Preliminary Investigation - Westfield, New Jersey

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PreliminaryInvestigationBlock 3107, Lot 1Westfield, NJTopology 60 Union St #1N Newark, NJ 07105

AcknowledgementsMayorShelley BrindleTown CouncilCouncilwoman Linda HabgoodCouncilman James BoyesCouncilman Michael DardiaCouncilman Mark ParmeleeCouncilman Mark LoGrippoCouncilman David ContractCouncilwoman Dawn MackeyCouncilman Scott KatzTown AdministratorJames GildeaTown PlannerDonald SammetTown ClerkTara RowleyTown AttorneyThomas JardimPlanning BoardRobert Newell, ChairMichael La Place, Vice-ChairMichael AshMayor Shelley BrindleMatthew CeberioAnn FreedmanRoss GoldsteinLinda HabgoodAnastasia HarrisonKris McAloonDarielle Walsh2

Planning Board SecretaryLinda JacusPlanning Board AttorneyAlan Trembulak, Esq.Report Date: July 1, 2020Prepared by:Philip A. Abramson, AICP/PPNJ Planner License No. 6096003

Table of ContentsIntroduction5Background7Existing Conditions10Application of Statutory Criteria17Study Area Evaluation20Conclusion31Appendices324

IntroductionStudy AuthorizationThe following preliminary investigation has been prepared for the Town ofWestfield Planning Board to determine whether a certain property qualifies as anon-condemnation area in need of redevelopment under N.J.S.A. 40A:12A-5.The Mayor and Town Council of Westfield authorized the Planning Board, throughResolution 79-2020, annexed hereto as Appendix A, to conduct this preliminaryinvestigation to determine whether designation of Block 3107, Lot 1 as shown onthe official tax map of the Town of Westfield (the “Redevelopment Area,”“Property,” or “Study Area”) as in need of redevelopment is appropriate and inconformance with the statutory criteria in N.J.S.A. 40A:12A-5.5

Summary of FindingsThe analysis contained within this report will serve as the basis for therecommendation that Block 3107, Lot 1 be designated as a non-condemnationarea in need of redevelopment. The recommended parcel for designation isreflected in the figure below.Figure 1: Recommended Redevelopment Area6

BackgroundLegal AuthorityNew Jersey’s Local Redevelopment and Housing Law (the “LRHL”) empowerslocal governments to initiate a process by which designated properties that meetcertain statutory criteria can be transformed to advance the public interest. Oncean area is designated in need of redevelopment in accordance with statutorycriteria, municipalities may adopt redevelopment plans and employ planning andfinancial tools to make redevelopment projects more feasible and to removedeleterious conditions.Redevelopment ProcedureThe LRHL requires local governments to follow a process involving a series ofsteps before they may exercise powers under the LRHL. The process is designedto ensure that the public is given adequate notice and opportunity to participatein the public process. Further, the redevelopment process requires the GoverningBody and Planning Board interact to ensure that all redevelopment actionsconsider the municipal Master Plan. The steps required are generally as follows:A. The Governing Body must adopt a resolution directing the Planning Boardto perform a preliminary investigation to determine whether a specifiedarea is in need of redevelopment according to criteria set forth in the LRHL(N.J.S.A. 40A:12A-5).B. The resolution authorizing the Planning Board to undertake a preliminaryinvestigation shall state whether the redevelopment area determinationshall authorize the municipality to use all those powers for use in aredevelopment area other than the use of eminent domain (noncondemnation redevelopment area) or whether the redevelopment areadetermination shall authorize the municipality to use all those powers foruse in a redevelopment area, including the power of eminent domain(condemnation redevelopment area).C. The Planning Board must prepare and make available a map delineatingthe boundaries of the proposed redevelopment area, specifying theparcels to be included to be investigated. A statement setting forth thebasis of the investigation or the preliminary statement should accompanythis map.D. The Planning Board must conduct the investigation and produce a reportpresenting the findings. The Board must also hold a duly noticed hearingto present the results of the investigation and to allow interested parties to7

