The city will acquire the American Legion building on West Main Street for $77,500.
City Council last month authorized a $90,000 bond ordinance to acquire James E. Mackie Post No. 499 at 59-63 W. Main St.
The governing body unanimously introduced two ordinances (O-10-19 and O-13-19) during its April 8 regular meeting. A public hearing and final adoption is scheduled to take place during the May 13 regular meeting. City Council will next meet on Tuesday for its monthly, public pre-conference meeting.
The first ordinance appropriates $90,000 and authorizes $85,500 in bonds (and $4,500 down payment) for the acquisition. The second ordinance authorizes the purchase of the property.
The city commissioned an appraisal of the property, which was built in 1900, according to property records. The appraisal established a value of $150,000 but “given the condition and anticipated rehabilitation costs, the parties have negotiated and agreed upon a purchase price of $77,500, subject to approval of Municipal Council,” according to the ordinance. “The property requires substantial rehabilitation based upon the fact that it has been vacant for a significant period of time and has fallen into a state of disrepair.”
Redevelopment Agency Executive Director Robert Landolfi said the opportunity came up to purchase the property. There are no immediate plans for the property, he said, but in the long-term, it’s likely to be part of redevelopment.
Nationally, the American Legion has seen membership drop along with the number of posts, according to this New York Times story from 2013. Total membership was down 11 percent since 2000 to less than 2.4 million members in 2012. The number of operating posts dropped 6 percent between 2000 and 2013 (from 14,700 to 13,800).
James E. Mackie Post No. 499 at 59-63 W. Main St., (Block 160, Lot 7) is assessed for $192,400, according to property records, but is exempt from property taxes since it’s owned by a nonprofit organization.
An assessment of $192,400 would normally generate property taxes of about $12,877 based on an overall tax rate (municipal, Board of Education and county) of 6.693 per $100 of assessed value.
An adjacent property at 69-79 W. Main St. recently underwent extensive exterior renovations late last year.
Some more of Rahway history will probably be destroyed. I believe this was the original fire house and police headquarters. What we don’t need are more apartments.