The developer of two downtown projects under construction presented a new concept for the former Wheatena site at the corner of Elizabeth and West Grand avenues.
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Interest in Wheatena site
City officials were scheduled to meet last week with a developer interested in the former Wheatena site.
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City Administrator and Redevelopment Director Peter Pelissier told the Redevelopment Agency last week that he and Redevelopment Agency attorney Frank Regan were scheduled to meet with American Properties last Thursday. The company, which has several developments around the state, previously had expressed interest in the property, according to Pelissier.
Matzel & Mumford recently terminated a redevelopment agreement for the 8-acre parcel at the corner of Elizabeth and West Grand avenues, where it once had planned as many as 300 units before scaling back to 130 units and ultimately dropping the project.
‘It’s time to knock it down’
City construction and health officials will determine what it will take to raze the building on the former Wheatena property at Elizabeth and West Grand avenues.
“It’s time to knock it down,” said City Administrator and Redevelopment Director Peter Pelissier. The five-story building is structurally sound but has numerous broken windows, sustained recent storm damage, and is known to have “feet of pigeon droppings,” he said. Pelissier expects the Health Department can find grounds for demolition.
The developer, Matzel & Mumford, had asked the city not to pursue demolition previously so as not to interfere with efforts to acquire the property, Pelissier said. The trustee of the property and the developer have not been able to come to terms for acquisition but he suggested demolition might encourage the two sides to get together. Demolition could cost at least a half-million dollars, he added.
A K. Hovnanian Company, Matzel & Mumford have plans for a 130-unit condo complex at the former Wheatena and Quinn & Boden sites.
Wheatena developers working on new timeline
The city is working with developers to update a redevelopment study for the former Wheatena property and come up with a new timeline for the 130-unit project.
Redevelopment Agency Attorney Frank Regan provided a report to commissioners during their meeting earlier this month and said an amended redevelopment agreement, with a revised timeline, should be completed in 30 to 60 days.
Early this year, developers Matzel & Mumford concluded the 130-unit Carriage Park at Rahway was “economically infeasible” at this time but were still committed to it.
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The Union County Performing Arts Center recently added two shows that you might consider a little more high profile than usual: Popular ’90s band Rusted Root on May 21 and comedian Brad Garrett (the brother from Everybody Loves Raymond) on June 13. What do you think? An improvement?
Irving St. side of Park Square 90% leased
Wheatena project ‘economically infeasible’
Developers of the proposed 130 units at the former Wheatena/Quinn & Boden facilities on Elizabeth Avenue want to build the project — just not in this real estate market.
Redevelopment Agency attorney Frank Regan emphasized to commissioners at their meeting Wednesday night that Matzel & Mumford is still committed to the project as approved but could not sell the condos for what they needed to. The city will continue to update the redevelopment study for that redevelopment area, which they hired an consultant for last fall, funded by Matzel & Mumford.
Market conditions, “coupled with the continued unrealistic expectations of the property owners within the redevelopment area, as well as other prohibitive costs and constraints have, unfortunately, rendered this project economically infeasible at this time,” wrote Carl Erler, attorney for Matzel & Mumford, in a Dec. 4 letter to City Administrator and Re
development Director Peter Pelissier.
A market study for Matzel & Mumford by East Brunswick-based Otteau Valuation Group in November pegged the average overall selling price at $294,000, with condos ranging from 1,646 to 2,306 square feet, with an average 2,041. Carriage Park at Rahway would consist of 72 “stacked” and 58 “traditional” townhouses. The plan was scaled down in 2007 from 300 units (264 condos/36 townhouses).
Representatives of Matzel & Mumford met last month with Mayor James Kennedy, Pelissier and Regan to discuss the timing of the project and current conditions of the real estate market.
“We have a significant amount invested in this project and we remain confident that the project will be viable when the market conditions improve,” Erler said in his letter.
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MyCentralJersey.com had a writeup of tomorrow’s First Thursday (Jan. 7), including an opening reception from 6 to 9 p.m. at the Rahway Art Hive on East Cherry Street.
Wheatena developers meet with city
Developers of the project proposed at the former Wheatena factory at Elizabeth and West Grand avenues are scheduled to meet with city officials this week.
More losses for builder
Hovnanian Enterprises — the parent company of Matzel & Mumford, developers of the Wheatena site on Elizabeth and Grand avenues — reported more bad news from the last quarter.
The Rahway Redevelopment Agency last year accepted a revised concept for the former oatmeal factory site adjacent to the railroad tracks and Rahway River Park. Instead of the 264 condominium flats and 36 townhouses, M&M plans 130 townhouse units with clubhouse amenities. (The image above is from the city’s Web site).
Negotiati
ons with the largest property owner have been going on for an extended period of time, according to Redevelopment Agency attorney Frank Regan, with the sticking point being environment issues. “The environmental issues are not nearly as bad as all had expected,” he said at last week’s RRA meeting, so some concessions are being sought from the property owners.
City Administrator/Redevelopment Director Peter Pelissier mentioned at a previous RRA meeting that the project could be done in phases, starting with the parking lots.