Springwood Ave. deal hits snag

LATEST IDEA FOR BLIGHTED ASBURY PARK AREA OPPOSED

Published in the Asbury Park Press 02/8/05
By NANCY SHIELDS
COASTAL MONMOUTH BUREAU

City officials were nearly ecstatic last fall when they announced they had reached a deal with the 94-year-old Long Branch millionaire Philip Konvitz to relinquish a 15-year claim on a blighted four-block section of Springwood Avenue in Asbury Park.

But the city's optimism over its plan to get the Springwood parcels back for development has been dampened in recent weeks.

Konvitz had built 15 homes in 1990 but could not sell them for several years and never carried out his contract to build 60 more homes as well as stores and other commercial venues between Atkins Avenue and Memorial Drive.

Some of the city politicians in power over the years allowed Konvitz to hold on to the land, and the area, blighted since the 1970 riots, remained undeveloped.

The new deal calls for Konvitz to sell 50 parcels to Somerset Development LLC of Lakewood to build primarily market-rate single-family housing. Somerset will pay Konvitz $825,000, with $350,000 of that amount designated as the city's share of the settlement.

But the recent announcement of a second developer in the mix has stirred serious opposition.

Ingerman Affordable Housing Inc. of Cherry Hill plans to build 70 affordable housing rental units between Sylvan Avenue and Memorial Drive, a section that the public over the years believed would be used for new stores and a supermarket for the west side.

Most of the public concern voiced over the past few weeks has been against placing 70 rental units on one site that is in the heart of three city public housing projects. Residents and city planners have said the affordable housing should be built on scattered sites throughout the city. They also said a plan should include stores on Springwood, possibly with apartments or lofts on the second floor, not unlike the streetscape of the corridor many years ago.

One resident, Mary Johnson, a former Board of Education member and current parent activist, told the City Council last week that the affordable housing should be scattered throughout the city and especially on the east side where major redevelopment efforts are under way.

"It is wrong, if you don't treat people on this (west) side of town right," she said.

For the market-rate and affordable housing projects to go forward, the city has to approve a Springwood Avenue Redevelopment Plan. A hearing on that plan is scheduled for 6 p.m. Thursday.

Mayor Kevin Sanders backs the plan as it is now written and says it's essential to build good, affordable rental units for people who may be displaced by the waterfront redevelopment or from surging real estate values.

But he wants to hear from the public on Thursday and encouraged residents who live in the blighted area to come to the meeting.

The city moved quickly in drawing up the redevelopment plan so that Ingerman could participate in this year's federal low-income tax credit program, which is administered by the state and helps finance developers of affordable housing projects. The deadline for Ingerman to apply for the tax credits, which are sold to large companies to help fund the projects, is April 6.

Councilman Ed Johnson said he's focusing on the entire Springwood Avenue corridor that runs west to the Neptune border and for which the city has additional plans for stores, more housing and a new elementary school.

"I have a commitment to affordable housing in Asbury Park, whether in this area or scattered," Johnson said.

Susan Gruel and Fred Heyer, planning consultants to the city Planning Board, recommendeded in a report that the plan for 70 units at one site be switched to a "more urban, mixed-use development plan including a significant percentage of ground-floor, nonresidential uses. There appeared to be a consensus among board members that in an ideal world, Springwood Avenue would be redeveloped as a mixed-use corridor."

The planners noted that it is not yet known if there is a market for large-scale retail development along Springwood. But they also pointed out that the property is at the center of three of the city's large-scale public housing projects.

When Hazel Samuels, the city's director of housing and community development, appeared before the Planning Board on the Springwood plan, she said it was important for the public to understand what is meant by "affordable" in connection with the project.

Samuels said many people think it means people living below the poverty level, which she said for a household of four meant an annual income of $18,400 or an hourly rate of $9.58.

For affordable or low-income housing, she said the guidelines are different. For a household of one, that amount is $40,250; for a household of four, it's $57,500; and for a household of seven, it's $71,300.

"When you talk about low income, you're talking about our own professionals here in city hall," Samuels said. "You're talking about Board of Education employees. You're talking about folks who work for major nonprofits, for our lenders. Those are the folks that we're talking about. . . . We're not talking about poverty level (but) people who need a whole different approach for their housing needs to be met."

Deputy Mayor James Bruno said he's questioning the Springwood plan as it now stands because he wants more of the land to be used for recreational fields once it is freed up from Konvitz.

"In my opinion, there's more of a need for recreation and parks for kids in this town than there is for housing," Bruno said. "We can grow trees but not land."

Bruno said he is not opposed to market-rate or affordable homes in the plan but wants to reduce the density of both.

City Manager Terence Reidy said he sees the settlement with Konvitz as a good one with Somerset planning to pay Konvitz $825,000 of which $350,000 will go to the city.

Konvitz set out to build the 75 town houses to be sold in the $75,000 range in 1990 as a favor, he said at the time, to his friend â then Mayor Thomas Smith. The land was an urban renewal area owned by the city Housing Authority.

Konvitz could not sell his 15 town homes in the first several years. He said he lost $300,000 to $350,000 on the project and blamed the state for not coming through with funding to help him.

Konvitz was to pay the city at least $350,000 for the portion of land designated for the residential units. He never paid that money or for the additional land he tied up but never built new commercial venues on.

Konvitz retained control over the property over the years through his relationships with city officials even though he never built another town home after the early 1990s.

Konvitz was indicted in 2002 on charges of extortion and bribery. He was found to be incompetent and his case was dismissed.

"This (the settlement) untangles and resolves what's necessary to develop Springwood Avenue, which has laid fallow for 35 years," City Manager Reidy said.


Yahoo! Groups Sponsor
ADVERTISEMENT


Yahoo! Groups Links

Reply via email to