DRAFT Muhlenberg Hospital Area in Need of Redevelopment & Area in Need of Rehabilitation Preliminary Investigation Report Block 13, Lot 38.03 1252-1354 Randolph Road 1241-1323 Moffett Avenue Date: July 24,2015 Updated: July 29, 2015 Prepared for: City of Plainfield, Planning Division Prepared by: architects + engineers Hearing Scheduled: August 6, 2015City of Plainfield New Jersey MUHLENBERG HOSPITAL REDEVELOPMENT AREA & REHABILITATION AREA — INVESTIGATION REPORT Prepared for: ‘The City of Plainfield Planning Board Mayor Adrian 0. Mapp John Stewart (Mayor's Designee) Ron Scott Bey, Chairman, William Toth, Vice Chairman Cory Storch, Councilman John Stewart, Mayor's Designee Ronald Johnson, J. Horace Baldwin Gordon Fuller Kenneth Robertson Sean C. McKenna Siddeeq El-Amin Michele R. Donato, Esq. Board Attorney Rosalind Miller, Board Secretary Special thanks to: Bill Nierstedt, AICP, PP, Planning Director and Zoning Director Scott Bauman, Principal Planner Consultant: H2M Associates, Ine. 119 Cherry Hill Road, Suite 200 Parsippany, N] 07054 Adopted: ‘The original of this report was signed and sealed in accordance with NJ.SA. 45:14A-12. Jessica L. Giorgianni, AICP, NJ PP # 331100604300 DRAFTMuhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield CONTENTS 1 I. i. Vv. vi vu. vill. Ix. EXECUTIVE SUMMARY... INTRODUCTION. EMINENT DOMAIN nesses p eesti A CRITERIA FOR REDEVELOPMENT AREA DETERMINATION. STUDY AREA CONTEXT AND LOCATION weno CITY PLANNING EFFORTS RELEVANT TO THE STUDY AREA.. 2009 CITY OF PLAINFIELD MASTER PLAN AND REEXAMINATION REPORT... (CITY OF PLAINFIELD ZONING ORDINANCE wn. MUHLENBERG HosPrTAt STUDY, JULY 2014. [ADJACENT REDEVELOPMENT AREAS... th RELATIONSHIP TO STATE DEVELOPMENT AND REDEVELOPMENT PLAN (SDRP) METHODOLOGY PROPERTY ANALYSE: PROPERTY OVERVIEW we NIDEP ENVIRONMENTAL DATA REVIEW... CoE vioaTions.. Pouice RECORDS... ‘CunRENT CONDITIONS / SITE VISIT ANALYSS.. ExTERIOR SITE PHOTOS. Inrenion Sire PHOTOS. DESIGNATION CCRITERIA APPLICABILITY. (CRITERIA RECOMMENDATION. REHABILITATION ANALYSIS ‘Overview CORTERIA FOR REHABIITATION AREA DETERMINATION : a 28 Evawuarion.. CONCLUSION APPENDIX CONTENTS Appendix A: Resolution #R 038-15 Appendix B: Hospital Floor Plans Appendix C: Letter from Pennoni Associates, Inc. DRAFT 2‘Muhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield L EXECUTIVE SUMMARY ‘This Redevelopment Area Investigation Report has been prepared to determine whether the area designated as Block 13, Lot 38.03 on the City Tax Map and located at 1252-1354 Randolph Road and 1241-1323 Moffett Avenue (the “Muhlenberg Hospital Redevelopment Study Area” or “Study Area") meets the statutory criteria for designation as an “area in need of redevelopment,” and/or an ‘area in need of rehabilitation” pursuant to the Local Redevelopment and Housing Law (the "LRHL", NJ.S.A. 40A:12A-1 et seq.) of the New Jersey Statutes. ‘The Study Area consists ofa single property, Block 13, Lot 38.03, the site of the former Muhlenberg Hospital. The Plainfield City Council directed the Planning Board to investigate this specific parcel by Resolution #R 038-15, adopted January 20, 2015 (Appendix A). This Resolution amended and clarified an earlier Resolution (#R 442-14, adopted November 10, 2014) authorizing the study of multiple properties in the vicinity of the Study Area. ‘The following pages present a detailed analysis of the subject property. Based on the compendium of information and substantial evidence collected, this report makes the determination that the property satisfies statutory criteria to be designated an “area in need of redevelopment’ as well as an “area in need of rehabilitation.” It Is therefore the recommendation of the Planning Board that the Plainfield City Council designate Block 13, Lot 38.03 as a Redevelopment Area. While recognizing that the authority to make this decision relies only with the Governing Body, the Planning Board strongly recommends that the City Council declare the Study Area a Non- Condemnation Redevelopment Area, thereby removing the power of Eminent Domain from potential use by the governing body and/or redevelopment agency. A non-condemnation redevelopment approach will help to facilitate a more favorable, working partnership between the property owner and the City. DRAFT 3Muhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield I INTRODUCTION In order to designate a Redevelopment Area, a municipal governing body must first authorize the Planning Board, by resolution, to determine whether the proposed area meets statutory criteria set forth in NJ.S.A, 40A:12A-1 et seq. On January 20, 2015, the Plainfield City Council passed Resolution #R 038-15 authorizing the Planning Board to conduct a preliminary