give testimony. The Planning Board then may adopt a resolutionrecommending a course of action to the Governing Body.E. The Governing Body may accept, reject, or modify this recommendationby adopting a resolution designating lands recommended by the PlanningBoard as an “area in need of redevelopment.” The Governing Body mustmake the final determination as to the redevelopment area boundaries.F. If the Governing Body resolution assigning the investigation to thePlanning Board states that the redevelopment determination shall establisha Condemnation Redevelopment Area, then the notice of the finaldetermination shall indicate that: (i) the determination operates as a findingof public purpose and authorizes the municipality to exercise the power ofeminent domain to acquire property in the redevelopment area, and (ii)legal action to challenge the final determination must be commencedwithin 45 days of receipt of notice and that failure to do so shall precludean owner from later raising such challenge.G. A Redevelopment Plan may be prepared establishing the goals, objectives,and specific actions to be taken with regard to the “area in need ofredevelopment.”H. The Governing Body may then act on the Plan by passing an ordinanceadopting the Plan as an amendment to the municipal Zoning Ordinance.Only after completion of this process is a municipality able to exercise the powersunder the LRHL.ProgressThe Westfield Town Council adopted Resolution 79-2020 on March 10, 2020. Amap of the Study Area dated June 30, 2020 is on file with the Municipal Clerk andPlanning Board. The resolution and study area investigation map, which satisfyParts A, B, and C above, are included as Appendix A and Appendix B.Purpose ScopeIn accordance with the process outlined above, this Preliminary Investigation willdetermine whether the property within the Town of Westfield meets the statutoryrequirements under N.J.S.A. 40A:12A-5 for designation as non-condemnationareas in need of redevelopment. This study was prepared at the request of theWestfield Planning Board and was duly authorized by the Mayor and Council.The scope of work for the investigation included the following: a site visit on June10, 2020; visual assessment of property conditions; review of ownership status8

within the Study Area; review of municipal tax maps and aerial photos; review ofstate records; review of municipal records; review of the existing zoning ordinanceand zoning map for the Town of Westfield; review of the Town Master Plan andReexamination; review of Sanborn maps; and review of other planning documentsprepared by Westfield stakeholders.9

Existing ConditionsFigure 2: Study Area and surrounding contextStudy Area ContextThe Study Area contains a commercial building with a prominent theatre marqueeand commercial store frontages near the center of the Town of Westfield.Downtown Westfield contains one of the most desirable downtowns in the region,boasting over 400 stores including high-end shopping, entertainment and diningdestinations. Downtown Westfield has received numerous accolades, including in2004 with the receipt of the Great American Main Street Award and in 2018 and2019 as a finalist in NJ.com’s “Best Downtown.”Downtown Westfield is home to an active Special Improvement District, theDowntown Westfield Corporation, and houses a mixture of land uses, includingcommercial uses, residential areas, houses of worship, transit facilities, and publicfacilities such as the Westfield Library, parks, Town Hall, and police and firestations. The Study Area is within the Special Improvement District boundaries.The area is accessible primarily via New Jersey Route 28 (North Avenue), a majoreast-west arterial that runs through the Town’s center and connects Westfield tothe Garden State Parkway via exits 135 and 137. The Westfield Train Station,10

along the NJ Transit Raritan Valley Line, is also a major means of access for usersof the Study Area. Local site access is also provided via Central Avenue, NorthAvenue West, and South Avenue East.While downtown Westfield is recognized as a regional leader, in recent yearsseveral high-profile establishments have gone vacant, including the Children’sPlace, Victoria’s Secret, Lucky Brand Jeans, and the property within the StudyArea. At the time of this report, the Downtown Westfield Corporation waspublicizing fifteen available retail or restaurant spaces in the downtown, totalingroughly 37,480 square feet.1 In the face of changing market trends evidenced bythese vacancies, the Town has adopted a proactive approach to ensuring thecontinued vibrancy of its downtown, as evidenced through its recent Master PlanReexamination and its efforts to assess the appropriateness of designating parcelsas areas in need of redevelopment.Study Area DescriptionThe Study Area is comprised of a single property within downtown Westfield. Theproperty is occupied by a commercial building that houses a vacant theatre witha prominent marquee and ancillary commercial uses including small retailstorefronts.The property is bound by East Broad Street to the north and northwest;commercial uses like NY Korean BBQ and the Town Book Store to the northeast;municipal parking lot 5 to the southeast; and Central Avenue to the south andsouthwest. The property has no on-site parking but is adjacent to a municipalparking lot.Property HistoryKnown as the “West Fields” of Elizabethtown in the early Colonial times, theVillage of Westfield was established in 1720. The village and its residentsexperienced significant disruptions during the American Revolutionary War,eventually being occupied by the British Army which used the village as acommand post for much of the war. As the community’s core, in what is nowdowntown Westfield, continued to develop a distinct identity, the villageincorporated as a separate municipality from Elizabeth and became WestfieldTownship in 1794. The Town would continue to grow throughout this period, witha distinct commercial and civic center taking shape around the Central Railroad“Available Commercial Space.” Downtown Westfield Corporation. https://westfieldtoday.com/index.php?option com content&view article&id 209&Itemid 231 Accessed May 13, 2020.111

