By Laura D.C. Kolnoski
FORT MONMOUTH – A potential deal to redevelop one of Fort Monmouth’s most problematic parcels, a reduction in the scope of another project, and the subdivision of a key Oceanport property were all unanimously approved by the Fort Monmouth Economic Revitalization Authority (FMERA) at its Oct. 20 meeting, held via teleconference.
Lodging Area, Oceanport
Citing pandemic-related issues, Somerset Development, LLC has received approval to subdivide and sublease the 15-acre former fort Lodging Area along Parker Creek.
In 2018, FMERA authorized the execution of a Purchase, Sale and Redevelopment Agreement (PSARA) with Somerset for the site and its eight buildings. Two of the structures are within the fort’s Historic District and therefore subject to historic preservation covenants.
Somerset’s proposal was to demolish six of the buildings, construct up to 148 townhouses and adaptively reuse the two remaining buildings to satisfy the property’s 20 percent affordable housing requirement; paying $17.5 million for the parcel, and making a capital investment of $25 to 30 million.
In April 2020, Somerset sent a termination letter to FMERA stating “it could not continue the transaction under the current PSARA terms” according to FMERA documents. Negotiations ensued and Somerset agreed to rescind the termination if an agreement could be reached regarding issues caused by the COVID-19 pandemic.
In August, Somerset requested FMERA approve “three entities as affiliates.” The authority unanimously agreed to the creation of three sub-parcels: a 1.24-acre Senior Affordable Lot, a 1.14-acre Family Affordable Lot, both occupying the two historic buildings, and the remaining acreage for a Townhome Development Lot. Rules stipulate Somerset must own 50 percent or more of each sub-parcel and complete the projects in accordance with FMERA sales agreements.
Howard Commons, Eatontown
After previous proposals were submitted and withdrawn over the past decade, officials are hopeful Lennar Corporation LLC will successfully redevelop the fort’s 64-acre former Howard Commons townhouse complex on Pinebrook Road in the fort’s Charles Wood Area. The firm has two other developments on fort property – the residential/commercial Patriot’s Square across from the Tinton Falls municipal complex, and Anthem Place, 45 single-family homes nearby.
Built in 1953, Howard Commons’ 485 units will be demolished and replaced with 275 dwelling units and 15,000 square feet of “convenience and/or mixed-use retail” along Hope Road. The parcel was one of the first offered for sale by FMERA in 2012 after the U.S. Army closed the century-old base the previous year.
In February, the price was reduced to $1.5 million “due to the presence of historically applied pesticides impacting the property,” FMERA staff noted. Lennar will pay $1.8 million for the parcel, an amount that could be further reduced if remediation of additional environmental issues costing over $300,000 arise during the 60-day due diligence period. Lennar’s capital investment is estimated at $66 million.
“We’re so happy to see this,” said Robert Lucky, FMERA chairman. “We didn’t know if this could come about because of the environmental issues.”
Howard Commons was the source of concern and complaints by area residents and Eatontown officials.
Dance Hall, Oceanport
An eager public is waiting to patronize The Loft, the oft-delayed reincarnation of a 1940s-era Dance Hall into a brewery, dining and event space off Route 537 (Avenue of Memories through the fort), by AP Development Partners LLC. A reduction in the scope of the project was approved by FMERA last week. The 5,905-square-foot addition, requested by the developer and approved in 2018, which would have increased capital investment in the project from approximately $1.4 million to $4.6 million, is no longer part of the redevelopment.
Delays impacting the project included bureaucratic approvals, financing and pandemic challenges. After meeting with potential users and industry professionals, as well as experiencing “drastic changes to construction costs” and material shortages, the developer determined the addition would “prevent the project from being financially viable,” according to FMERA documents. Staff attested work on the site is proceeding “in good faith.”
“I cannot say enough about (developer) Tripp Brooks and his efforts to say what he will do and do what he says,” said Bruce Steadman, FMERA executive director. The capital investment will now be $3,165,000. A new completion date has been set at 120 days after Dec. 19.
The article originally appeared in the October 28 – November 3, 2021 print edition of The Two River Times.
