The groundwork has been laid for Pier Village Phase 3 and major construction of Long Branch's newest development is expected to begin this fall.
Most of the project's infrastructure has already been completed, including utility setups and streets. Ironstate Developers have suspended the balance of construction until after the summer in order to ease congestion during Long Branch's busy beach season.
There are actually two phases of development for of Pier Village Phase 3. Phase 3A will take approximately 12 months to complete and Phase 3B will take approximately 24 months after the completion of Phase 3A.
The first phase of the project will include:
• 60 condominium units
• A 59,810-square-foot hotel
• 27,905 square feet of leasable retail space
• An ocean-themed carousel
• Boardwalk improvements and infrastructure, a children's play area and a stage.
The second phase of the project will include:
• 240 condominium units
• 21,360 square feet of leasable retail space
• A 286 space self parking garage with capacity for at least 600 valet/stacker parking spaces
• The acquisition of land to be used for additional public parking
Long Branch Council unanimously passed an ordinance bonding $24.9 million to get the project moving last August.
The money will be paid back to the city through a Payment in Lieu of Taxes (PILOT) program after the project is completed.
A PILOT is money a property owner pays to a municipality instead of real estate taxes on the improvement portion of their property. The amounts due are a municipal lien and are collected in the same way as taxes, and the property owners still pays conventional taxes on the land portion of their property.
Structured annual service charges will cover the debt service of the project and the developer, Fountains Applied LWAG LLC, has agreed to make payments to the city that cover the projected debt service costs and additional revenue if the construction is delayed.
The money the city is bonding will only make up about 20 percent of the total funding for the project, which will also be paid through the developer's equity and a bank loan. The total cost of the project is $195 million.
The funds provided by the city will be used for certain aspects of construction for the two phases of the project including a carousel, retail space, on-site parking and the acquisition and construction of a an off-site parking area on the west side of Ocean Boulevard.