Citing a struggling economy, the developer for a large residential complex on River Road was allowed to replace townhouses with more rental units instead.

Developer Fred Daibes owns the property at 596 River Road on the corner of Archer Avenue, which is the former Octagon Processing plant. As the Environmental Protection Agency supervises cleanup of the site’s 4.6 acres, Board of Adjustments members approved 213 housing units, including 34 townhouses, in 2004.

The members held a special meeting Aug. 27 for the request to remove the townhouses and add smaller rentals totaling 279 units.

The developer’s attorney, James Demetrakis, said the building footprint would not change. The area where the townhouses were planned will now be open space, with the new units being added to the top of the building.

With an additional 10 feet, the new height will be 100 feet up from River Road. That is approximately 39 feet lower than the existing building, which is in the process of being demolished.

The developer’s planner, Roger DeNiscia, said the additional smaller rental units serve an important need.

"There is very little senior housing being developed and seniors have different needs," he said.

DeNiscia said senior citizens sometimes want to leave their larger homes for a smaller space that is easier to get around. He said all the units are compliant with the Americans with Disability Act.

The developer has a potential breakdown of how many studios, three-, two-, and one-bedroom units, but the number can’t be set because the state’s Council on Affordable Housing (COAH) guidelines are being appealed in court. A condition for approval is that the borough’s planner Kathryn Gregory will review site plans to make sure it complies with whatever the COAH plan is at the time construction permits are requested.

COAH requires a certain amount of affordable-housing units when market priced housing is built. The additional units on the plan will include 13 COAH units on-site. The COAH units for the original approved plan will be built in another building on River Road.

Residents in attendance were skeptical with the developer’s traffic engineer, Elizabeth Dolan, who said the new units add a .8-second delay in traffic. The original plan had two entrances and exits on River Road but the new plan has one entrance and exit in the center of the property. It will be right turn-only south on River Road. If cars want to go north they would exit on Archer Avenue to a traffic light on River Road.

Residents were concerned with the already heavy traffic coming down that hill.

A resident asked if, considering how much money is already spent on this project, if the developer could spend a fraction of that amount to provide a safe sidewalk on Edgewater Road.

"That would be a great gift to the residents," he said.

Daibes was in the audience and said he would be happy to build that.

The application was approved unanimously.

Board member Bernard Holowacz said he appreciated that the smaller units could mean less school-age children and also that the new building won’t be higher than the existing one.

"It’s getting rid of an eyesore that’s been there for years," he said.

Board member Adam Tate said the new open design in the front of the property is more inviting. He also said that the borough should look at how to improve the intersection residents were concerned with.

Board Chairman Robert Christiansen said the new plan was "definitely an improvement" over the original "boxy" look.

Demetrakis said that with the clean-up schedule, he expects it to take a year or two before the building is constructed.