In the interim and unrelated to the latest deal, Lowe's Home Improvement has begun work on a new store adjacent to the redevelopment area. Under the approved plan, Related will build two shopping centers--a 120,000-sf property on the site of a vacant factory building, and a 135,000-sf property on a site current occupied by Kmart, Marshall's and several smaller tenants. It's not clear what would happen to the existing retailers, although an expanded Kmart is said to be a good possibility as an anchor.
Once the project is finished, tax revenues accruing to the township are expected to be in the $500,000-$800,000 range. Site acquisition costs could reach $20 million, although North Bergen will use $2 million in urban enterprise zone sales tax proceeds to partially offset that cost. Related may also have to remediate at least part of the 20-acre tract.
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