Kaplan Cos. tapped for snuff mill project Age-restricted homes, retail, recreation to replace factory Rendering of Kaplan Cos.’ The Village at Helmetta. Helmetta officials are hoping the second time’s a charm. The Borough Council last week named Kaplan Cos. as the new redeveloper of the snuff mill property, concluding a selection process that began last fall after officials ditched redevelopment negotiations with the property owner. “We’re very excited about being in Helmetta, and we look forward to this tremendous opportunity to show you that you will not be disappointed in Kaplan Cos.,” said Jason Kaplan, president of the Highland Park-based firm. “Our expectation is that it can be a true joint venture between Kaplan Cos. and the borough of Helmetta, and we hope that we’ll work with each and every one of you to give you a project you can be proud of.” A year ago, the borough selected property owner Helmetta Lenape LLC to redevelop the land after reviewing proposals from three parties, including Kaplan Cos., but negotiations stalled and the relationship was terminated in September. Borough officials took steps to prevent such a situation from occurring with Kaplan Cos. via a newly adopted redevelopment plan and by including in a resolution specific guidelines and timetables with which the developer must comply. Kaplan Cos. was among four developers the Redevelopment Committee had been considering for the project since last fall. Helmetta Lenape, Kalian and Co., and Millennium Homes had submitted plans for the second round as well. “Throughout this process, one redeveloper stood out: Kaplan Cos.,” Mayor Nancy Martin said at the council’s May 19 meeting. “Their creativity and cooperative spirit has been exceptional, and we are impressed with the high level of experience and professionalism that they bring to this project.” During the meeting, Jason Kaplan presented the concept plans to those in attendance. The project is to include 233 age-restricted housing units on parcels 2, 3, 4 and 5, with Parcel 1 designated for open space and recreation that can be used by all borough residents. Kaplan plans to build tennis and basketball courts on Parcel 1, something that Planning Board member Robert Janeczek said makes the proposal even more attractive. “There’s a lot of kids that have nothing to do,” Janeczek said. “I think it’s a good idea.” New construction to replace buildings The housing will include 190 multi-family units, each at 1,100 square feet, and 43 townhouses at 2,500 square feet each. The multi-family buildings will be three stories high, and the townhouses will be no higher than 2 1/2 stories. Kaplan said the residential units will blend nicely with the surrounding neighborhood since parking for the units will be underneath the buildings, thus eliminating concrete barriers and unsightly rows of cars from view. Parcel 5 will include a 13,000-square-foot retail establishment on the ground floor, with about 20 residential units above it. There will also be a 3,000-square-foot community center. “It’ll really be a symbol of the future of Helmetta,” Kaplan said. According to the resolution, all the existing snuff mill buildings will be demolished within six months of Kaplan’s acquisition of the land. “Everybody here is invited, in a few months, for the official groundbreaking and demolition of the Helme Snuff Mill,” Kaplan said. “We’ll provide the refreshments and the sledgehammers.” Councilman Ed Gardner said the demolition of the buildings is necessary if the borough is to maximize the property’s potential for development. “Some things you just have to do,” Gardner said. “I feel we’re taking something that’s useless, and it’s going to be a really good thing.” The mill buildings have been mostly vacant since the tobacco company left Helmetta in the early 1990s. The resolution approved last week also requires Kaplan to submit a concept plan within one month and a site plan within four months. The Borough Council will have the opportunity to review and approve the site plan before it is brought before the Planning Board. Kaplan Cos. will begin negotiations with Helmetta Lenape, which is affiliated with a Bridgewater-based firm, to purchase the property, and will be responsible for all associated costs. John Street resident Susan Slavicek asked the council what the borough’s options will be if Helmetta Lenape refuses to sell the land. Redevelopment Committee Attorney Christopher Walrath responded that he does not anticipate such problems, but that the borough could condemn the land in court, if needed. Slavicek asked if condemnation would severely delay the redevelopment, and Walrath said the process could take as little as 60 days or as long as a year. Kaplan Cos. would be held responsible for any costs incurred if condemnation is deemed necessary, Walrath said. An attorney representing Helmetta Lenape did not return a phone call seeking comment for this story. In 2003, the borough sent out requests for proposals (RFP) for the redevelopment and received proposals from several developers, including Kaplan Cos., before Helmetta Lenape was ultimately selected. Kaplan’s proposal at that time included plans for 470 residential units. Kaplan’s architect, Scott Miller, had said that such a density was necessary to maximize the benefit of the project. Michael Kaplan, owner of Kaplan Cos., said that the original proposal, with roughly double the residential units, was in response to the town’s RFP. The town’s request has changed significantly, and Kaplan reacted accordingly. “So the job has reduced itself in scope,” Michael Kaplan said, adding that he is confident the firm can make the project work with its proposed 233 residential units, a number that, like much of the plan, is flexible. “These plans will evolve in terms of us working with the town to fine-tune them and then present the appropriate plans,” he said. Officials, he noted, originally planned to preserve the snuff mill buildings and to construct a mixed bag of residential units. Now, all the existing buildings are to be demolished and all the units will be age-restricted. Martin said this plan will no longer add children to the school district, thus further increasing the financial benefits the town will reap from the project. Project expected to bring financial benefits Martin said the project will “bring new life” to the