Conditional Redeveloper - HP RarDen Redevelopment (formerly Tantum Fidelco)

After a competitive RFP process, on November 22, 2022, Borough Council authorized a resolution to designate Tantum Fidelco HP LLC as the conditional redeveloper for the property identified as Tract A in the 2021 Downtown Redevelopment Plan for Tracts A-D, and to execute an interim cost and conditional designation agreement. The designation was extended by Borough Council on May 16, 2023, December 5, 2023, and on March 19, 2024. This agreement enables the Borough and Tantum Fidelco (now HP RarDen Redevelopment) to pursue pre-development activities including, but not limited to, review of the conditional developer’s proposal, negotiations, and preparation of a redevelopment agreement.

Property Assembly

In the role of conditional redeveloper, HP RarDen Redevelopment has been working to purchase the remaining privately held properties in Tract A. Most recently, they negotiated an agreement with Ubry’s Inc., an automotive repair shop located at 115 Raritan Avenue, to relocate to 70 Woodbridge Avenue (formerly P&K Auto Clinic). While negotiating with Ubry’s, HP RarDen also entered into a purchase and sale agreement with the owners of the P&K property. On May 7, 2024, Borough Council passed an ordinance authorizing an Assignment and Assumption Agreement with HP RarDen Redevelopment whereby the Borough agreed to accept the assignment of the exchange agreement with Ubry’s and to accept title on the P&K property. On May 20, 2024, the Borough purchased the P&K Property and is working with HP RarDen Redevelopment to complete renovations outlined in the agreement with Ubry’s, with the end point being a title “swap.”  The Borough anticipates completing the title swap before the end of 2024.  Once this transaction has closed the Borough will control al of he properties required to redevelop this area except for 125 Raritan Avenue.

For several years, the Borough and HP RarDen Redevelopment have been in discussions with the owners of 125 Raritan Avenue (operators of Classic Cleaners) to come to an agreement for the purchase of the property. A significant challenge is the known groundwater contamination related to the operation of the dry cleaner, which could have clean-up costs as much as $1 million. In 2017 and 2020, the Borough secured approximately $58,000 in grant funding from the NJDEP’s Hazardous Discharge Site Remediation Fund (HDSRF) in order to conduct a Preliminary Assessment and Site Investigation of the property. The next step is a remedial investigation, which will help give a more precise understanding of the clean-up costs; however, as the owners are identified by the NJDEP as the “responsible party” related to the contamination, the property is no longer eligible for HDSRF funding. The NJDEP has set two important deadlines related to the property: 1) October 1, 2024: completion of the remedial investigation; and 2) September 30, 2027: completion of the remedial action (clean up of the contamination).