The redevelopment plan for Oakleaf Village, located on Oak Tree Drive, took a huge step forward on March 4.
The North Brunswick Township Council voted on the second reading of an ordinance authorizing the adoption of an Oakleaf Village redevelopment plan, prepared by architecture firm Clarke, Caton, Hintz.
The Planning Board officially approved the redevelopment plan in February.
One of the steps to move the redevelopment plan forward is another ordinance, which would authorize the execution of a financial agreement with North Brunswick Crescent Urban Renewal LLC for an urban renewal project. A second reading on the ordinance is set for March 18.
“This is a pilot agreement allowing longterm financing,” said Michael Hritz, director of community development for the township. “Beginning in the summer, we will see the rebuilding of the first three buildings. Six are expected to be completed by the end of the year and the rest in 2014.”
Hritz said the developer, Community Investment Strategies (CIS), is using two elements of finance: a state-issued Housing and Mortgage Finance Agency (HMFA) loan is used until long-term tax exemption (LTTE) funding can be secured.
“At that time, they will pay off the HMFA loan,” he said. “LTTE is subject to a 30-year pilot that they will have with the township.”
Oakleaf Village is a 184-unit, garden-style apartment neighborhood constructed in 1968. It is located on a 16.1 acre site at 1435 Oak Tree Drive, on North Brunswick’s northern border near New Brunswick. The apartments are contained within 16 two-story brick buildings, consisting of 154 one-bedroom units and 30 two-bedroom units.
The planning firm of Clarke, Caton, Hintz, which prepared the plan dated Jan. 24, said the building and site conditions have grown increasingly dilapidated over time, and it has become a well-known haven for criminal activity.
CIS took ownership of the property in 2012. The redevelopment plan will generate at least 183 affordable dwellings, as well as a community building, providing a space for meetings and other resident activities.
In order to facilitate the project, the township agreed to make a $5.25 million contribution toward the acquisition of the property. This disbursement from their Affordable Housing Trust Fund received approval from the N.J. Department of Community Affairs as an amendment to the township spending plan.
Hritz said the county is entitled to 5 percent of the payment of the total pilot amount each year. However, he said the township will receive the rest of the funds. The payment, he said, is estimated at $254,724 a year.
He said that over the 30-year pilot, the township is expected to receive $2 to $3 million in additional revenue over conventional taxes.
“This is net producing for the township,” Hritz said.