Fort Monmouth Clinic Jobs: Hurry Up and Wait

The deal with AcuteCare could be sealed this fall, but it will be three more years until renovations are complete.

AcuteCare Health Systems claims it can create 200 new Oceanport jobs at the former clinic at Fort Monmouth. But with plans to pour $5 million into its renovation, those jobs could be at last three years away.

According to the purchase agreement approved last week by redevelopers, the Lakewood-based company will shell out more than $2.7 million for the property that was once slated for demolition. The health services company says it plans to serve the elderly, veterans and other patients at the new facility.

Redevelopers say reusing the property would save them about $1 million in demolition costs.

The deal is contingent upon AcuteCare's review of the taxes it will have to pay the municipality. Oceanport Mayor Michael Mahon told fellow board members of the Fort Monmouth Economic Revitalization Authority (FMERA) that this presents a risk to the deal and so abstained from the vote taken on Sept. 19.

Mahon told Patch, "This contingency is problematic as it includes action by a fourth party (the municipality) that is uninvolved in the transaction. Neither the Army, FMERA or Acute Care has any authority to impose conditions on the borough related to real estate assessments and the tax levy."

If the sale goes through, the company will have nine months to begin renovation with a three-year time limit. It is also required to create at least 50 of the proposed 200 new jobs at the location within three years of getting their certificate of occupancy. For every job it fails to create, AcuteCare will have to pay $1,500 to FMERA, which oversees the redevelopment of the fort.

Stay tuned to Patch for future stories on this potential deal.

JosephGhabourLaw October 01, 2012 at 03:16 PM
Having closed many real estate deals, frankly, "What are the taxes?" is a common question. That there isn't a standard way to answer that question for Fort Monmouth, franky, suprises me.
Michael A. Pane, Esq. October 01, 2012 at 04:04 PM
This is very common in redevelopment deals. If the tax burden in the end is too great, it can throw off the economics of the deal. That is why state law permits payments in lieu of taxes in certain circumstances. For more see: http://ghclaw.com/Articles/2011/2011_Pane_NJLJ.pdf
JackGj October 01, 2012 at 08:40 PM
The amount of censorship on this site is UNACCEPTABLE!!!!!!!!


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