By Stephen Appezzato
HIGHLANDS – The Highlands Borough Council recently designated two firms as conditional redevelopers for two projects.
After a resolution passed earlier in January, Arjika Builders is now the conditional redeveloper of the lot at 289 Bay Ave., a property within the scope of the Amended Central Business District Redevelopment Plan, a designation adopted last year. According to the resolution, Arjika Builders intends to develop the site with a three-story, mixed-use building that will include up to four residential units and about 1,000 square feet of commercial space.
“This is just the very, very first step in a number of steps of the process,” Mayor Carolyn Broullon said at the Jan. 15 council meeting. “After we name the builders tonight, the second step of the process is to start negotiating an agreement with them.” The last step is constructing the plan, she said.
According to the document, Highlands’ business district redevelopment plan envisions a “vibrant, walkable downtown along the Bay Avenue corridor and adjoining areas that includes a mix of old and new commercial and residential uses,” as well as additional apartments, stores, services, attractions, improved parks, public facilities and more. Future projects built under the plan are to be consistent with Highlands’ “identity as a waterfront, historic small town.”
Under the resolution, Arjika Builders has 180 days, unless extended, to negotiate and execute a redevelopment agreement with the borough. The company will also reimburse the borough for interim costs related to the negotiations. If an agreement is not executed within the timeframe, Arjika Builders will lose its conditional designation and the borough will “have no further obligation to the company.”
A similar motion was approved by the borough council in December regarding another redevelopment project in its early stages. On Dec. 18, Highlands officials designated Scenic Highlands Owner, LLC the conditional redeveloper of the Shadow Lawn Mobile Home Park, which according to the borough was vacated as of last year.
The borough adopted the Shadow Lawn Mobile Home Park Redevelopment Plan in 2018 to establish guidelines for redeveloping the space, which is located just north of Route 36 on top of a hill overlooking Sandy Hook Bay on the western side of the borough.
According to the December resolution, the company proposes building up to five six-story residential buildings consisting of approximately 300 rental units, with 15% reserved as affordable units, parking, a clubhouse and amenity spaces. As the project is early in the process, a concrete plan has not yet been presented.
In December, Broullon explained the resolution was, again, just the first of many steps in the redevelopment process. At this time, Scenic Highlands Owner doesn’t own the property.
“They have not purchased the property yet, but before they do due diligence, the borough must do due diligence on them,” Broullon said at the meeting. Under the resolution, Scenic Highlands Owner will pay for the borough’s professional fees in the due diligence stage.
“There will be many public meetings that will show what they are planning on doing,” Broullon said. “I can tell you right now that what is in the redevelopment plan, what’s already been approved – it will be conforming with that. There will be no deviation from what’s already been approved to build on that lot,” she said.
In the past, dealings with other potential Shadow Lawn redevelopers fell through. “We are very cautiously optimistic that this will not go by the way that it has in the past and that this will move forward,” Broullon said.
If the borough executes an agreement with Scenic Highlands Owner and Shadow Lawn is redeveloped, some of the units set aside for affordable housing might contribute to the borough’s state-mandated requirements, outlined in the fourth round of affordable housing obligations.
In New Jersey, towns have a constitutional obligation to establish a certain number of affordable housing units, which is calculated in cycles every 10 years, called rounds.
In January, the borough council committed to complying with the new round of housing obligations by passing a resolution.
“We got our number earlier this year; we need to provide 30 units, which should not be a problem,” Broullon noted. According to the resolution, Highland’s present need for affordable units is zero; its round four prospective need is 30.
The article originally appeared in the January 30 – February 5, 2025 print edition of The Two River Times.
