By KENNY WALTER
Staff Writer
LONG BRANCH- The redevelopment of lower Broadway may see some progress as Mayor Adam Schneider is hopeful the developers are close to becoming current on back taxes, which would allow the city to begin working on a suitable plan.
Schneider said last week that he is hopeful that Diversified Realty Advisors will bring its taxes current by the middle of June, which would allow the city to start discussing development plans with the group by the end of June.
“We had a meeting two weeks ago, which went reasonably well,” he said. “We made it clear that any future negotiations are tied into taxes being paid and brought current and that has to be done for their to be future negotiations.
“At that point, we think we can at least work something out, where we can get it to a approvable stage in terms of design and a plan. We are certainly going to make every effort to, but paying your taxes is an obligation and not a point of negotiation.”
Diversified Realty Advisors, operating as Long Branch Partners, has plans to redevelop the 10 acres in the lower Broadway corridor, where development has been stalled for years.
However, liens were placed on 51 properties owned by Long Branch Partners. The liens were sold during a Sept. 22 tax sale because property taxes were not current.
Of the 51 properties in the tax sale, 18 went to six individual third-party investors, according to Business Administrator Howard Woolley Jr., and Long Branch has liens on 33 properties.
In 2013, Diversified Realty assumed the first mortgage on the 51 properties in the lower Broadway zone after the previous developer, Broadway Arts Center (BAC), defaulted in 2010, and foreclosure proceedings were initiated by the mortgage holder. Foreclosure proceedings and litigation stalled the redevelopment for several years.
Shortly after taking over for BAC in 2014, Diversified Realty submitted a check for $412,000, the amount of back taxes owed to the city by the previous developer.
The current redevelopment plan, which dates to 2007, calls for the properties to be redeveloped as a mixed-use arts and theater district, with commercial space, residential and live-work units, office space and parking garages.
However, Schneider has stated that the plan is outdated and would likely be amended.
On the Diversified Realty website, the Summit-based real estate firm lists lower Broadway under “Master Planned Communities” with plans for 800 multi-family housing units and 80,000 square feet of retail, including an urban grocery and pharmacy, on 10 acres in Long Branch.
Earlier this year, the City Council passed a resolution authorizing City attorney James Aaron to begin drawing up foreclosure proceedings on the 30-plus properties the city currently holds liens on. Schneider said despite the resolution, Aaron has not begun to move on the foreclosure, while the city continues to meet with the developers.
“I’ve been clear from the beginning, we’re not negotiating that and it has to be paid,” Schneider said. “They got to bring the taxes current and then we’ll sit down and try to work out a plan.”
