CLOSTER, N.J.—A request for Closter’s Borough Council to initiate a study on whether two lots totaling six acres on Herbert Avenue should be considered as an area in need of redevelopment—and a future 240-unit assisted living facility—was turned aside when council members and Mayor John Glidden did not see any benefits for Closter.
About 60 residents filled Closter’s Borough Hall Oct. 7 to hear an hour-plus presentation on why the council should consider requesting the Planning Board to conduct a redevelopment study of two properties at 231 and 239 Herbert Ave., owned by Mike Reuten, landlord of Reuten Corporate Park.
Later, the four council members present and mayor all opposed the proposal to consider a study for a redevelopment zone. Councilwoman Alissa Latner was absent.
Land use attorney Mark Semeraro, representing Reuten Corporate Park, said by using the redevelopment process, this would allow a potential developer of a proposed assisted living facility to expend less on an application process than by going through traditional channels, such as the Planning Board or Zoning Board of Adjustment to seek a use variance for the property.
No formal application or plans for an assisted living facility have been submitted, although Semeraro showed preliminary renderings of a possible facility in a brief presentation.
Following the council consensus against requesting a redevelopment study, Semeraro said the property owner and developer would “be in touch” on future plans.
‘Redevelopment zone’
Semeraro, of Kaufman, Semeraro & Leibman, and planner Joseph Burgis, represented Mike Reuten of Reuten Corporate Park in asking the council to consider a request for a study of a redevelopment zone designation for a six-acre property mostly comprised of “obsolete” and “outdated” buildings.
Burgis told the council that a redevelopment study would determine if the property met any of nine criteria that would allow it to be declared a redevelopment zone.
Semeraro said their purpose was to present the reasons for the council to consider requesting a redevelopment zone study.
Current property zoning is for industrial use only, with an overlay of 10 units per acre, and an affordable set-aside for rental or for-sale units.
The proposed use—an assisted-living facility—would be approximately 40 units per acre on the six acres, although with more green space than the current warehouses allow, according to Semeraro’s presentation.
The six-acre site includes a former single family house at 231 Herbert Avenue, used as an office, comprising a half-acre and 239 Herbert Avenue, a 5.5-acre tract with warehouses.
Burgis emphasized that nine criteria exist for possibly declaring the area as in need of redevelopment—which could have made the property eligible for a payment in lieu of taxes (PILOT) tax abatement due to its redevelopment designation.
He said for the six-acre property to be declared an area in need of redevelopment, it only had to meet one of those nine criteria.
Semeraro said the developer was not interested in requesting a PILOT or tax-abatement agreement “at this point in time” although he said that might occur in the future.
Burgis noted any future redevelopment-related hearings provide ample opportunity for public input and preserve local zoning.
Moreover, Burgis said, it’s possible one site could be declared a redevelopment zone, and that classification might also be applied to an adjoining property.
240-unit ‘assisted’ complex
About 25 minutes into his presentation, Semeraro said the developers interested in a six-acre redevelopment zone were proposing a 240-unit assisted living facility, comprised of two three-story buildings—one with 200 units and a second with 40 units.
Forty units in the 200-unit building would be “memory care” for individuals with Alzheimer’s or dementia.
It was not clear if or how affordable housing units would be accommodated at such a facility or if such a redevelopment would affect Closter’s affordable housing settlement, which calls for an affordable overlay zone for future multifamily housing.
Such zones require a 15 percent set-aside for rental units and 20 percent for market-rate units, in multifamily developments of five or more units.
Unusual request
Councilwoman Victoria Amitai wondered why the proposed assisted living facility developer would not go through local planning or zoning boards as previous applicants did, and asked for a redevelopment zone study.
Amitai said no other local developer had previously asked for an area to be declared in need of redevelopment.
Semeraro said more public transparency made the redevelopment process better for residents to participate in than a regular planning or zoning application.
He also said it was more costly for an applicant to submit an application through a planning or zoning board and risk “hundreds of thousands of dollars” in applying for a project that was not ultimately approved.
Amitai said a recently approved Master Plan re-examination saw no need for “senior housing” in Closter and Semeraro said assisted living was not senior housing.
He said requesting a redevelopment study did not “set a precedent” for future development applications, which are considered “on a property by property basis.”
“They’re looking to repurpose the property for something that is in greater character with the community and provide a much-needed service for this community,” Semeraro said.
Amitai noted there were four or five assisted living facilities in the area which were not full and Semeraro said “market studies show that in this area there is a need for assisted living.”
Councilwoman Jannie Chung said reduced application costs appeared to be behind the request for a redevelopment zone instead of appearing for a use variance before the Planning Board.
Semeraro said a redevelopment request is “legally permissible and not anything that’s shady, it’s not anything that’s hidden, it’s fully transparent,” adding that it would enhance Closter.
Tax benefits questioned
Glidden questioned what Closter’s tax benefits would be and Semeraro said it would yield “a million dollars in tax benefits” locally if an assisted living facility is built.
He said the six acres now “yields only $120,000 in revenue.” Glidden again asked how Closter benefited tax-wise by formation of a redevelopment zone versus an applicant applying to a land-use board. Semeraro mentioned that would happen by a developer paying future tax revenues.
Resident David Berard said the density at the proposed assisted living facility was “tremendous” and questioned how many families might move into town—affecting local school enrollment—if more seniors move into local assisted living.
Burgis said residents moving in and out of town occurs regardless of an assisted living facility’s presence and said a facility offers an opportunity for seniors to stay in a community they have lived in for a long time.
Other residents questioned an assisted living facility’s impacts on local services and Semeraro noted any future facility would contribute increased taxes as well as provide its own private ambulance.
Glidden stressed if a future project was to be approved, it would have to go through much vetting before planning or zoning boards, but the meeting’s purpose was to determine whether a redevelopment zone study should be initiated.
Resident Joseph Bianco, zoning board chair, said once an area is declared a redevelopment zone, the developer can automatically request a PILOT, which will allow the developer to pay a specified amount yearly, generally much lower than standard corporate taxes.
Semeraro repeatedly said there was no current plan to request a PILOT, though they have a future option to request such should a redevelopment zone be approved.
“I have a hard time understanding the benefits of Closter forming a redevelopment zone,” said Glidden.
He said two decades ago, in Englewood, they needed to declare a redevelopment zone in the western part of Palisade Avenue to induce investors and developers to come in and invest.
All public comments questioned or opposed the redevelopment study and any future assisted-living facility, due to impacts on schools, traffic, and municipal services.
‘Doesn’t jibe’ with Closter
“That doesn’t jibe with what’s going on in Closter right now. Closter is a vibrant town, where every piece of property has a value,” said Glidden, noting the borough “is one of the top 10 towns” statewide, according to a recent New Jersey Monthly article. He said the article said Closter property values have increased 26 percent in the last three years.
Amitai said she was opposed to using a redevelopment zone and suggested an application use normal planning and zoning board channels.
“We don’t need a redevelopment zone. We’ve got plenty of money coming into our borough. Just use the regular channels; that’s my two cents,” said Amitai.
Councilmen Scott Devlin and Joseph Yammarino, along with Jannie Chung, also opposed requesting any redevelopment study.
Semeraro said “we will evaluate what our next steps are and be in touch,” concluding his presentation.
Efforts to reach Semeraro for comment and proposed facility renderings were not returned by press time.
