By Laura D.C. Kolnoski
Fort Monmouth – On April 20, The Fort Monmouth Economic Revitalization Authority (FMERA) unanimously approved the final conveyance agreement with the U.S. Army, meaning the state could take complete control of the former base’s redevelopment within months.
“It’s a momentous occasion,” said FMERA executive director Bruce Steadman. “We’ve been working on this agreement for six years. It’s the last major hurdle to transfer the properties from the Army to FMERA ownership and take them to ratables for the public.” Authority chairman James V. Gorman added, “This is a milestone event for this committee. It has not been easy but I believe we have a satisfactory result.”
To effect the transfer, FMERA will purchase the remaining fort parcels from the Army for a single payment of $33 million after finalizing discussions and gaining approvals with their prospective lender, the Monmouth County Improvement Authority. About $10 million of that amount is expected to be paid back by year’s end through proceeds from the sale of three Oceanport parcels – officers’ housing, the fitness center, and Russel Hall. Contracts have been executed on all three properties. The 117 historic officer housing units are being purchased by RPM Development. The fitness center will become the property of FM Partners, LLC, which will renovate and expand the facility. Russel Hall, the 40,000 square-foot former Garrison Headquarters building, was purchased by TetherView Property Management, LLC, a private cloud computing company from New York.
The financing plan was conceived about a year ago by Monmouth County Freeholder Lillian Burry, the county’s representative on FMERA and its predecessor agency since the base closed in 2005, as a way to expedite the fort’s redevelopment. Officials have repeatedly stated that the red tape and lengthy bureaucratic procedures imposed by the Army has slowed the pace of sale and redevelopment of fort properties. Burry took her idea to county officials, who are expected to vote to approve the plan at an upcoming meeting.
“The Improvement Authority is backing the bonds,” Burry said of the semi-autonomous agency whose members are appointed by the freeholders. “It’s a tremendous benefit. The county is guaranteeing the loan. The MCIA has successfully done bonding for many municipal projects. FMERA must make the necessary payments over seven years, further benefiting by getting a lower interest rate.” The entire fort was appraised at over $98 million, Burry said.
The conveyance agreement will not be finalized and signed until the New Jersey Department of Environmental Protection completes its review of an outstanding report the Army is preparing on the last of eight landfills on fort property, expected within two weeks. A document known as a FOST – Finding of Suitability to Transfer – will be drafted confirming that the property meets applicable environmental standards. The FOST is expected to be available within a month for a public viewing, providing a comment period of about 30 days, officials said.
The seven environmental reports reviewed by the DEP so far “indicate they are generally consistent with the landfill closure methodology that the Army has discussed with the NJDEP for the last two years,” according to FMERA documents. By agreement, the Army will retain all environmental responsibility, including site remediation to federal standards, on the fort property in perpetuity.
It was also revealed during the April 20 meeting that three other properties in Oceanport are in negotiation for sale and redevelopment: The nurses’ quarters, dance hall, and the marina, which are being sought by AP Development Partners, which is currently operating a new restaurant at the renovated site. In Eatontown, negotiations are ongoing for the former Howard Commons housing site, and “Parcel B,” 89 acres slated for a mixed use town center. Officials said tours of fort properties by prospective buyers and investors occur several times weekly. Public tours for community members will resume soon and will be posted on the FMERA website, fortmonmouthnj.com.
