In November, 2021, SJO reported that Somerdale’s Reserve at Grace redevelopment project appears abandoned as there has been no progress at the site in months.
It also does not appear that the Reserve at Grace Urban Renewal LLC has the financial wherewithal or technical skill to complete the project.
On January 5, 2022, the Governing Body of the Borough of Somerdale introduced by title Ordinance #2022:01, which repeals certain Ordinances and Resolutions concerning the Reserve at Grace Redevelopment Project.
The Borough of Somerdale has entered into various agreements with Reserve at Grace Urban Renewal LLC and Reserve at Grace Urban Renewal LLC is in default of its obligations under the agreements.
Somerdale’s Governing Body seeks to revoke, rescind, and cancel any and all agreements in light of the default by the Reserve at Grace Urban Renewal LLC.
The Ordinance states that the Reserve at Grace Urban Renewal LLC is in default of its obligation to pay the acquisition cost reimbursement of $70,535.48 as required by the Redevelopment Agreement.
Additionally, the Reserve at Grace Urban Renewal LLC is currently in default of its obligation to maintain an escrow of $4,000 with the Borough pursuant to the Redevelopment Agreement.
Due to the default by the Reserve at Grace Urban Renewal LLC, the Borough seeks to revoke, rescind, and cancel all agreements.
In light of the repeal of the tax abatement, the Borough’s tax collector will be directed to recalculate the property taxes due on the property since the time the tax abatement took place as if there were no tax abatement on the property.
Ordinance #2022:01 will be considered for Final Adoption after Second Reading and Public Hearing on February 9, 2022 at 7:00 p.m. at Somerdale Borough Hall, 105 Kennedy Boulevard.
To view the Ordinance in detail, click the image below: