is trying to close by the end of the year. “Weather permitting, he’s anxious to get into the ground,” Regan said. The Redevelopment Agency last month extended its memorandum of understanding (MOU) with the Water’s Edge project.