The Township of Toms River now owns the Red Carpet Inn hotel.
Toms River officials finalized the purchase of the property, which is located on West Water Street, on Oct. 23.
In May, the Township Council approved a bond ordinance appropriating $4.8 million for the purchase of the property.
Business Administrator Donald Guardian said $3.3 million of the bond was used to purchase the building.
“The remainder of the funds will be used for demolition and the creation of a berm to prevent flooding. Short-term use is intended to landscape and create additional parking spaces for downtown. The bridges on Old Atlantic City Road (Route 166) are scheduled for replacement by the state,” Guardian said.
“As part of that road repair, there may be a need for some of the land to be used for road widening. Long-term, the land becomes available for best use as open space, recreation like kayak ramp and storage, a passive park or parking to benefit the downtown master plan. Should the total amount of funding not be needed, it will be placed in the capital budget and the council will determine best use,” he said.
Guardian said the building has been boarded up and no trespassing signs have been installed, along with physical barriers at the parking lot entrance. A bid for demolition is being sought.
According to the Toms River Police Department, police have responded to more than 750 incidents at the motel. In 2017, police a public nuisance charge against the Red Carpet Inn for knowingly conducting or maintaining a premise where unlawful activity takes place.
Mayor Thomas Kelaher said, “The acquisition of this property is important for a number of reasons. Not only does it eliminate an eyesore and a police problem, but it will now enable us to begin our long-range plan to redevelop downtown Toms River with new businesses and apartments.”
Alizar Zorojew, the executive director of the Toms River Business Improvement District (BID), said he is happy with the township’s quick response to issues involving the hotel.
“Our Board of Directors has been focused on this troubled business for some time. I think they are even shocked at how fast the town has moved on this issue. This is a watershed moment for downtown Toms River,” Zorojew said.
He said the BID is looking forward to planned upgrades of the local infrastructure that will result from the township’s purchase and demolition of the Red Carpet Inn.
“This move sends a major signal to businesses, developers and residents that Toms River is serious about refining its downtown and better using its waterfront,” Zorojew said.
Municipal officials said they negotiated the purchase of the property with Kartik Patel, the sole managing partner of 2 West Water LLC, the corporate owner of the Red Carpet Inn.
“Although the feeling is counterintuitive from our perspective, to lose a major tax ratable in the downtown district, we believe the future business investments and enhanced quality of life that will result from this move will far outweigh the initial cost to the town,” Zorojew said.
