After years of legal issues and planning, a construction plan for the former National Lead property in Sayreville is beginning to take shape.
On Nov. 30, the Sayreville Economic Redevelopment Agency approved a concept plan, map and phasing plan for the vast waterfront property.
“This is a significant step forward in our ongoing efforts to reclaim the National Lead property for the people of Sayreville,” said SERA Chairman Raniero Travisano.
The project, now called The Point at Sayreville, is being constructed by O’Neill Properties’ Sayreville Seaport Associates (SSA) of King of Prussia, Pa.
The development plan includes 3 million square feet of retail space, 837,000 square feet of hotel space, and 650,000 square feet of office space. There will also be 2,000 residential units, a community center, performing arts center, emergency service facility, outdoor amphitheater and a variety of other amenities. The Point is also designed to incorporate a marina, an entertainment complex and a riverfront promenade along the Raritan Bay.
Sayreville has been working toward redeveloping the National Lead site since 1996. SERA acquired the property in 2005, and O’Neill Properties was later selected as the property redeveloper. O’Neill then purchased the land from SERAfor $82.75 million. The company has committed $110 million to the project.
Last week’s SERA meeting was called to address a number of issues with which its members had taken issue. The first, which was addressed by SSA project manager Brian O’Neill Jr., was the phasing plan for the project.
An original plan that consisted of 10 steps and covered multiple pages was reduced to five phases, O’Neill said, directing SERA commissioners’ attention to the plans in front of them. O’Neill then took some time to explain the first two phases of the project, which would be built out between 2011 and 2017.
Phase 1, comprising almost 620,000 square feet of retail space, is slated to break ground next year and begin occupancy in 2013.
“We expect it to be 80 percent leased and occupied in 2013,” O’Neill said.
This first phase also includes almost 540,000 square feet of residential space, including rental units and townhomes.
The much larger Phase 2 would involve the construction of 1.8 million square feet of retail space and 250,000 square feet of hotel space. An additional 1 million square feet of residential space would also be constructed. Work would begin in 2013 and the unit would be ready for occupancy in 2017.
The next three phases, which were not discussed at the meeting, are slated to take place between 2018 and 2022. These would include 650,000 square feet of office space, almost 588,000 square feet of hotel space, 540,000 square feet of retail space, and 808,000 square feet of residential space.
SSA expects to construct a total of 4.5 million square feet of nonresidential and 2.4 million square feet of residential space.
Payments in lieu of taxes
The next issue that O’Neill discussed was payment-in-lieu-of-taxes (PILOT) payments, which would go directly to the borough. While the final payment amounts are not yet determined, SSA suggested to SERA a $2 per square foot charge on retail, generating an estimated $1.2 million per year. PILOT payments on the residential uses would generate an additional $1 million per year.
O’Neill also discussed PILOT add-on payments. These, like the PILOT payments, would be set taxes on the land, except the add-ons would be used to fund the construction of amenities at The Point. For nonresidential, an extra $2 per square foot was tacked on, and an extra $1 was tacked on for residential.
After receiving the payment, the borough could decide which amenities to use the add-on payments for first. For example, it could choose to fund the construction of a performing arts center first, or the construction of a fire and emergency medical services building. O’Neill pointed out that, in the case of the fire and EMS building, the borough could choose to use the money to restore or improve a building already in existence in Sayreville.
“Once the amenities are fully funded, then [these funds] can be used for infrastructure and other needs of the development,” O’Neill said.
SERA Commissioner Michael D’Addio asked why PILOT payments would be used for the residential zone. He felt the payments were unnecessary.
SERA Engineer David Samuel answered D’Addio by stating that the professionals, after much discussion, wanted to ensure that some amenity financing was generated by the residential portion. The PILOT add-on of $1 would generate approximately $333,000 per year.
Sayreville would be expected to receive $13.8 million annually in PILOT payments from the retail, office, hotel and residential uses, and another $10.1 million in add-on payments.
