Plans for Edison train station project revealed
Proposed redevelopment includes offices, commercial property, 783 residences
BY CHRIS GAETANO Staff Writer

EDISON - Development firm Inter- Cap Holdings has unveiled its conceptual plans for the 44-acre mixed-use village center near the Edison train station, the result of numerous community forums, workshops and focus groups held over the course of many weeks.

The plan will feature a combination of commercial and residential units. About 124,000 square feet will be devoted to shops and restaurants, as well as a gym and a day care center. About 250,000 square feet will be devoted to offices. Also included in the plan is a 200-room hotel and an amphitheater in the common area. Also featured will be improvements to the train station itself, such as providing 1,000 parking spaces for commuters, to be held in a large parking deck.

The plan also includes 783 additional residences, of which 555 will be sold at market rate, 188 will be sold as affordable housing units as per state requirements, and 40 as "work-live" units. Steve Goldin, the CEO and chairman of InterCap, said that according to a study his firm produced, as well as a study from Rutgers, about 24 new students would be introduced to the community as a result. The residences will be located farther to the south of the development, while the more commercial elements will be to the north.

Also slated to be included in the development is a jitney bus service that will take people around the area.

Goldin noted that the No. 1 concern people had regarding the project was traffic, and so the plan also includes major traffic improvement proposals. Specifically, there would be things such as additional lanes- near the corners of Stelton Avenue and Ethel Road, PlainfieldAvenue and Kilmer Road, Plainfield and Central avenues, and PlainfieldAvenue and Route 27, all roads near the station.

The plan was one of three possibilities that were presented to the residents during

a series of workshops held last week, ranging from a development almost entirely composed of commercial development with virtually no housing to a development almost entirely composed of residential units and few commercial elements. Goldin said that the plan the firm is presenting fell somewhere in the middle, which he felt most people were in favor of.

"It totally reflected [the residents'] views," Goldin said. "We came in with those three different scenarios Tuesday night, we listened to what people said, and the plan we came up with was reflective of those people's comments. And that's why it was really great to be there. Ninety percent of the people there were really excited about the consensus plan."

The aesthetics of the development were also chosen by the residents. During the workshops, the residents placed stickers on the elements such as streetlights and landscaping that they liked. According to a pamphlet put out by InterCap, people generally liked traditional-style architecture, formal landscaping integrated with fountains, brick and stone detailing, and cafes and restaurants that spill onto the sidewalks on nice days.

Some Edison residents were very enthusiastic about the train station project, saying that there is a dearth of walkable spaces in the township that one can just go out and have a good time in.

"I love the whole idea," said Jeff Gullotta, whose contact information was sent to the Sentinel by InterCap. "I think the concept is a great idea. I think it's great for the future of Edison. People need to change their old-fashioned thoughts on how these things are bad ... our town is decaying, and it's a fresh start for the town. ... What grabs me is we need more town centers and entertainment centers where you can go outdoors and shop and have a cocktail and relax in a community environment, instead of indoor malls like we're used to."

Others were not so excited about the idea.

"This transit project is not good policy. Simple," said Joe Romano, who is also the Board of Education vice president.

One part of Romano's critique was with regard to the method by which the project would be funded. Goldin had said the plan was to utilize a funding device called Tax Increment Financing (TIF), a commonly used tool in almost all parts of the country, though it is particularly popular in Chicago.

Through TIF, the project would supposedly pay for itself on a very literal level. InterCap's plan under this model is to post a $53 million bond with a 35-year lifespan in order to fund the public work that comes with it, such as road improvements and train station upgrades. Goldin stated that the bond would be issued by the state at the risk of the investors. The tax revenue generated from the site itself would finance the annual debt incurred from paying off the bond. The annual payments would remain fixed, though the tax revenue collected would not, and thus the excess would go into the township's coffers.

Romano expressed wariness at this model.

"Tax increment financing is another fancy way of taking taxpayers dollars and funding private development," said Romano.

A report published in 2007, "A Tale of Two Cities" by a Cook County Commissioner namedMike Quigley, levels similar charges against TIF. The report states that areas with TIF zones have lower tax bases, since more revenue is tied up in that specific area, and thus property taxes everywhere else rise to compensate. However, the report also noted that the immediate increase in taxes as a result of TIF is very small, in the hundredths of a percent, but claims that it does make a difference over time, due to inflation. The report also states that the biggest risk with TIF zones is that municipalities (such as Chicago) can become addicted to them and that the more of them there are, the more taxes are tied up and the more time must pass before areas regain full access to tax revenue. It did not mention what the impact of having just one TIF zone would be.

Romano was also critical of the process on which the train station project was developed, saying that Goldin underplayed the potential for a housing element.

"What Mr. Goldin did was, as he went around and talked to all kinds of people, and as he talks to these people, he inflated or tells people what they want to hear, and at the very last minute, he inserts a component of five, six, seven, eight hundred homes," said Romano. "If the man is going to come in and invest millions to buy a piece of property, I'm quite sure he knew what he was going to do there… I think that was being sneaky."

Goldin, however, said that the process was unprecedented in its transparency, saying that people are genuinely excited about the project.

"I was really surprised by how tangible the interest was. This was not abstract. People who live in Edison want to live here because it offers the type of environment that doesn't exist, not only in Edison but in New Jersey," said Goldin. "We listened to what people said on Tuesday [March 11] night, and said they clearly liked the middle plan, and took that."

Romano also expressed concern with some of Goldin's past business dealings. Romano said that Goldin had worked with former state Sen. John Lynch, now in jail on corruption charges, former Gov. Jim McGreevy, for whom the aftershocks of his sexual adventures still reverberate today, and controversial real estate developer Jack Lynch.

Goldin said that, indeed, he had worked with these people before.

"Twenty-six years ago, in my first job out of college, I served as an administrative analyst for two years for the City of New Brunswick before leaving to return to graduate school. John Lynch was mayor at that time.

"Sixteen years ago, in 1992, I accepted a position with Woodbridge Township to serve as director of Planning and Development and president of the Woodbridge Economic Development Corporation. I left that position in 1996 to return to the private sector. Jim McGreevey was mayor at that time.

"Jack Morris was my financial partner in a company called The Columbia Group. The Oak Tree Pond project you refer to was by his Edgewood Properties company. I had no involvement whatsoever in either that project or any of Edgewood's other projects. I have not spoken to Jack Morris since January of 2006," said Goldin in email.

InterCap will hold a presentation on the plan's current incarnation at the Pines Manor on April 13 from 11 a.m. to 3 p.m. After that, the firm will begin moving the plan through the formal township landuse channels. Before any construction can begin, the firm will need the area to be rezoned to allow residential uses.