Developer ups money for Beachfront South zone
Redevelopment
has increased
property values

BY CHRISTINE VARNO
Staff Writer

LONG BRANCH — The city will be receiving an estimated $3 million more than the expected $10.2 million from the developers of Beachfront South, officials announced last week.

“Nothing has been finalized,” Howard H. Woolley Jr., business administrator, said after the Aug. 24 council meeting. “We are still in the beginning stages [of negotiating with the developer].”

On Aug. 4 the city announced that K. Hovnanian Shore Acquisitions LLC, of Middletown, would be the developer of the 12 acres of property designated as the Beachfront South redevelopment zone. The property is bordered on the east by Ocean Avenue, on the west by Ocean Boulevard, on the south by North Bath Avenue and on the north by Morris Avenue.

“K. Hovnanian made a contribution to the city of Long Branch development fund,” Woolley said. “All [developers] for Beachfront South were told we were looking for a substantial amount of money,”

Hovnanian will pay the city $10.2 million upon the signing of a contractual agreement, according to Mayor Adam Schneider.

The total amount of money is now around $13 million because the city is still negotiating with the developer, according to Woolley, who said the remainder of the money will be paid at a later date.

“It [the $13.2 million] is the result of a competitive process,” Schneider said. “It will go into the redevelopment fund. It is a huge benefit to the city.”

Woolley said the money could be applied to many projects, such as the reconstruction of the boardwalk, but nothing has been decided by the council at this time.

The Beachfront South project will cost an estimated $300 million and will consist of five buildings with a total of 350 apartment units that will range in size from 1,350 square feet to 3,530 square feet. Prices of the units will range from $400,000 up to $2.2 million.

Schneider said in an interview in early August that since redevelopment began on the city’s oceanfront, the location became a more desirable area and the value of property there has risen dramatically.

Irene Tsakiris of West Long Branch,asked the council if the people whose homes were taken through eminent domain for the Beachfront South project will be receiving more money for their property since its value is going up and the city is receiving more money for it.

City officials said no.

“They will get fair market value,” James Aaron, the city attorney, said. “Each property is unique and each property is separately valued.”

“The value of the property is increasing,” Tsakiris said. “The homes are not being sold. They are being taken. It doesn’t seem fair.”