FORT MONMOUTH — The board overseeing the redevelopment of Fort Monmouth is back to square one on a proposal for 486 housing units after terminating a purchase agreement with the developer at the builder’s behest.
The Fort Monmouth Economic Revitalization Authority (FMERA) officially terminated an agreement with HovWest, a division of Hovnanian Enterprises, for the former U.S. Army Howard Commons units during the Aug. 20 board meeting after the developer requested a price reduction due to concerns about groundwater levels.
“Personally, I’m very disappointed that we are at this point,” FMERA Chairman James Gorman said. “I know that the staff worked very hard over this period.
“I know the folks in Eatontown were very hopeful that we would get this done working together. I, for one, am very disappointed that these folks took this action, and we have long memories.”
FMERA first requested proposals for Howard Commons in 2012 and entered into exclusive negotiations with HovWest in 2013. In January, the board approved a purchase, sale and redevelopment agreement with the developer.
According to the agreement, HovWest was scheduled to pay $7.2 million for the 63-acre site on Pinebrook Road in Eatontown. Plans called for demolishing the former U.S. Army housing and constructing 275 housing units along with approximately 15,000 square feet of ancillary retail and commercial space.
However, HovWest on July 15 requested a price reduction and an extension of the 75- day due-diligence period because of concerns over higher-than-anticipated groundwater on the site, according to the Aug. 20 resolution passed by the FMERA board. While the FMERA board granted the extension, the board withheld comment on the price reduction until the due diligence was completed.
A week after the request was made, HovWest officially requested that the sale agreement be terminated.
Representatives of HovWest could not be reached for comment.
Eatontown Mayor Gerald Tarantolo said he and borough officials are discussing ways to get the Howard Commons units — which he classified as “blighted” — demolished even without a sale moving forward.
“The big disappointment for Eatontown is the blighted issue of the existing 486 units of housing,” he said. “We are exploring a way of expediting that using other means, but at this time, we are not prepared to divulge what that action is going to be.
“Hopefully we can come up with an alternative solution independent of the actual sale of the property, and we are working on that. In the next month or so, we will have a potential solution to that problem.”
Tarantolo said the condition of Howard Commons is often a point of contention for Eatontown residents.
“The residents that live in that particular area continually complain to me about the blight,” he said. “I’m pleased to see at least the caretaker part of it getting taken care of — the cutting of the grass so the kids could walk to school.”
Eatontown resident Bob English requested that the board explore having the state pay to demolish the Howard Commons units.
“Has anyone thought of the possibility of the state fronting the money on the Howard Commons demolition, and when the property is eventually sold the Army would reimburse the state?” he asked.
FMERA originally received proposals for Howard Commons from six developers, with five being deemed compliant and scored independently by an evaluation committee.
The board is expected to make a second request for offers for Howard Commons.