Traffic plans
SSA was also asked to explain the traffic phasing for the project. O’Neill told the commissioners that the traffic plan does not line up exactly with the construction phasing. While phase one of traffic corresponds to the first phase of construction, phase two of traffic corresponds to phases two, three and part of four of construction. The final traffic phase then corresponds to the remainder of four as well as the final construction phase.
“That still has to be cleared up,” Samuel said in response. “One of the conditions in our letter is that we asked for further data and an updated model as it relates to the traffic model as a result of the changes that were made,” he said.
Another important factor, Samuel said, is the involvement of the New Jersey Turnpike Authority, which could change the phasing plans.
Debate over townhome sizes
After discussing the traffic plans, Jeremy Lang, SSA’s planner, addressed one of the biggest issues — the number of three-bedroom townhomes to be built.
The original 2007 plan called for 501 one-bedroom, 1,373 two-bedroom, and 125 three-bedroom units. The plan was changed, Lang said, to include 879 one-bedroom, 627 two-bedroom, and 494 three-bedroom units.
The total number of units in the 2007 plan was 3,624, while the new plan has 3,615.
“They are essentially identical for comparison,” Lang said.
Broken down into percentages, Lang said, the new plan consists has 44 percent one-bedroom units, 75 percent one- and two-bedroom units and 25 percent threebedroom units.
“It is a nice distribution and very helpful in terms of assimilation of the project into the community,” Lang said.
“So you’ve added 369 [three-bedroom units]. Why do you think that’s OK?” D’Addio asked.
“I think it’s OK because we’ve offset it by deducting 378 two-bedrooms, making them one-bedrooms,” Lang said. “For every three-bedroom you’ve created, you’ve created a one-bedroom or eliminated a twobedroom,” he added.
“Is it a total offset? No,” Lang admitted, adding, “but it’s not as easy as taking a statistic out of a book.”
With so many three-bedroom units available, the number of school-age children is a hot-button issue for the commissioners. Lang remained calm when explaining why SSA felt the number of children would not rise dramatically.
As an “age-targeted development,” Lang said, the open spaces would be limited, and the amenities and price points would be geared towards adults without children. The cost of the units currently hovers between $350,000 and $500,000, O’Neill said.
“That is going to drastically reduce the school-age children impact,” Lang said.
While there were no published studies used for research, Lang said research indicates that the “quasi-transit orientated” status of The Point homes would generate about a sixth of the number of school-age children that normal townhomes would.
“You’re way off base. Anyone that’s looking for three bedrooms is going to have children,” D’Addio said.
“At least two [children],” Commissioner Thomas Pollando added.
“I disagree with you, and I don’t agree with you that it’s absolutely transit-oriented,” D’Addio told Lang.
“I think it’s a much better balance for this community,” Lang said in response, adding that the impact on the schools would be “very small.”
“I think any impact on our schools is an impact, unfortunately,” Commissioner and Borough Council President Paula Siarkiewicz said.
Tension began to build in the room as the discussion carried on.
“But the schools will get a lot of funding,” Lang said.
“The schools get $19 million whether there’s 125 three-bedrooms or 425,” D’Addio answered.
Lang pointed out that not all the children would be going to public schools.
“We’re talking about a very minor impact,” Lang said.
Soon after, Michael Baker, attorney for SERA, moved to go into closed session. For the next three hours, SERA and SSA discussed the issues behind closed doors.
In the end, SSA and SERA came to an agreement that the number of three-bedroom units would be reduced to 394. The extra 100 units could be turned into oneand two-bedroom units at SSA’s option, Baker said.
D’Addio was the only person to vote against the resolution. Siarkiewicz was not present for the vote.
SSA also requested and received SERA’s support for an economic redevelopment growth grant.
“We aren’t really happy about the amount of three-bedroom [units], but we compromised. We wanted this to move forward for all of the residents of Sayreville,” Pollando said.
“In a tight economy in which redevelopment projects have stalled throughout New Jersey, SERA is pleased to move forward with a plan that will generate millions of dollars in tax revenue, thousands of local jobs for the people of this community, and new amenities for the residents of Sayreville,” SERA Executive Director Joseph Ambrosio said.
The construction plans still require final approval from SERA, as well as site plan approval from the borough Planning Board.