Ted Ihde's Blog: Ted Ihde author of “Thinking About Becoming A Real Estate Developer?” - Posts Tagged "new-jersey"

Nestled cozily in the heart of Red Bank, New Jersey, today, one will find The Galleria. The Galleria Red Bank. A quaint collection of offices, restaurants and boutiques. Found in “New Jersey’s Greenwich Village.” It took 10 years to build that Galleria…early in the Twentieth Century. And it wasn’t called The Galleria, at that time.



Between 1907 and 1917, The Galleria – originally known as The Eisner Building – was constructed with a specific endgame in mind. And that early Twentieth Century endgame for The Eisner Building was not thought up with similar planning to how The Galleria is utilized today.

The Galleria today? It’s a repurposed Red Bank centerpiece. Located where Bridge Avenue meets West Front Street. The original plan for The Galleria? For The Eisner Building? That original plan didn’t include any restaurants. Nor did that original plan include any retail outlets. Rather, that original plan for The Eisner Building was…textiles. A textile factory.

During World War I and World War II, The Eisner Building was a Red Bank stalwart…though not one which espoused trendy retail “DNA.” Rather, during both World Wars, The Eisner Building possessed quite a different industrial “DNA.” It functioned as a supply chain for American military equipment. Flight suits, military uniforms, gas masks. Wartime supplies. This was the original “DNA” for what is today The Galleria. The wartime purpose for The Eisner Building extended on through both World Wars. Manufacturing. Supplies for American soldiers. This was The Galleria – I.e.: then, The Eisner Building – in the early-to-mid Twentieth Century.

Today, there are eight retail outlets located in the once-a-textile-hub Galleria. Today, there are four restaurants located in the once-a-textile-hub Galleria. Buffalo wings, pizza, Thai food, Mexican food. All can be had today at The Galleria. No, you won’t find gas masks there…

Going back thirty years ago to when this transformation in Red Bank first took hold – in the early 1990’s – circumstances for The Galleria were quite different. At that time, The Galleria had not yet been redeveloped.

Today, there are five offices located in the once-a-textile-hub Galleria. That early Twentieth Century factory which long ago produced military uniforms, which once “majored” in textiles? That “DNA” has long since been repurposed. Redeveloped. Now “majoring” in office space. In restaurants. In retail.

In 2024, The Galleria is a 100,000 a square foot rustic multi-purpose retail center. One which owns a classic design. Situated on just about three acres. Complete with its own Farmers Market. A Farmer’s Market which begins each year on Mother’s Day…extending on through November.

While in 2024 The Galleria is most certainly a Monmouth County favorite among shoppers – not soldiers who are in need of supplies – The Galleria also serves as a Monmouth County example for what real estate redevelopment efforts can (and do) look like.

The name – Marlboro Township – can be traced back to what had been a local discovery…a discovery which occurred, nearly three hundred years ago.

This local Marlboro discovery, then too, the utilization of what had been discovered nearly three-hundred years ago alongside what is now Marlboro Township, was a mineral. That mineral – emerging to go on to become quite important to the local agricultural industry – being this region’s marl.

Marl is a mineral which, by the late 18th century in New Jersey, was relied upon first, by local farmers who owned farms in what would go on to become Marlboro Township. Then, later, by farmers farming farmland situated throughout New Jersey. Then, later, by farmers farming farmland well beyond – and outside of – New Jersey.

In Monmouth County New Jersey, marl was discovered in 1768. East of where the township lines for what we now call Marlboro Township can be found. A true farmer’s ally, the functionality of marl as a mineral can be seen in how marl – composed of the remains of prehistoric fish – was able to be spread over topsoil of area farmland during the winter months. Then tilled into the farmland soil in the spring. Farmers, in what we now know to be Marlboro Township, came to rely upon marl as the means through which they could improve their soil’s fertility.

Marl is not exclusive to New Jersey, by any means. The recognized use of marl goes way, way, way back. To the 1st century.

