Developer Named for $90M Redevelopment Project

The site includes several existing but vacant industrial structures, including the four-story former Wheatena cereal plant, which has sat vacant for nearly four decades, and the similarly vacant Quinn & Boden printing plant. The city declared the site a redevelopment zone in August 2002, launching the RFP process that brought Matzel & Mumford, an upscale residential developer, to the table.

Specific plans for the project still have to be devised, and Matzel & Mumford still has to sign a formal redeveloper's agreement. But the general plans approved and accepted by the redevelopment agency include a mix of retail, recreation and a minimum of 200 townhouses and apartments, according to company officials.

In particular, redevelopment agency officials say they want the former Wheatena building preserved and incorporated into the overall site plan. Matzel & Mumford's initial plan for the building calls for a ground-floor retail component, a gymnasium/health spa on the second floor and the residences on the two floors above that.

A number of other steps remain before the developer can break ground--an event both local and company officials say they are targeting for early 2006. Under the terms of their agreement with the city, Matzel & Mumford will have to acquire the land, which is currently assessed at $3 million. The acquisition process could be complicated by the fact that the site is divided into a half-dozen parcels currently in the hands of five separate ownership interests.

The site will also have to undergo an environmental assessment and possible remediation, according to local officials. The permitting process is expected to be speeded up, however, by the fact that this city was designated by the state two years ago as a so-called "transit village." The latter program is an effort by the state and by New Jersey Transit, to encourage commercial and residential development around existing commuter rail stations, and Rahway's station is situated nearby.