Morristown council agrees to change DeHart street plan after developer threatens to walk

Proposed apartment building on DeHart Street. Illustration courtesy of Dean Marchetto.
Proposed apartment building on DeHart Street. Illustration courtesy of Dean Marchetto.
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Proposed apartment building on DeHart Street. Illustration courtesy of Dean Marchetto.
Proposed apartment building on DeHart Street. Illustration courtesy of Dean Marchetto.

 

When push came to shove on Thursday, the man who wants to complete the Epstein’s redevelopment vowed to shove off if pushed for more affordable housing.

But he might agree to add a studio for local artists.

Developer Carl Goldberg, left, and traffic consultant Karl Pehnke at Morristown hearing. Photo by Kevin Coughlin
Developer Carl Goldberg, left, and traffic consultant Karl Pehnke at Morristown hearing. Photo by Kevin Coughlin

These twists came near the end of a three-hour meeting that culminated with the Morristown council voting 5-2 to amend a 2005 plan to replace the old Epstein’s department store.

If the amendment passes a second vote on Feb. 10, 2015, the Roseland Property Co. can erect 59 apartments on DeHart Street, instead of 36 condos that were approved a decade ago.

Three apartments will be designated as “affordable.”  Councilwomen Raline Smith-Reid and Alison Deeb voted against the changes, partly because they wanted more affordable units.

Morristown Councilman Stefan Armington tried for more affordable housing, but backed off when the builder threatened to back out. Photo by Kevin Coughlin
Morristown Councilman Stefan Armington tried for more affordable housing, but backed off when the builder threatened to back out. Photo by Kevin Coughlin

But Roseland President Carl Goldberg held firm when Councilman Stefan Armington tried adding a requirement for three more “moderate” priced apartments.

“I might as well tell you that if you do that, I won’t build the project,” Goldberg said.

Mayor Tim Dougherty reminded the council that Goldberg has satisfied his affordable housing obligations, while donating another $100,000 to the town’s affordable housing trust fund from his sale of Maple Avenue land to a townhouse developer.

“I feel like I’ve done my part,” Goldberg said. “I’m not being disrespectful. I appreciate your concerns… [But] I’ve done what I can do. That’s my position. I apologize.”

TRAFFIC, PARKING…AND ART?

“Building C,” as the five-story structure proposed for DeHart Street is known, would complete the transformation of Epstein’s that began with the 40 Park luxury condos and the Metropolitan luxury rentals. Many observers consider those projects as pivotal to the downtown’s comeback.

The DeHart apartments will have little impact on traffic or parking, Goldberg’s experts testified on Thursday. The DeHart Street parking garage, constructed by the Morristown Parking Authority to accommodate the Epstein’s redevelopment, has ample spaces for the tenants, according to traffic engineer Karl Pehnke.

Plans also call for 3,000 square feet of retail space at the street level. Goldberg acknowledged struggling to lease storefronts at the Metropolitan and at the Highlands apartments near the train station, prompting Council President Rebecca Feldman to suggest an art studio for the DeHart space.

It’s a short walk from Morris Arts, the nonprofit that has been working to make Morristown a hub for artists, Feldman noted.

“We don’t need another hair salon there,” she said.

Goldberg said he liked the studio idea, or maybe a gallery — if the town would give him a tax break. The Mayor said he would look into it.

ZINC AND BRICK

Inspired by late 19th-century cast iron loft buildings in the Soho section of New York City, architect Dean Marchetto has come up with a heartier design, of zinc and brick that he said won’t rust or fade.

Prior proposals were too ornate or massive, and would have overwhelmed DeHart Street, said Marchetto, the fourth architect to tackle this project.

Present plans, what inspired them, and prior attempts. Please click icon for captions.

His design calls for a silvery black facade, with large geometric windows above columns that create a partially covered sidewalk, or arcade.

The back half of the building is envisioned as a nondescript black box, meant to direct attention to the facade and provide a backdrop for the historic Sansay house that sits next door, at the corner of DeHart and Maple Avenue.

A feature proposed since December’s council hearing is a walkway parallel to the parking garage entrance. Pedestrians cutting through the 40 Park/ Metropolitan plaza from Market to DeHart streets would be sheltered from the elements for part of their walk.

The town’s historic preservation commission gave the design mostly favorable marks, Marchetto said.

‘WE DID NOT MAKE A PENNY’

Council members Alison Deeb and Michael Elms questioned Goldberg’s switch from condos to rentals.  Such queries were out of bounds, advised town redevelopment counsel John Inglesino.

Goldberg said his company owns or operates 10,000 apartments in seven states, catering to “renters by choice” who prefer amenities and services to home ownership.

Alison Deeb, the council's lone Republican, and Councilman Michael Elms, a realtor, questioned the project's switch from condos to apartments.  Photo by Kevin Coughlin.
Alison Deeb, the council’s lone Republican, and Councilman Michael Elms, a realtor, questioned the project’s switch from condos to apartments. Photo by Kevin Coughlin.

“It’s strictly a lifestyle decision,” he said, asserting these tenants are just as devoted to their communities as homeowners are.

At the same time, Goldberg cited tighter lending practices by banks. Just as home-buyers seeking mortgages have encountered extra hurdles, developers have seen financing grow scarce for condo projects.

The luxury condos at 40 Park hit the market during the heart of the recession. Despite accolades for the project, Goldberg said he’s not eager to erect more condos anytime soon.

It took 4 1/2 years to sell 76 units at 40 Park, “quite an anxiety-provoking experience,” he said.

