Government

Seaside Heights Declares Former Bamboo Property ‘In Need of Redevelopment,’ Pushes for Progress

by
Daniel Nee
August 26, 2024

The Bamboo Bar in Seaside Heights, N.J., under demolition, Oct. 29, 2021. (Photo: Daniel Nee/Shorebeat)

The site of the former Bamboo nightclub in Seaside Heights has been declared a formal area in need of redevelopment under state land use statutes after several years of inactivity at the site following its purchase by a developer.

The planning board heard a report on the deteriorating property earlier this month, and last week the borough council concurred with the board’s finding that the parcel qualified for a redevelopment designation due to its condition and lack of development. The Bamboo site has now been sitting vacant since 2021, when the once-lively nightclub was razed after its owner, John Saddy, declared bankruptcy and had Bamboo – and its sister club Karma – sold at auction.

Karma is being redeveloped separately by a different owner. Bamboo was purchased for $1,058,000 by TKD Holdings, which has been represented by one of the principals of that company, Rudy Daunno III, who is acting as broker. No one from TKD Holdings was present at either the planning board meeting or last week’s borough council meeting to speak on the matter. TKD has informally proposed a mixed-use development at the property, which is described later in this report.

Renderings promoting “The Lofts at Bamboo,” a 48-unit mixed-use complex that is planned for the former Bamboo Bar site in Seaside Heights. (Photo: Daunno Realty Services)

Designating a property as an area in need of redevelopment is the first step that allows a municipal government to condemn a property that is in disrepair or languishing, and the measure passed by the planning board and council would allow for a taking of Bamboo if necessary. Officials, however, said this is not their goal and they do not expect to use the redevelopment designation for condemnation purposes. In many cases, the designation is considered a “shot over the bow” to spur a property owner to develop a lot and set up formal timelines and tax structures for that development.

Paul Grygiel, of the land use consulting firm Phillips Preiss Grygiel Leheny Hughes in Hoboken, conducted a study on the former Bamboo property and determined it met two of eight criteria that would qualify it as an area in need of redevelopment. A single criterium must be met under state law.

“It’s an interesting situation where you have a property that was evaluated both in its current state, which is vacant and in disrepair, but used to also have buildings that were vacant and in disrepair at an earlier time,” he said.

Ultimately, the property meets the criteria since it is “a discontinuance of a building or building that were previously commercial or retail that have either been abandoned for two consecutive years, or fallen into disrepair.” Also, he said, the Bamboo property qualifies since it is in a dilapidated state.

“It looked like you would expect, unfortunately, of a hospitality business that had fallen into disrepair and was demolished,” Grygiel said. “Hopefully through this process the property will be put to better use.”

The former Bamboo Bar property in Seaside Heights, N.J., Dec. 2022. (Photo: Daniel Nee)

Demolition of the Bamboo nightclub in Seaside Heights continues, Nov. 3, 2021. (Photo: Daniel Nee)

The Bamboo Bar in Seaside Heights, N.J., under demolition, Oct. 29, 2021. (Photo: Daniel Nee/Shorebeat)

Bamboo is located in the center of the Boulevard business district, with 200-feet of frontage on that roadway and about 150 feet of frontage along Lincoln and Franklin avenues. The property is contained within a .7-acre lot.

The property’s owner has publicly presented its vision for the site, which would include a mixed-use complex with 48 residential units with luxurious amenities as well as ground-floor commercial space. In an homage to the history of the property, the complex was tentatively named “The Lofts at Bamboo.” TKD launched a website promoting the project along with a marketing deck, however the plan was never presented to the planning board for approval and no construction activity ever commenced.

Renderings promoting “The Lofts at Bamboo,” a 48-unit mixed-use complex that is planned for the former Bamboo Bar site in Seaside Heights. (Photo: Daunno Realty Services)

“We want to move things along,” said Mayor Anthony Vaz, reiterating that it is not the borough’s preference to take the property using eminent domain. There is no litigation pending with relation to the property, either. “We want to focus on timelines necessary to make all the required deadlines in terms of building, and expedite where we can. It’s a plan, and it’s for everyone.”

The redevelopment plan allows the borough to set forth, in a written document, what type of development is expected at the site and have the current property owner submit a proposal that conforms to that plan. A redevelopment designation also allows the borough to set deadlines for planning board approval and construction milestones, and to have oversight to confirm a redeveloper obtains sufficient financial backing for their project.

If a property owner refuses to submit a proposal, the land could theoretically be opened up for outside proposals, which would engage the condemnation process.

When a redevelopment designation was first discussed in January 2024, Vaz spoke to the importance of the location of the Bamboo lot.

“If we want to design the Boulevard the way we envision it, we need shovels in the ground,” said Mayor Anthony Vaz, adding that he does not want to repeat the mistakes of previous administrations that did not complete planned revivals of the central business district in town. “We can’t have vacant lots in that area – the Boulevard is a dream that is going to come to come to fruition.”