investigation to determine whether or not a single property known as Block 13, Lot 38.03 on the City Tax Map, and herein referred to as the “Muhlenberg Hospital Redevelopment Study Area,” or "Study Area,” qualified as an “area in need of redevelopment” and/or as an “area in need of rehabilitation” pursuant to statutory requirements as defined in the Local Redevelopment and Housing Law ("LRHL,” NJ.S.A. 40A:12A-1 et seq). Resolution #R 038-15 amended a prior resolution (#R 442-14, adopted November 10, 2014) which had authorized the study of multiple properties in the vicinity of the Study Area As per Resolution #R 038-15, the Redevelopment Study Area consists of the following property, as shown on the tax map below (Figure 1): Tax Block/Lot Address Block 13, Lot 38.03, 1252-1354 Randolph Road 1241-1323 Moffett Avenue ‘The Planning Board, or its consultant, prepares the preliminary investigation report and then holds a duly noticed public hearing on the matter. After completing its hearing, the Planning Board makes its recommendation that the entire delineated area, a portion of the delineated area, or no part of the delineated area, is a redevelopment area. After receiving the recommendation of the Plansiing Board, the municipal Governing Body may adopt a resolution determining the entire delineated area, a portion of the delineated area, or no part of the delineated area, is a redevelopment area. Upon designating an “area in need of redevelopment” (and/or an “area in need of rehabilitation”) a municipality may then prepare and adopt a Redevelopment Plan for the designated area(s}. The City Council, acting as the redevelopment entity, may then engage in a variety of activities and use the powers of redevelopment and/or rehabilitation authorized in the LRHL to stimulate development and effectuate the plan's purposes. Foxes Domany On September 9, 2013, the State of New Jersey amended the Local Redevelopment Housing Law (LRHL) to require that municipalities, from the on-set of the process, determine whether or not they will seek to use the power of Eminent Domain. When asking the Planning Board to investigate a redevelopment area, the Governing Body's authorizing Resolution must now indicate whether it is seeking to designate a “Non-Condemnation Redevelopment Area” or a “Condemnation Redevelopment Area.” The intent of the amendment was to make redevelopment a more politically DRAFT éMuhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield viable tool to spur economic development. It responds to concerns that the potential use of, or even just the “threat” of, eminent domain has been an obstacle to viable redevelopment projects in New Jersey. Plainfield City Council Resolution #R 038-15 addresses this requirement, stating “..the governing body has determined that this resolution authorizes the municipality to use all those powers provided by the Legislature for use in a redevelopment area, including the use of eminent domain.” . While recognizing that the authority to make this decision relies only with the Governing Body, the Planning Board strongly recommends that any resolution authorizing redevelopment, declare the area a Non-Condemnation Redevelopment Area, In a non-condemnation redevelopment area, the governing body/redevelopment agency is not authorized to exercise the power of Eminent Domain or involuntary taking. A non-condemnation redevelopment approach will help to facilitate ‘a more favorable, working partnership between the property owner and the City. The following pages present the findings of this preliminary investigation report. DRAFT‘Mublenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield Figure 1 Redevelopment Study Area Map ~ Tax Map Location, DRAFT eMuhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield Ill. CRITERIA FOR REDEVELOPMENT AREA DETERMINATION ‘A delineated area may be determined to be in need of redevelopment if, after investigation, notice and hearing as provided in section NJ.S.A. 40A:12A-6, the governing body of the municipality by resolution concludes that any of the following conditions are found within the delineated area, (a) The generality of buildings are substandard, unsafe, unsanitary, dilapidated, or obsolescent, or possess any of such characteristics, or are so lacking in light, air, or space, as to bé conducive to unwholesome living or working conditions. (b) The discontinuance of the use of buildings previously used for commercial, manufacturing, or industrial purposes; the abandonment of such buildings; or the same being allowed to fall into so great a state of disrepair as to be untenantable. (©) Land that is owned by the municipality, the county, a local housing authority, redevelopment