New ratable has a hard time in U.F. Businesswomen spent $206,000 in fees before breaking ground BY JANE MEGGITT Staff Writer UPPER FREEHOLD - Two years after receiving preliminary approval to build a Kiddie Academy day-care center in town, the owners plan to break ground. The building is expected to be the first structure in the 11-lot commercial development at Cox's Corner, located at the corner of Route 524 and Route 43. Kathy Naugle, of Millstone Township, and Pam Maxwell, of Upper Freehold, appeared before the township's Economic Development Committee (EDC) at its April 4 meeting to discuss what they learned over the three years it took them to get to this stage with their proposed business. To date, they have spent $206,000 in fees without having put a shovel in the ground. Maxwell said their experiences in dealing with the township could help other business applicants. She had concerns about the affordability of new projects in town. According to Maxwell, their first challenge was complying with the township's facade ordinance, which caused "significant structural changes" to their building plans. Due to the ordinance, they had to change the design of the back of their building to look like the front, because the road in the complex is shaped like a horseshoe and the backyard faces Route 524. When the township passed the facade ordinance guidelines in December 2005, Township Planner Mark Remsa had said the guidelines relate to the developer the kind of style, architecture and design the town desires. Township Attorney Granville Magee had said that under land use law, applicants before the Planning Board could request waivers of such guidelines. Landscaping requirements also brought about difficulties for the Kiddie Academy project, according to Maxwell. When they submitted their engineering design site plan, which included landscaping, Remsa made revisions to it. "We went back and forth, at costs each time," she said. Naugle said they had to pay $500 for a meeting to move one tree. Other fees the two had to pay included rollback taxes on former farmland, performance bonds and Council on Affordable Housing (COAH) fees. Maxwell said they also spent $72,000 on 10,000 cubic yards of dirt to bring their site to grade. Altogether, the pair had to pay $22,000 for someone to come out and inspect the dirt, she said. Naugle said they would get back $12,000 of that amount once they receive a certificate of occupancy. Maxwell said they have a performance bond for $326,000. "We were so far into the project before we realized we couldn't afford it," she said. "We don't want this to happen to someone else." Naugle said the township wanted to set a standard with the first business that was coming into Cox's Corner. "Because we were required to build a beautiful building, we will be taxed and assessed on it," Maxwell said. She said they want to be sure they are taxed fairly. "We don't want to come [here] in a year and say we have to close," she said. Maxwell said she and Naugle are nervous for other businesses coming into town. "Another business not as profitable as child care will not be able to survive here," she said. EDC Chairman Tim Lizura suggested that the township "look at the commercial side of the ledger." He said some rates that may be appropriate for residential development needing a great deal of site work may not be appropriate for a commercial ratable. EDC member Thomas Frascella agreed with Lizura, saying that the issue is something the township needs to be aware of, especially as more development occurs. According to Frascella, the same entity deciding the specifics of the development project is also determining the fees. "There could be a tendency to overbill," he said. Frascella added that many municipalities have an in-house engineer to avoid such conflicts. "You could hire a bunch of employees for $136,000," Lizura said, referring to the total amount of engineering fees Naugle and Maxwell said they paid. EDC member Bryan Scheff owns a child-care facility in another town. He said he had similar experiences and costs prior to receiving Planning Board approval. However, he said that township had its own engineer. "I think $136,000 [in engineering fees] is crazy," he said. Frascella said ground-up development is not for the faint of heart. "On the EDC, we want to make the process as painless as possible," he said. "Costs should be reasonable and customary." The EDC will look into what other towns charge for similar services. Maxwell said she and Naugle were pleased with everyone they dealt with in the township and that they were given a lot of pats on the back when they were thinking of walking away from the project. Township Engineer Glenn Gerken was on vacation and unable to comment about the engineering fees.