Marl is a de-facto natural fertilizer. A natural fertilizer which had been found to exist in the grounds underneath Marlboro Township in the 18th Century. Long, long, long before the comeuppance of any commercial fertilizer industry in New Jersey would have been able to supply local New Jersey farmers with a finished fertilizer product which could be used for their farms.

Harvested in what would later go on to become Marlboro Township, the region’s marl – once the marl had been harvested – would go on to evolve as an industry. Later, to be transported by rail. On to nearby agricultural markets. New Jersey’s local discovery of marl established an industry early on for Marlboro Township.

By the mid-19th Century, the transportation of New Jersey marl was key to facilitating commerce. For the local harvesters of marl. For the local “exporters” of this marl. And for the farmers and the farms which came to rely upon – and use – marl as fertilizer.

To that effect – relating to marl, as a local industry…and to the transportation of marl as well – in 1853, the Freehold and Jamesburg Agricultural Railroad was founded in Jamesburg, New Jersey. Founded, primarily to facilitate the transportation – by rail – of this newly-identified regional mineral.

The Freehold and Jamesburg Agricultural Railroad operated along a 27-mile rail line. Connecting the locally-harvested marl – in what is now Marlboro Township – to nearby agricultural markets. Among them, Freehold, Jamesburg, Monroe, Manalapan and Englishtown.

The origin of Monmouth County’s Colts Neck Township goes all the way back to the late 17th Century. So let’s take a look at our 17th Century beginning for what we know today to be, Colts Neck Township.

The origin of Colts Neck Township…

In 1676, two Native Americans brokered a real estate sale. This was a land sale. The land sale totaled just under 1,200 acres. To be precise, it a 1,170-acre brokered land sale.

This acreage was sold to four Monmouth County locals. These four Monmouth County locals? Nathaniel Leonard, Thomas Leonard, Henry Leonard and Samuel Leonard.

Here is the breakdown for the Leonards’ 1.170-acre 17th Century Monmouth County land purchase – Henry Leonard acquired 450 of the 1,170 total acres. Samuel Leonard acquired 240 acres. Nathaniel Leonard acquired 120 acres. John Leonard acquired 120 acres. And Samuel Leonard acquired 120 acres. Here we have the original real estate sale for what would go on to become, Colts Neck Township.

Recorded in the minutes of the Board of Proprietors of the Eastern Division of New Jersey is one specific bill of sale which would be of interest to those who love Colts Neck. As well as to Monmouth County historians. This, the bill of sale for our aforementioned 17th Century “Colts Neck” land sale – the Leonards’ acquisition of these 1,170 acres in Monmouth County. Nearly 1,200 acres which would, in time, evolve into today’s Colts Neck Township.

The four Leonards acquired their land from two native Americans. The two Native American land sellers? The sellers of the 1,170 Monmouth County acres which would go on to become Colts Neck Township? Almeseke and Lamasand.

While the history of, How Colts Neck Township came to be…, goes all the way back to this brokered 17th Century real estate sale between the Leonards and Almeseke and Lamasand, it would be another two hundred years after this brokered land sale until Colts Neck Township officially became a New Jersey township. And from this point, it would be another one hundred years until the township name – Colts Neck Township – would become the official name for today’s Colts Neck Township.

As a township name, Colts Neck Township was officially adopted in 1962. Through a local referendum.

Prior to the aforementioned 1962 referendum – which gave Colts Neck Township its name – what is now Colts Neck was, at that time, Atlantic Township.

Atlantic Township?

In 1847, through an act which was carried out by the New Jersey legislature, Atlantic Township was established.

Atlantic Township, circa 1847 (formed by way of an act of the New Jersey legislature) would be renamed Colts Neck Township, circa 1962 (by way of a local referendum).

