Tales of Avalon

Driving along the Garden State Parkway, you can appreciate the natural feel of the highway. Trees are planted along both sides of the highway with a wide meridian designed to mitigate the glare of oncoming traffic. Nearby development is mostly hidden from view by trees and grassy knolls. You can almost forget you’re driving in “The Soprano State” until there’s a sudden break in the scenery and you’re struck by the Avalon at Aberdeen Station apartment complex overlooking the parkway. How did that get there?

In July, 1998, longtime local, Joe Rettagliata, was in danger of losing a thirteen-acre parcel of land in a property tax foreclosure proceeding. (The actual size of the property is up for debate. Discounting the parcel later sold by the New Jersey Highway Authority, the CME tax maps list the property at 16 acres while the T&M survey only shows 13 acres. Go figure.) He had owned the land for fourteen years but was never able to develop the property despite its proximity to the train station and highway. Sadly, his was a familiar story. Three years later, the township seized several properties that had been “abandoned” by their owners, including the Ernest Zobel property that is now part of the transit village development project.

But Joe Rettagliata had a sudden change of heart and, with it, a change of fortune. The following year, he settled his tax lien. Four months later, Aberdeen Township declared the area part of a redevelopment zone. The following year, after nearly forfeiting the property over $8,500 in annual property taxes, Rettagliata sold the land for $4 million. Nobody has suggested that Rettagliata benefited from being the chairman of the Monmouth County Planning Board but it certainly didn’t hurt.

The Developer’s Agreement for the property (then known as Jefferson at Aberdeen) included three payments unique to the development (pages 9 and 11) – “$39,000 for the construction of the Henry Hudson Trail”, “$100,000 towards the traffic signalization of the intersection of Lower Main Street and Gerard Avenue”, and “$75,000 to the Township’s fire company which will service the development to enable the fire company to purchase appropriate equipment to better serve the safety needs of the development and the Township.”

The $39,000 for the Henry Hudson Trail and the $100,000 for the traffic signal are sitting quietly in the bank; the trail is entirely owned by the county and the township never contributed anything towards the traffic signal. As for the $75,000, it’s interesting that there’s no formal fire department review anywhere in the file pertaining to the development. Even more interesting is how the money was used to “better serve the safety needs of the development and the Township.” Nearly the entire wad was blown on two red Ford Expeditions.

Another interesting facet of the file is that it only records a single engineering fee. It seems inconceivable that during the entire development, CME only issued one letter pertaining to payments. More disturbing is the letter on file. When SC Aberdeen (one of the owners) sought to have a maintenance property bond released in 2006, CME demanded a “cash contribution of $39,750” (page 1). The following week, SC Aberdeen sent a check for $37,300 (page 2). What happened to other $2,450? Undoubtedly, this is a pittance compared to the scale of the project but it is also the only payment on file that involves CME Associates.

From the township’s perspective, the development made financial sense. The 290 1-2 bedroom luxury apartments attract empty nesters and generate about $950,000 in annual tax revenue. On the downside are the COAH obligations – 38 affordable housing units, about half of which would go to the elderly. Of the remaining 19 units (including regional contribution agreements if they’re still permitted), plus the handful of kids from the apartment complex, we could expect about 25 children. At $16,000 a kid, it would cost $400,000 a year to educate them. That still leaves over half a million dollars in added tax revenue (not to mention the COAH units were never built).

On a final note, it was fun to review the Jefferson’s request to display a large rental sign overlooking the parkway. The parkway authority and township planner both objected to the sign, citing aesthetics, safety, and statute. The town planning board noted the objections but awarded the variance out of concern for the developer’s ability to rent apartments. Good to know the planning board knows who butters their bagel. >>> Read more!