Redevelopment plan for Flemington's Liberty Village shopping outlets takes new turn
FLEMINGTON – Plans for the residential redevelopment of Liberty Village have been reduced by 30%.
Though the size has been reduced, the project is expected to generate a "massive increase" in revenue for the borough, developer George Vallone, president of Hoboken Brownstone Co., told the Borough Council about a revised redevelopment plan. He said the development could produce "tens of millions a year" in revenue for the county seat.
The new plan shows a "fairly significant scaling back," Vallone said.
The number of townhomes planned on the site of the nation's first outlet mall has decreased from 160 to 111, Vallone said.
The height of the townhomes on the east side of the Black River & Western Railroad has also been reduced from four stories to three.
Seven of the townhomes will be affordable units.
The original redevelopment plan called for 225 apartments in five buildings in the property’s parking lot which is in a flood area.
That plan has been reduced to two three-story buildings, each with six apartments that would house disabled veterans and their families, Vallone said. Those units will also be affordable.
Vallone said he will donate property at 5 Church St. occupied by Allies, an adult day care provider, to the borough for use as a possible borough hall.
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But Mayor Marcia Karrow said officials are leaning toward the building remaining as a rental property and possibly as a restaurant.
"We could use more in town," she said.
Vallone had first proposed that the Ralph Lauren building at the entrance to the outlet center would be donated to Flemington as a new borough hall.
Vallone said the historic house at 1 Church St. will be rehabilitated and would possibly house commercial tenants.
Vallone has also pledged to develop a 7,500-square-foot park with two playgrounds on Brown Street. He said he will install $250,000 of playground equipment in the park.
Behind the park is planned a 38,000-square-foot retention basin that will curb flooding problems in the Brown Street neighborhood.
The borough and Vallone are still negotiating a PILOT (Payment in Lieu of Taxes) agreement. A PILOT is a financial agreement to give a developer an incentive to undertake a redevelopment project,
Under state law, PILOTs do not exempt a developer from all property taxes. The property assessment on which tax bills are calculated is divided into two parts – the value of the land and the value of the improvements. In a PILOT agreement, developers are still responsible for paying taxes on the value of the land.
In a PILOT, which can last up to 30 years, the length of a typical mortgage, the borough and the developer agree on an annual schedule of payments based on a percentage of the property's projected annual gross revenue, usually from 10 to 15%.
In addition to the townhomes and the disabled veterans apartments, Vallone said he will invest $1.75 million in new water infrastructure, $6.7 million in new roads and utilities and $2.5 million in environmental remediation.
Vallone said he and borough officials are still in discussion about the second phase of the project which would include properties along Route 12.
The revised redevelopment must be reviewed by the borough Planning Board before it can be adopted by the Borough Council.
Once the plan is adopted, site plans and subdivisions will be given to the Planning Board for approval.
No timeline for construction or completion has been given.
Liberty Village was the nation's first outlet mall. When it opened more than four decades ago in 1981, it enjoyed great success and was expanded in the late 1990s.
Every weekend, especially during the holiday season, the parking lots were filled as shoppers throughout the metropolitan area flocked to Flemington.
But as more retail space was built in Raritan Township and in Central Jersey and as retail patterns changed to online shopping and discount stores, Liberty Village experienced a steady decline and eventually became a retail ghost town with only a few stores open.
Email: mdeak@mycentraljersey.com
Mike Deak is a reporter for mycentraljersey.com. To get unlimited access to his articles on Somerset and Hunterdon counties, please subscribe or activate your digital account today.
This article originally appeared on MyCentralJersey.com: Flemington NJ Liberty Village shopping outlets redevelopment reduced
