---

A vote to extend the Springwood Avenue lease agreement with affordable home builder Michaels Development Group comes before the City Council Wednesday.

The Marlton-based redeveloper has been in a holding pattern as it seeks funding to advance Phase One construction of Renaissance Village, a 64-home complex comprised of townhouses and multifamily units between Memorial Drive and Atkins Avenue.

Michaels is currently pursing funding sources, including a bid for Third Round Sandy Funding available through the New Jersey Housing and Mortgage Finance Agency. They were denied funding during the second round bids released in May.

At the time, Mayor John Moor said, “We are all heartbroken.”

The project was meant to help revitalize the Springwood Avenue Redevelopment Area.

Its officials have said the site would be developed in phases with each requiring a variety of funding sources including loans, soft-subsidy structuring, low-income housing tax credits, new market tax credits, urban transit tax credits, and the New Jersey Housing Mortgage Financing tax exempt bonds.

But now city officials seem to be weighing their options.

According to the resolution, Michaels needs the extension to maintain control of the site, a funding requirement. The extension would secure site control until December 31, 2016 but the original redeveloper’s agreement signed in 2012 is valid until 2019.

“I think they are trying their best,” Moor said. “No matter if they get the extension or don’t get the extension they have a five-year commitment to the property, which means they can be there until 2019 with nothing being built.”

Moor said the city has been approached by another developer who is interested in redeveloping the site. His recommendation, ask the Michaels group if they city approves the one-year site control extension and they do not receive funding, would they consider walking away at the end of 2016.

He said this is not a move against the redeveloper, rather a need to revitalize the area as quick as possible.

“Let us just get Springwood up and running as soon as possible,” Moor said.

The current lease agreement took effect July 16, 2014 and remains in effect until Dec. 31, 2015. If no extension is granted the site control lease agreement becomes null and void but the redeveloper’s agreement remains vailid through 2019.

———————————————–

Follow the Asbury Park Sun on Facebook, Twitter and Instagram.

---