Tax plan sparks concerns

Three township residents stepped forward Tuesday to question the sale price and the issue of tax abatements for the redevelopment of the former Trent Motel site.

By:Lea Kahn Staff Writer
   Township Council gave final approval to an ordinance amendment that would clear the way for the construction of a three-story mixed-use building on a 2.5-acre site formerly occupied by the Trent Motel, an apartment house and a gasoline station on Brunswick Pike.
   Township Council adopted the ordinance Tuesday night — but not before three township residents stepped forward to question the council on its plan to sell the assembled parcels to a pair of developers for less than the township paid for the lots.
   The developers — Community Investment Strategies Inc. and The Eagle Group — are slated to appear before the Planning Board on April 17 with a site plan for the property, which is located in the Neighborhood Commercial-1 zone. The site is vacant.
   The proposed site plan calls for a three-story building that would contain 14 office or retail spaces on the ground floor, plus 64 one- and two-bedroom rental apartments that would be affordable to senior citizens who qualify as low- or moderate-income households.
   The amended ordinance that was approved Tuesday increases the maximum size of a building that can be built in the Neighborhood Commercial-1 zone from 10,000 square feet to 85,000 square feet. The Planning Board threw its support behind the zoning ordinance change on Monday.
   Although there are other NC-1 zones in the southern end of the township, the change applies only to NC-1 zones in a designated redevelopment area. The Brunswick Pike South Redevelopment Area — which begins at Mayflower Avenue and ends at the Brunswick Circle — is the only such designated redevelopment zone in Lawrence.
   Last month, Township Council approved a developer’s agreement between itself and Community Investment Strategies and The Eagle Group. The developer’s agreement sets out the terms of the project, such as the ownership of the property.
   The Eagle Group would own and manage the first-floor commercial space, and Community Investment Strategies would own and manage the residential portion on the second and third floors, according to the developer’s agreement.
   The developer’s agreement stipulates that Lawrence will provide a residential tax abatement of 6.28 percent of the gross residential revenue. The payment in lieu of taxes is estimated to be $31,867 annually.
   The purchase price, which is still being negotiated, would be in the $500,000 range.
   Tuesday night, three township residents stepped forward to question the sale price and the issue of tax abatements.
   Robin Williams, who lives on Pin Oak Drive, said she was concerned that the increase in the maximum size of the building, combined with a lower sale price and tax abatement for the developers, amounts to "big give-aways."
   Ms. Williams said she was "disconcerted" by the "give-aways" to the developers, and also questioned whether senior citizens would want to live on Brunswick Pike because it is noisy. She said she is more concerned about providing affordable housing for young families, adding that she does not see the merits of this project.
   "If the township wants to build something, that’s one thing," Ms. Williams said. "Somebody’s getting rich (with the purchase of the property for less than the amount that the township paid for it)."
   Municipal Manager Richard Krawczun said the $1.9 million purchase price for the Trent Motel property was based on three independent appraisals. The township was purchasing a business, not a property, he said.
   Carol Lerner of Pine Knoll Drive told Township Council that she favors redevelopment in southern Lawrence. She asked the council whether township officials had considered developing the property, rather than allow a developer to do it.
   Ms. Lerner said the three properties — the motel, the apartment house and the gasoline station — are probably worth close to $3 million today. The township is selling them to the developers for about $500,000, which she said is about the average price for a home in her neighborhood.
   "To me, it seems incredulous that we are letting it go for that amount of money," Ms. Lerner said.
   Of the $1.9 million purchase price for the Trent Motel, the township chipped in $975,000 from its Affordable Housing Trust Fund. The rest of the purchase price was funded by a bond ordinance, Mr. Krawczun said after the meeting.
   The township paid $240,000 for the apartment house and $173,000 for the service station, Mr. Krawczun said. Of the combined amount of $413,000, the township dipped into the Affordable Housing Trust Fund for $303,000, he said after the meeting.
   Falk Engel, who lives on Barnett Road, was critical of the planned property-tax abatement. He suggested to Township Council that it should provide property-tax abatements to senior citizens and those who are "economically displaced."
   Mr. Krawczun said that without the tax abatement, it is unlikely that the development would have occurred at all. The state redevelopment law allows municipalities to offer property tax abatements, or payments in lieu of taxes, under specific conditions, he said.
   Mr. Krawczun added that persons who are concerned about property taxes should take that issue to the state Legislature. The township cannot give "arbitrary tax relief across the board," he said, adding that it is possible for senior citizens and military veterans to receive tax relief by applying for it at the Tax Assessor’s Office.