Edison Property Redevelopment Plans Resurface

It's been almost 15 years since initial talks began — and stalled — for the $250 million downtown redevelopment plan of the land surrounding the Thomas Edison National Historic Park on Main Street. But the old Edison Factory may soon start churning again as plans to redevelop the dilapidated property on Main Street are back on the table. 

Prism Capital Partners, LLC, the property's developer, and the township hosted a meeting Wednesday night at West Orange High School to revisit Prism's redevelopment plan to construct more than 600 residential units and 18,500 square feet of commercial area on the property.

Two years ago, the township council and the public were resolute in defeating the developer's plan due to the financial structure in place that required the township to back issued bonds. Township officials are hopeful proposed changes to the plan will address residents' concerns and finally result in construction. 

The plan includes several amendments by the developers. Under the altered proposal, the township will issue $52.5 million redevelopment area bonds with no general obligation. Whether or not the project proves successful, the risk will fall solely with the developer.  

As it currently stands, the Edison redevelopment plan includes:

• Construction of 616 residential units, of which 549 will be for-sale and 67 will be affordable for-rent units. 
• 635 parking spaces in a closed garage that will be concealed by the retail area. The garage will be for use by 321 units in the area and leave open 98 spaces for public use. 
• The relocation of the township's department of public works to a smaller, more central facility
• $2.4 million in environmental remediation
• Historical renovations that will meet historical standards

Phase one of construction will erect 321 units and 18,500 square feet of retail space in 18 months totaling $112 million. Those units include nine studios, 140 one-bedroom units, 145 two-bedroom units and 27 three-bedroom units. Phase two of construction would cost $120 million and include the rest of the housing units.

The bonds issued from the township will fund the relocation of the department of public works, infrastructure improvements, and additional costs to do historical renovations. The developer will secure the rest of the funding for the project. 

"New Jersey is performing significantly better on the national level; financial markets are opening back up," said Eugene Robert Diaz, from Prism Capital Partners, LLC. "Now is the time again to revisit and get this project going." 

Mayor Robert Parisi said the plan would help "stabilize the area by introducing a new neighborhood ... there will be more energy in the area, people will be living there 24 hours a day to frequent the businesses." 

The township will also enter a payment in lieu of taxes (PILOT) agreement, whereby the developer agrees to pay a reduced amount to the township instead of regularly applied real estate taxes. PILOT provides incentives for the developers and residents seeking to buy the units. 

Each unit will pay an average of $9,000 the first year and will increase parallel to the rest of the township. In the 10th year, PILOT will increase by a larger percentage to match generally paid taxes. 

While general taxes on a property would divert roughly 30 percent to the township, under PILOT program, 90 percent goes to straight to the township. However, the school district will not receive a percentage of the PILOT. Under general taxes, 60 percent is allocated to the school district.

Parisi said the township would pay a per-pupil cost of $9,634 for each child attending school that lives in the redeveloped housing units. Roughly 50 to 80 children are expected to attend neighboring schools and increase enrollment by one percent. 

"You don't have to hire new administrators, you don't have to build new buildings, but you do have to provide more classroom space," said West Orange resident Mike Taylor, 56.

While residents turned out in low numbers, they expressed a plethora of concerns over the real estate market, taxes, school funding and the effect of a 600 plus residential unit on Main Street.  

"My taxes went up $4,000," said resident Windale Simpson. "How is this going to alleviate residents' stress? More commercial property would relieve my taxes."

"I don't feel comfortable with this plan," said Dawn White, a West Orange resident. "Nothing in this plan has changed much since a couple of years ago." White said residents needed additional documentation from the developers in order to clearly understand the finances. 

Parisi said the project will be a major financial benefit to the town and increase the tax base for the municipality. "Right now that land generates $400,000 in taxes, you redevelop it'll be $3 million to the township," he said.  

The township is slated to receive at least $850,000 a year to cover additional services to the area. 

"The main intention of the development has been the intangibles that a redevelopment will bring to the downtown," said Parisi. 

"This is going to make a picture post card example of what this town is all about," said Diaz.

Despite the rising concerns, everyone seemed to agree on one thing — "We clearly need to do something in that part of town," said West Orange resident Mike Taylor, 56. 

[Editor's note: This story first published May 19 at 2:40 a.m.]