Snap Shot of Project Garnet – Our Successful Economic Development Initiative
In December 2008 a comprehensive Governing Body endorsed professional survey containing 56 questions was sent to each of the 2,748 property owners in Haddon Heights. The purpose of the survey was to understand the satisfaction levels of key services provided, as well as the opinions and needs of our residents. We received back 942 responses representing a 34.3% response rate, an accurate representation of the opinion of the Borough. Responses came from a broad spectrum of demographics including married with children (49%), married (26%), Single (11%), Widowed (10%) and single with children (4%). The age of respondents was also broad: 25 to 34 years old (7%), 35 to 44 (16%), 45 to 54 (25%), 55 to 59 (13%), 60 to 64 (9%), 65 to 74 (14%), 75 to 84 (11%) and 85+ (6%).
Why are we doing Project Garnet? The question “How do you Rate the Amount & Quality of Economic Development in the Borough?” received the lowest rating of all 20 key services listed in the survey. In fact it was ranked 10% lower than the next lowest key Borough service. In response to this poor rating, Project Garnet was created and put into action. The objectives of Project Garnet are to increase the quality of life in the Borough while raising cash to save the Haddon Heights Cabin, build a first ever Community Center/Senior Room, create the Service Operations Facility to consolidate Borough operations, and most importantly reduce property taxes. It is also focused on creating affordable recreational and instructional programs for our residents.
What does it consist of? Project Garnet consists of buying and retrofitting the former NJ American Water buildings and Cabin. The Service Operations Facility, Cabin and Community Center are now open for business. The Cabin is generating revenue to offset taxes and is being used by the Borough for meetings, workshops and programs. The Service Operations Facility has been up and running since mid-March and the Community Center opened on April 24th. It also consists of developing the former Public Works property to provide immediate cash from its sale, and ongoing cash from new property taxes.
What about the Public Works Property? The former Public Works property consists of 8.2 acres. The plan is to develop 6.3 acres into single family homes that will provide $13 million in new ratable for the Borough. These ratable will generate approximately $81,000 in revenue to the Municipality and County, and $170,000 to the School District each year ongoing. A one acre park will also be created around the nationally registered historic Glover Mill built in 1776, a yet untapped treasure of the Borough.
What are the financials? The Return on Investment (ROI) is forecast to be over 200% at the 5 year mark, and over 450% in 30 years. The ROI’s are based on net cash flow using $1.97 million of cost. Cash flow include land price, permit fees, interest on cash, new Municipal property taxes, operating and capital savings, rental/program fees and debt service. This is an excellent investment for the Borough in addressing the desire of our tax payers for a high quality Economic Development project.
Are there other Financial Benefits? The municipality is generating new revenues from renting out the cabin and community center facilities, and from new recreational programs that use these facilities. Revenues from these initiatives are of a size that will directly offset debt service from the project.
What about Open Space? Haddon Heights has one of the largest percentages of property dedicated to open space land versus surrounding towns. We have 387 square feet of open space land per resident. In contrast, Barrington provides 128 sq ft per resident, Audubon 94, Bellmawr 223, Stratford 107, and Oaklyn 166. Of the 8.2 acres, 1 acre is protected by historical registries for a park. In addition, cash generated by Phase2 will be used to develop 4 acres of recreational land behind the tennis courts on Devon Avenue. Project Garnet will add a total of 5 new acres of open space to our existing 67 acres of open space in the Borough.
How will the property be developed? The 6.3 acres will be developed in partnership with Bob Meyer Communities, a leading award winning builder out of Medford, NJ. The Borough will support approvals and create guidelines for development of the property. The developer would find and coordinate the building of homes through various contractors. This scenario splits the risk by having the Borough create guidelines but the developer funds the infrastructure. The Borough ensures that the property is developed in accordance of its desired outcome and all are incented to complete the project in a timely and efficient manner.
