HILLSDALE—A unanimous Borough Council voted Aug. 9 to approve a redevelopment agreement with CP Hillsdale LLC to move forward on a four-story, 255-unit, multifamily luxury apartment complex in the borough’s redevelopment zone.
The complex is expected to provide nearly $39 million in local tax revenue over three decades.
During a portion of a nearly three-hour meeting, redevelopment special counsel Joseph Baumann detailed the agreement, noting it will provide approximately 5,000 square feet of inside community space, 2,100 square feet of outdoor space, and payments totaling $750,000, as part of the “community benefit” that Hillsdale will receive.
The complex will include 20 affordable housing units on site. The development of the industrial zone’s redevelopment plan, approved in early 2021, was contingent on providing affordable housing required under the state’s Mount Laurel affordable housing mandate.
To get work going on the design of a community center at the proposed complex, Mayor John Ruocco appointed a special advisory committee to work with the redevelopers.
He appointed himself, councilmen Anthony DeRosa and Zoltán Horváth, business administrator David Troast, recreation director Patty Hughes, library director David Franz, and borough architect Francis Reiner to the committee.
The principals of CP Hillsdale LLC, also known as Patterson Street Urban Renewal LLC, Richard Sciaretta of Claremont Developers and Anthony Marchigiano, of March Development, thanked the mayor and council for its approval of the agreement.
Marchigiano noted, “This is going to be a long-term commitment to the city. We’re excited and we’re appreciative.”
(See “Borough, redeveloper in pact on Waste Management tract,” Pascack Press, Oct. 24, 2021.)
During the meeting, the council also unanimously approved a long-term financial agreement or PILOT (payment in lieu of taxes) agreement, that will provide annual tax revenues of $735,000 to the borough.
Moreover, a financial analyst from Acacia Group, Jennifer Edwards, who assisted the borough during its negotiations, said that Hillsdale will never receive less than $500,000 in tax revenue yearly based on the agreement.
Community center questions
During public comments, some residents questioned the need to construct a separate community center at Stonybrook Swim Club, comprising about 3,500 additional square feet,
At the July 12 meeting, council hired DMR Architects for $199,000 to design a separate community center, mostly intended for seniors to have their own facility and space.
Several council members said they had been under the impression that the seniors wanted separate space and wanted to provide it to them. However, on Aug. 9, a couple of council members, including Abby Lundy, said the additional community center space at Stonybrook would be to help out the borough’s summer camp and other recreational needs, not mentioning the seniors.
Most residents who commented Aug. 9 said they were opposed to constructing a separate community space at the municipal swim club.
Originally, a council majority said the separate community center space would be mostly for seniors to have their own facilities but several seniors present at the July 12 meeting, and Ruocco, said they did not think most seniors favored such a facility.
A few residents commenting Aug. 9 recommended that council delay any separate, or second community center at the swim club — initially estimated at $2 million — until the community space is constructed at the new luxury complex and council and residents get a better sense of how the space is being used.
At the meeting, council approved three documents critical to the multifamily development. These included the redevelopment agreement, which was not publicly released prior to its approval, along with the financial (PILOT) agreement, and an amendment to the Patterson Street Redevelopment Plan.
Both the PILOT agreement and the Patterson Street Redevelopment Plan amendments had been released on July 22, more than two weeks before the Aug. 9 meeting. It was not clear why the council and redevelopment counsel had declined to release the redevelopment agreement.
Baumann said that the redeveloper would submit a site plan application to the Planning Board, where the applicant will offer experts who will be cross-examined by board members and the public. He said “within six months” of getting all required approvals, the applicant, CP Hillsdale LLC, must get all financing to complete the project.
Three months after, they must commence project construction, and the redeveloper has 30 months to complete construction.
Several residents questioned the applicant’s traffic study that showed no significant impacts from the anticipated 400 cars from 255 apartment units. Resident, RIchard Ferrari said it studied traffic during June, rather than higher volume periods in September to November.
He also questioned the Rutgers population study that showed an estimated 17 school-age children would result from 255 apartment units, including 20 affordables. He noted nearby River Vale’s luxury townhome development under construction may add students to the regional high school district.
Another resident, Chris Adomondo, called the traffic study “very flawed” and said the estimate of a maximum 17 school-age children from 255 units was an “impossible estimate.”
Baumann said that the affordable units were expected to have a “higher percentage” of children than the other luxury units, and noted that the Rutgers population projection study data was updated in 2018.
He said given a two-bedroom apartment’s estimated rent of $3,350, the tenants might be divorced, downsizing, or yet childless.
Reiner said that the applicant might be able to update the traffic study to include other months. He also noted the Rutgers school-age student projections were based on data from actual multifamily residential unit developments throughout New Jersey.