By Sunayana Prabhu
HOLMDEL – Could an upscale 300-unit continuum care retirement community (CCRC) be the best option to repurpose the former Vonage headquarters along county Route 520 in Holmdel?
Township officials have been mulling over redevelopment options for the 88-acre parcel with an existing 360,000-square-foot building that has largely sat empty since the company relocated to Bell Works in 2022, causing a steady drop in tax revenue and the property’s value.
Bill Colgan, managing partner with CHA Partners, a Bloomfield-based real estate development company under contract with the Vonage property for the past two and a half years, pitched concept plans for the CCRC during the July 15 township committee meeting.
“We’ve scaled down the project to the minimum, which would be approximately 300 units,” Colgan said.
He explained the general composition of a CCRC – 70% independent living, 20% assisted living and 10% skilled nursing care – which allows seniors to live in one location throughout every stage of life. Independent living is analogous to senior living when medical care is not required; in assisted living, some care is involved; and in the final stages of life, nursing care may be necessary.
“That type of density is necessary because there’s a lot of amenities that are generally provided to this community. And to get the amenities to work and be self-contained, there are minimum numbers that you generally look for in that CCRC world,” Colgan said.
Most of the development would be contained within the property’s ring road, while buffers would be maintained along adjoining neighborhoods.
“All stormwater management for the entire site would be contained on the site,” Colgan said. The proposed development will decrease imperious coverage on the property to 20% from the current 26% and create additional public-use walking trails in the green space.
He also noted that the project would decrease parking spaces from 1,477 to 480 and estimated only 540 people would be using the site regularly, down from about 1,500 when it was an office space.
CHA has also offered to donate a portion of the land back to the township so that an Emergency Response Center can be incorporated on-site.
The plan includes 210 independent living units, 60 assisted living/memory care units, and 30 short-term rehabilitation or skilled nursing units. Colgan stressed that “there’s a lot of work that needs to be done with respect to the existing Vonage building” to convert it into residential use. The developer plans to “core the center” of the building and create courtyards in each proposed quadrant for light and air in internal areas.
When questioned by Holmdel Mayor Rocco Impreveduto, Colgan said the existing sewage treatment facility can handle the proposed development “without any significant changes to the current design of the facility.” He said even though the building is vacant, the sewer treatment facility “is maintained (by CHA Partners) and reports are sent to DEP on a monthly basis.”
Responding to committee member DJ Lucarelli’s concerns about traffic and congestion at peak hours, Colgan said the estimates of a maximum of 540 people on site daily included residents and staff, a significant decrease from the nearly 2,000 employees who worked at the site when it housed Prudential and later Vonage.
Impreveduto indicated that the Vonage site redevelopment “in all likelihood” will be a PILOT (Payment In Lieu of Taxes) agreement, similar to the Bell Works redevelopment. Still, he assured, “We will not shortchange the schools.”
Resident Patricia Desro expressed skepticism about the need for a PILOT, arguing that the developers would likely proceed with the project regardless. “I don’t think these guys are going to back out just because you don’t give them a PILOT,” she said, urging the committee to maximize potential school revenue.
Impreveduto responded by reiterating his commitment to maintaining school funding. “Regardless of what path that (redevelopment plan) goes down, we’re committed to the schools getting at least what they’re getting now,” he said.
Another resident, Barbara Singer, pressed the mayor on what that means, pointing out the difference between current tax revenue from a vacant building versus when it was fully operational.
Impreveduto acknowledged the distinction and provided some context. “When the property was valued at north of $34 million… I think the cut for the schools was something to the tune of $450,000 or $500,000. Now that’s closer to $380,000 or $400,000,” he said, emphasizing that the final numbers would depend on the project’s revenue projections, which were still to be determined.
Francine Campus, another resident, worried about “the pressures” on emergency medical services. “These are seniors and I know you have facilities there, but I am concerned.”
“Absolutely, that’s why we want to get help down there, right? Have a facility down there,” Impreveduto said about potentially establishing an EMS center in southern Holmdel with assistance from the project.
Resident Jenny Blumenthal asked about the effect on existing nursing homes and care facilities in the community. She was concerned a new, large establishment might overwhelm smaller facilities that are “chugging along” right now.
“Holmdel is aging at a rate more aggressive than New Jersey,” Impreveduto said, adding that the facilities are all in a “competitive landscape.”
“Within the past several months, there’s probably more market here than one would believe,” he added.
Resident Bill Narito wondered what the proposed project would do to existing residents’ property taxes. Impreveduto said he doesn’t anticipate a negative impact.
Resident Roberta Kaufman raised several concerns about the proposed development, focusing on environmental impacts. She pointed out that the development sits near Willow Brook, a state-designated category-1 stream that feeds the Swimming River Reservoir, a resource for residents.
The development as it presently stands “has an effluent output of under 20,000 gallons per day,” she said, but the 540 future occupants of the property “are going to be putting out three times” that. Kaufman pointed out that the present facility has received notices of violations and questioned whether it could handle increased effluent from 540 full-time residents.
“I’m concerned that this kind of density, these 50 townhouses that are drawn on the backyard, they’re too close to the stream, too much impervious coverage,” Kaufman said, reminding officials to keep the southern two-thirds of Holmdel as a low-density area to protect the watershed.
She urged officials to hire an independent engineering firm to review the effluent output, water usage and overall environmental impact.
The project would be built in phases over three to four years, starting with the independent living units. While specific costs weren’t disclosed, Colgan said the development would target more affluent residents, which is consistent with Holmdel’s demographics.
The article originally appeared in the July 18 – 24, 2024 print edition of The Two River Times.