borough. “The Kaplan project will bring a variety of product to Helmetta, and we are very excited about our future,” she said. “Of course, we lost a great deal of time due to the redevelopment plan that was put together by the prior administration, but we are now at the beginning of having a positive ratable built in our community.” Michael Kaplan said the $70 million project could provide the town with $1 million to $2 million per year when it is fully built-out, aside from other described benefits from the project, such as land value appreciation and increasing the physical attractiveness of the town. “When a redevelopment comes in, it’s a beneficial thing to the town. Not just the taxes, but the rest of the town benefits from it, too,” Kaplan said. “You’re taking away a cancer, basically, and making it healthy again, so it’s logical that these things improve.” Ken Pacera, the borough’s tax assessor, said that according to Kaplan’s $70 million projection, the development’s assessed value would be just under $24.5 million, yielding about $1.46 million in property taxes each year. After the county and school portions of the tax are allotted, the municipality will received about $305,000 a year, Pacera said. Pacera said that these numbers are merely the result of the developer’s own projected net worth of the project, and a tax rate and assessment ratio that change each year. “The impact is far-reaching because it is such a significant development for Helmetta. It’s going to increase our ratable base significantly, so that’ll have an impact on the rate itself,” Pacera said. “Obviously, the [value assessment] ratio changes from year to year, as does the [tax] rate, so the final tax figures are subject to change based on those variables.” Pacera said that, based on a total assessed value of $470,000, the property currently nets $5,870 in taxes. Based on those current, but fluid, figures, the town would be looking at a gain of almost $300,000 in municipal taxes. Martin said Kaplan Cos. became the clear choice only after a meticulous analysis of the final four developers. “A lot of time went into the process of selecting a redeveloper for the factory property,” Martin said. “Many meetings were held with various developers, with myself, councilmen Peter Karczewski and Vincent Asciolla, and our redevelopment attorneys, Chris Walrath and Michael Supko. It took the Redevelopment Committee many months and long hours to get where we are today.” Michael Kaplan said the placement of the strict timetables in the resolution was a positive step the borough took to ensure the redevelopment will be carried out expeditiously and in a successful manner. Gardner said that the delay in selecting the redeveloper may have been necessary, but he is optimistic now that the process is once again under way. “Of course there are gradual things that will still have to be worked out, but at least it’s a go for now,” Gardner said, adding that the public’s perception of the redevelopment has changed for the better. Michael Kaplan said there is not just one aspect of the proposal that set it apart from the others, but rather a combination of several factors that impressed the Redevelopment Committee. “It’s the totality of what we present, we as Kaplan Cos., that gives the town comfort that we’ll do not just a good job, but a superb job,” Kaplan said. He said Kaplan Cos. has many years of experience working with both residential and commercial, as well as mixed developments, which has given officials a sense of security that Kaplan Cos. is more than capable of handling the project. “The obvious things are, we have the financial ability to do this job. We have the experience of doing this, which is important,” Kaplan said. “And we’ve made our mistakes and we correct them, so you gain experience.” Kaplan said a redevelopment project of this significance requires a partnership between the developer and the town that is designed to solve a multitude of problems facing the borough. Because of this, he said, borough officials needed to select the developer they felt would work best with the town and could best resolve the issues facing the town. “We basically are working not just for the town, but with the town, in solving whatever the town’s problem is right now,” Kaplan said. “When you look at the existing buildings, obviously they’re an eyesore. They affect the value there, health hazards, and all those things. And the town’s interest when they create a redevelopment area is to cure these problems.” Gardner said Kaplan Cos. will do just that when development commences, adding what he believes is the main reason Kaplan Cos. was selected. “Everybody wants what’s best for the town, and I think they’ve done it,” Gardner said. Specific time frame dictates planning, building of project HELMETTA — In dealing with Kaplan Cos., borough officials have taken steps to prevent a reoccurrence of their failed negotiations with the previous snuff mill redeveloper. A resolution approved last week by the Borough Council that selects Kaplan as the redeveloper also sets forth a strict and specific timeline by which the redevelopment must take place. Within 30 days of last week’s approval, Kaplan Cos. will have to submit a detailed concept plan for the development, being called The Village at Helmetta. The plans will feature a mix of age-restricted housing units, a community center, retail establishments and open space. The developer will be required to submit a site plan within 120 days. The site plan should include the detailed exterior elevations of all the buildings to be constructed throughout the redevelopment. All the snuff mill buildings on the property must be demolished within six months from the developer’s acquisition of the land from the current owner. The property is currently owned by Helmetta Lenape, an affiliate of a Bridgewater-based construction firm that was dismissed as the redeveloper in September. The resolution requires that construction of the new development also begin within six months of the acquisition of the property, providing that the site and concept plans have obtained the necessary approvals. The first phase of construction, which will include at least 60 of the 233 residential units, must be completed within 24 months of the start of construction. All construction must be completed within 42 months. — Seth Mandel