03/14/2023 Planning Board Meeting

City of Cape May Planning Board Meeting Minutes Tuesday, March 14, 2023 Opening: The meeting of the City of Cape May Planning Board was called to order by Chairperson Bill Bezaire at 6:30 PM in the City Hall Auditorium. In compliance with the Open Public Meetings Act, adequate notice was provided. Pledge of Allegiance Roll Call: Mr. Bezaire, Chairperson Present Mr. Jones, Vice Chairperson Present Mr. Belasco Present Mr. Crowley Present Mr. Gorgone Present Mr. Lundholm Present Mayor Mullock Present Mrs. Reed Absent Councilmember Yeager Present Mr. Maloy Alt # 1 Absent Mr. Padussis Alt # 2 Absent Also Present: Richard King, Esquire, Board Solicitor Craig Hurless, Board Engineer and Planner Karen Keenan, Board Secretary Resolution(s): Motion made by Mr. Gorgone to adopt Resolution number 03-14-2023: 1, Adis, Inc., 1317 Beach Avenue, seconded by Mr. Belasco and carried 6-0. Those in favor: Mr. Belasco, Mr. Gorgone, Councilmember Yeager, Mr. Crowley, Mr. Lundholm, Mr. Jones. Those opposing: None. Those abstaining: Mayor Mullock, Mr. Bezaire. Minutes: Motion made by Mr. Jones to approve the meeting minutes of February 14, 2023, seconded by Mr. Lundholm and carried 7-0. Those in favor: Mr. Belasco, Mr. Gorgone, Mayor Mullock, Councilmember Yeager, Mr. Crowley, Mr. Lundholm, Mr. Jones. Those opposing: None. Those abstaining: Mr. Bezaire City of Cape May Planning Board Meeting Minutes, March 14, 2023 1 Application(s): Thomas DiDonato Cape May Cove LLC 1105 Pittsburgh Avenue 40 Harbor Cove Block 1172, Lot(s) 4 (Subdivided Lots 4.01-4.13) 1134 Lafayette Street Block 1113, Lot(s) 8 Attorney Chris Baylinson introduced the application for amended preliminary and final site plan approval at the Pittsburgh Avenue location and described the history of prior applications and 2010 approval of a fifteen-lot subdivision that was later reduced to a thirteen-lot subdivision. Attorney Baylinson explained the approval included the requirement that 2.6 units be allotted to affordable housing with .6 unit paid to the Fair Share Housing Fund and two units to be built on site. He advised that ten months later, the city adopted a new Fair Share Housing ordinance which allowed offsite units. Attorney Baylinson said the Planning Board was resistant to an application presented last year to situate the affordable housing offsite, and the current application includes a two- bedroom unit and a three-bedroom unit at the property on Lafayette Street. He added the switch to offsite has been endorsed by Fair Share Housing at the state level. Attorney Baylinson introduced Attorney John Sarto, of Giordano, Halleran & Ciesla, P.C., who was retained by the applicant to assist with the affordable housing obligation of this application. Attorney Sarto summarized the approval and said they seek relief of the condition # 26 requiring the affordable housing onsite to be changed to allow the two units to be at the Lafayette Street location with the proposed two-bedroom rental unit to be affordable for very low income housing and the proposed three-bedroom rental unit to be affordable for low income housing. He said Affordable Housing Ordinance 59-43 Inclusionary Zoning sections D(5) and C(2) permits units to be constructed onsite and offsite. He referred to the November 4, 2022 letter (included in the application packet) to the Fair Share Housing Center and said the letter has been signed by the Fair Share Housing indicating they are comfortable with the application proceeding and it aligns with the current agreement with the city. Board Engineer Hurless said it is not a state agency that has approved the plan; it is really a state advocacy group that approved the plan. Attorney Sarto agreed and said the Fair Share Housing Center has automatic standing for affordable housing cases filed in the state. Solicitor King asked for the reasons the affordable housing was changed. Attorney Sarto said one of the reasons was to provide a density bonus regardless of whether sited onsite or offsite. He said single family housing is not ordinally seen as affordable housing units; the goal is to produce affordable housing units with most being townhouses. The Lafayette Street rental units carry restricted rents with very low income units to be only a few hundred dollars a month with rollover option if the tenant income level rises resulting in more availability to people in the community. Attorney Baylinson said the Lafayette Street location is more user friendly. City of Cape May Planning Board Meeting Minutes, March 14, 2023 2 Owner DiDonato and Board Engineer Craig Hurless were sworn in by Solicitor King for the record. Engineer Hurless said he prepared the 2018 housing plan and went through the settlement with the court. He said the changes were a request from Fair Share Housing Center to provide affordable housing flexibility when affordable housing units come online with bonuses allotted for low income housing and rental units with two for one credits for rental units and also for very low income housing units. Attorney Sarto said the applicant was agreeable to providing both rental and very low income housing units. Member Crowley asked about the market to affordable unit conversion. Engineer Hurless said the two units required of the applicant could be rentals and/or single family houses. The applicant had indicated onsite affordable housing, and the law allows construction to commence to fund the affordable housing. Engineer Hurless said no more than 50% of the certificates of occupancy for the development can be issued until affordable housing units are provided. Solicitor King said the focus is on the onsite versus offsite affordable housing, as the application was a by right subdivision that could not be denied today. Attorney Sarto said the two single family units will be assessed at fair market price resulting in increased tax revenue. He said the rental units on Lafayette