Analyst: Project revenues will outweigh cost to town
BY DAVE BENJAMIN
Staff Writer

An artist's renderings show what the duplexes (top) and community center will look like in the Jackson Valley age-restricted residential community being proposed by Hovbilt in the Cassville section of Jackson.

JACKSON - An economic analyst and consultant continued his testimony before the Planning Board on a developer's application for the 965-unit age-restricted condominium development Jackson Valley on Nov. 20.

Hovbilt is proposing to build Jackson Valley in the Cassville section of Jackson, in the area of Perrineville Road, Route 571, West Veterans Highway and Prospertown Road.

Richard B. Reading, of Richard B. Reading Associates, Princeton, said the proposed development will generate $5.6 million in annual property tax revenues, and then after an allocation of costs he anticipates a surplus of $4.2 million.

"The primary beneficiary will be the Jackson School District, which would receive the surplus amounting to $3 million," Reading said.

He noted that the December 2005 report was prepared with information that was current at the time. He noted that figures would change over time.

On Nov. 20, Reading responded to questions about his testimony.

Board member Blanche Krubner requested a comparison of revenues and expenditures.

"The fiscal analysis assessed both the costs and the revenues that were anticipated for municipal services," Reading said. "In the context of the school district, this is an age-restricted community."

Krubner pointed to the cost of construction and the disruption during construction and said that could cause a serious strain on Jackson.

"It's a period of instability," she said. "We don't know how this will affect Jackson."

Reading said there are benefits to the township, including permits, fees and other revenues that would be generated during the project's construction phase.

Township Council President Angelo Stallone, who sits on the Planning Board, asked if the financial analysis showed any kind of impact on the amount of state aid for the school district as a result of the construction.

Reading said the development would not alter the school funding.

Krubner asked what would happen if the area's demographics change.

Donald Daines, the attorney representing Hovbilt, responded by saying that if, 15 years from now, the applicant wanted to deviate from the original approval, the applicant would have to come back to the board for permission to do so.

Krubner said that in the future there could be a change in the market for senior housing.

During the public portion of the meeting, resident Ellen Weissfeld said state aid to the school district is based, in part, on property values in a community. She asked the developer's representatives how much the units at Jackson Valley would initially sell for.

"We anticipate $328,000 initially," Reading said.

"That's more than twice the median price for a Jackson home," Weissfeld responded.

Reading noted that the average price of a home in Jackson, $267,000, and not the median cost of a home, was a more valid amount and is the figure used for the state equalization formula.

It was noted during the public hearing that the age restriction on the units would not be able to be changed unless the town's governing body and the development's homeowners association amended that restriction.

Reading said he does not believe that has ever happened in New Jersey (i.e., an age-restricted community becoming non-age restricted).

It was also noted that there is a 20-year buildout for the project, which is consistent with state law.

Testimony indicated that the development would bring in $1.2 million in added revenue per year to the municipality and would cost $600,000 per year to residents.

Project architect Aram Damadian, of Howell, said there are no variances being requested in connection with the proposed units.

In response to a question from board member George McKay, Damadian said there will be elevators in the residential buildings.