The 63-unit condo development known as The Monarch is still not producing the projected $400,000 in annual tax revenue touted by officials at its inception, but the cup is more than half full.In answer to Plaintalker's inquiry last week, Tax Assessor Tracy Bennett said condo owners are paying a total of $$95,835 in taxes and the developer is paying $131,383.86 on the unsold units.
Sales have been slower than expected at The Monarch and the developer recently offered condos in a lease-for-purchase plan. Unsold units had been assessed at a minimal amount and questions arose about how and when they would go on the tax rolls. At the May 9 City Council meeting, Corporation Counsel Dan Williamson said 32 units now have certificates of occupancy and full assessment is expected this year. The issue came up as the council was discussing return of a performance bond to the developer in the amount of $334,089. The measure passed, although questions remained whether the developer was required to install solar panels.
Besides the 63 condos, the building at 400 East Front Street is home to the city's Senior Center, which is tax-exempt. However, because the center itself is legally a condominium, the city is liable for $2,750 a month in condo fees. The developer included back condo fees in a request for $287,371.97 in April 2010, but the matter was never resolved. Click here for Plaintalker's report on the senior center costs. The condo fee is $33,000 annually and has presumably been accruing monthly since the city took possession of the center.
A Veterans' Center is also a condominium and will have to pay a monthly fee once it is turned over to the city, but so far the space is being used as a sales office for the developer. Under terms of the contract, all units must be sold before the Veterans' Center can be occupied. The new situation with rentals of the residential condo units has clouded the outcome and veterans are meeting in the Senior Center temporarily.
--Bernice
Why are the condo fees so high and what was the rent at the last place we had a senior center. I have friends with large town homes in north Edison and they pay much less a month in condo fees. I wouldn't even consider buying a condo with those kinds of fees. Did the city know this before we started this crazy deal. Let's take the fee out of the mayor's salary. This was her doing anyway.
ReplyDeleteThe $2,750 is for the Senior Center, which is nearly the entire ground floor of the building. I don't know what the fees are for residential condos at The Monarch, but they should be far less.
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