Planning Memorandum. Casino Reinvestment Development Authority Report Date: March 23, 2012

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1 833 Route 9 North, PO Box 373 Cape May Court House, NJ Telephone: Fax: English Creek Avenue Egg Harbor Township, NJ Telephone: Fax: Planning Memorandum Casino Reinvestment Development Authority Report Date: March 23, 2012 To: Paul G. Weiss, Esq., CRDA Chief Legal Officer/Land Use Hearing Officer Project Title: Redevelopment Plan for the Atlantic Avenue Corridor Redevelopment Area Tax Map ID: Block 128, Lots 1-9 Zoning District: RM-3 NC-1 Overlay District (100 from Atlantic Avenue property) Street Address: Atlantic Avenue, Metropolitan Avenue (30 ROW), Wistar Place, Massachusetts Avenue HMM No.: Owner: City of Atlantic City, NJ Application Status: Review of Approved Redevelopment Plan for the Atlantic Avenue Corridor Redevelopment Area Review Findings The following review and analysis of the proposed Redevelopment Plan for Atlantic Avenue Corridor Redevelopment Area is based on the documents received via electronic mail from Rose Anne Lafferty, Land-Use Administrator for the Casino Reinvestment Development Authority, Friday, March 13, This proposed Redevelopment Plan was prepared by the City of Atlantic City Planning Department. Further, the purpose of this exercise is to ensure compliance of the documents with the enabling act, specifically the Local Redevelopment And Housing Law, P.L. 1992, C. 79, s.1., (40A: 12A-1, short title) and the Atlantic City Tourism District Law, P.L. 2011, C.18 (c5: et seq.)(hereinafter, the 2011 Act ). A. Description of Documents/Maps 1. Documents/Maps Provided Redevelopment Plan for Atlantic Avenue Corridor Redevelopment Area, City of Atlantic City, New Jersey (prepared for the Atlantic City Planning Board by the Atlantic City Division of Planning. Plan dated December 14, 2011). Map of Redevelopment Plan for Atlantic Avenue Corridor Redevelopment Area. City of Atlantic City Ordinance #17 of 2012, adopting a Redevelopment Plan for the Atlantic Avenue Corridor Redevelopment Area, (City of Atlantic City Ordinance #17 of 2012, executed and signed by Mayor Lorenzo Langford on March 9, 2012). 2. Documents/Maps Referenced Local Redevelopment and Housing Law P.L. 1992, c 79, s.1. City of Atlantic City Master Plan, dated

2 B. Background Map of Areas Where Tourism and Trade Predominates, prepared by Remington, Vernick and Walberg, map dated April 9, 2011 Atlantic City Tourism and District Master Plan, dated 2012 Resolution of the Casino Reinvestment Development Authority designating the Atlantic City Tourism District in accordance with P.L. 2011, Chapter 18, Resolution N o of the Casino Reinvestment Development Authority. The purpose of this task is to review the recent Atlantic City Council adoption of the Redevelopment Plan for the Atlantic Avenue Corridor Redevelopment Area and to ensure compliance with the accepted standards and laws governing the preparation and subsequent implementation of such redevelopment proposals. The Redevelopment Plan was prepared by the Atlantic City Division of Planning, and dated December 14, Mayor Lorenzo Langford subsequently adopted said plan by Atlantic City Ordinance N o. 17, March 8, The land parcels involved are owned by the City of Atlantic City and are currently vacant. Block 129, lots one through nine comprised approximately 25% of the city block that is bordered by Pacific Avenue to the east, Rhode Island Ave. to the north, Atlantic Avenue to the west and Massachusetts Avenue to the south. The actual redevelopment area will have frontage along Atlantic Avenue, (127 ) and along Massachusetts Avenue, (292.4 ). Additionally, the site will have frontage along Wistar Place, (134 ) and Metropolitan Avenue, (292.4 ). In each instance of frontage, the cartways are paved and improved. The City of Atlantic City s Division of Planning conducted the redevelopment study and incorporated its findings and determinations in a document, entitled Redevelopment Plan for Atlantic Avenue Corridor Redevelopment Area, dated December 14, The total square foot and acreage of the redevelopment area calculated to be 37, s.f. or acres. Block 129 Land Area Tabulation Lots x = 22,860.0 s.f x 57.0 = 2,017.8 s.f x 35.4 = s.f x 67.0 = 2,318.2 s.f x 70.0 = 2,422.0 s.f x 42.4 = 1,560.8 s.f (added) x 42.4 = 1,356.8 s.f x 42.4 = 1,399.2 s.f x 42.4 = 1,356.8 s.f. total 37,776.6 s.f or acre Inasmuch as the City owns the land, the Casino Reinvestment Development Authority has control over the landuse aspects of its design, permitting and development. As such, the city seeks the consent of the Casino Reinvestment Development Authority to approve the Redevelopment Plan for the Atlantic Avenue corridor redevelopment area. 2

