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Final project approvals were granted Wednesday by the Asbury Park City Council for iStar’s 1101 Ocean Avenue mixed use development.

In its role as the municipality’s redevelopment authority, the City Council unanimously granted the master waterfront redeveloper a subsequent developer’s agreement that includes a Payment in Lieu of Taxes [PILOT] structure that will allay the property’s full tax valuation over a period of 30 years.

The City Council also approved a $17.5 million special assessment for a redevelopment area bond to be applied to the infrastructure work associated with the project.

The 16-story project will transform the block where the failed C8 and Esperanza projects left a skeletal structure in the midst of the waterfront redevelopment area.

1101 Ocean Avenue [shown above right]  is a mixed use high rise designed by award winning architect Gary Handel. The project boasts close to 22,000-square-feet of ground floor retail space, a 58-room luxury hotel, over 11,00-square-feet of amenity space, and a 414 stall parking garage. Its top floors will house 128 homes consisting of 23 one-bedroom, 70 two-bedroom, 33 three-bedroom, and two four-bedroom units.

The project equates to more than $2million in annual revenue for Asbury Park, City Manager Michael Capabianco said.

“The only way the project will get completed is if they have the payment in lieu of taxes, otherwise financially it could not be done” Capabianco said.

As with other PILOTs granted within the past year, the city asked iStar to fold in a workforce development component, which will include using local subcontractors and establishing a training/mentorship program.

“Not only is this project good for the community from a monetary point of view, but this agreement was contingent upon iStar adding scholarships, internships, apprenticeships, and another version of the Salt school, which the did for The Asbury hotel,” Deputy Mayor Amy Quinn said. “I want to thank iStar for working with the city and meeting the requirements that we asked them to meet in order to start to not only to hire local residents but a program to start training them.”

The PILOT agreement translates into an incremental annual tax increase until the full property valuation is met at the end of the 30 year period. Currently, the land real estate taxes
generate approximately $156,910.00 in annual revenue.

“Right now the entire city is generating, in tax dollars, $17 million dollars,” Mayor John Moor said.  “This is going to bring us another $2 million per year. That is more than 10 percent of what we are generating right now for the entire city — 1.4 square miles and this is one block…It is in benefit to the taxpayers and in my opinion, and that of our financial and legal advisors, this is a good deal.”

Through the PILOT structure’s a full appropriation of the municipal taxes will be met.

iStar Senior Vice President of Land Development Brian Cheripka said the project should be completed within 2½ years to 3 years.

For more about Friday’s open workforce development event at The Asbury, located at 210 Fifth Avenue, click here.

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