Inching Forward on Lucent

An important next step in restoring ratables on the Lucent property was approved by the Holmdel Planning Board on Tuesday evening, May 2 in Town Hall. Township planner Jennifer Beahm, of CME Associates, Howell, presented the Alcatel-Lucent Rehabilitation Determination Study for discussion and approval.

Designating a formal need for “rehabilitation” of the former Bell Labs landmark will help bring the property back to utility for the township, according to Beahm.

To underscore the overdue urgency of moving forward, Beahm sited what gets everyone's attention, tax revenue.

“In 1997, Lucent paid $4.5 million in tax revenue to the town,” she said. “In 2006, it paid $3 million annually.” Today, Lucent generates $525,000, an 83% reduction.

“There are three criteria for a rehabilitation designation,” said Beahm, “and you only have to meet one to qualify.”

The Lucent building meets the first criterion because it's underutilized, with a significant portion of the structure deteriorated or in substandard condition, and there's a continued pattern of vacancy, according to the study.

A rehabilitation designation is important to the township in at least two ways, Beahm explained during the brief, but focused, meeting.

First, “rehabilitation” (versus “redevelopment”) exempts the building from future claims of eminent domain by the municipality. Second, it precludes the municipality from granting long-term tax exemptions.

Perhaps most significantly, a rehabilitation plan gives Holmdel greater control and flexibility in determining future use on the property and what sort of development the township will allow.

The two million square foot building, designed by renowned mid-century architect Eero Saarinen, is located on Crawfords Corner Road has been vacant since 2008. It is currently under contract-purchase by Somerset Development of Lakewood, NJ.

“This rehabilitation action doesn't address what will be done with the property in the future. It's just a first step in the process,” said Board Chair Peter Nelson.

Patience has been wearing thin for the French-owned Alcatel-Lucent company.  In December of 2010, they gave the township a deadline.

“Representatives from Lucent told us we had to get moving on this property or they would knock it down in March of 2011,” said Mayor Impreveduto.

“Myself, and then-Mayor Serena DiMaso, met with Governor Christie's Economic Development Committee and asked for their help,” he said.

“They agreed to have the governor send a letter to Alcatel-Lucent on Holmdel's behalf to halt that plan, and they did.”

But, Alcatel-Lucent is demanding progress. "We have a new timeline, which is they need to see significant movement by late fall,” said Impreveduto.

“It's a beautiful building,” he said. “I'd hate to see it come down.”

A motion to advance the Rehabilitation Determination Study to the Township Committee was unanimously approved.

Present at the meeting were Chairman Peter Nelson, Vice Chairman Greg Buontempo and board members Derek Dailey, Sam Fasciano, Kim LaMountain, John Mioduszewski, Robert Reina, John Scagnelli, Mayor Patrick Impreveduto, and Deputy Mayor Serena DiMaso.

On Thursday May 5, the Township Committee is scheduled to adopt a resolution to formally accept the study, codifying that the Lucent property is in need of rehabilitation.  That would allow the Committee to authorize the township planner to create a redevelopment plan for the property to outline the parameters of future allowed use.  

Impreveduto said there will be several opportunities for the public to comment.