Essex Green Redevelopment Gets Key Vote From West Orange Council

WEST ORANGE, NJ — The Essex Green shopping center and office park in West Orange is now officially an “area in need of redevelopment.” But what will the controversial designation – approved by the West Orange Town Council on Tuesday – mean for local taxpayers and residents?

During their Jan. 9 meeting, council members voted 4-1 to approve a resolution that designates the property as an area in need of redevelopment, which may ultimately make it eligible for special tax breaks from the township. Councilman Joe Krakoviak provided the lone dissenting vote.

The West Orange Planning Board recommended the Essex Green designation to the council during its Dec. 6 meeting, deciding that there was “sufficient credible evidence” that Block 155, Lots 40.02, 40.03, 41.02, 42.01, and 42.02 and Block 155.21, Lot 40 satisfied the criteria under state law.

Situated on 33.38 acres, the six-building Essex Green Shopping Center is positioned at the corner of Prospect and Rooney Circle directly off a four-way interchange with Interstate 280.

The center has seen a mix of national, regional and local tenants, including ShopRite, Macy's Backstage, a nine-screen AMC Theatre with dine-in service, Total Wine & More, Sears Appliance/Outlet, Petco, TGI Fridays, Panera Bread, GameStop and GNC.

After owner Clarion Partners purchased the property in 2016 for $97 million as part of “one of the largest retail sales in New Jersey in the last two years,” realty firm Holliday Fenoglio Fowler said that the shopping center had a 4 percent vacancy rate at the time of closing.

But less than two years later, the shopping center allegedly has a 33 percent vacancy rate. The property’s 403,00 square feet of office space is faring even worse with a 58 percent vacancy rate, according to a report presented to the council by planner Paul Grygiel on behalf of Clarion Partners.

Grygiel said that the shopping center and attached property are “outmoded” and in need of renovation to keep them competitive.

However, several local residents have protested the designation of Essex Green as an area in need of rehabilitation, arguing that modernizing the shopping center will come at the cost of West Orange taxpayers.

"I was disappointed that the rest of the council voted to create an area in need of redevelopment that falls so clearly short of meeting the requirements of the state law," Krakoviak said in a Thursday statement to Patch.

"In contrast to the law's intent of helping areas that can't attract private capital, the owners recently paid nearly $117 million," Krakoviak continued. "This action opens the Pandora's Box for the mayor to offer tax abatements that will likely further enrich wealthy real estate developers at the expense of taxpayers. Without these multi-million-dollar 'incentives,' the owners would still spend more of their money to protect and maximize the return from their substantial investment."

• See related article: Does Essex Green In West Orange Need 'Redevelopment?'
• See related article: Essex Green Ownership Changes Hands

Learn more about posting announcements or events to your local Patch site here. Send local news tips and correction requests to eric.kiefer@patch.com

Photo: Google Maps

Don’t forget to visit the Patch West Orange Facebook page here.