Through an act of the New Jersey legislature, Colts Neck Township – I.e.: Atlantic Township, at that time – was initially spun off from portions of three neighboring townships – Shrewsbury, Middletown and Freehold. There is a bit of irony to this 1847 legislative land spin off. This irony involves Shrewsbury.

At one time, Shrewsbury had been one of the largest sections of the land area which we would have, informally at that time – prior to any local referendums, prior to any acts carried out by the New Jersey legislature, and prior to any Township Act – called “Colts Neck.”

Through the New Jersey Township Act, Shrewsbury – as one contributor to the formal origin of what is today, Colts Neck Township– became a New Jersey township 49 years prior to Colts Neck’s appointment as a New Jersey township.

In a designated Redevelopment Area, a municipality’s goals could be focused upon transitioning now non-performing residential, commercial and industrial properties to vibrant community assets. The pursuit of which could take on a community-centric theme. Renovations. Repurposing properties. And reconstruction too. Each of these being potential goals pursuant to redeveloping non-performing properties in designated Redevelopment Areas.

Steps taken by a municipality in their progression towards neighborhood revitalization in Redevelopment Areas – progression, coupled to a redevelopment plan emanating from city hall – often starts off with a city council passing a resolution. Following the resolution, the planning board then might construct a Redevelopment map. With a Redevelopment map formulated – and upon notification to the public of a scheduled hearing – a planning board could then potentially adopt a Redevelopment resolution.

A Redevelopment resolution could recommend the establishment of a Redevelopment Area within a municipality. There is quite a bit more technical minutiae to this process, needless to say. Yet, in summarily-simplified terms, this is one we can thus arrive at the designation of a Redevelopment Area within a municipality.

“The objective of the township’s open space program is to take as much property off-line from development, as cost effectively as possible.” – Marlboro, NJ Mayor Jonathan L. Hornik

Looking at the concerted effort taking place in Marlboro Township – this effort, emanating from City Hall – to remove Township property from contention of being commercially developed, one will find the Marlboro Agricultural and Open Space Committee. This Committee is an advisory committee. The goal of the Marlboro Agricultural and Open Space Committee is to preserve Marlboro’s historically-rural “DNA” by working in conjunction with the Township Planning Board and Town Council. To protect Marlboro’s undisturbed, picturesque open space landscape.

How is this done?

The Marlboro Agricultural and Open Space Committee identifies properties within Marlboro Township that could be eligible to receive Green Acres funding. Once a Township property has been aligned with potential Green Acres funding, the Committee coordinates land preservation efforts, in unison with available Monmouth County programs. Then linking the land preservation efforts in Marlboro Township to Monmouth County officials and to New Jersey State officials.

Once a Marlboro property is determined to be suitable for inclusion in the Township’s open space program, Committee, County and State outreach efforts are aggregated, then deployed.

How come?

Outreach efforts make known the in-the-works, property-specific land acquisition-preservation objective which has been established (and which is being pursued) in Marlboro Township.

Coordinated outreach – undertaken in part to add supplemental funding channels to the capital-intensive land acquisition-preservation effort – provides resources, as well as good points-of-contact, for potential donors to reach out to. Enabling donors to make monetary contributions to the land acquisition-preservation effort which is then underway in Marlboro.

Donations received – these donations, allotted to the advancement of land conservation in Marlboro via Marlboro’s open space program – are able to be deployed by Marlboro Township, in conjunction with funding obtained through Green Acres. Providing capital utilized by Marlboro Township to make possible the acquisition of the land (and then, the preservation of that land as well). Land acquisitions, further advancing the let’s-keep-the-Township-rural, open space preservation goals prioritized by Town Council, and by the Township CEO, Mayor Jonathan L. Hornik.

Collaboration.

Collaboration which is in alignment with the aforementioned Marlboro Township open space program. A fabulous program. Well-thought-out. Alive and well (and quite popular too) in Marlboro Township.

