The Redevelopment Agency adopted its 2018 budget of $1.4 million earlier this month.
The seven-member board unanimously adopted the budget at its regular, monthly public meeting on April 4. Following the introduction of the spending plan at the agency’s February meeting, the state Division of Local Government Services (DLG) gave its approval.
Total revenues are projected at $1.343 million and total appropriations are $1.4 million. The vast majority of the budget — about $1.13 million — constitutes a capital grant agreement, essentially pass-through funds from the city to pay debt service for the Rahway Public Library facility.
One of the few areas of the budget that fluctuates year to year is revenue from redevelopment fees. The increase in this year’s projected budget over the 2017 budget of $1.17 million is primarily because of a spike in redeveloper fees, up from $25,000 last year to almost $184,000 in 2018.
As part of redevelopment agreements negotiated with redevelopers, the agency receives fees for each unit constructed, usually upon issuance of certificate of occupancy (CO). This year’s increase is a result of the expected completion of the 45-unit Gramercy development on East Cherry Street and construction and permitting for a 219-unit project to get under way on the former Center Circle site on Main Street.
In the case of The Gramercy, the Redevelopment Agency will receive $1,000 for each residential unit, a total of $45,000. A quarter of the development fee was paid upon execution of the redevelopment agreement in September 2016; another 25 percent upon issuance of the demolition permit in early 2016, and the remaining half upon issuance of the first CO, for either residential or commercial use. A ground-floor commercial space is expected to be home to a coffee shop.
Other increases in revenue include almost $50,000 for the sale of property, which was part of the land swap related to The Gramercy. The five-story project was approved in late 2015 and as part of the redevelopment agreement, some parcels adjacent to Lot B and the railroad tracks were to be acquired via the Parking Authority. The development will include a 70×60 pocket park.
Redevelopment fees for the Center Circle project are slightly higher, at $1,750 per unit, or a total of $383,250. Half of the total would be paid upon issuance of foundation permits, with the rest paid upon issuance of the first CO.
The agency also reported $104,025 in miscellaneous revenue from the state Department of Environmental Protection (DEP) for work related to environmental remediation and monitoring going back to the planning of the Carriage City Plaza high-rise at 80 E. Milton Ave.
On the expense and appropriations side, salaries and wages account for $122,508, covering six part-time employees, mainly Executive Director Leonard Bier ($70,000), Chief Financial Officer Frank Ruggiero ($22,508), Deputy Executive Director Cherron Rountree ($15,000), along with three support staff of $5,000 each.
In recent years, the Redevelopment Agency’s budget has fluctuated anywhere from $736,000 to as much as $1.795 million: