City Council OKs Brownstones amendment

City Council approved changes to the redevelopment agreement for Meridia Brownstones, setting a new development schedule for the project’s next phases.

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The governing body introduced the ordinance (O-01-21) during its January meeting. The legislation was unanimously approved during a meeting via Zoom on Monday night. There were no comments or questions from council members or the public.

The approval comes two months after the Redevelopment Agency adopted resolutions to authorize a third amendment to the redevelopment agreement (24-20) and recommend City Council authorize execution of the amendment (25-20).

In late December, Meridia Brownstones cut the ribbon on part of Phase 1A of the project, about 172 units, with then-Housing and Urban Development (HUD) Secretary Ben Carson. Phase 1 includes 298 apartments in all and the 487-unit development will be comprised of four, five-story buildings, constructed over several years at the former Wheatena and Quinn & Boden sites along Elizabeth Avenue, from West Grand and West Scott avenues.

An attachment to the redevelopment agreement amendment (Attachment A) outlines a series of timelines and milestones over the next two years that the developer — Linden-based Capodagli Property Company — must meet or face monetary penalties, in some cases $100,000:

Feb. 16 – Tenant scheduled to vacate Block 228, Lot 1.02
Feb. 28 – Developer to apply for demolition permits
March 31 – Obtain construction permits
June 30 – Demolition and site cleanup of Block 228, Lot 1.02
July 1 – Construction to commence on Phase 2
Sept. 1 – Completion of phase one in its entirety, inclusive of Phase 1C and issuance of temporary certificate of occupancy (TCO)
Dec. 31, 2022 – Completion of construction on Phase 2

The new redevelopment agreement sets aside six units within Phase 2 as affordable units and also sets the Payment In Lieu Of Taxes (PILOT). The 30-year PILOT would begin when the first certificate of occupancy is issued (likely 2023) and be set at 10 percent of annual gross revenue for the first five years, then increase per this schedule:

Years 1-5: 10 percent of annual gross revenue
Years 5-10: 11 percent of revenue or 20 percent of taxes due
Years 11-15: 12 percent of revenue or 40 percent of taxes due
Years 16-20: 13 percent of revenue or 60 percent of taxes due
Years 21-30: 14 percent of revenue or 80 percent of taxes due

The concept for The Brownstones first was presented to the Redevelopment Agency in 2012 and approved by the Planning Board in 2014. The original redevelopment agreement was approved by the Redevelopment Agency in 2013 and stipulated that the last phase be completed within five years of acquisition, which was 2015. Phase 1 broke ground in 2018.