Belmar outlines negotiated redevelopment deals to add hundreds of housing units and dozens of affordable homes

Belmar redevelopment counsel Francie McMahon told the council the borough negotiated settlements with four developers that will significantly change prior proposals and add dozens of affordable housing units as part of a declaratory-judgment process intended to limit builder’s remedy lawsuits.

“The borough filed a declaratory-judgment action in March 2023 to seek temporary immunity from builder’s remedy lawsuits and to negotiate settlements,” McMahon said, describing the procedural context under New Jersey’s Mount Laurel jurisprudence and Fair Share Housing oversight.

The largest negotiated changes affect three named projects. McMahon said the Mark Belt project (at River Road, Sixth Avenue and Main Street) was revised from a 2021 concept of 131 units with no affordable set-aside to a 139-unit development that includes roughly 17 percent affordable housing (about 24 units) along with reduced heights—four stories (about 42 ft) near Main Street and five stories (about 54 ft) elsewhere.

The Repetti–Russo proposal (Route 35 between 8th and 10th Avenue) was described as earlier shown in various iterations up to 444 units; the final negotiated plan is 198 units with 10 percent on-site affordable units (20 units) plus a $2 million payment-in-lieu to the borough’s affordable-housing trust fund, McMahon said. She added the payment will count toward the borough’s obligation under the relevant round of court supervision.

The Sackman project at 708 Main Street was negotiated from earlier concepts to a final 56-unit plan with an 18 percent set-aside (about 10 affordable units) and a four-story profile. McMahon also noted a small 12-unit project converted to include a 20 percent set-aside as part of the settlement package.

McMahon emphasized that the court oversees the borough’s settlements and that Fair Share Housing Center typically intervenes in these declaratory-judgment matters to ensure compliance. She described builder’s remedy exposure—whereby a court allows development with a baseline 20 percent affordable requirement but without local zoning constraints—if a municipality is out of compliance.

Residents during the workshop pressed for additional detail on traffic, timing and whether affordable units could be required retroactively. McMahon said credits are being sought for previously approved units where applicable, but there is no mechanism to reclaim occupied units once tenants are in place. She estimated that actual construction start dates depend on developer permitting and could be years out; the borough will seek to stagger start dates in developer agreements to limit overlapping construction impacts.

Trust fund and approvals: borough staff reported the affordable-housing trust fund currently holds about $156,762 and that the $2 million Repetti–Russo payment will be deposited when that project closes. McMahon warned that the borough must obtain court approval of its housing element and fair-share plan before spending trust funds and that negotiated settlements are evidence-based and subject to state and court review.

Votes at a glance: the council voted unanimously to adopt the consent-agenda resolutions and moved to offer ordinance 20258 (an amendment to the amended Seeport redevelopment plan) for first reading; a second reading and public comment will be scheduled at the next council meeting. Council also offered ordinance 20257 (amending time-restricted parking on Main Street) for first reading.