Sixth Street Partners to Appeal West Cape May’s Affordable Housing Plans

WEST CAPE MAY — Superior Court Judge William E. Nugent ruled Jan. 12 that West Cape May’s affordable housing plans were consistent with state rules but Sixth Street Partners, a developer that initially wanted to construct 70 town homes on a 5.8 acre property in the borough, is preparing to file an appeal.
The developer’s request was later amended to build 28 single-family homes with 12 affordable housing units, according to Sixth Street Partners principle Greg Garragozzo, who said he would file an appeal based on a project of that size.
The builder’s remedy lawsuit has been in the courts for three years.
Last year, Nugent ruled the site on Sixth Avenue was unsuitable for 70 units.
Mayor Pamela Kaithern told the Herald, Nugent had a court-appointed master study the borough’s housing element of its master plan and fair share plan to make sure it was consistent with state Council on Affordable Housing (COAH) regulations.
In September 2009, a compliance hearing was held to allow the public to comment on the borough’s affordable housing plans. The master found West Cape May’s plan consistent with COAH with some amendments.
The judge offered a number of conditions and time frames for the borough to update which were completed in early December, said Kaithern.
Sixth Street Partners has 45-days to appeal the entire lawsuit.
Garagozza said the judge actually suggested five or six reasons for an appeal last October. At that time, the judge questioned why a court-appointed special master did not review Sixth Street Partner’s proposed smaller development after the judge rejected the 70-unit development. The new plan called for 28, single-family home lots with the developers providing 12 affordable units of three bedrooms and two baths.
Sixth Street Partners has contended that the property was inside West Cape May’s center designation until the borough cut it out in August 2007.
Nugent had referred to the borough approaching the state Office of Smart Growth to “gerrymander” the system to cut the Sixth Street Partners project out of the Smart Growth area.
Garagozza said Nugent indicated that was a reason for an appeal last October.
The judge said he had a lot of concern over the timing of the town center designation. He said an argument from the Office of Smart Growth was residents would not be able to pay for infrastructure outside of the town center.
According to current zoning laws, Sixth Street Partners could build seven single-family homes on the property, said Kaithern.
“The reason they were denied the builder’s remedy (lawsuit) was their site was unsuitable,” she said. “It has critical wetlands buffers, it has grasslands, it has forest and it’s outside of the sewer service area.”
Without sewer service, each home would be required to be located on a 35,000 square foot lot to accommodate a septic tank.
West Cape May’s COAH obligation includes rehabilitating 11 housing units. The borough has received credit for three units. Five other units will be updated to meet construction codes leaving an obligation of three units for rehabilitation.
A new group home is being built on borough owned property near West Cape Elementary School to house persons with disabilities with a total of seven living units inside.
While COAH calculated West Cape May’s most recent (third round) obligation was zero, the borough estimated five affordable housing units would be needed to address future growth. The borough is seeking two homeowners to create accessory apartments through the conversion of an existing accessory structure on the same site, an addition to an existing home or accessory building or through new construction of a new accessory apartment on site.