The requirement that only a jazz club/restaurant can be developed at the former Kelly’s Pub property looks like it will be lifted by the Redevelopment Agency, allowing other options to be pursued for the site.
Continue reading Restriction likely to be lifted for jazz site
Years ago, the Redevelopment Agency agreed to sell the former Kelly’s Pub on the condition that the property at the corner of Irving Street and Seminary Avenue be turned into a jazz club and restaurant.
Serious financial issues have plagued the proposed KC Jazz Club to the extent that developers would like to explore selling the property as a simple tavern — only they would need the agency’s approval first. In a Sept. 19 letter to the Redevelopment Agency, Union-based attorney Ronald Esposito, representing E.T. Building, LLC, asks for a meeting to discuss issues in hopes of resolving “what appears to be a very serious financial problem.”
“The only possible way my client can recoup some of their money and reduce their loss, would be to explore the sale of the property and liquor license without the restriction that the facility must be a restaurant/jazz club,” Esposito wrote, adding that Realtors have indicated it would be easier to sell the property without the restriction that a jazz club and restaurant be built.
The property, at 1646-1654 Irving St. (Block 162, Lots 5-7), was acquired for $398,000 in April 2004, according to PropertyShark.com, and pays about $5,500 in property taxes. Only a few weeks ago, the KC Jazz Club website was still active, featuring the rendering below, and proclaiming a 2012 opening. The website was suspended sometime in the past couple of weeks.
City Administrator and Redevelopment Director Peter Pelissier said the attorney should be advised to come before the agency with an update. He told commissioners that the agency “shouldn’t just arbitrarily approve it” but wait for the applicant to present a plan for what to do. The intent of the redevelopment agreement, and the agency selling the property, was for a jazz bar/restaurant, Agency Attorney Frank Regan said, so they would have to come back to the agency for approval to make it simply a tavern.
Esposito details issues the developer has had with financing, including an original $1.5-million mortgage from RSI bank that fell through and a partner defaulted on sale of another property, the proceeds of which would have helped to fund the jazz club effort. Over the past three years, Esposito writes, his client has reduced the cost of the building from $2.3 million to $1.7 million in a failed effort to secure financing from a bank and then private investor. He claims that the anticipated value of the building was agreed upon at $1.75 million when completed ($2.3 million with the restaurant operational).
The bank was to extend a mortgage of $1.5 million, which was reduced to $1 million, Esposito said, which may or may not still be available since about six months ago RSI insisted on payment of the initial $400,000 mortgage money advance used for the property and monthly payments of $2,685 since April. [You can read the full text of the letter here.]
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| What site looked like two years ago |
In addition, Esposito explains that since December 2005 contract entered into with the agency, his client had to purchase a liquor license for $40,000, and pay annual licensing fees of $2,100 to the city and $200 to the state. He also details $32,000 in costs to obtain Department of Environmental Protection (DEP) permits, $15,000 in costs to obtain variances from the city, and $120,000 for engineering and architectural planning.
In a postscript (P.S.) to his letter, the attorney suggested that due to the length of time involved the agency consider, as an alternative, the temporary abatement of taxes and ABC fees until the matter is resolved.
Readers who’ve long been asking “When’s Bachmann’s reopening?” finally have their answer. The Zoning Board of Adjustment on Monday night gave unanimous approval of minor changes to an application that was adopted several years ago.The Redevelopment Agency this month declared Dornoch Holdings in default of its redevelopment agreements on The Westbury and The Savoy, which has entered the foreclosure process with Wachovia Bank/Wells Fargo for failure to repay construction financing.
The Zoning Board of Adjustment unanimously approved an application Tuesday night that paves the way to demolish a former tavern and construct an ice cream shop..
Jimmy Biniaris, owner of Piece of Cake Frozen Specialties, told the board he plans to open the ice cream shop by spring 2012. Half of the store would include 13 freezer doors to store items for pick up from his manufacturing facility across the street, with the other half serving as an ice cream shop, he said. All production would remain at the facility across the street at 62 W. Inman Ave., which serves hotels and banquet facilities but also is “retail legal.” Three neighbors spoke in favor of the application.
A few aspects of the application mentioned last night were slightly different from what was reported here last month: there will be no indoor seating area, only a service counter area, and there were 11 parking spaces proposed (not nine as previously reported) but 12 are still required, making a variance necessary. Other variances sought were a use “d” variance for a nonconforming use and bulk “c” variances for front yard setback and maximum impervious coverage.
Decker’s Tavern operated for 66 years at the corner of Jaques and West Inman avenues until it closed in 2006 and als
o was a nonconforming use. Planner Nicholas Sottoes argued that the site is at the edge of the R-2 zone, is more influenced by an adjacent industrial zone, and the proposed residential-retail combination is more consistent with the two-family homes in the area.
Board members had some questions about street parking and traffic. Decker’s had but eight parking spaces while 20 spaces were required considering it had seating for 20 and about 15 bar stools, according to Sottoes, who added that four street parking spaces (one on Jaques, three on West Inman) could be used as well.
Craig Peregry, a planner hired by the applicant, seemed to allay board member concerns about a potential for increased traffic at the four-way stop intersection and street parking. Current volume at the intersection is very low, and low speed, with about 200 vehicles per hour, he said. Trip generation projections at peak hours — weekday evening and Saturday midday — indicated about 14 in and out of the site per hour while the state considers a “significant increase” to be 100+ trips per hour. “The traffic impact is a wash versus the previous use,” Peregry said.
More details about the application, which includes an apartment on the second floor, can be found in this previous post.
After a bizarre couple of weeks, our latest poll (“What’s your favorite restaurant in Rahway”) is complete.
An ice cream shop would replace a vacant package goods tavern if the Zoning Board of Adjustment gives its blessing next week.
8/16 UPDATE: The applicant decided to postpone the hearing until the Sept. 13 Sept. 14 meeting because only six of the seven Zoning Board members were present. A use change requires five affirmative votes.
Decker’s Tavern, at the corner of Jaques and West Inman avenues, closed several years ago and a proposal in November 2007 that sought to build two three-bedroom duplexes was rejected by the Zoning Board, fearing it was too intense for the site. Continue reading Piece of Cake has plans for Decker’s Tavern site
It’s been quite some time since our last blog poll, so here’s one that everyone should enjoy. Next time you’re looking for places to eat in Rahway, just check back here, and feel free to use the comments section below after visits to any of these places.