Executive Summary

Development Pipeline

Industrial Projects

> Additional projects are included in the Appendix below.

Entitlement Risk

Approval Patterns

• Affordable Housing Focus: Approvals are heavily tied to meeting the borough's Fourth Round affordable housing obligations, typically requiring a 15% set-aside for inclusionary projects .
• Adaptive Reuse: The borough favors the repurposing of existing commercial or light-industrial footprints (like former labs) into residential units to reduce "blight" without increasing massing .
• Infrastructure Alignment: Projects that align with public infrastructure goals, such as the South Third Avenue Pedestrian Plaza or the "road diet" on Upper Raritan, receive streamlined political support .

Denial Patterns

• Auto-Centric Design: Leadership is increasingly skeptical of uses that encourage vehicle idling or maintain existing "auto-centric" footprints, such as drive-thrus or expansive asphalt lots .
• Traffic and Safety: Concerns regarding ingress/egress in high-pedestrian zones, particularly near schools, can lead to deferrals or demands for significant site plan revisions .

Zoning Risk

• Redevelopment Overlays: The borough frequently utilizes "Area in Need of Rehabilitation" and "Area in Need of Redevelopment" (with and without condemnation) to bypass traditional Central Business District (CBD) restrictions and broaden permitted uses .
• Expanding Permitted Uses: Pending zoning shifts aim to explicitly allow child daycare, indoor recreation, and arts/maker spaces while restricting ground-floor offices that lack public-facing vitality .

Political Risk

• Smart Growth Consensus: Council members consistently vote in favor of "smart growth" and transit-oriented development, viewing these as essential for downtown vitality .
• Cannabis Sensitivity: There is significant political friction and community pushback regarding the number of cannabis dispensaries, which could spill over into other land-use categories if residents perceive a decline in quality of life .

Community Risk

• Parking and Traffic Sensitivity: Organized resident opposition is common regarding parking overflow and the impact of new driveways on residential neighborhoods .
• Displacement Concerns: Condemnation-based redevelopment (e.g., Classic Cleaners) has faced significant public testimony in support of long-standing local businesses and their tenants .

Procedural Risk

• Redevelopment Agreement Sequencing: Developers must navigate a multi-step process including conditional designation, escrow agreements, and council-approved redevelopment agreements before reaching the Planning Board .
• Litigation Exposure: The borough has faced past litigation over redevelopment areas (Rite Aid) and current litigation (JSM versus Highland Park), which can stall specific sites for years .

Key Stakeholders

Council Voting Patterns

• Consistent Supporters: Council members Hail (Economic Development) and Hirs (Public Works) are reliable votes for downtown redevelopment and infrastructure-linked growth .
• Affordable Housing Advocates: Council President Kim Johan and Council Member George prioritize projects that contribute to the borough's fair share housing credits .

Key Officials & Positions

• Mayor Elsie Foster: Leads the push for the "Film Ready" status and general downtown revitalization; emphasizes public safety and pedestrian-friendly streets .
• Terry Hovair (Borough Administrator): The primary negotiator for redevelopment agreements and developer designations; focuses on project financial viability and technical compliance .
• Chris Cassenza (Borough Planner): Instrumental in drafting redevelopment plans and conducting condemnation studies; prioritizes breaking down building massing and creating "human-scale" designs .

Active Developers & Consultants

• HPEN Redevelopment / Paul Ridan Redevelopment LLC: Active in the Tract A gateway project .
• Arterial (Consultants): Leading the design and public engagement for the South Third Avenue Pedestrian Plaza .
• GSH Incorporated: Active in developing small-scale affordable housing for veterans .

Analysis & Strategic Insights

Forward-Looking Assessment

• Industrial Momentum: There is no momentum for industrial or warehouse development in Highland Park. The borough's compact geography and political commitment to pedestrian-centric "Complete Streets" effectively preclude the development of logistics or distribution centers.
• Adaptive Reuse Probability: High for flex-space or light manufacturing transitioning into medical or residential use. The successful approval of the 810 North Second Avenue lab conversion signals a clear path for similar adaptive reuse projects.
• Regulatory Environment: Expect tightening design standards regarding storefront transparency and landscaping. The council is moving toward requiring "public-facing" ground floor uses to ensure downtown vitality .
• Strategic Recommendations:
• Avoid Logistics: Sites within the borough should not be positioned for logistics; any use involving significant truck traffic will face extreme friction from both the council and the community .
• Focus on "Gateway" Projects: Position sites along Raritan Avenue as "Gateways" with varied heights and masonry materials to align with the borough's architectural vision .
• Proactive Parking Solutions: Entitlement sequencing should lead with creative parking solutions (e.g., structured or tandem parking) to mitigate the most common ground for community opposition .
• Near-Term Watch Items:
• South Third Avenue Plaza: Engineering and construction phases will likely trigger temporary road closures and affect downtown circulation .
• Track A Amendments: Final adoption of plan refinements for the HPEN project will set the standard for future five-story developments .
• Zoning Modernization: Final votes on the expansion of permitted uses in CBD and C zones .