New Vision for Fort Monmouth’s ‘Gateway’ Project

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FORT MONMOUTH – Uncertainty in the retail sector that began before the emergence of the coronavirus and worsened since was cited as a reason for a second major developer’s withdrawal from a high-profile redevelopment project on the former Fort Monmouth.

Known as Parcel B, the over 80-acre site sits directly inside the Route 35 red brick Johnson Gates entrance to the fort in Eatontown, about a mile and a half north of Monmouth Mall.

Visible from the roadway, the project was originally envisioned as a mixed-use “lifestyle” destination with shopping, enter tainment, eateries, offices, open and community gathering space, residences and 350,000 square feet of retail.

COURTESY FMERA
The outlined area shows Fort Monmouth’s Parcel B along Route 35. After two developers withdrew from ambitious redevelopment plans for the site in the past three years, a revised vision for its future will soon be put out to bid.

Fort Monmouth Economic Revitalization Authority (FMERA) officials said last week the “gateway” parcel will be released for new bids within three months with more flexible parameters to reflect marketplace changes. A mandated requirement for 302 residences will remain.

“This is not a surprise due to the status of retail,” said Robert Lucky, FMERA interim chairman, during the authority’s monthly meeting July 15, held via teleconference. “It’s important we have flexibility in the new RFOTP (Request for Offers to Purchase) for a village where people can walk without a lot of retail.”

National developer Lennar was the latest to pull out of the project. The firm was the second highest bidder in 2016 when Paramount Realty Services, Inc. of Lakewood was awarded top bid for its $130 million proposal. Unveiled in January 2017, Paramount’s version included a movie theater, fountains and name-brand retailers. When Paramount withdrew a year later, Dennis Connelly, then Eatontown’s mayor, said the project, “got watered down, partly because of the way retail is in this economy.”

As per procedure, FMERA immediately entered into negotiations with the second highest bidder, Lennar, which currently has two other projects underway at the fort the Patriot’s Square mixed-use town center development across from the Tinton Falls municipal building, and Anthem Place, a residential neighborhood nearby.

Lennar released its concept plan for Parcel B in February 2020 with approximately 243,800 square feet of retail space including a mix of smaller storefronts, a memorial park, 950 parking spaces and a multipurpose trail. Their central green mall was flanked by condominiums, townhomes, single-family residential lots and buildings to accommodate the 20 percent affordable housing mandate.

Interviewed in February by The Two River Times, Lennar’s regional land director Robert Calabro said, “The attractive location on the former Fort Monmouth is ideal with the walkability, conveniences and close proximity to beaches, Monmouth Park racetrack and major roadways. Several high-end retail stores have expressed interest.” The firm planned to pay $18.5 million for the property with the overall development cost projected at $125 million.

A request for comment from Lennar last week was for warded to the company’s California headquarters. A spokeswoman who returned the call declined comment.

A critical component of the 1,126-acre for t’s redevelopment, the project would potentially generate thousands of construction and permanent jobs.

“It is our understanding that Lennar remained committed to the residential portion of the project, but the significant change in the retail marketplace over the last couple of years presented a risk that caused them not to move forward,” said Sarah Giberson, FMERA marketing and development manager. “We’re looking to reset the project in a way that speaks to current market conditions, but keeps the fort’s Reuse Plan intent in mind. The retail obligation under the last RFOTP was significant. We intend to modify that going forward.”

“We have had several other interested parties,” said Bruce Steadman, FMERA executive director, adding he spoke with one last Friday. “I believe the property will have a higher value and be more sought after in the post-COVID marketplace than before. By targeting a broader mix of commercial uses and small-scale, complementary retail amenities, the project is poised for success as a hub for business and community engagement. We still want a Town Center concept that will be enjoyable, attractive, and a pleasant place to visit (that is) achievable from a developer’s investment/return standpoint, and which will provide significant tax revenue.”

After some eight years of redevelopment on the former U.S. Army base spanning portions of Eatontown, Oceanport and Tinton Falls, about 1 million square feet of commercial space, over 200 residential units, and civic and entertainment uses have been realized. Twenty parcels have been sold while 16 parcels are currently under contract, in negotiation, or in the development pipeline. Several projects that have been undergoing lengthy processes involving legal, engineering, financial and town, county and state approvals, are “making good progress,” with some expected to close by the end of this year, Steadman said.

The article originally appeared in the July 23 – 29, 2020 print edition of The Two River Times.