Englewood's Building Boom
April 14, 2007 |
Development
Englewood is undergoing an unprecedented building boom
and pending projects indicate that this may
continue for a while longer. To better
understand the issues involved and the concerns
people have, it's useful to discuss this
construction in three categories:
1) private projects encouraged by and/or negotiated with the City government
2) private projects without direct government participation, undertaken in accordance with (or requiring a variance from) the City's zoning regulations
3) public projects such as those currently being undertaken by the Board of Education following passage of the school construction referendum in 2004
Implementing Planning Goals
In the first category of construction are the two Group USA buildings on West Palisade Avenue and the Towne Center development across from City Hall. These projects are intended to implement major planning goals, which have been to encourage residential development in the Central Business District and to stimulate investment west of the tracks. The Towne Center project became controversial recently as a result of a disturbing breakdown in the process and details of the building plan approval between the developer and City officials. And the shear scale of the actual building was, apparently, a shock to many city residents.
Another major planning goal has been, to quote from Englewood's Master Plan, to "encourage mixed use development in targeted areas, in particular the Office-Industrial Zone where land is underutilized." The motive here is primarily financial, to reverse the steadily declining portion of local property taxes which have been contributed by our industrial area, and thereby benefit residential taxpayers. It is thus essential that the total impact, including both additional revenues and costs to the City, be assessed on any new project, to insure that it will in fact be a significant benefit. The nearly complete Englewood South project north of Route 4 and the massive Flatrock Square project south of Route 4 recently approved by the Planning Board are major examples in this category.
Rogue Planning Board
Unfortunately, the potential tax benefits from the Flatrock Square project have been severely eroded as a result of two Planning Board decisions: 1) in 2005, to allow indefinite postponement of the originally negotiated requirement for an office building, and 2) recently, to allow the construction of rental apartments as opposed to condos. From a tax point of view, office construction is normally the most desirable, while the tax rate on condos is typically as much as twice that on rental apartments.
Under Englewood's City Charter, the Mayor has the sole power to appoint members of the Planning Board, and thus the ability to exert considerable influence on its decisions. Englewood's Planning Board has nonetheless historically had a reputation for fairness and thoroughness. Under the current Mayor, Michael Wildes, it may be losing that reputation, as Wildes changed from opposing the project when he disassociated himself from Bergen County Democratic Boss Joe Ferriero to now becoming an ally of the machine he used to oppose.
Wildes has subsequently negotiated privately with the developers in his Manhattan office and then demanded a rubber stamp from its members. Wildes is currently running for the State Senate in Legislative District 37, with the support of County Democratic Chairman Joseph Ferriero. Campaign contributions from developers are a major funding source for the County organization.
Work on the Flatrock Square project was halted by the City on March 30, alleging failure to obtain an adequate building permit. Members of the City Council are known to be displeased with the action of the Planning Board, and we would not be surprised to see legal action undertaken by any of the parties involved.
Neighborhood Preservation
In the second category of development are a series of projects which threaten the integrity of single-family neighborhoods throughout Englewood, mostly requiring variances from the Board of Adjustment. The first two objectives listed in Englewood's Master Plan are "Preserve the character of the residential neighborhoods" and "Support residential neighborhoods to stabilize property values." However, there has been considerable economic pressure from private developers for more dense multi-family development in single-family zones, and there are a number of cases which are pending before Englewood's Board of Adjustment in this category.
In addition, there are cases where religious institutions are attempting to locate in single family zones, with traffic and other disruptive implications. And because houses of worship are tax-exempt, the acquired properties are pulled off the tax roll. In a number of cases, residents have felt compelled to hire their own lawyers to protect their neighborhoods' single-family zoning. The Bergen Record recently called Englewood the "religious capital of Bergen County." And with over 40 houses of worship in Englewood today, we can expect even more of these battles to play out before the Board of Adjustment in the near future.
Public Projects
In the final category are the new John Grieco School in Durie Park, the additions to Quarles and Cleveland schools and the renovations at the middle and high schools. Upon the completion of the Grieco School, the Lincoln School on Englewood Avenue is scheduled to be vacated. The City of Englewood has assumed ownership of the Lincoln School site and of the site of the Liberty School, where the Board of Education is located. Major questions still remain on the future use and disposition of these properties.
Also in this category of development is the new parking garage on Dean Street, which appears to have been constructed by the Economic Development Corporation without adequate planning for its management and security. As well, the garage's role in the comprehensive economics, hours and deployment of City parking was not thought out in advance, putting pressure on the City to increase street parking fees to redirect business to the garage.
Recommendations
This newsletter believes that our elected City Council should, by whatever legal means are available to it, assert control over what appears to be a chaotic situation. Decisions that should be made by the Council have in fact been appropriated by non-elected bodies such as the Planning Board and the Economic Development Corporation. A major criterion in the selection of a new City Manager should be familiarity with the complications of development. We recommend that the Council:
1) review all projects in which the City is involved
2) signal through public statements and its appointments to the Board of Adjustment that zoning of single-family neighborhoods will be respected
3) move ahead with a process to decide on the future of the Lincoln and Liberty Schools
4) signal the start of a new era by announcing a moratorium on all projects until a review is conducted to determine where we are and where we should be going, both from a planning and financial point of view.
Most importantly, there must be public as well as expert input throughout this process.