Manufactured goods made in countries which offered lower wages to their workers.…coupled to less regulation. A hollowing out of the City’s property tax base. Suburbanization. Each contributed in their own unique way to Trenton’s continual decline. A decline in industrial output. A decline in the City’s population. But for Trenton, the year 1974 stands out as having a local occurrence of finality, some may say.

The early Twentieth Century industrial prowess of Trenton – and of Trenton industrialists – owed much sustenance to the City’s ability to utilize newly-built canals and railroads. Railroads and canals transported manufactured goods – made in Trenton – to end markets, such as New York City and Philadelphia.

While Trenton enjoyed a long run as an important American manufacturing hub, in June of 1974, the final 1,400 employees of what had once been Roebling’s Trenton industrial empire lost their jobs. These final Roebling layoffs? The result of numerous failed attempts to revive the then-Trenton plant, which had been controlled by (at that time) Roebling’s acquirer, Colorado Fuel & Iron.

Those two Roebling manufacturing plants in Trenton closed their doors for good in 1974. Marking the end of Roebling’s manufacturing presence in Trenton. And, to some, also marking a finality of sorts, to what once had once been a thriving industrial hub. Trenton.

Come January 31st, each of New Jersey’s 564 municipalities is required to file their own resolution with the State, adopting affordable housing obligations for their municipality.

Come June 30th, each of New Jersey’s 564 municipalities is required to submit their affordable housing plan to the State, for their municipality.

Last October, the New Jersey Department of Community Affairs released New Jersey affordable housing requirements. These will need to be completed by 2035. And here they are…

A) Create 84,698 new affordable housing units.

B) Preserve an additional 65,410 existing housing units.

140,00 homes built or renovated over the next ten years. That’s a lot of homes. That’s a lot of infrastructure needed.

Impact fees…and Trenton.

The Municipal Development Impact Fee Authorization Act – presently in committee in Trenton – would, if passed, broaden New Jersey municipalities’ ability to pass through development-related costs to real estate developers. By broadening the scope for how impact fees can be collected by municipalities.

New Jersey is one of 22 states which presently authorizes the collection of impact fees by a municipality. Different states may refer to “impact fees” though their own state vernacular. For example, in Kansas – Kansas does authorize impact fees – impact fees are also referred to as adequate facility taxes. Or excise taxes.

At the present time, in New Jersey, the impact fees which can be passed along by municipalities to developers are pretty much limited to off-site improvements which arise as a direct consequence of the development. Direct consequence?

My humble opinion…

The way impact fees are levied upon developers in New Jersey today seems a bit…unjust. Tilted too far in favor of developers. At the expense of municipalities. See, direct consequence.

For example, an increased allocation of funds – and personnel – will likely be required in order to accommodate the higher number of classroom students which will be arrived at through the construction of new homes within any municipality. New homes are built. New families move in. Families have kids. Kids go to school.

Yet, in New Jersey, this increase in education funding which will be required by a municipality – as a result of new development – is not able to be passed through to real estate developers by way of impact fees. Though they should be able to be so.

Because any increase in education funding needed in order to accommodate larger classroom sizes – or additional teachers – which comes about as a direct result of development is as much of a direct development-related cost as one can think of. It’s attributed to…the building of new homes. Isn’t it?

Education funds for a New Jersey municipality – collected through impact fees charged to real estate developers – should be permissible.

Larger classrooms. Additional teachers. Potentially, the construction of a brand new school. These are a few of the costs – real costs – that a municipality will incur as a result of an increase in the student population. Because new homes were built in the municipality.

One proposed solution? A boardening of the scope for the collection of impact fees by New Jersey municipalities.

Whereas critics of increasing impact fees may view additional impact fees charged to developers as impediments to growth, that argument is easily overcome.

Impact fees can be collected in lieu of local property tax hikes. Furthermore, impact fees are specific to the development at hand. To the area being developed. As such, the implantation of impact fees enables the broader property tax-paying populace to not be unduly burdened through an increased annual property tax bill. To fund development in town…which really does not directly affect them.