of New Jersey Station.2 The parcel investigated in this report is within this coredowntown area.Based on a review of Sanborn maps, the properties surrounding the Study Areawere developed by 1901 in a street pattern that largely reflects the existingconditions today. Land uses present at the time were limited to private dwellings.In the 1921 Sanborn maps, no building was recorded as being on the site,potentially in anticipation of future construction.Figure 3: 1901 and 1921 Sanborn maps showing the Study AreaIn 1922, the site became home to a theatre commonly known locally as the RialtoTheatre. In the ensuing decades, the site underwent changes in ownership,management, and configuration. Additional screens were added in 1978 and1997, and in 2009 a ribbon cutting ceremony was held to commemorate arenovation process which included upgrades to the theatre’s six auditoriums andnew concession stands. Throughout these developments, which occurred withinthe context of an evolving landscape within the movie industry and the changingcharacter and configuration of downtowns, the Study Area retained its primaryuse as a movie theatre. In August 2019, however, the theatre closed and remainsvacant at the time of this report.3 Since the closure of the theatre, the Town has2“History of Westfield.” Downtown Westfield Corporation. https://www.westfieldtoday.com/index.php?option com content&view article&id 56&Itemid 258 Accessed May 3, 2020.3“Westfield's Rialto Theater closes suddenly.” My Central Jersey. loses/2095675001/ Accessed June 16, 2020.12

expressed a desire to see the property revived for arts and cultural uses as part ofits broader objectives to enhance the downtown core.4Existing ZoningFigure 4: Study Area zoningThe Study Area is in the Central Business District (CBD) zone. Additional zoninginformation is available in the Town of Westfield’s full zoning code, relevantsections of which are included as Appendix C. Excerpts from the zoning coderelated to the CBD zone are included below:Permitted uses are:1. Business establishments devoted primarily to the retail sales of goods andpersonal services on the premises, including restaurants and foodestablishments intended for food consumption on the premises or for takeout of food;“Westfield looks to convert Rialto Theatre into performing arts center.” My Central Jersey. could-become-performing-arts-center/4760719002/ Accessed June 16, 2020.413

2. Banks and other financial institutions engaged in the business of acceptingdeposits from the public and/or extending credit to the public in the formof loans. Such business must be conducted on the premises, and must bethe principal activity of the use on the premises;3. On any floor of a building located in property with a frontage on NorthAvenue or South Avenue, and only on the second or third floors of abuilding on other property within the CBD zone district, business,administrative and professional offices or other business establishmentsproviding the following services:a. Finance, insurance or real estate sales or services;b. Business or professional services;c. Health services;d. Social services;e. Consulting service; and,f. Educational services.4. Retail services;5. Childcare centers;6. Governmental buildings and municipal parking facilities;7. Public parks and playgrounds;8. Residential dwelling units on the second or third floors of a building;9. A shared use of a single tenant space by multiple non-residential useswhich are permitted principal uses as included in this section; and10. The temporary use of existing floor area by a permitted principal use oruses as listed in this section, for a period of not more than 60 days tolledcontinuously from the first date of operation, shall not be subject to parkingrequirements for the duration of the use. Such temporary use shall beallowed once per calendar year for each tenant space. Temporary usesmust comply with all sign provisions of Article 16 (of the Town Land UseOrdinance).Permitted accessory uses are:1.Parking and parking facilities as regulated in Article 17;2.Signs as regulated in Article 16;3.Antennas, as regulated in section 13.04;4.Sidewalk cafes as permitted and regulated by sections 24-46 through24-57 of the Town Code; and5.Other accessory uses and structures customarily subordinate andincidental to permitted principal uses and permitted conditionaluses.14

