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What’s Your Consensus? – Downtown Gateway Redevelopment Project

5/20/19 Caucus

By: Carolyn Maxwell

Tate Goss

PERTH AMBOY – President and Founding Principal Tate Goss of Veridian Partners gave an overview of the Downtown Gateway Redevelopment Project (located near the intersection of Convery Blvd. and Smith Street and encompasses part of Riverview Drive). 

Goss stated, “Three and half years ago, Veridian was considered to be a part of this project. At that time, we proposed two warehouses. Half of the 46 Acre Site was to be considered to have 20 acres to fit in those two warehouses. Right now, the market is not good (for the original proposal). We would need to have an industrial filling. The market value for the site is just under $15 million. It’s your decision on what you want to do about the rest of the site for the warehouse or we can just back off. We thought maybe a hotel or retail. There’s nothing else we can do. If this works for you, then we can amend the plans. Retail and residential will not work for this at this time. It would also be an additional cost.”

Council President William Petrick made a suggestion, “If it was home ownership, I would consider, but I don’t want them (residential homes) to be surrounded by trucks. We have exceeded our need for apartments, and we have plenty of apartment dwellers. We need housing for people to build equity. I’m ok with a warehouse.”

Goss responded, “We can make a warehouse work.”

Councilman Joel Pabon spoke up and asked Goss to explain the project because it is different from the original plans presented. 

Avi Telyas, Founder and CEO of Makerhoods came up to speak about the retail portion of the project, “It was poor planning if you put up a warehouse at the Waterfront instead of housing. We’re looking at communities where you can live and work. Th plan would be to have buildings where the businessowners will live upstairs on top of their establishments. It would cost them around $1800 a month. Microloans will be available for people to be self-employed. We have it in Newark. I will bow out if you prefer. 20% of those units would be for urban entrepreneurs, and the other 80% will be at market value. You would need customers. It would encompass between 70 to 80 shops such as artisans and retail. Each business will create 4 jobs which will pay more than the minimum wage. We have a project in Newark opening in July. You will have to get zoning changes to do that here.”

Petrick spoke up and was concerned that some small industrial businesses might have toxic gases or chemicals. 

Telyas responded, “We’re looking at 3D Printing, clothing shops, cabinet making- those kinds of industries. It would be good for people who can’t rent spaces now. Portland, Oregon and San Francisco, California has projects such as having car repair shops below where they live. Cities that have high unemployment and poverty are what we target to give them an opportunity to start their own business. 600-foot warehouses are not built in Perth Amboy presently. High failure rates are false. If you can survive two years, then their success rates for businesses are high. Newark and Patterson used zones redesigned for them.”

Councilman Helmin Caba spoke up and asked, “Are you looking to have PILOTS or tax abatements?”

Telyas responded, “Yes.”

Caba continued, “I’m not against them, but a mixed-use building will be a tough sell.”

Avi Telyas

Telyas continued, “Some communities have what are called: “Wildflower Schools.” The Montessori System goes through high school. The parents finance them. There’s also one of these schools in Belmar. There is a school analysis report that is based on a record study. 70 students are usually enrolled in the Wildflower Schools.”

Councilman Fernando Irizarry then questioned if the ratio to parking spaces to each unit can be changed.

Telyas responded, “It is a difficult residential site.”

Irizarry continued, “I don’t have a problem with the commercial part. I’m not thrilled about the warehouse and I disagree about the warehouse by the units.”

Tate Goss responded, “We’re looking at a single destination entertainment center. I like the residential. You can make industrial blend in. It would be 500 feet away from the trucks will be coming in. We can put the residential 700 feet away from the trucks. We can send a sample of what is being done in California. If you just do residential and retail, it would make money and add to the Waterfront. You can amend the plans to allow a warehouse on site. I have been doing 30 million square feet of industrial sites. I don’t do residential or retail and I’ve been doing this for 50 years. I’ve done similar sites in Elizabeth, Cranberry, and Woodbridge. I would tear them down and build up to make them cleaner.”

Irizarry then questioned, “How successful are they?”

Goss answered, “They’re all up and running successfully, and I don’t do PILOTS and never have.”

Irizarry then questioned, “Residentials might need a PILOT.”

Councilman Joel Pabon spoke up and asked if an archaeological dig would be supported. 

Mr. Madsen from the Company Madsen & Howell, whose company is located at the intersection of Market Street and Herbert Street came up to speak, “My company has been in town for many years. In 2000, as far as I know, there are no artifacts or anything historic on that site. The economic conditions today are favorable to this project.”

Council President Petrick then talked about a historic site called Eagleswood from 1854, the historic school that was on that site. “So, I guess the answer is no about having a dig there.”

Goss answered, “I have contracts sitting on my desks. If one says no, then we won’t do the project.”

Councilwoman Milady Tejeda had a few comments, “We have to consider the entrance to the City. I like the idea of a business on the ground floor of the apartment, but a lot of apartments will put a stress on our schools. I like the retail and the apartments with the businesses. A performing arts center will be ideal. Something like Rahway, Avenel, and Carteret have. You have to understand our needs. When the Board of Education wanted this land for a new high school, it was no because of the contaminants, but now it’s ok for apartments?”

Petrick spoke up and asked, “Can a tax abatement for performing arts be done?”

Goss replied, “You would have to raise your own money and do a cleanup on what’s marketable.”

Black suit Man said, “It would be between $50 million and $60 million for a performing arts center.” 

Councilman Irizarry made a few comments stating, “I don’t think those art centers (that were mentioned) were built at the entrance of their cities. Did they have contaminants like we have on our site?”

Councilwoman Tejeda responded, “I don’t want a warehouse.”

Goss then talked about parking, “There will be structured parking for the apartments.”

Telyas said talked about the performing arts center, “There will need to be a budget for ongoing operations. I’m willing to meet with the City to talk about the cost. It might be a good idea.”

Councilman Caba questioned of the possible entertainment site and what would be the problems (associated with it). 

Goss “The location is good, and the demographics, but we are looking at the economics and demographics of Perth Amboy. People have a negative view of the City, especially coming here at night. I’m just being honest.”

Petrick then commented on Goss’s statement, “I appreciate your honesty.”

Goss continued, “We can look at an entertainment center. If I can’t get the warehouse, I can walk away from the deal.”

Petrick then voiced a concern about the number of apartments.

Goss responded, “Then don’t have the entertainment center.”

Petrick then suggested that Telyas can meet with the Art Works Council, which is part of the City and Perth Amboy Art Works, a private organization in Perth Amboy which supports the arts.

Councilman Irizarry said, “I don’t think the art center will work.”

Petrick then responded, “We don’t need a lot of apartments.”

Irizarry continued, “Who will pay for the entertainment center – the City will pay and have to maintain it.” 

Petrick spoke again and gave an example of the town of Red Bank, “With good planning and productions, they were able to have a revitalization, and they were at one time in worse condition than we were. We need to put a fire to the feet of the developers to demand what we are looking for.”

Irizarry responded, “I am not acquiescing to everything, because I disagree with you. I base on what’s on the table when decision making.”

Petrick responded, “I based my decision on what has happened in the past.”

Goss then asked the Council, “Can I have your thoughts on the plan as it is right now?”

Irizarry responded, “The retail is ok. Change part 3.”

Pabon responded, “Reduce the number of apartments and I’m good.”

Tejeda said, “I’m ok with the retail. The single apartments and warehouse – no.”

Petrick said, “I’m ok with retail – apartments – no.”

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