Three Major Development Projects Proposed For Holmdel

HOLMDEL, NJ — In a proposal that will radically affect the density and look of northern Holmdel Township, the Holmdel Planning Board has identified two wooded lots that could be turned into apartment rentals, plus a third lot that may be converted into a shopping center on Rt. 35 next to the Kohl's. All of these sites will have an affordable housing component.

This is essentially a forced compromise: The Holmdel Planning Board was mandated by the state to come up with three lots in town that could be used for affordable housing, said Holmdel Committeeman Mike Nikolis, who sits on the Planning Board.

According to Nikolis, this is a compromise Holmdel was forced to make to meet its affordable housing requirement, which is mandated by the state of New Jersey.

Holmdel previously fought its affordable housing obligation, and the town has been involved in back-and-forth lawsuits with the state and Fair Share Housing Center for the past several years.

"We were told by a judge that if we kept fighting this, we would ultimately lose. And the judge would side with Fair Share," said Nikolis on Wednesday, who did not seem pleased. "This ends the litigation."

The news was first reported in The Two River Times. Here are the three sites:

• A wooded lot on Palmer Avenue across from the Target will be rezoned to allow 60 housing units, 12 of which will be affordable.
• A currently wooded lot behind behind the Kohl’s shopping center will be built into a 40,000-square-foot commercial center with a three-story, 170-unit development. It may be built over a parking garage. 31 units will be affordable housing. This will sit about 600 feet back from its entrance on Rt. 35.
• A lot at Laurel Avenue on Middle Road on the Hazlet border. This will be converted into a 50-unit rental building. All the units there will be affordable housing. This would likely be senior affordable housing.

How soon could construction start?

Holmdel has to rezone all three lots and change the town's master plan to accommodate these significant development changes. All three lots are currently undeveloped, natural wooded areas.

"What happens then is a judge approves this proposal and Fair Share accepts it," said Nikolis. "Then developers make proposals on these sites to the Planning Board, and the Planning Board and the township have to approve them."

The entire process could take several years and Nikolis said he doesn't expect shovels in the ground "anytime soon."

Meanwhile, neighboring Middletown has taken a much more aggressive stance: In July of this year, Middletown took the extremely unusual step of saying they are flat-out not building any more new affordable housing. At the time, Middletown Mayor Tony Perry said "whatever we do never seems to be enough," when it comes to building affordable housing.

What you need to know about affordable housing in New Jersey:

In 1975, the New Jersey Supreme Court issued a landmark ruling called the Mount Laurel decision, which requires towns across the state to build a certain amount of affordable housing. Exactly how much is enforced by a Cherry Hill-based advocacy group called Fair Share Housing Center.

However, many towns — such as Middletown and Holmdel — argue that developers use the Mount Laurel mandate as a way to force municipalities to allow them to build. Developers often try to use Mount Laurel as a way to green-light their projects, as long as they contain a certain amount of affordable housing.

"We just decided we're not going to play this anymore," said Middletown's Twp. administrator Tony Mercantante this past July. "Fair Share wants us to build over a thousand more units. We have virtually no land left. It's ridiculous."

Keep reading: Middletown Withdraws From NJ's Affordable Housing Mandate

Holmdel's Affordable Housing Lawsuit Carried Until March