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Housing authority designates AST New Brunswick LLC to redevelop lot on New Street; commissioners raise questions about tenant and office use

3174461 · January 22, 2025
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Summary

The New Brunswick Housing Authority voted to designate AST New Brunswick LLC as redeveloper for an eight‑story office building on multiple lots along New Street, approving the designation after a public presentation and questions from commissioners and a resident.

The New Brunswick Housing Authority voted to designate AST New Brunswick LLC as redeveloper for an eight‑story office building on multiple lots along New Street, approving the designation after a public presentation and questions from commissioners and a resident.

The action, recorded as MBHA Resolution No. 1 for 2025, approves AST New Brunswick’s designation with conditions including execution of a redevelopment agreement and a guarantee within 120 days, and passed with five votes in favor and one nay.

The redeveloper and its consultants described an office building on roughly a 2.1‑acre site (Block 144, Lots 14.01, 16–19, 20.01, 22.01 and 37–44) with a footprint of about 27,200 square feet and a total gross area the applicants variously described as approximately 217,000 to 217,600 square feet. The developer said the county is expected to lease office space — public safety, health and human services, and community development functions were cited as potential tenants — but no lease or firm commitment has been negotiated.

“Upon completion, the developer states in its application that the building will be leased to the county,” Brian Nelson, attorney for AST New Brunswick LLC, told the board during the presentation. Nelson also said the application included a certification that the developer has 30% equity and a letter from Provident Bank showing financing capacity.

Why it matters: the designation clears the way to negotiate a redevelopment agreement and advance site‑plan review for a large office building in an area under the New Redmond 2 redevelopment plan. Commissioners pressed the team on parking, utilities, lighting and the project’s neighborhood impacts; a resident raised concerns that the city needs housing rather than more office space.

Project details and public responses

AST representatives led by Nelson and project consultants said the site is presently a surface parking lot with a recently demolished building at the north end. Engineer Kristen Roche of Langan described the site topography and utilities and said the applicant expects to comply with city and state stormwater rules and not to seek variances from the redevelopment plan. Architect Matthew Jarmel of Jarmel Kaizel Architects and Engineers presented renderings showing two public entries, a typical floor plate of roughly 27,290 square feet and exterior materials of glass and metal panels.

Parking and multimodal requirements were a focus. The presenters said the redevelopment plan’s parking standard is one stall per 700 square feet of office space, which the applicant calculated as 311 stalls before factoring electric‑vehicle requirements. The project proposes 149 on‑site surface stalls (half the redevelopment plan’s on‑site requirement) plus 49 spaces leased from the New Street parking deck, and 13 on‑site EV stalls. The developer said the EV stalls reduce the formal parking requirement to 298 stalls once EV provisions are applied; bike parking will meet the plan’s minimum of 29 bike racks.

On the question of demolition, the applicant said no occupied homes or businesses abutting Joyce Kilmer and Railroad Avenue will be removed; the building is planned within the already cleared portion of the lot. The team said a striped loading area will serve deliveries and that they anticipate delivery vehicles will be medium box trucks rather than tractor‑trailers.

Financing and tenancy

The developer told the authority the project cost is approximately $155,000,000, with 30% equity pledged by AST and the balance to be financed. Nelson said the application included a certification from the developer’s accountant and a letter from Provident Bank supporting financing capacity, but he confirmed no lease or memorandum of understanding with Middlesex County had been signed at the time of the presentation.

When resident Charlie Crataville asked whether there is an existing lease, he was told none has been negotiated yet. Crataville said he has “some hesitation about moving ahead with this” because he believes New Brunswick needs more housing and that the office market “is not what it used to be.” The developer and board members acknowledged that tenancy is not guaranteed until lease negotiations occur and that financing will depend in part on conventional lender requirements.

Commissioner questions and responses

Commissioners asked a range of operational and design questions: why the roof is not fully solar, whether any residential units will be demolished (answer: no), whether lighting along New Street and Redmond Street will be improved (applicants said they will coordinate with PSE&G for updated street lighting), and whether bicycle parking in lieu‑funding provisions apply. Roche said the team intends to provide the required bike parking on site rather than pay an in‑lieu fee.

On solar, the architect explained the project is proposing a reflective “white roof” as an alternative to meeting a 50% solar option in the redevelopment plan, noting the building’s vertical mass and limited roof area would not produce significant solar generation to power the building.

Board action and other votes

The board moved to close public comment and then to vote on the redeveloper designation. The record reflects the designation motion passed with five votes in favor and one opposed. The board also approved routine housekeeping resolutions (payment of bills for November and December 2024 and the 2025 meeting schedule), and approved minutes from a prior meeting; those items passed on roll calls recorded in the meeting.

What’s next

With the designation in hand, the authority and AST are to negotiate a redevelopment agreement and a guarantee within 120 days and proceed to site‑plan review. The developer said construction would begin in the first quarter of 2026 if approvals and financing proceed as anticipated, with an estimated construction period of 24 to 36 months.

The record of the board’s vote and the applicant’s statements leave tenancy and final financing unresolved. The board’s decision authorizes the authority to enter formal negotiations with AST under the redevelopment plan’s framework; further public hearings and planning approvals are expected as the project advances.

Votes at a glance

• MBHA Resolution No. 1 (2025) — Designation of AST New Brunswick LLC as redeveloper for 172 New Street (Block 144): outcome — approved; vote tally — yes: 5, no: 1 (nay not specified in roll call transcript). Conditions noted: execution of a redevelopment agreement and a guarantee within 120 days.

• Resolution Nos. 2 & 3 (payment of bills — November and December 2024): outcome — approved (unanimous roll call).

• Resolution No. 4 (adopt 2025 MBHA meeting schedule): outcome — approved (unanimous roll call).

• Approval of prior meeting minutes (rescheduled December meeting / November minutes): outcome — approved (roll call recorded).

Speakers and attribution

Quotes and attributions in this article come only from speakers listed in the meeting record and public presentation: Brian Nelson (attorney for AST New Brunswick LLC); Matthew Jarmel (registered architect, Jarmel Kaizel Architects and Engineers); Kristen Roche (engineer, Langan); Robert D'Anton and Shane Serrano (AST representatives); Charlie Crataville (resident/public commenter); Chairman Wright; Commissioners Waldy, Medina Hernandez, Georgiani, Dunlap and Dr. Colwell; Mister Hoffman (staff member) and Alberto (legal counsel).

Ending

The authority’s designation starts the formal steps toward site plan review and agreement negotiation; whether Middlesex County ultimately becomes the building’s tenant will depend on lease negotiations and financing that the developer says remain to be completed.