Conditional uses and structures (permitted in the CBD district only if they complywith the appropriate regulations for such uses or structures in Article 18) are:1. Non-profit chartered membership organizations;2. Residential-type public utility facilities;3. Certain cellular telecommunications antennas as set forth in Article 18;4. Age-restricted multi-family housing on the ground floor of a building;5. Microbreweries and craft distilleries, and6. Commercial use of rooftops.General required conditions are as follows:Maximum height: No principal building shall exceed the maximum of three habitable floors,exclusive of basement, or 40 feet in height, whichever is less.Minimum yard setbacks: Front: No front yard shall be required. Side: All principal buildings may be constructed without side yards, exceptthat when a side yard is provided, it shall not be less than 10 feet.Notwithstanding the above requirement, when the side yard in the CBDzone district abuts a property in any residential zone, said side yard shallbe not less than one foot for every two feet of height of the building locatedin the CBD zone district, but not less than 10 feet. Within this required sideyard, there shall be a buffer at least 10 feet deep, within which plantmaterial and/or a fence shall be installed, as required by the PlanningBoard, to adequately protect the abutting residentially zoned property. Rear: There shall be a rear yard of at least one foot for every two feet ofheight of the principal building on the lot, which is the subject of theapplication, but not less 10 feet.OwnershipA review of the Town’s property tax records was conducted to determine currentownership information. The table below shows the most current ownershipinformation, based on records from the Town.15

Figure 5: Property comprising Study dressOwner244-254 E. Broad StreetRialto Holding Company, LLCProperty TaxesProperty tax records from the State of New Jersey Division of Taxation’s databaseand the Town of Westfield were analyzed to determine the assessed value of theproperty in the Study Area and current property taxes, respectively. The value ofthe land, improvements thereon and the net taxable value for the parcels aredisplayed in the table below.BlockLotAssessedLand ValueAssessedImprovementValueNetAssessedValueTaxes 2019Taxes 201831071 4,302,400 984,200 5,286,600 119,265.70 87,317.9016

Application of Statutory CriteriaIntroductionThe “Blighted Areas Clause” of the New Jersey Constitution empowersmunicipalities to undertake a wide range of activities to effectuate theredevelopment of blighted areas:The clearance, replanning, development or redevelopment of blighted areasshall be a public purpose and public use, for which private property may betaken or acquired. Municipal, public or private corporations may be authorizedby law to undertake such clearance, replanning, development orredevelopment; and improvements made for these purposes and uses, or forany of them, may be exempted from taxation, in whole or in part, for a limitedperiod of time The conditions of use, ownership, management and controlof such improvements shall be regulated by law.”- NJ Const. Art. VIII, Section 3, Paragraph 1.The New Jersey Local Redevelopment and Housing Law (“LRHL”) implements thisprovision of the New Jersey Constitution, by authorizing municipalities to, amongother things, designate certain parcels as “in need of redevelopment,” adoptredevelopment plans to effectuate the revitalization of those areas and enteragreements with private parties seeking to redevelop blighted areas. Under therelevant sections of the LRHL (N.J.S.A. 40A:12A-1 et. seq.), a delineated area maybe determined to be “in need of redevelopment” if the governing bodyconcludes there is substantial evidence that the parcels exhibit any one of thefollowing characteristics:a) The generality of buildings are substandard, unsafe, unsanitary,dilapidated, or obsolescent, or possess any of such characteristics, or areso lacking in light, air, or space, as to be conducive to unwholesome livingor working conditions.b) The discontinuance of the use of a building or buildings previously usedfor commercial, retail, shopping malls or plazas, office parks,manufacturing, or industrial purposes; the abandonment of such buildingor buildings; significant vacancies of such building or buildings for at leasttwo consecutive years; or the same being allowed to fall into so great astate of disrepair as to be untenantable.c) Land that is owned by the municipality, the county, a local housingauthority, redevelopment agency or redevelopment entity, or unimprovedvacant land that has remained so for a period of 10 years prior to adoption17

d)e)f)g)of the resolution, and that by reason of its location, remoteness, lack ofmeans of access to developed sections or

The following preliminary investigation has been prepared for the Town of Westfield Planning Board to determine whether a certain property qualifies as a non-condemnation area in need of redevelopment under N.J.S.A. 40A:12A-5. The Mayor and Town Council of Westfield authorized the Planning Board, through

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