The people of Englewood have good cause to be upset by this chaotic situation. Yet, this upset can only be corrected if City officials change course and proactively engage citizens, providing them with informed consent, transparency and a clear demonstration that conflicts of interest will not be tolerated.
1) private projects encouraged by and/or negotiated with the City government
2) private projects without direct government participation, undertaken in accordance with (or requiring a variance from) the City's zoning regulations
3) public projects such as those currently being undertaken by the Board of Education following passage of the school construction referendum in 2004
Implementing Planning Goals
In the first category of construction are the two Group USA buildings on West Palisade Avenue and the Towne Center development across from City Hall. These projects are intended to implement major planning goals, which have been to encourage residential development in the Central Business District and to stimulate investment west of the tracks. The Towne Center project became controversial recently as a result of a disturbing breakdown in the process and details of the building plan approval between the developer and City officials. And the shear scale of the actual building was, apparently, a shock to many city residents.
Another major planning goal has been, to quote from Englewood's Master Plan, to "encourage mixed use development in targeted areas, in particular the Office-Industrial Zone where land is underutilized." The motive here is primarily financial, to reverse the steadily declining portion of local property taxes which have been contributed by our industrial area, and thereby benefit residential taxpayers. It is thus essential that the total impact, including both additional revenues and costs to the City, be assessed on any new project, to insure that it will in fact be a significant benefit. The nearly complete Englewood South project north of Route 4 and the massive Flatrock Square project south of Route 4 recently approved by the Planning Board are major examples in this category.
Rogue Planning Board
Unfortunately, the potential tax benefits from the Flatrock Square project have been severely eroded as a result of two Planning Board decisions: 1) in 2005, to allow indefinite postponement of the originally negotiated requirement for an office building, and 2) recently, to allow the construction of rental apartments as opposed to condos. From a tax point of view, office construction is normally the most desirable, while the tax rate on condos is typically as much as twice that on rental apartments.
Under Englewood's City Charter, the Mayor has the sole power to appoint members of the Planning Board, and thus the ability to exert considerable influence on its decisions. Englewood's Planning Board has nonetheless historically had a reputation for fairness and thoroughness. Under the current Mayor, Michael Wildes, it may be losing that reputation, as Wildes changed from opposing the project when he disassociated himself from Bergen County Democratic Boss Joe Ferriero to now becoming an ally of the machine he used to oppose.
Wildes has subsequently negotiated privately with the developers in his Manhattan office and then demanded a rubber stamp from its members. Wildes is currently running for the State Senate in Legislative District 37, with the support of County Democratic Chairman Joseph Ferriero. Campaign contributions from developers are a major funding source for the County organization.
Work on the Flatrock Square project was halted by the City on March 30, alleging failure to obtain an adequate building permit. Members of the City Council are known to be displeased with the action of the Planning Board, and we would not be surprised to see legal action undertaken by any of the parties involved.
Neighborhood Preservation
In the second category of development are a series of projects which threaten the integrity of single-family neighborhoods throughout Englewood, mostly requiring variances from the Board of Adjustment. The first two objectives listed in Englewood's Master Plan are "Preserve the character of the residential neighborhoods" and "Support residential neighborhoods to stabilize property values." However, there has been considerable economic pressure from private developers for more dense multi-family development in single-family zones, and there are a number of cases which are pending before Englewood's Board of Adjustment in this category.
In addition, there are cases where religious institutions are attempting to locate in single family zones, with traffic and other disruptive implications. And because houses of worship are tax-exempt, the acquired properties are pulled off the tax roll. In a number of cases, residents have felt compelled to hire their own lawyers to protect their neighborhoods' single-family zoning. The Bergen Record recently called Englewood the "religious capital of Bergen County." And with over 40 houses of worship in Englewood today, we can expect even more of these battles to play out before the Board of Adjustment in the near future.
Public Projects
In the final category are the new John Grieco School in Durie Park, the additions to Quarles and Cleveland schools and the renovations at the middle and high schools. Upon the completion of the Grieco School, the Lincoln School on Englewood Avenue is scheduled to be vacated. The City of Englewood has assumed ownership of the Lincoln School site and of the site of the Liberty School, where the Board of Education is located. Major questions still remain on the future use and disposition of these properties.
Also in this category of development is the new parking garage on Dean Street, which appears to have been constructed by the Economic Development Corporation without adequate planning for its management and security. As well, the garage's role in the comprehensive economics, hours and deployment of City parking was not thought out in advance, putting pressure on the City to increase street parking fees to redirect business to the garage.
Recommendations
This newsletter believes that our elected City Council should, by whatever legal means are available to it, assert control over what appears to be a chaotic situation. Decisions that should be made by the Council have in fact been appropriated by non-elected bodies such as the Planning Board and the Economic Development Corporation. A major criterion in the selection of a new City Manager should be familiarity with the complications of development. We recommend that the Council:
1) review all projects in which the City is involved
2) signal through public statements and its appointments to the Board of Adjustment that zoning of single-family neighborhoods will be respected
3) move ahead with a process to decide on the future of the Lincoln and Liberty Schools
4) signal the start of a new era by announcing a moratorium on all projects until a review is conducted to determine where we are and where we should be going, both from a planning and financial point of view.
Most importantly, there must be public as well as expert input throughout this process.
The people of Englewood have good cause to be upset by this chaotic situation. Yet, this upset can only be corrected if City officials change course and proactively engage citizens, providing them with informed consent, transparency and a clear demonstration that conflicts of interest will not be tolerated.