agency or redevelopment entity, or unimproved vacant land that has remained so for a period of ten years prior to adoption of the resolution, and that by reason of its location, remoteness, lack of means of access to developed sections or portions of the municipality, or topography, or nature of the soil, is not likely to be developed through the instrumentality of private capital. (a) Areas with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement of design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these or other factors, are detrimental to the safety, health, morals, or welfare of the ‘community. {e) A growing lack or total lack of proper utilization of areas caused by the condition of ttle diverse ownership of the real properties therein or other similar conditions which impede land assemblage or discourage the undertaking of improvements, resulting in a stagnant and unproductive condition of land potentially useful and valuable for contributing to and serving the public health, safety and welfare, which condition is presumed to be having a negative social or economic impact or otherwise being detrimental to the safety, health, morals, or welfare of the surrounding area or the community in general, (8 Areas, in excess of five contiguous acres, whereon buildings or improvements have been destroyed, consumed by fire, demolished or altered by the action of storm, fire, cyclone, tornado, earthquake or other casualty in such a way that the aggregate assessed value of the area has been materially depreciated (g) In any municipality in which an enterprise zone has been designated pursuant to the “New Jersey Urban Enterprise Zones Act,” P.L.1983, 303 (C.52:27H-60 et seq.) the execution of the actions prescribed in that act for the adoption by the municipality and approval by the New Jersey Urban Enterprise Zone Authority of the zone development plan for the area of DRAFT 7Muhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield the enterprise zone shall be considered sufficient for the determination that the area is in need for redevelopment pursuant to sections 5 and 6 of PLL. 1992, c.79 (c40A: 12-5 and 40A: 12-6) for the purpose of granting tax exemptions within the enterprise zone district pursuant to the provisions of P.L. 1991, c.431 (C.40A: 20-1 et seq.) or the adoption of a tax abatement and exemption ordinance pursuant to the provisions of P.L. 1991, 441 (C.40A: 21-1 et seq.). The municipality shall not utilize any other redevelopment powers within the urban enterprise zone unless the municipal governing body and Planning Board have also taken the actions and fulfiled the requirements prescribed in PLL. 1992, 0.79 (C40A: 124-4 et al) for determining that the area is in need of redevelopment or an area in need of rehabilitation and the municipal governing body has adopted a redevelopment plan ordinance including the area of the enterprise zone. (h) The designation of the delineated area is consistent with smart growth planning principles adopted pursuant to law or regulation, In addition, Section 3 of the LRHL allows the inclusion of parcels necessary for the effective redevelopment of the area by stating: “.. redevelopment area may include land, buildings or improvement which of themselves are not detrimental to the public health, safety or welfare, but the inclusion of which is found necessary, with or without change in their condition, for the effective redevelopment of the area of which they area part.” DRAFT‘Muhlenberg Hospital Area in Need of Redevelopment Investigation Report City of Plainfield Iv. STUDY AREA CONTEXT AND LOCATION ‘The Redevelopment Study Area, within Block 13, Lot 38.03 is the site of the former Muhlenberg Hospital. The property is located within the southeastern portion. of Plainfield, west of Scotch Plains and north of South Plainfield Township. As shown in Figure 2 below, the Study Area is bordered by two City streets, Randolph Road and Moffett Avenue, both which run in an east-west direction. A major thoroughfare for the City, Park Avenue (a County Road) runs north-south just west of the Study Area, Immediately to the west of the site are two other lots associated with the Muhlenberg Hospital Campus containing the Harold B. and Dorothy A. Snyder Nursing School (Lot 38.01) and the Kenyon House Dialysis Center/Satellite Emergency Department (Lot 38.02). To the north, east and west are primarily residential neighborhoods. The Hub Stein Sports Complex is also located to the north, Figure 2 study Area within City of Plainfield wee %\ = ee DRAFTMublenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield V. CITY PLANNING EFFORTS RELEVANT TO THE STUDY AREA H2M reviewed the City’s most recent