All posts by rahwayrising@gmail.com

Hotel eyes more meeting space, rooftop bar

Hotel Indigo has plans to re-launch its restaurant, explore the possibility of expanding its meeting space, and finally get its long-anticipated rooftop bar off the ground.

Continue reading Hotel eyes more meeting space, rooftop bar

Poll: What store would you like to see downtown?

Most people seem to desperately want a grocery store of some kind to come downtown, so much so that I thought it would be worth its own poll question.

Continue reading Poll: What store would you like to see downtown?

Zoning Board rejects apartments for store

The Zoning Board of Adjustment narrowly rejected a proposal to convert a West Scott Avenue convenience store into three residential apartments.

After about two hours of testimony at its Feb. 27 meeting, the application for 497-503 W. Scott Ave. (Block 239, Lot 52) was not approved by the board, 4-3. Assessed at $189,000, the site had property taxes of almost $11,000 last year.

The Scott Ave. Grocery and Deli, formerly J&J Food Mart, is located at the corner of Oliver Street and West Scott Avenue, and is an existing, nonconforming commercial use in a single-family zone. The original plan called for two three-bedroom apartments of more than 900 square feet and one two-bedroom apartment of 800 to 822 square feet, which was eventually was changed to three two-bedroom units.

Several neighbors testified for and against the application. Those against the application worried that more tenants would bring more problems with loitering and exacerbate parking issues, considering a six-unit apartment complex across the street. Those in favor of the application preferred a residential use to alleviate existing issues of traffic and parking related to the single-story store, including customers using their driveway to turn around, as well as concerns about crime. The owners testified they had been robbed three times, twice around 1998 and once in 2008.

Board members expressed concerns about recreational space for potential tenants’ children as well as flooding issues. The property was flooded with about a foot of water during Hurricane Irene last summer and the application included plans to raise the existing three-bedroom apartment several feet as well as move utilities to the roof. Board members also feared the property would likely end up looking like a converted convenience store regardless of aesthetic renovations.

Owners of the property, who had owned the store between 1991 and 1998, testified that business is down since reacquiring the store in 2009. Witnesses for the applicant testified that ideally, someone would acquire the property, demolish the building and construct a single-family home for a better fit in the neighborhood. That’s not economically feasible, however, and presented this application as the best they could do with the site.

The three board members who voted in favor of the application were Egon Behrmann, Joseph Gibilisco and Ray Lopez. The four who voted against were Paula Braxton, James Pellettiere, James Heim and Adrian Zapotocky.

Tax break could run as much as $160k/year

The 10-year Payment In Lieu of Taxes (PILOT) for Meridia Water’s Edge will reduce the property tax bill on the rental development by anywhere from about $85,000 to $160,000 annually. Over the next decade, that could mean a minimum savings of $1 million to $1.6 million, and likely much more as taxes rise.

Continue reading Tax break could run as much as $160k/year

Aromalicious cafe up for sale

Aromalicious, we hardly knew ya. The Portuguese pastry shop opened for business just around the start of 2011 and barely lasted a year. A few weeks ago, a sign on the front door indicated the shop was closed for vacation and more recently a “Business for Sale” sign has graced the storefront at  85 E. Cherry St.

Across the street, it appears a clothing store has opened, next to the Cherry Street Farmer’s Market, and further up the street, a beauty supply shop has taken over the space at 43 E. Cherry St. that was occupied by Pet Essentials, which moved around the corner to the former Kataluma Chai space on Main Street.

Almost $1 million in PILOTs in 2012 budget

The $49-million municipal budget anticipates almost $1 million of revenue from various PILOT (Payment In Lieu of Taxes) agreements, including the first from one of the Park Square properties.

The total $961,000 in PILOT revenue is up from the $783,000 in the 2011 budget and breaks down as follows:

* Lower Essex St – Denholz Management (Rahway Plaza Apartments) – $366,000
* Landmark – $150,000
* Parking Authority (River Place) — $170,000
* Rosegate — $25,000
* Senior citizen housing — $250,000

Landmark, which broke ground on the Irving Street side of Park Square (2 Park Square) in 2006, appealed its assessment in Tax Court, getting it reduced from $6.05 million to $4.077 million.
The Main Street side (1 Park Square) is assessed at $8.965 million.

The PILOT agreement had the developer paying taxes on the assessed value of the parcels as they previously existed. Landmark will begin paying 20 percent of its assessment this year, which will rise 20 percent each year until it reaches 100 percent (which would be 2016).

River Place was constructed on property owned by the Parking Authority, which receives an annual payment from the development’s owner and splits it roughly in half with the city.

The city budget also anticipates $660,000 in revenue from red light camera fines. About $1 million was realized in the Transitional Year budget, which covered the six months of July-December 2011.

The amount to be raised by taxes in the budget is $33.455 million. The proposed municipal tax rate for 2012 is 2.287 (per $100 of assessed value), so the average assessed home ($133,000) would see municipal taxes of $3,042, compared with $3,046 estimated last year. (Remember, municipal taxes make up only a portion of your overall property tax bill; the others being schools and county). Presented to City Council by the administration in February, the municipal budget will be up for a public hearing and vote at the March 12 meeting.

Poll results: Which grocery store do you want?

The phenomenon that is Trader Joe’s jumped out to a strong, early lead in our latest poll and held steady for weeks at the 60 percent mark until voting closed last night. It was really a race for second place from the start:

Continue reading Poll results: Which grocery store do you want?

New hotel finally breaks ground off Routes 1/9

A new hotel just off Routes 1&9 finally broke ground last month.

A four-story, 93-unit Candlewood Suites gained approval from the Planning Board in March 2009, which was later changed to become a Home2 Suites by Hilton extended stay hotel. Originally, the plan was to construct a Sleep Inn just off Routes 1&9 at the corner of East Milton Avenue and Lennington Street.

The vacant 4.4-acre site was acquired in June 2008 for $2.35 million and currently pays about $6,000 in property taxes as two parcels (Block 338, Lots 3.01 and 3.02).

The city continues to see increased revenues from the local hotel tax enacted almost a decade ago. About $55,000 was realized in the transitional year 2011 budget, covering July to October 2011. Pro-rated, that would be about $110,000, compared to $103,000 in Fiscal Year 2011, $99,000 in 2010, $58,000 in 2009 and $36,000 in 2008, according to municipal budget documents.

The state imposes a 5-percent hotel tax and municipalities are allowed to impose an additional levy of their own of as much as 3 percent. The hotel tax was created during the McGreevey administration in 2003 and Rahway enacted the local tax effective Nov. 1, 2003.