Street will be deed restricted for lower income housing for at least thirty years and are currently being renovated. He referred the Board to Exhibit A-1, a color rendering of the Lafayette Street property with updates proposed by the applicant. Owner DiDonato said Historic Preservation Commission approval has been received for the updates. Board members were allotted time for questions of Attorney Sarto. Member Crowley asked about the discussion with Fair Share Housing. Attorney Sarto said there were several discussions, and Fair Share Housing was happy with the plan. Board Engineer Hurless then summarized his report dated February 28, 2023. He described his completeness review and said there were no waivers requested or required. He summarized the proposed units at Lafayette Street and the .6 unit payment made to the Housing Trust Fund. Engineer Hurless said the use at the Lafayette Street site and the building setback are existing non- conformities. Baylinson said zoning and construction permits have been issued for the ongoing construction at the Lafayette Street property. Attorney Sarno said they are relying on the issuance of the zoning permit as acknowledgment that Zoning Board review is not required. Engineer Hurless then shared his general review comments 1-9 in detail specifically noting that Section 59- 43 C(2) states the developers may elect to construct an affording housing unit elsewhere in Cape May with this developer proposing to provide units on Lafayette Street and the development on Pittsburgh to be at a maximum of thirteen units. All review comment items to be conditions of approval including the Environmental Commission March 13, 2023 report that a landscaping plan, for 1134 Lafayette Street and for undeveloped portions of the Cape May Cove property, with detail including native, low-water use plant species and minimization of the area of open lawn with the same be required and that all homeowners in the Cape May Cove development receive the report attachment, “Bringing Home Natives -- More than Just Pretty Plants.” The applicant agreed to City of Cape May Planning Board Meeting Minutes, March 14, 2023 3 comply. Evidence of final Historic Preservation Commission approval will be required. The Fire, Police and Public Works Departments approved the project. Board members were allotted time for questions of Engineer Hurless. Discussion was opened to the public at 7:39 PM. Nelson Brown, 1430 Missouri Avenue, was sworn in by Solicitor King and remarked that the project will result in an increase in property values. He had no problem with Tom DiDonato’s plan. Bill Seeger, 1361B Vermont Avenue, was sworn in by Solicitor King. He felt the application is a bait and switch and spoke against the application. Elizabeth Breece, 1135 Washington Street, was sworn in by Solicitor King and lives immediately behind the 1134 Lafayette Street. She thought affordable housing is a good idea for the city but felt the location is bad due to traffic and lack of parking on Lafayette Street. She expressed concern for the gravel in the back yard. She said application is a bait and switch. A short break was taken at 8:08 PM. The meeting resumed at 8:14 PM. Mary Notch, 1115 Washington Street, was sworn in by Solicitor King and said application is a bait and switch. She believed Cape May City does not want low income residents, and the application is discriminatory against the poor. She spoke against the application. Anthony Perri, 25 Harbor Cove, was sworn in by Solicitor King and is a member of the Board of Trustees of Cape May Harbor Village. He spoke in support of the applicant and the application. Jeff Herold, 27 Harbor Cove, was sworn in by Solicitor King and is a member of the Board of Trustees of Cape May Harbor Village. He supported the applicant and the application. Kathleen Brown, 1430 Missouri Avenue, was sworn in by Solicitor King and said she does not support the application. Richard Bagley, 14 Brendan Drive, Flanders, New Jersey, was sworn in by Solicitor King and said he is contracted with Owner DiDonato to purchase 1411 Missouri Avenue. He wanted to know when a certificate of occupancy could be issued for this home, which has been a three-year effort to build. Solicitor King responded that the Planning Board does not issue certificates of occupancy or construction permits. Discussion was closed to the public at 8:24 PM. Attorney Sarto made a closing statement. Solicitor King explained the vote to the Board. He said had the application was new, it would be a by right application and the Board could probably not deny it. City of Cape May Planning Board Meeting Minutes, March 14, 2023 4 There was a brief discussion on the affordable housing requirements with the determination being the Lafayette Street affordable housing units to be four credit units, which is favorable for the city. Motion made by Mr. Gorgone to grant amended site plan approval, seconded by Mr. Belasco and carried 7-1. Those in favor: Mr. Belasco, Mr. Gorgone, Mayor Mullock, Councilmember Yeager, Mr. Lundholm, Mr. Jones, Mr. Bezaire. Those opposing: Mr. Crowley. Those abstaining: None. Members gave reasons for their votes. Mr. Belasco said there is better access to grocery stores, playgrounds, schools, jobs, and transportation. Mr. Gorgone said the plan complies with the ordinance and Master Plan and also agreed with Mr. Belasco. Mayor Mullock would like to have seen three affordable housing units or more square footage. Councilmember Yeager agreed with the other comments. He added that many people would want to live on Lafayette Street, and the plan is best for the city. Vice Chairperson Jones also agreed with the other comments and relied on the Fair Share Housing Center endorsement. Motion made to adjourn by Councilmember Yeager at 8:59 PM with all in favor. Respectfully submitted: Karen Keenan, Board Secretary City of Cape May Planning Board Meeting Minutes, March 14, 2023 5