Toms River Mayor Dan Rodrick announced at a township council meeting Wednesday that his administration has terminated an agreement with a developer to build a multi-story waterfront residential and commercial complex on the downtown riverfront. Additionally, the administration will turn down millions of dollars in federal funds to create a “loop” traffic pattern in the downtown section.
Rodrick said he terminated the redevelopment agreement with Capodagli Group, the North Jersey development firm that had received approval to build a six-story mixed use residential and retail complex on the site of the former Red Roof Inn motel along Water Street. The mayor said Capodagli Group failed to meet deadlines set forth in the redevelopment agreement pertaining to financing and reaching certain benchmarks.
A rendering of the Meridia at Toms River complex in its six-story iteration. (Photo: Shorebeat)
Rodrick, who ran for office on a platform opposing dense development in town, said his administration “began taking legal action” in May by declaring the company in default of its contractual agreement.
“Capodagli Properties, the developer of the towers, did not have their permits in place by the contractual deadlines,” he said. “This was not the first time the developer missed those deadlines.”
The developer’s deadline initially expired in May 2023, however the previous mayor and council granted an extension to May 2024. On July 1, the developer also “failed to demonstrate that they had acquired the necessary financing for the project, so we notified them that they had defaulted on that obligation as well,” Rodrick said.
Capodagli, he said, notified the township that they had not finalized financing agreements for the project and would not be able to do so within what he determined was the contractual time frame. Last year, when the same issue arose before the council, the township’s former redevelopment attorney said a termination of the agreement would likely spur litigation. It is yet to be determined how Capodagli will proceed; the company has already invested funds in the project.
The Red Roof Inn property on which the complex would have been built, previously conveyed to Capodagli for $1, will revert to township ownership in 60 days.
Downtown Toms River, March 2023. (Photo: Shorebeat)
The announcement caused a stir at the packed council meeting, with a smattering of clapping that would prove to be drowned out by jeers on the part of opponents of the decision. Notwithstanding his landslide victory running on a platform opposing large-scale development projects, Rodrick’s tumultuous first six seven months in office have produced numerous controversies over police staffing and the closure of the township’s animal shelter, drawing angry – and vocal – residents to council meetings.
“I think this is going to cost the town lots of money in legal fees,” said Councilman David Cicozzi. “Only time will tell.”
Rodrick replied that under a tax abatement agreement, Capodagli would pay just $380,000 per year for a development project worth $60 million. Proponents, however, have argued that the project would have created additional new ratables, spurred additional economic development and added an outdoor concourse and amphitheater along the river for public use.
The mayor said any legal fees that the township may have to pay would be dwarfed by the cost of adding residential development downtown.
“If you think about 300 apartments and the $20,000 [per pupil] cost per year, I think it would have far exceeded the $380,000 that would have been generated at full occupancy,” he said.
While the Capodagli development plan had long been controversial, Rodrick faced additional criticism Wednesday from some council members on another aspect of the overall downtown redevelopment plan that was revealed to have been scuttled Wednesday.
Herflicker Boulevard, which will become part of a “loop” for downtown Toms River redevelopment. (Photo: Daniel Nee)
Toms River will turn down $5.6 million in federal funds, Rodrick said, that were aimed at creating a revised “downtown loop” traffic pattern. The grant, awarded in 2018 by the federal Department of Transportation, would have created a loop between the Garden State Parkway and waterfront business district by elevating and reconstructing Herflicker Boulevard as a one-way complete street, converting Water Street to a one-way complete street, and making roadway improvements and upgrades on connecting roadways.
Council James Quinlisk called Rodrick a “fool” for turning down $5.6 million in grant funding.
“This is a grant that had been in the works for years,” he said. “This administration allowed it to lapse so he can spite somebody else. It’s crazy how he’s hurting everybody else so he can claim some sort of victory. Not only did he lose the grant – and we’re never going to get that back being a Republican town in a Democrat state – it’s going to cost us at least $800,000 to pay back what we had to put forward on this.”
Known as a BUILD grant, the project was intended to improve traffic circulation, reduce the number of turning movements at intersections, and add pedestrian and bicycle infrastructure. The project would have also upgraded the roadway and elevated Herflicker Boulevard to limit flooding.
“The downtown loop grant was a grant that was going to be used to build the infrastructure necessary to implement the downtown redevelopment plan – a plan that allows you to build up to 150 feet, that’s 12 stories,” Rodrick said. “Residents of Toms River are not interested in seeing Toms River to become a city.”
Rodrick said he intends to push forward a new proposed plan for the downtown section, likely focused on adding less intensive recreational uses along the riverfront.
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