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As development in Asbury Park continues to pick up speed, there is a growing concern over who will benefit, in terms of jobs.

“The biggest problem in our community is unemployment and crime,” said local contractor and lifelong resident Duane Small. “We don’t care what contractor comes in to do the work, we care that when that contractor comes in that they hire local people.”

According to an April 2015 New Jersey Department of Labor and Workforce Development report, Asbury Park’s unemployment rate is at 9.6 percent. An October 2015 State Police Uniform Crime Index report shows the city’s crime rose 32.4 percent in 2015 over 2014.

Small [right] is among those fighting for a piece of the economic pie being created by the new development. The 46-year-old launched his home improvement contracting business in 2009. He said he hires local residents to help with demolition, carpentry, masonry, painting, and landscaping work.

“There was a time when there were jobs being offered on large projects like the Esperanza,” said Small, referring to the high-rise project on the waterfront that was abandoned in late 2007. “Not only did that work afford me the opportunity to hire people from the community but it helped eliminate the problem of unemployment in the community which contributes to lessening crime within the city.”

Asbury Park is a 1.42 square mile city. Its estimated population is 15,778 according to the U.S. Census 2014 report. Blacks or African Americans make up 51.3 percent of the city’s population and own 33.3 percent of the town’s 964 businesses, according to 2007 census report.

Aside from the work being created by local developers like Pat Fasano, there are projects by master waterfront redeveloper iStar and boardwalk redeveloper Madison Marquette.

Fasano, who has been developing and refurbishing properties in the city for close to 30 years, had planned a $2.9 million redevelopment along Main Street between Third and Fourth Avenues. While Fasano said he hires local residents for his construction projects, a mandate to his PILOT request by the City Council required local employees be hired in the proposed Dollar Store. Fasano, who would be landlord to the national chain, said he could not guarantee who the Fortune 500 Company would hire. He put the project on hold.

A PILOT or Payment in Lieu of Taxes is a tax abatement program often used as an incentive for developers and business owners to improve property or locate projects in distressed or blighted areas. PILOTS often hold off tax payments in the first year of development and incrementally increases them over a 5-year time-frame by 20 percent annually, although some can be for longer periods.

The push to require local jobs, workforce development training and programs that benefit city residents as a mandate to any PILOT request was led by Council members Joe Woerner and Amy Quinn.

“We are trying to figure out how to put this into a new agreement,” Quinn said. “This time around we want to base this on a percentage model. I know for The Michael’s Organization we required 25 percent of their workforce had to come from Asbury Park.”

The Michaels Organization was named one of master developers for the city’s Springwood Avenue redevelopment zone. The Burlington County-based group received a lease extension in July to facilitate their search for funding of the $13 million Renaissance Village, a 64-home complex comprised of townhouses and multifamily units between Memorial Drive and Atkins Avenue.

The extension secures site control until December 31, 2016 but the original redeveloper’s agreement signed in 2012 is valid until 2019.

Lakehouse Music Academy founder Jon Leidersdorff agreed to a percentage-based model when the City Council asked him to host programs for the city’s youth as part of the PILOT agreement for the Lake Avenue complex expansion.

PILOTs are also an approved part of the 2002 Waterfront Redevelopment Agreement the municipality entered into with iStar and Madison Marquette.

iStar is tasked with constructing homes and businesses along the waterfront while Madison Marquette is charged with the boardwalk redevelopment and maintenance. Madison also oversees the Stone Pony and Wonder Bar.

According to the May 2010 subsequent developer’s agreement both redevelopers agree to “use commercially reasonable efforts to use local labor” and to “use commercially reasonable efforts to acquire and use local building products. From time to time when requested by the City but not more frequently than once in a ninety day period, [they agree to] provide summary reports of efforts to engage local labor.”

Madison Marquette General Manager Carrie Turner said she regularly reports to the city how many of their employees are city residents and from the surrounding communities.

She said, many of their boardwalk vendors hire from the local pool and that Madison tries to employ city residents for their maintenance positions.

“I don’t have construction jobs per se,” Turner said. “Our local hiring is mainly focused on the seasonal jobs.”

Plumber Perry Nazon, owner of P and N Mechanical in Asbury Park, said he has never been considered for the redevelopers’ jobs.

“If it is part of the community, you have to give the work to the local people,” said Nazon, who’s operated his business for 25 years. “You have to give them an opportunity to do something; some you have to train but you have to give a guy a chance.”

Nazon, like Small, worries that local residents are being passed over for cheaper undocumented labor.

“I bet you don’t have 10 people from the city of Asbury [Park] working on those job site,” Nazon said. “That’s a shame because there a lot of these young kids that need to get off the streets and do some work.”

Master waterfront redeveloper iStar is leading the charge in construction opportunities. Just this year alone they began work on:

 

1101 Ocean project at the former Esperanza site that will bring a mixed-use high rise comprised of retail, hotel, and luxury homes to the oceanfront. Demolition work has begun there.

The 110-room Boutique Hotel at the former Salvation Army building on Fifth Avenue

The 34-unit Monroe Condominiums [shown in featured photo above] that sits on the block bordered by Heck Street, Sewall, Monroe and Grand avenues

And the rehabilitation of Asbury Lanes, the 1960s era bowling alley and live music venue.

“Since accepting the role of Master Developer for the waterfront, we have sought out opportunities to work with local businesses and vendors,” iStar Senior Vice President of Land Development Brian Cheripka said. “iStar has invested more than $8M in the local community through vendor and labor contracts. We are working with local contractors such as Burke Construction, who employ a number of Asbury Park residents on their crews as well as local firms like Chris Mott Builders, Greenway Demolition, DeLisa Waste Services, Nice Electric and Monarch Electric, just to name a few.”

But Asbury-based contractor Henry Vaccaro said it’s impossible to win a contract.

“You can’t get any work,” said Vaccaro “All the subcontractors are from points north. It’s a Wall Street mentality.”

Vaccaro said it’s disheartening to see local construction work go to outsiders.

“It’s not right, what’s going on,” he said. “There are a lot of qualified contractors in this area that can do the work. This is our town. I was born here. My father was a doctor here. At one time he was the largest property owner in Asbury Park. All I’ve tried to do is to restore my hometown.”

Cheripka has said iStar will not sacrifice the quality of its work throughout the city but that they will work to provide mentorship and job training opportunities.

“In terms of construction, we are working with our General Contractor on 1101 Ocean to develop mentorship and job training programs specifically focused on younger applicants, with little or no work experience,” said Cheripka [right].  “We see an opportunity to work with both the Boys & Girls Club and the Asbury Park School district.”

Currently the New York-based master redeveloper is in discussion with city officials for the development of a comprehensive workforce development program.

“We have initiated meetings with the State Department of Labor and Workforce Development and city officials to discuss potential funding sources for local job training programs,” Cheripka said. “Our goal is to open opportunities in the job market that will benefit the overall community.”

iStar established a Summer Ambassador Program to hire local residents and offer hospitality training as part of their ongoing efforts to promote Asbury Park. They have partnered with local organizations, like Interfaith Neighbors, to conduct job fairs and helped sponsor local start-up businesses, like Free Ride and Summertime Surf.

“iStar is taking the lead to work with the City and continue developing relationships with officials to identify ways to promote and utilize local businesses,” Cheripka said. “These programs could be utilized to develop hospitality training for individuals interested in working in the new hotels being brought to the waterfront. Although these programs will take time to develop, we are committed to seeing them through.”

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