Towns strike deal for space, housing needs
180 senior units, passive and active recreation planned at Lenape site
By elaine van develde
Staff Writer

This rendering shows the proposed location for senior housing and athletic fields on a tract near the Atlantic Highlands border. Route 36 is at the bottom of the drawing.

What was once a land dispute is now viewed as a land-use coup for Middletown and Atlantic Highlands.

The dispute dates back to 1990 when a developer wanted to build 465 units of housing on the 25-acre tract of land which borders Atlantic Highlands on Route 36 and is adjacent to the Lenape Woods passive recreation area. The units were slated to be built in six separate buildings, 80 percent of which were to be "affordable" and meet part of Middletown’s affordable-housing obligation to the state.

Since the Lenape Woods property is in Atlantic Highlands and so close to where the project was to be, Atlantic Highlands sued to put the brakes on the development.

Now, more than 10 years later, the two towns have struck an agreement about the use of the land that accommodates the needs of both and puts an end to the mounting litigation costs.

"This is really a win-win situation for everyone involved," said Mayor Joan Smith.

Affordable senior housing and passive and active recreation will fill the tract. Specifically, the plan is to put 180 senior housing units in one four-story building on one-third of the property, three athletic fields, a soccer field and two Little League baseball fields on another portion and use the remainder for passive recreation. The two towns will purchase the tract from Conifer development, Rochester, N.Y., at a price of $3 million.

The cost will be split between the towns in a 65-35 percent deal. Middletown will pay 65 percent of the $3 million, or $1.95 million, and Atlantic Highlands will pay 35 percent of the price, or $1.05 million. The portion of the land designated for the senior housing will be leased back to Conifer to construct the units.

Under the terms of a long-term lease, Conifer will be eligible for a tax credit program via the state’s Housing Mortgage Finance Agency, which has yet to be approved. The deal with Conifer is contingent upon the approval of the tax abatement, which will be filed for in April, the details of which were not available yet. If Conifer doesn’t get the abatement and backs out of the deal, Mayor Smith said it would not be a hindrance to the project.

"We could always develop it as a township or just find someone else to, if need be," she said.

Both towns are seeking state Green Acres funding to support the cost of the project and are confident it meets Green Acres standards.

"Green Acres (representatives) are aware of the project and have been to the site," said Middletown Planning Director Anthony Mercantante. "They like the plan. There’s no question that the acquisition will be funded through the program."

Under the agreement, Atlantic Highlands will also be deeded about eight acres of property for passive recreation and will pay up to $50,000 toward engineering and design costs incurred in the construction of the active recreation fields.

Both municipalities will have equal access and be responsible for splitting maintenance. The details of that agreement have not yet been ironed out. "There’s really no need to worry about the use agreement and how it’s set up. What both towns are getting from it is what’s important. It’s of great benefit to both," said Atlantic Highlands Councilman John Archibald.

Green Acres has a matching funds grant and a low-interest loan program. Middletown is seeking to use matching grants funds, so it will actually pay about $1 million for the tract, and the remainder, if all goes as planned with the Green Acres approval, will be funded by Green Acres. Atlantic Highlands will pursue both the matching funds grant and the 2 percent interest loan program to fund any balance.

Citing that the project meets many township needs, Smith said, "This project will provide much-needed senior citizen housing in the township. There are waiting lists at all of the senior facilities. We’re really fulfilling a need."

Atlantic Highlands Mayor Michael Harmon added that more than 18 percent of the seniors in Atlantic Highlands don’t want to leave town but cannot afford a private home.

"This is a fabulous set-up for them," he said. "This is a very unique situation in the state. We’re sharing a border and preserving. It just proves a little creativity can go a long way with land preservation," Harmon said.

Under the state’s Council on Affordable Housing guidelines, people age 55 and over are eligible for the housing. Though, Mercantante said the average age is closer to 80 for these units.

The senior housing will be situated next to the recreation fields. "It’s a good thing not to have seniors isolated from activity. They can watch the kids play," said Mercantante.

As part of the deal, the developer is obligated to clean up the property. "It’ll be nice to have the land manicured," Smith added.

The some 800-member Lenape Woods Coalition which blasted the first plan is in support of this project, Archibald said, and is sending letters of project endorsement to its membership.

Mayor Harmon owns six acres of land contiguous to the tract and would like to see it preserved.

"It’s not for sale," he said. "I get offers on it all the time. I will do everything I can to not develop it. I don’t know, though, if I’m rich enough to just preserve it."

The plans are expected to go before the Planning Board after the new year.