City Beachfront Project Put on Hold
By JOANNE L. PAPAIANNI and ELLEN CARROLL
After more than a year of planning and promotion the ambitious Esperanza
luxury condominium complex on the Asbury Park beachfront is closing down
production, at least temporarily.
Dean Geibel, owner of Metro Homes and developer of the site, said the
project could be on hold a shorter versus longer period of time, but would
not comment further.
Those working at the site on Ocean Avenue were sent home Friday.
Geibel said 70 of the luxury units have been sold and any money left on
deposit by customers will continue to be held in an escrow account, until a
decision is made about the future of the project.
The most luxurious of the three residential projects under construction in
the city redevelopment beachfront area, the Esperanzas plan calls for
amenities such as 24-hour concierge, a fitness center, restaurants, a pool
and decks overlooking the ocean in addition to 224 units.
The Esperanza is being built on the site where another high-rise unit was
planned but later abandoned and imploded to make way for this new project.
City Manager Terry Reidy said the City Council will hold a special meeting
Fri., Dec. 14 to discuss the temporary slow down of the Esperanza, which
means hope in Spanish.
I truly believe that Asbury Park does not rise and fall on one project,
Reidy said. The council will take a look at the agreement and make sure the
city does everything to protect its interest in the matter. It is important
for the city to stay close and work with them while they re-engineer their
project. Winter time is the best time to take that kind of action, to look
at a project and see how to make it work.
Deputy Mayor Jim Bruno said the city will survive.
We have so much more going on, he said. With Madison Marquette in
partners with Asbury Partners and taking over the retail on the
boardwalk
they have some exciting things planned for the summer of 2008.
Hopefully, the market is going to change sooner rather than later. But this
is not an Asbury thing. Its happening all over the country.
Bruno said the timing of the announcement was not the best coming as it did
two weeks before Christmas.
We just hope the new year is better for Metro Homes, he said.
Larry Fishman, chief operating officer of Asbury Partners, the citys
beachfront master developer, said he expected that Metro Homes will either
redesign its project or perhaps another developer will step in to complete
it.
He also noted that Paramount Homes, working on three residential projects at
the north end of the city, has just about completed its three buildings. It
is 85 percent built out and approximately 50 residents are living in units
there either part time or full time, said Carolyn Villani, vice president of
sales and marketing for Paramount.
Its important to let people know we are going strong, Villani said. I am
sure Metro will work something out. To rebuild a city does not happen
overnight. We believe in the dream.
Councilman Ed Johnson said the shut down only highlights the need for a
dispute resolution agreement for all development projects in the city.
He said he believed all development projects in the city should be subject
to performance guarantees and requirements and developers not meeting those
requirements should pay penalties.
If things are not being done according to a timetable, what do we do to
protect the people of Asbury Park, Johnson said.
Johnson admits that developers were caught up in the economic downturn and
collapse of the housing market, but believes that residents should have some
protection.
Johnson also said that delays in construction of the Esperanza, due to
waiting for CAFRA permits and having the state perform inspections instead
of the city, may have impacted sales.
It turned so fast, but there were delays that were completely unnecessary,
Johnson said.
The economy changed and the housing market changed, but that is not the
fault of the people of Asbury Park, Johnson said.
Johnson said Madison Marquette, beachfront developers are an example of how
things should be done.
They are a prime example of when you put your mind to do something, you can
get it done, Johnson said. Look what they have been able to accomplish in
six months quite frankly, its not that hard to do.
Councilman John Loffredo said he believes the outcome for the project would
have been different if Metro Homes could have begun the project sooner.
If they could have gotten into the ground sooner I think things would have
been different for them, Loffredo said.
But Loffredo echoed the thoughts of many.
Look, this is nothing different than whats happening throughout the
country, he said.
Loffredo also said that he would like to see the Esperanza stay in its
current form.
He said he will be attending a special meeting Friday morning to discuss the
matter, but said if the project is changed it will be mean starting from
scratch.
It will have to start over, with committee meetings, he said.
Councilman James Keady, who has frequently been critical of redevelopment
efforts, said, he will attend Fridays meeting, but would like it to be an
open session where all segments of the community could be heard.
People who care about our community who should share ideas to fix this
thing, Keady said.
Keady countered Loffredos contention that the shut down is due to the
housing bust.
If Councilman Loffredo and his supporters are blaming this situation on the
state of housing market, they are being disingenuous at best, Keady said.
The waterfront was in motion to be developed during the hottest housing
market in history, the plan was flawed from the beginning.
Keady said there are a whole range of ideas that could be implemented to
develop the waterfront including construction of moderate hotels and housing
units, ranging from $150,000 to $350,000.
The year-round community needs to benefit from the fact that Asbury Park
needs to be a resort destination, he said. We need to go back to what
worked in the past for Asbury Park.
He continued, What worked in the past would work for it in the future.
Keady said part of the problem is that the city has not been marketed to
middle class people.
It has to be marketed to them. If Im a middle class man with a family,
Ill spend $125 per night to come to the beach, take my children to the
arcade and go out to a nice restaurant
.if its clean and safe, thats who
will come.
Another idea Keady described was providing moderate housing on the
beachfront that could be used as rental units during the winter months for
college students and summer rentals for vacationers.
There could be reasonable rates from September to May and come May you have
summer rentals. Theres a whole range of ideas that could be pursued.
Keady also expressed frustration that area newspapers have not fully
investigated plans and progress of redevelopment efforts.
Contact Joanne Papaianni at [EMAIL PROTECTED]
James W. Keady, co-Director
Educating for Justice, Inc.
601 Bangs Avenue, Ste. 601
Asbury Park, NJ 07712
732.988.7322
[EMAIL PROTECTED]
www.educatingforjustice.org
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