The Payment in Lieu of Taxes (PILOT) Agreement will generate over $500,000 per year in tax revenue for the next 30 years; that’s over $15 million dollars in new revenue to provide tax relief for Madison residents and support for our public schools. Normally 14.9% of every tax dollar we collect goes to Morris County. Under the PILOT Agreement only 5% of the revenue goes to Morris County. Madison gets to keep almost 10% more of the PILOT revenue than it would tax revenue.
Will generate over $1 million dollars in permit fees and water and sewer connection fees.
Borough gets a 3,000 square foot community center for 30 years at $1.00 rent/year.
New residents living downtown to support local businesses
The developer is obligated to pay $2.1 million dollars to create affordable housing in Madison
The school district has earmarked the proceeds from the sale toward a list of prioritized "capital projects" including infrastructure repairs and support for curricular, co-curricular and extracurricular programs.
The Green Village Road School Project, when completed, will be the second largest taxpayer in Madison.
What will be built?
100 luxury rental apartments, 35 luxury for-sale condominiums, 4,500 sq. ft. single restaurant space, and a 3,000 sq. ft. community center with frontage on Kings Road. Outside the community space, an area of 16,000 square feet, also fronting Kings Road, can be used for outdoor performances.
Who will build it?
The KRE Group will build 100 luxury rental apartments and Mark Built Homes will build 35 luxury for-sale condominiums on the site. Architect Dean Marchetto has been selected to design the site. The cost of the project is estimated at $50 million.
Mark Built Homes, based in Union, has built similar developments including James Place in Morris Township, Pheasant Crossing in Bernardsville and the Basking Ridge section of Bernards, and Summit Place in Summit.
KRE, based in Bridgewater, has developed and leased residential properties in Jersey City, including 18 Park, 225 Grand and Grove Pointe. It is currently developing Journal Squared, a collection of three residential towers in Jersey City’s historic Journal Square neighborhood that will ultimately comprise 1,838 rental residences and 36,000 square feet of commercial space.
When will it be built?
Demolition of the existing school building began in early March 2016. Construction is scheduled to begin in the first quarter, with anticipated completion in the second quarter of 2017.
Historical - Timeline
The Board of Education first acquired the two parcels of land totaling 4.99 acres, one via condemnation (no price noted), the second as a purchase that would be become the Green Village Road School in 1944.
A school building was completed in 1949, with additions built in 1955.The Green Village Road School building itself was 25,280 sq. ft. plus a 2,000 sq. ft., unfinished basement.
The Green Village Road School was no longer used as a school in 1976 after the construction of the Torey J. Sabatini School was completed.
From 1984 until 2008, the schools was used to house the Board of Education Special Services Department offices and pre-school classrooms. The building also served as home to the Playwrights Theatre until August 2011. Over the years, Rainbow Montessori School, The Adult School of the Chathams, Madison & Florham Park, and the American Red Cross also occupied space in GVRS.
In 2004 in preparation for a $45.9 million bond referendum for renovations and expansions at all of the grades K-12 district’s schools, a reopening of the building as a school, perhaps to serve all of the district’s fifth and sixth graders, was studied as an option. The concept was discarded because of concerns over traffic and the ongoing costs of staffing an additional school. And it was determined the sixth grade would be moved from Madison’s three elementary schools to an addition at the grades 7-8 Madison Junior School on Main Street.
Once it was determined that the district would not have an immediate use for the building, the Board of Education formed a citizens’ committee in 2005 to study and make recommendations on how best to make the Green Village Road School property benefit the community in the future. This committee presented four options for consideration by the Board of Education in June of 2005.
The voters approved the bond referendum in September 2005 and as a condition of the pledge of $11.1 million dollars in funding from the New Jersey Department of Education for the project, the DOE required that the district dispose of the property pending completion of construction in 2008. An appraisal of the property done in May of 2008, valued the property as follows, school portion: $2,200,000, recreation fields: $2,850,000 to $3,550,000 and total: $5,050,000 to $5,750,000. In March 2012, the property was reappraised. The simple market value ranged from $9,850,000 to $12,350,000.
In early 2008 an initial process to sell the Green Village Road School and its immediate property excluding the adjacent playing fields began. The Board of Education entertained proposals from several nonprofits stipulating a minimum sales price of $2.2 million, the building’s assessed value at the time. Coinciding with the national economic crisis, the process fell apart in late 2008.
In early 2009 the Board of Education entered into discussions with the Borough Council in hopes that the entire property could be rezoned to maximize its value.
This process would allow for the property to be sold through the Local Redevelopment and Housing Law to give allow more control over the design of the buildings, ensure the development would occur in a timely fashion, and increase the sale price of the property.
GVRS Redevelopment Plan which encompasses two adjacent properties on Kings Road as well as the former school site, permits mixed-use options for residential and retail units, in an effort to enhance the downtown area and capitalize on the zone’s close proximity to the Madison Train Station on Kings Road.
In February 2012, in response to a “Request for Qualifications” issued by a joint committee of representatives from the Board of Education and Borough Council, 15 companies indicated their interest in a redevelopment project conforming to the rezoning. Between early 2012 and April of 2013, the joint committee undertook a comprehensive evaluation process of all proposals, reducing the field to five and then three redevelopers.
In late May of 2014, it was announced that the Kushner Real Estate (KRE) Group of Bridgewater Township would be the designated developer of the property at 33 Green Village Road. KRE plans to construct 135 residential units, 4,500 square feet of retail space and a 3,000-sq-ft community center with frontage on Kings Road. Outside the community space, an area of 16,000 square feet, also fronting Kings Road, can be used for outdoor performances.