Servicing the project’s loans over that period  “ate all the profits,” Goldberg testified. “Building 40 Park was a homework exercise. Candidly, we did not make a penny.”

MORE ABOUT THE EPSTEIN’S PROJECT

 

 

 

17 COMMENTS

  1. Love the idea of art space. Hate the idea of the town paying for it. That shouldn’t be happening. Better for the town to cut a tax break with a underutilized piece of commercial. Huge mistake to pass on revenue for new construction in downtown.

  2. The purpose of zoning is to help shape the community that we wish it to be – not to make way for the entity with the deepest pockets. Banks may be able to pay the most in rent – that doesn’t mean they should occupy every storefront in our downtown. Irregardless of what comes of this specific space – we need to have a conversation about how we zone for / create space for arts in our community. They may not be able to pay the highest rents – but the overall benefits to the community can not be ignored – in deed, having a community with a thriving “arts scene” helps lift property values – a win for all. Perhaps if we can not find a place within a private, commercial space to foster this idea, there may be an underutilized publicly owned space? With Morristown’s abundance of Town and County properties, surely we can bring this idea to fruition.

  3. Its easy to say a new concept is not feasible when other uses pay higher rent but those high rent payers are often the first to leave when tastes or conditions change. Instead, why not find a way to use the art center concept in a way that will bring income to the owner while embracing the idea of an artists center. That is far from impossible, all you need is some creativity instead of renting to copy cat businesses that multiply until they all suffer economically.

  4. The reality, which no one obviously wants to acknowledge, is that a gallery or art studio cannot generate the income it requires to meet the current rents that must be charged in order for a property owner to meet their financial obligations.

    While the intentions, idea and concept are noble, it has not been in town because no property owner can afford to do it.

    All those that are so quick to say whom a developer should have as a tenant, should put THEIR money where there mouth is. Try to open, operate and be profitable with a gallery or studio as suggested and then they will realize the financial challenges. Maybe focus your energy on a state grant or independent funding and do it yourself rather than trying to tell a property owner whom to rent to.

    Morristown needs the rateables, let the developer proceed with the project as approved without the public interference.

  5. In an area with $500,000 housing, what is considered “affordable?” Can a family with a mere $60K a year income live there? Disgusting.

  6. Kudos to Rebecca and others for suggesting the outstanding art studio idea. I’m not sure exactly what shape and form it would take; but, I’ve been to several studios where there’s partial gallery and then partial working studio space for visual artists to work. Of course, there’s also the possibility of music practice space, etc. Overall, this is definitely moving in the right direction!

  7. Couldn’t be a worse spot for more housing. I strongly encourage any prospective residents to visit the site around 12 am-3am on a Friday or Saturday night. Get used to fights, yelling and screaming and drunk college kids urinating on the side of your building. The garage gets completely full on show nights, bad weather and weekends. The mayor wants to bring more and more residents in yet no grow his police force along with it or keep them from being one of the lowest paid in the county. Get ready Morristown your town is going down the toilet.

  8. If Morristown is going to thrive as a new urban center – the arts are an integral part of that. Let’s see if this town is progressive enough to make it happen!

  9. Creating another place for artists to come together is a great idea. If Morristown is going to continue to grow and expand on the “happening vibe” and exciting downtown area, it needs more art! I love the idea of an exciting gallery space along with working studios to house the artists! Very exciting idea.

  10. Is an art studio going to be able to afford the rates being asked for downtown rentals in new buildings? $37/ foot is common. Obviously the vacant spaces could be rented at cheaper rates, but prospective tenants do not see that much value in these locations.

  11. I love this idea. Morristown could use a great art studio that would serve everyone in the community. A studio would also bring more people to town, to the shops and restaurants. I can see space rented to artists, different classes offered, and a shop that sells the wares. They are successful many other urban areas. A place that offers music, dance, visual arts, ceramics, culinary arts and more – for people of all ages and skill levels. There are so many organizations in town that would want to collaborate and use this space!

  12. We are very excited to hear that this discussion happened at last night’s meeting.
    Morris Arts is committed to building community through the arts in Morristown and throughout Morris County. We’ve been in discussions with the Mayor, Council President Feldman and the town planners about ways to support the idea of Morristown as a hub for artists for some time now.
    It’s encouraging that Mr. Goldberg expressed interest in the idea. We look forward to being a part of the ongoing discussions about this kind of project.

  13. A gallery maybe a nice idea but it should not be a prerequisite of whom the property owner has to rent to. It is still his choice.
    I agree that retail or a gallery would add pedestrian activity, but the property owner still has to pay his taxes and bills and with that obligation comes the selection of a tenant best equipped to meet the monthly rent, be it bar, bank or restaurant.
    The free enterprise right still exists and must be protected.

  14. I love the idea of another art space. Glassworks Studio brings in over 10,000 thousand people a year to Morristown. The theater brings in over 100,000. All of that translates to greater sales an development. It would be great to have a makers space that allows more people the opportunity to engage in multiple types of art. It could even be devoted to or at east include 3D printing as that combines the computer skills of this generation with the undeserved art skills.

  15. Affordable art space is exactly what this town needs. Let’s inject some culture, creativity and art into a town saturated with banks and over priced restaurants. We need this space to enhance culture in our town, and less commercialism. “If art is to nourish the roots of our culture, society must set the artist free to follow his vision wherever it takes him.” -John F Kennedy

  16. I think Mayor Daugherty can move this great idea of artist space forward. It will help diversify and fortify the already awesome quality of life he has fostered in downtown Morristown.

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