FBI raids beachfront developer’s offices
Applied Companies’ officials say matter will not affect local work
Despite a federal investigation of the city’s oceanfront developer, city officials are confident Long Branch is safe.
On Aug. 14, the FBI seized records from the offices of the Applied Companies, Hoboken, reportedly for a project the company is working on there.
Sandra Carroll, FBI agent, said, "No information will be released to the public until indictments in this matter are made."
It was not clarified if the indictments would be sought against Applied Companies or against other entities involved in the Hoboken project.
The Applied Companies have been designated by Long Branch to develop 150 acres of oceanfront along the city’s shoreline. The developer has received Planning Board approval for Beachfront North and is seeking approval of Pier Village this month.
Several city officials and the developer’s attorney, Joseph Hayden of Hoboken, have made assurances that the matter will not affect the redevelopment plans for Long Branch.
Although Hayden was not at the liberty to discuss the situation publicly, he did say that the search warrant executed was for a project in Hoboken — the Shipyard.
The Shipyard is a 20-acre project encompassing 1,160 square feet of residential units in five separate structures, 1,450 indoor parking spaces, and 65,000 square feet of ground-floor retail space. In addition, the Shipyard has a waterfront promenade with recreational amenities, and an 800-foot pier into the Hudson River and a new 28,000-square-foot riverfront park. "This project has been fairly controversial and is currently in litigation," he said.
To date, according to Howard Woolley, city administrator, the Applied Companies have contributed over $6 million for acquisitions and demolition of properties on the oceanfront. Woolley also noted with that type of investment into the city, the developer’s statewide reputation, and its ability to borrow money is still solid. "I have assurances from [Applied Companies CEO Joseph] Barry’s attorney that it will not affect future relationships with the state or the ability to borrow money to complete the redevelopment project.
The Applied Companies are known for their redevelopment strategies for Hudson Square North and South, Observer Park, Eastview, Washington Estates and Bloomfield Manor in Hoboken; Porte Liberty on the banks of the Hudson River; Chancery Square in Morristown; Riverwatch Commons in New Brunswick; the Sienna in Jersey City; The Palisades in Fort Lee; and the Essex and Sussex Hotel located in Spring Lake.
According to Greg Russo, vice president of the Applied Companies, the Long Branch project, Beachfront North, groundbreaking is still on schedule for late spring of next year.
According to Mayor Adam Schneider, after speaking with Barry he felt there was no reason for concern. "Barry specifically told me that he did nothing wrong and I believe him," he said. At the request of Schneider, Barry will attend the next council meeting on Sept. 11 at 8 p.m. at City Hall. "Barry does have a responsibility to address the public on the investigation," said Schneider.