planning, zoning and redevelopment materials that provide the basis for land development policy and decision-making in the City, and in particular, those that guide the use and development of the Study Area. 20109. C1TX.OF PLAINFIELD MASTER PLAN AND REEXAMINATION REORT, The City of Plainfield adopted an updated Master Plan in May 2009. The Master Plan outlines Objectives and Policies which aim to guide the physical, social and economic development of the community. A number of objectives are relevant to City redevelopment efforts. Objective #2, for example, addresses the need for the City to utilize development and redevelopment strategies to ameliorate conditions suggestive of physical and economic deterioration by supporting sustainability, creating economic opportunity, and providing a variety of housing. Furthermore, Objective #20 stresses that redevelopment activities should be consistent with the Master Plan. ‘The use of redevelopment planning is highlighted throughout the Master Plan as a tool for the City to use to revitalize vacant, distressed and underutilized properties. ‘The Master Plan acknowledges the closing of the Muhlenberg hospital, which was announced during the preparation of the 2009 Master Plan. The Muhlenberg Regional Medical Center is addressed specifically in the following Plan Elements: ‘The Land Use Plan Element points to the historical zoning of the area in stating, “Park: Avenue was envisioned to be a major professional office area utilizing Muhlenberg Hospital as the magnet.” The Land Use Plan Map continues to recommend the area be zoned for Professional Office, Stated elsewhere in the Master Plan is that the “The Land Use Element should continue to call out the Muhlenberg facility as the anchor for the surrounding Professional Office land use pattern, which should be expanded as a professional and ‘medical corridor.” Clearly, as six (6) years have passed since the Master Plan was written, and the hospital remains abandoned, the City will want to revisit whether professional office medical use continues to be the recommended use for this area The Circulation Plan is concerned with the level of transportation service available to residents that need access to 2 hospital or medical services. ‘The Element states that the City should work with NJ Transit to provide additional transportation services to nearby health facilities that will ultimately replace those services provided by Muhlenberg. The Community Facilities/Social Services Plan Element addresses the Hospital site in the most detail. The Element provides three summary recommendations in regards to the future of the Muhlenberg Regional Medical Center: ‘© Support ongoing efforts to maintain the Muhlenberg facilities as a full acute care hospital with in-patient services. DRAFT ae‘Mublenberg Ho: ital Area in Need of Redevelopment Investigation Report City of Plainfield ‘© Continue to utilize the Muhlenberg facilities as the anchor for surrounding professional office land use pattern. © Encourage the re-use of any under-utilized facilities by community agencies serving to enhance the overall quality of life for Plainfield residents. ~ ‘The Community Facilities/Social Services Plan Element further recommends that the temporary emergency room facilities, which were required by the State to remain on-site for five years, be made permanent. The Element stresses the City’s concern that longer travel times to other hospitals /medical facilities may undermine the ability for residents to get medical attention in time, particularly in cases of medical emergencies. The Element articulates that despite its closing, the City should not allow the site to become underutilized or an eyesore, Additionally, the Plan suggests using excess vacant space for community and cultural service organizations. CITY.OF PLAINFIELD ZONING ORDINANCE ‘The City’s Zoning Map, dated June 2015, shows that the property is located fully within the “PO-1: Professional Office 1" Zone District. The PO-1 District is anchored by the Study Area and the adjacent medical properties, and extends northward to include properties on both sides of Park Avenue (Figure 3). The City’s Zoning Ordinance at §17:9-14 states the Purpose of the PO: Professional Office Zone District is "to recognize the existing land use pattern resulting from the conversion of residential housing to professional office space, and to provide standards for professional office development.” ‘The PO zone permits single-family, two-family, apartments, mixed-use residential dwellings, child care centers per NJSA. 40:55D-66.6, offices (including medical offices), hospital, and telecommunication facilities on existing buildings and structures. Figure 4 provides the bulk zoning requirements for development in the PO District. Figure 3 Existing Zoning Map for Study Area DRAFT ieMuhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield Figure + Bulk Zoning Requirements Professional Office/ Medical Office Min, Lot Area 10,000 sq, ft Min, Lot Width 100 Min, Lot Frontage 100 Min, Lot Depth 00 Front Yard Setback 35 Side Yard Setback 10 Combined Side Yard Setback 20 ft Rear Yard Setback 25 Max. Floor Area Ratio (FAR) 2 Max. Building Coverage 40% Max, Total Lot Coverage 50% Min, Number of Stories N/A ‘Max. Number of Stories 3 ‘Max. Building Height [ase Minimum Improvable Area (MLA) | 3,000 sq.ft. M.LA.