OLD TAPPAN, N.J.—A measure to rezone a nearly 20-acre former Pearson Education property near a shopping district for an “inclusionary development” of 225 housing units that combines market-rate townhomes and affordable housing will be voted on at the Borough Council’s June 17 meeting.
The rezoning is to create a PRD-2, Planned Residential Development-Affordable Housing District on Lot 7, Block 1606, the former Pearson property vacant since 2014.
‘Inclusionary’ development
“The purpose of this district is to encourage the production of low- and moderate-income housing in conformance with the latest procedural and substantive rules for affordable housing as determined by the courts or other applicable authority, by permitting inclusionary townhouse and multi-family development subject to the PRD-2 regulations enumerated herein,” states the ordinance.
The proposed ordinance will likely pave the way for the most significant development in Old Tappan in decades—a move set in motion with the approval of the borough’s affordable housing settlement in late 2017.
An “inclusionary development” is development that allows the developer to build market-rate units in exchange for building affordable units, which may include rental or for-sale units or both. Both are included in the rezoned Pearson site.
The public hearing on June 17 will focus on a 22-page ordinance, available on the borough website, that rezones the former 19.09-acre Pearson Education property—one of the largest local tracts available for development—for 225 total housing units, including 39 units of affordable housing, according to local officials.
The ordinance was introduced April 15, and a second reading was postponed May 20 to provide a new council member, Jin Yhu, an opportunity to review it before a final vote.
99 townhomes planned
Borough Administrator Anna Haverilla, a former councilwoman, said a total of 99 townhomes and 126 rental units are planned on the property, which was purchased in late 2018 by a developer who has been working with the borough on the inclusionary development.
Twenty of 99 townhomes will be affordable units and 19 of the 126 rental units will be affordable units, she said.
The property’s rezoning was required under the borough’s affordable housing settlement plan, which included an overlay zone for future Pearson site development at 12 units per acre for either townhome or assisted living development.
At the time, Haverilla said Fair Share was initially pushing for an overlay of up to 25 housing units per acre.
When its affordable plan was approved by Superior Court in early 2018, the Pearson property was for sale. Pearson Education vacated the site in 2014, when the company moved to Hoboken due to a significant tax break offered by New Jersey.
The Pearson property was purchased Oct. 15, 2018 by 200 OTR LLC, One Sony Drive, #3A, Park Ridge, for $11,495,435, according to njparcels.com.
The developer pays $380,950.00 in annual taxes, according to public records.
Hornrock Properties, another corporate entity located at 1 Sony Drive, #3 A, Park Ridge, is seeking preliminary approval June 18 in Montvale for a 185-unit inclusionary development with 37 affordable housing units and is currently an intervenor in Park Ridge’s long-running and contentious affordable settlement negotiations.
‘Had the foresight’
“Knock on wood that the mayor and council had the foresight to do that,” said Haverilla June 12, of the settlement plan’s overlay zone limiting Pearson development to 12 units per acre.
She said if the council approves the ordinance—which is required by its affordable housing plan—any future development proposal by 200 OTR LLC must be reviewed per the new zoning and borough code by the Planning Board and voted on to go forward.
Haverilla said negotiations with 200 OTR LLC have gone well and any future development at the Pearson site can possibly add to the business district near Bi-State Plaza.
“They really listened to our concerns, they really wanted a lot more,” said Haverilla of representatives from 200 OTR LLC.
The rezoning ordinance, 1149-19, notes the 19-acre site can be broken down into three lots for development.
These include a 2-acre mixed use lot, which Haverilla said may include ground-level retail development topped by second-floor affordable apartments; a 4.5-acre multifamily dwelling lot that will feature mostly market-rate apartments for rent, she said; and an 11-acre townhome lot that would feature 99 townhomes.
“We’re just doing what we’re supposed to do and trying to comply with our [affordable housing] settlement,” Haverilla said.
‘We are pleased’
Mayor John Kramer said initial hopes were the former Pearson property could remain commercial space but market conditions were not suitable and with Fair Share Housing Center eyeing the site for high-density inclusionary housing, “we were required to do something, and so I’d say I’m pleased with the negotiated settlement. We are pleased we got 12 units per acre,” he added.
Kramer said he expected some residents’ questions and concerns with the proposed site development but things could have been worse, development and density-wise, he said.
“Here our negotiations went rather well,” Kramer said, noting nearby towns with higher-density inclusionary developments than Old Tappan.
‘Have to fulfill’ obligations
“I’m happy with the settlement…and I’m pleased with the overall development as we’ll continue to have an obligation,” said Kramer. “Am I happy about the affordable housing aspect? No, I’m not happy about it, but we have to try to fulfill our obligation,” he said.
Kramer said he believed there has not been a public outcry about the development because it does not abut any residential development and is near commercial property, the Bi-State Plaza.
Haverilla said though no one likes to see changes in town, only a few residents have expressed concerns about the proposed housing density or effects on the town.
Under the ordinance, for-sale affordable units should be 50 percent for moderate-income households, 37 percent for low-income households and 13 percent for very low income households. For rental units, 36 percent shall be for moderate-income households, 47 percent for low-income households, and 15 percent for low-income households.
A spokesman for 200 OTR LLC declined to comment when contacted by Northern Valley Press.