Last November 11, our Borough Council commissioned a draft Redevelopment Plan for a massive, 500-unit apartment project on River Road, next to the huge, 245-unit Ivy complex.
Since then, it’s come to light that the new project would be risky for Chatham Borough in at least six ways, as follows:
First, this new River Road project is NOT required by affordable housing law, and it would NOT help fulfill the Borough’s new affordable housing RDP quota either.
The new apartments would be in addition to the Borough’s affordable housing quota, which the Council must figure out how to satisfy before the end of June 2025.
Go to minute 1:31:00 here: https://chathamborough.granicus.com/MediaPlayer.php?view_id=1&clip_id=197
https://www.tapinto.net/towns/chatham/categories/letters-to-the-editor/articles/blind-faith
Second, the alleged risk associated with NOT adopting that 500-apartment Redevelopment Plan for River Road is totally imaginary.
Our Council President insists that, absent the new Plan, current zoning allows private property owners to develop up to 707 new apartments on River Road and the Borough would have NO say in the matter. That sounds scary, but it is NOT true.
In fact, about 40% of the Redevelopment Area is Borough-owned. Private property owners can’t touch it without the Council’s consent.
Also, the part of the Redevelopment area that’s privately-owned is mostly dozens of small lots, all subject to many federal, state, and local rules and regulations.
As such, the owners of that private property would NOT be able to build anywhere near 707 new apartments without Borough approval.
Third, if the Borough Council tries to prevent such private development by adopting a Redevelopment Plan, then we’ll actually end up with far more apartments on River Road. That’s because a rental Plan would have to provide for at least 500 new apartments – more than twice the number at the Ivy.
The new Plan would have to be that big is to satisfy the legal requirement to provide for at least 75 affordable units, which must be at least 15% of the project.
That’s also the usual ceiling for developers of rental projects. So to induce a redeveloper to provide the minimum 75 affordable rental units, the Council would have to permit construction of a 500-unit project, twice the 245-units now at the Ivy.
Fourth, our Mayor & Council are well aware that the Redevelopment Plan would allow construction of 500 apartments. They heard it directly from Borough Planner Fran Reiner last March. Go to minute 1:06:00 here: https://chathamborough.granicus.com/MediaPlayer.php?view_id=1&clip_id=197
Some believe the Mayor & Council could persuade a developer to provide MORE than 15% affordable rental units. But how?
Would they give away Borough land? Allow the redeveloper to build extra stories? Grant the redeveloper an even more lavish PILOT tax exemption? All three? Would that be good for the Borough?
Fifth, some Council members don’t seem to realize that such a Plan would also almost inevitably involve granting the redeveloper corporate welfare, at the very least a total PILOT exemption from paying property taxes, same as the Ivy.
Sixth, the Mayor & Council President claim that adopting a Plan would enable them to get the redeveloper to throw in a “free” riverside park and other so-called “amenities.” But the fact is that nothing is free.
To get those goodies, the Borough Council would have to accept an even worse a deal for residents and taxpayers. They’d probably need to give away even more Borough land, allow the redeveloper to build even more extra stories, and grant the redeveloper an even more lavish PILOT tax exemption.
https://chathamchoice.org/2024/08/welcome-back/
Before spending any more time or money on another Redevelopment Plan for River Road, our Mayor & Council need to tell us how they would avoid getting stuck with a huge, 500-unit rental project that would clog up our roads, and would almost certainly demand an exemption from property taxes the rest of us must pay.
https://chathamchoice.org/2024/12
Better yet, tell the Mayor & Council to set aside this ill-conceived scheme and concentrate on urgent business, including meeting our affordable housing quota without overburdening our wallets and infrastructure, improving the master plan, and figuring out if there’s a way to turn the Stanley Church into an asset instead of a money pit.