Rutgers, The State University of New Jersey was founded – originally as a seminary – in 1766.

Founded by William Franklin. William Franklin, son of Benjamin Franklin.

Although, upon its founding, this college, located in New Brunswick along the Raritan River, was not known as Rutgers.

The name Rutgers was affixed to the New Brunswick college 59 years after its founding. In 1825. “Rutgers,” selected to honor Revolutionary War veteran Colonel Henry Rugers. Between the year of its founding – in 1766 – and the year Rutgers was selected as the college’s name, in the honor of Henry Rutgers – in 1825 – Rutgers had been Queens College. Then, for the next one hundred years, it was Rutgers College.

Henry Rutgers…

Born in New York City in 1745 – and in 1745, that would have been, the Province of New York, British America, as New York was still under British rule when Henry Rutgers was born – Henry Rutgers served as a New York state assemblyman. He was a graduate of Columbia University (then, King’s College),

A prominent New York landowner, Henry Rutgers donated much of his land to local New York City schools, charities, and churches. In Manhattan, if you have ever driven down Henry Street or Rutgers Street, those streets were named after Henry Rutgers.

Rutgers College – then Queens College – adopted Henry Rutgers’ name upon receiving a much needed financial infusion from Henry Rutgers.

Through Henry Rutgers’ generosity, prospects for the then-struggling Queens College to continue on as an institution of higher learning, brightened.

At the time of Henry Rutgers’ financial contribution, Queens College had incurred a multi-year shutdown. Its finances, and its future, cast astray as a byproduct of the challenging economic times the United States went through upon the conclusion of the War of 1812.

The University of Newark joined the Rutgers family in 1946. As Rutgers University-Newark.

The College of South Jersey joined the Rutgers family in 1950. As Rutgers University- Camden.

Rutgers is the second oldest university in New Jersey. Founded 20 years prior to Queens College’s founding, Princeton – which had been the College of New Jersey from 1746 until 1896 – is the oldest New Jersey university.

Rutgers’ Board of Trustees consists of 41 voting members. Rutgers’ Border of Trustees functions in an advisory capacity to Rutgers’ Board of Governors.

Rutgers’ Board of Governors consists of 15 voting members. Rutgers’ president is a non voting Board member.

Three of the 15 members of Rutgers’ Board of Governors are voting members, selected by the Rutgers University Senate. Three representatives – selected by the University Senate – are non voting representatives.

Eight members of Rutgers’ Board of Governors are appointed by the New Jersey governor. Seven members are selected by the Board of Trustees. For the 8 members appointed by the New Jersey Governor, confirmation for each member by the New Jersey Senate is required.

The president of Rutgers is a nonvoting Board of Trustees member. Rutgers’ University Senate selects two members of the faculty – as well as two students – as non voting representatives.

The selection of the 41 voting members of the Board of Trustees is done in accordance with State law.

There are 20 charter members. Three of the 20 charter members must be women.

Sixteen Trustees are Rutgers alumni, each of whom is nominated for Board membership by the Nominating Committee of the Board of Trustees.

Five Trustees are public members, appointed by the governor. The five public members who are appointed by the governor require confirmation by the New Jersey State Senate.

The president of Rutgers is selected by the university’s Board of Governors. The Board of Governors oversees the process of identifying the president, while overseeing the Presidential Search Committee.

Rutgers’ Presidential Search Committee develops a profile of prospective candidates…submitting recommendations of potential university presidents to Rutgers’ Board of Governors.

Rutgers’ Board of Governors, upon receiving recommendations and feedback from the Presidential Search Committee, ultimately selects the university president.

On two separate occasions – resulting from acts taken by the New Jersey Legislature – Rutgers was designated as the official state university of New Jersey. New Jersey’s legislature granted Rutgers this distinction in 1945. And once again, in 1956.

Thinking About Becoming a Real Estate Developer?