3 C. Review of Redevelopment Plan 1. Authorization The City Council of Atlantic City, in 1994, determined that the entire City of Atlantic City was an area in need of rehabilitation, pursuant to NJSA 40A: 12A-1 et. Seq. Resolution 364, effectuating same, and was passed by City Council. City Council of Atlantic City on December 7, 2011 passed Resolution #919 of 2011, directing the Atlantic City Planning Board to undertake and prepare a Redevelopment Plan for the area comprised of block 128, lots 1-9, as depicted on the official tax maps of the City of Atlantic City, New Jersey. 2. Purpose Within the body of the plan, the following objectives have been provided, specific to this Redevelopment Plan: To provide a mechanism for a public/private partnership leading to the development of commercial development on Atlantic Avenue on property that was formerly a school and other uses but has been vacant and unproductive for many years. The property within the Redevelopment Area is publicly owned and as such is readily available for development. Through this Redevelopment Plan, the Redevelopment Entity can make the Redevelopment Area available for private investment. Such private investment will create jobs and return and spur further investment. It is my opinion that the statement of purpose and intent has been satisfied by this declaration. Clearly, the intent is to foster and facilitate the development of commercial/retail uses to support the community and new/anticipated development. 3. Site Context The Redevelopment Area is situated in the South Inlet section of the city and is in the RM-3 (Multifamily Midrise) Zone as well as the NC-1 (Neighborhood Commercial-1) District as an overlay zone. The Redevelopment Area consists of nine (9) City-owned lots that are vacant (see section B. Background of this report for specific size reference). The site has four (4) roadway frontages. 4. Zoning The underlying existing zoning which comprises the Redevelopment Area is the RM-3 (Multi-family Residential) zone. RM-3 zoning definition (purpose): The RM-3 Multifamily Districts have been established to provide for medium-rise apartment buildings of different densities in areas close to employment sources, community amenities and transportation facilities. This zoning district does not permit retail/commercial uses for the most part. However, this area is also controlled by the NC-1 (Neighborhood Commercial-1) overlay district. The NC-1 Commercial District, as depicted in the Zoning Map of Atlantic City, which lies within the Redevelopment Area, extends along Atlantic Avenue in the RM-3 zone, 100 deep from the Atlantic Avenue property or right-of-way line. NC-1 zoning definition (purpose): The Neighborhood Commercial Districts are established to provide for groups of small business establishments located to serve frequent retail and personal service needs of residents within convenient traveling distance, with an option of moderate density multiple-family residential development 3

4 located above such business establishments. These districts are not intended to permit major commercial or service establishments which would attract substantial amounts of trade from outside the neighborhood. This district does allow for commercial/retail uses as well as multi-family dwelling units. The allowed uses are listed herewith: Residential Home occupations (P) Multiple-family dwellings at 2 nd floor or above (P) Rectories (P) Single-family attached dwellings (P) Single-family townhouses (P) Commercial Antique shops (P) Art and school supply stores (P) Bookstores (P) Camera and photographic supply stores (P) Clothing stores (P) Coin and stamp stores (P) Electrical appliance shops (P) Fabrics and sewing accessory stores (P) Gift, novelty and souvenir (P) Home decorating stores (P) Jewelry stores (P) Leather shops (P) Luggage and suitcase stores (P) Musical instrument stores (P) Newspaper and magazine stands (P) Paint and wallcovering (P) Record shops (P) Shoe stores (P) Specialty shops (P) Stationary stores (P) Tobacco shops (P) Toy stores (P) Video rental sales (P) Art shops (P) Barbershops (P) Beauty parlors (P) Hobby shops (P) Key and lock shops (P) Laundry and dry-cleaning establishments, pick-up stations only (P) Laundry and dry-cleaning establishments with coin-operated and self-service facilities (P) Photographic studios (P) Shoe repair shops (P) Small printing shops, hand press and offset press only (P) Specialty clothing boutiques (P) Tailor and dressmaking stores (P) Upholstery shops (P) Florist shops, retail (P) Garden supply shops (P) Pet shops (P) Accounting, auditing and bookkeeping services (P) Banks without drive-in facilities (P) Savings and loan institutions without drive-in facilities (P) Small loan company offices (P) General business offices (P) Home occupation offices (P) Blueprinting and photocopying shops (P) Employment agency offices (P) Office supply stores (P) Dental offices (P) Drugstores (P) Medical offices (P) Offices for the fitting and repair of hearing aids, prosthetic appliances and the like (P) Optical goods stores (P) Optometrists offices (P) Pharmacies (P) Psychiatrists offices (P) Bicycle and accessories sales and service stores(p) Gasoline and/or diesel fuel stations (C) Off-street parking facilities accessory to and in the same or equivalent district as permitted uses (P) Hardware stores (P) Day nurseries and kindergartens (P) Elementary and high schools, public, private and parochial (P) Studios for art, ceramics, drama, speech and similar skills (P) Electrical receiving or transforming stations(c) Radio, radar and television towers (C) Utility substations (C) Fire stations (C) 4

