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Red Bank OKs 30-Year Agreement to Rehab Locust Landing, Preserving 40 Affordable Units
Summary
Council approved Resolution 25-159 to authorize an agreement with WCP Locust Landing MM LLC to rehabilitate the Locust Landing affordable-housing property, lock in 40 affordable units for 30 years, secure 20 municipal affordable-housing credits, and provide PILOT/loan forgiveness to make the project viable.
The Red Bank Borough Council approved Resolution 25-159 to authorize an affordable-housing agreement with WCP Locust Landing MM LLC for the property at 105 Locust Landing Avenue (block 71, lot 1.01). The agreement aims to rehabilitate a financially distressed affordable-housing project, keep 40 affordable units in service for 30 years and secure 20 affordable-housing credits for the borough's state-mandated obligations.
The borough's attorney for the Locust Landing project told the council the property needs substantial improvements and that without the negotiated payment-in-lieu-of-taxes (PILOT) terms and loan forgiveness the project would not be financially viable. In exchange for local approvals and the PILOT structure, the developer will seek tax credits, complete site-plan approvals, and undertake rehabilitation and related improvements. The attorney said the project's net cash flow is tight and the negotiated financial terms were necessary to proceed.
Council members discussed practical benefits (proximity to transit and services, schoolchildren living in the development) and raised questions about climate resilience given the property's riverside location. Borough staff and the developer said engineers are assessing climate impacts and possible mitigation measures. Several council members voiced strong support for preserving affordable housing stock rather than letting existing affordability expire.
The resolution passed on a roll-call vote with all members voting yes. Council then approved the remaining consent-agenda resolutions.
What happens next: The agreement requires the developer to obtain site-plan approvals and to apply for tax credits; the borough will monitor implementation and the developer will execute the rehabilitation and long-term affordability commitments.
