After nearly a decade of complete vacancy, then another three years of discussions about grand development plans, there will finally be activity at the site of the old Crown Cork and Seal factory on Tonnelle Avenue. In fact, if everything goes according to plan, the new owners have set a target – pardon the pun – date for an April, 2004 opening for a brand new Target department store.
Township officials announced that a deal has been struck between Target Stores, Inc. and Related Retail, Inc., the organization picked by the township to handle all commercial Tonnelle Avenue redevelopment between 70th Street and 83rd Street.
According to Township Administrator Chris Pianese, the deal was reached in December and formalized two weeks ago.
“The owners of Crown Cork closed with Related Retail in December,” Pianese said. “Since we officially declared the area in dire need of redevelopment, we could have condemned the area, but it never got to that point.”
Related Retail, a subsidiary of the Fort Lee-based Related Companies, Inc., sold the property to Target Stores.
“Target didn’t want to be a lease-owner at the site,” Pianese said. “They wanted to own the property, so they bought it. The township has now approved the deal, and they can now move forward.”
When completed, the new Target store will be 128,000 square feet in size. More importantly, the store will create 255 full-time and 45 part-time jobs, with many of them being set aside especially for North Bergen residents as part of the criteria for residing within the township’s Urban Enterprise Zone (UEZ) and being able to offer a 3 percent sales tax.
“This is very important to us,” North Bergen Mayor Nicholas Sacco said. “Besides bringing us good tax ratables, it dresses up Tonnelle Avenue and helps the UEZ. It’s a winning proposition for everyone. That was an eyesore, a vacant eyesore. We’re replacing that vacant factory with a store of Target’s status, a highly respected national chain. It will serve as the anchor of the mall that will eventually be there. We’ll now be able to sweep the development of the entire area.”
Sacco firmly believes that the agreement to bring a Target store to Tonnelle Avenue will spur other businesses to want to come to the burgeoning business area.
“I think this will give an impetus to other businesses,” Sacco said. “It’s a reality now. It’s moving forward. The negotiations are over and this is going to happen. Hopefully, it will be as attractive and as well received as originally planned.”
Pianese said that the current value of the property is listed at $7 million, but the estimated value of the land, once the Target store is built and opened, could reach anywhere between $20 million to $25 million.
“That’s three times the amount of taxes we have been receiving for the property,” Pianese said. “There will be no abatement. This property will eventually be taxed.”
Pianese said that Target Stores, Inc. wants to act as rapidly as possible to put all the wheels into motion. They have already filed for permits for demolition of the old Crown Cork and Seal factory and will appear shortly before the township’s Planning Board for initial building permits.
“Target only opens stores during two times a year, so they really want to be opened here by next spring,” Pianese said. “So they’re being aggressive in getting things done.”
“They’re moving fast and said that it should take a little more than a year,” Sacco said. “They fully intend to reach their deadline.”
Or their Target date?
Now that the southern end of the proposed redevelopment area will be taken care of, Pianese said that everyone can focus on getting an agreement for the northern part, which is owned by the Shiva Companies. It includes the current shopping plaza that includes K-Mart and Marshall’s.
The Related Retail division thought it had a deal with the Shiva Companies on the property, in order to move forward with the proposed “Commons of North Bergen” shopping plaza that was originally presented to township officials almost three years ago. However, Shiva broke the deal and is looking for more money.
“Our goal in 2003 is to get a contract on the Shiva property,” Pianese said. “We have a meeting next week with Related Retail and Shiva to focus on that part. We have a lot of businesses that want to be in the UEZ area, because they know that the UEZ is a complete home run for them.”
“I think everyone is happy that something is finally taking place,” Sacco said. “One thing I’ve learned is that when it comes to development, everything takes a lot longer than originally planned.”