5 5. Land Use Bakeries and confectioneries, nonmanufacturing (P) Bakeries, manufacturing (P) Dairy product stores (P) Egg and poultry stores (P) Fish and seafood stores (P) Fruit and vegetable stores (P) Grocery stores with or without meat (P) Delicatessens (P) Frozen dessert stores (P) Outdoor restaurants (P) Restaurants, carryout, less than 500 square feet (P) Restaurants, excluding dancing and entertainment (P) Police stations (P) Sewerage pumping stations (C) Waterworks treatment and distribution facilities(c) Art galleries, public (P) Community and recreation centers (C) Libraries (C) Movie and drama theaters (P) Museums, commercial and not-for-profit (P) Parks and playgrounds (P) Tennis, racquetball, handball, swimming and other private recreational clubs (C) Churches, synagogues and temples (C) Funeral home and mortuaries (P) The redevelopment plan has been prepared to include land use provisions, building limit controls, utility controls, signage, density (floor area ratio), parking and loading regulations, performance standards, architectural treatments, and landscape protocols. In particular, the building controls have been developed to benefit the contemplated retail/commercial uses of the site while acknowledging the immediate vicinity land uses and neighborhood characteristics. In general, it is set forth that any future project shall comply with and be subject to Section of the Land Use Ordinance or current zone plan/document. In this regard, we believe that the necessary land use controls are both applicable and satisfy future considerations. 6. Statutory Requirements In consideration of the Redevelopment Plan being in compliance with statutory requirements as promulgated under the Local Redevelopment and Housing Law, we believe that the proposed Redevelopment Plan for the Atlantic Avenue Corridor Redevelopment Area provides an acceptable framework for the design, permitting process, and development and/or redevelopment of the land. The redevelopment plan provides for acceptable uses considered by the underlying zoning districts consistent with the Master Plan and Land Use Ordinance of record. Commercial/retail uses are permitted under the Redevelopment Plan which is consistent in regard to site density and intensity of use. The Redevelopment Plan further addresses and acknowledges both vehicular and pedestrian traffic needs, citing available multi-modal forms of transportation infrastructure in place and planned. The needs of the City and local neighborhood are addressed by the future commercial use of the site, which will provide for local services and products, create jobs, and add to the local real estate tax base. The Redevelopment Plan considers the need for relocation as the site is vacant and is currently an underperforming asset that will be empowered by the redevelopment zone to be developed according to a variety of retail/commercial uses consistent with the planned growth of Atlantic City. As noted previously, the properties, which comprise the Redevelopment Area are, in fact, owned by the City, limiting further government action and involvement, such as the use of eminent domain. New Jersey State Public Policy provides for the redevelopment and growth of Atlantic City which further supports the State constitutional amendment authorizing casino gaming in Atlantic City. 5

