Atlantic Highlands Rejects Mixed-Use Development

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The Atlantic Highlands Planning Board denied the Kalian Companies’ proposal for a mixed- use development at 160 First Ave., the current site of Mike’s Deli. File Photo
The Atlantic Highlands Planning Board denied the Kalian Companies’ proposal for a mixed- use development at 160 First Ave., the current site of Mike’s Deli. File Photo

By JF Grodeska

ATLANTIC HIGHLANDS – After another marathon meeting last month, the Atlantic Highlands Planning Board voted to deny the Kalian Companies’ request for five bulk variances and nine waivers, effectively quashing a project that rankled residents from the first proposal.

In July, Kalian proposed to demolish the current single-story masonry building at 160 First Ave., the current site of Mike’s Deli and Scenic Wines Bar & Liquors, to construct a four-story mixed-use building with 1,413 square feet of retail space on the first floor, 11 residential units on the second and third floors and eight residential units on the fourth floor. The initial proposal would have required 43 variances, including for, among other things, the number of stories – borough ordinance mandates three; the building height – 43.97 feet where a maximum of 40 feet is allowed; and nearly 100% impervious coverage where the maximum allowable is 75%.

Richard Garber of GRO Architects in Jersey City was the architect for the project.

In September, developers’ experts came before the board again with a revised plan to include six one-bedroom apartments, 18 two-bedroom apartments, one three-bedroom apartment, and only 870 square feet of retail space, reducing the number of variances to 13.

At the time, the revised parking plan, with electric vehicle accommodation credits, was within the residential parking ordinance but did not conform to retail parking requirements.

After additional revisions to the plan, the retail portion of the development was reduced to just 5% or 850 square feet, about the size of a storage unit. However, plans also showed the building still reaching approximately four feet higher than allowed by local ordinance.

Despite multiple other concessions from the developer to adhere more closely to the Atlantic Highlands Master Plan, the planning board decided the project failed to meet the necessary criteria to move forward.

The façade of the building was a point of contention for many, perhaps best articulated by Atlantic Highlands resident Mark Fisher, who spoke during public comments.

“This building is beautiful, but I don’t think it’s a beautiful building for Atlantic Highlands,” Fisher said. “It would look great in Hoboken or Jersey City.” Fisher said he remembered people gasping when they first saw the rendering of the proposed building. “Now, if it’s built, people will get used to it, right? But I personally think a more traditional Atlantic Highlands-looking building would have been a nicer design.”

Fisher challenged the project at previous meetings, as well.

Other residents and planning board members expressed similar concerns about the project throughout multiple meetings.

The vote to deny the variances was nearly unanimous, with planning board member David Krupinsky the only holdout.

The last person to speak during the public comment period was Tyler Kalian, not only an Atlantic Highlands native and resident but also vice president of Kalian Companies. He holds a master’s degree in real estate from NYU, specializing in land acquisition, asset management and financial modeling.

“We’ve filled a lot of buildings in town successfully. We surely see sensitivity towards the modernist building,” Kalian said. The company has completed building projects at 158 First Ave., 60 First Ave. and 2 Hennessey Blvd. These projects share a common theme of first-floor retail space with multiple residential apartments above.

“I can totally understand,” Kalian said. “Density can be scary. A walkable downtown and a thriving retail corridor are what I want to see as a resident of town.”

However, he noted the project is only financially viable as proposed. We “have investors to answer to,” he said.

Kalian got emotional when talking about his connections to Atlantic Highlands and responding to some public comments, especially one that accused the Kalian’s of being “hogs.”

“We’re not rich,” Kalian said, noting the company has been “at break-even” for at least four years. “We’re essentially functioning as a startup.”

The article originally appeared in the December 7 – December 13, 2023 print edition of The Two River Times.