6 The Redevelopment Plan provides clear language that dictates the powers of the Redevelopment Plan over provisions of the Land Use Ordinance, Chapter 163. The Redevelopment Plan further states that the Casino Reinvestment Development Authority (CRDA) will have total authority with regard to the redevelopment proposals and the redeveloper s proposed development plan pursuant to N.J.S.A. 40A:12A.13. Pursuant to 2011 Act, CRDA has exclusive jurisdiction over land use matters in the Tourism District of Atlantic City. 7. The Application of Plan Provisions The Redevelopment Plan provides for the land use development controls within the defined Redevelopment Area or District. Compliance with the plan is judged by the redeveloper s activities within the Redevelopment Area. Powers and oversight, relative to such development activities, are provided to and belong to the CRDA. 8. Redevelopment Plan Duration The Redevelopment Plan shall be in effect until the plan of development can be fully completed. Notwithstanding the initial goals of the Redevelopment Plan, provisions allow the plan to be amended according to need, offering responsible flexibility. Such amendment will be subject to CRDA approval in accordance with the 2011 Act. The plan further provides for a Certificate of Completion and Compliance, which further safeguards the process, oversight and the redevelopment plan integrity. N.J.S.A. 40A:12-9a. provides for specific performance of the redeveloper and the redevelopment entity. The Redevelopment Plan, as prepared, addresses this issue in my opinion. 9. Redevelopment Plan Amendment Amendments to the Redevelopment Plan are anticipated and appropriate language recognizes the relationship and approvals required between the governing body and the Casino Reinvestment Development Authority. The Redevelopment Plan allows for flexibility of the building controls up to 20% without a formal amendment to the plan. According to the language offered, development plans that are inconsistent with the Redevelopment Plan or its formal amendments shall not be approved. 10. Redevelopment Plan Consistency with Master Plan The Local Redevelopment and Housing Law section 40A:12a-7d states, All provisions of the Redevelopment Plan shall be either substantially consistent with the municipal master plan or designed to effectuate the master plan. The Redevelopment Plan observes that the Planning Board has examined the document with regard to meeting the goals and objectives of the City Master Plan, subsequently adopted by Ordinance N o. 66 of The Redevelopment Plan states that the consistencies between the Redevelopment Plan and the Master Plan are clearly framed and enunciated by the parallel focus to maintain the urban fabric and land use trends. It maintains that the plan for redevelopment will provide the essential tools to meet housing, retail/commercial employment and public service needs. It further states that the Redevelopment Plan will serve to support and aid in the future growth and improvement of the City by strengthening commercial districts as centers of employment, shopping, services entertainment and education. We see the basis established and the nexus proven for the interrelation and interdependency between the two (2) documents. 6

7 11. Key Elements Block 128, Lots 1-9 are wholly owned by the City of Atlantic City.(Lot 7 in question) The property comprising the Redevelopment Area is vacant. Atlantic City declared the City in need of rehabilitation, and met the criteria to designate it as an area in need of rehabilitation. (Resolution N o. 364 of 1994) Proper authorization was given to undertake the Redevelopment Plan pursuant to applicable sections of the Local Redevelopment and Housing Law. Municipal actions to institute, effectuate and prepare a Redevelopment Plan met criteria of the Local Redevelopment and Housing Law The Redevelopment Plan acknowledged the underlying zoning district and proposed future land uses expanded to accommodate retail/commercial operations particular to neighborhood land development trends. The objective of N.J.S.A. 40a.12a-1 et seq. have been met by the specification of permitted land uses, increased employment, public sector offerings, improved building controls, available utilities and infrastructure, expansion of municipal tax base, elimination of blight, and strengthening of City economic base. The Redevelopment Plan fully and completely acknowledges the CRDA oversight, control and powers over the Redevelopment Plan for the Atlantic Avenue Corridor Redevelopment Plan. D. Recommendation It is my professional opinion that the Redevelopment Plan for the Atlantic Avenue Corridor Redevelopment Area, as proffered by the City of Atlantic City governing body to the Casino Reinvestment Development Authority be accepted as submitted. I would further advise the qualification of lot 7 in Block 128, as this was formally added into the Redevelopment Area by way of Ordinance N o. 17, adopted March 8, 2012 but not included within the body of the Redevelopment Plan per se. Should there be any comments or questions requiring our further consideration, please do not hesitate to contact me. Respectfully submitted by: Joseph P. Adamson, L.L.A., P.P. J. ADAMSON ASSOCIATES, LLC jadamson@adamsonland.com cc (via ): Paul G. Weiss, Esq., CRDA Chief Legal Officer/Land Use Hearing Officer Rose Ann Lafferty, CRDA Land Use Regulation Enforcement Officer 7