~ Diameter of Circle 38 ft | ‘Mustenpene.Hoserrat Stupy, JULY 2014 ‘The City of Plainfield commissioned the preparation of a "Muhlenberg Hospital Study” by Heyer, Gruel and Associates to develop a vision for the future of the Muhlenberg Regional Medical Center campus. The study area encompassed four (4) tax lots on 17.5 acres: Block 13, Lot 38.03 (the hospital site being investigated in this AINR Report), Lot 38.01 (Nursing School), and Lot 38.02 (Kenyon House), as well as Block 729, Lot 1 (surface parking lot across Park Avenue). The ultimate vision recommended by the Study was a result of the feedback and findings from an extensive public outreach process that included multiple community meetings and various stakeholder ‘meetings, The conceptual design solution for Block 13 Lot 38.03 proposed demolishing much of the existing main hospital building to make way for a 120,000 square foot "Medical Mall.” The Study recommends the entirety of the campus be redeveloped as a Planned Unit Development (PUD) defined by NJ.SA. 40:55D-45 and re-zoned to a new, “Healthcare Campus Zone.” The Concept also proposes 100 units of Veteran’s Housing, 580 parking spaces, and a small area of open space be located on Block 13 Lot 38.03. It appears that the Study’s recommendations for the re-use of the site and the size of the proposed facilities are based primarily on community feedback and are not grounded in a market analysis. ADJACENT. REDEVELOPMENT AREAS % ‘The City is revitalizing many of its neighborhoods through various initiatives, including redevelopment. Numerous areas of the City have been designated as Areas in Need of Redevelopment and implementation of redevelopment plans for many of these areas is under way. Scattered properties four blocks to the northwest of the Study Area within the Arlington Heights DRAFT a.Muhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield Neighborhood, for example, are located within the Arlington Heights Redevelopment Plan Area. However, there are no Redevelopment Areas adjacent to the Study Area. PMENE PLAN (SDRPD -RELATIONSHIP-TO STATE DEVELOPMENT.AND. ‘The City lies fully within Planning Area 1 (PA1) on the State Plan Policy Map of the 2001 State Development and Redevelopment Plan (SDRP). The SDRP specifies that PA1 areas shall be the locations for the majority of the State's future growth through expansions, infill and redevelopment. ‘The SDRP promotes growth within existing urbanized areas, preferably in the form of compact development with ready access to existing infrastructure, including transit systems. Regarded as an existing urbanized area, the neighborhood surrounding the site is characterized as being primarily low-moderate density residential housing with an adjacent area being characterized as ‘medium-high density residential. Additionally, the City of Plainfield is urban in its character and has an extensive multi-modal transportation network. For example, a bus route across the street from the Hospital site on Randolph Road originates from the downtown area where the Raritan Valley Transit Line has a transit stop (Figure 5). The use redevelopment for the subject site is consistent with the State Development and Redevelopment Plan. Figure 5 Transit Connections nm f ae 2 eres al Cera 2 fe, = ae separ, aonTh PLANE. The State Planning Commission has held a number of public hearings on a new State Strategic Plan, the revision to the 2001 SDRP; however, a new plan has not yet been adopted by the State, DRAFT 3‘Mublenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield VI. METHODOLOGY In the preparation of this study, H2M researched, collected and reviewed a number of sources of information, including, but not limited to, the following records, documents and sources listed below: * Official tax maps of the City of Plainfield i + Tax Assessor property records + Historical aerial imagery * Records of Liens * Code Violations / Inspection Reports + Fire Department Records + Police Department Records + Contaminated sites information provided by the NJDEP + Planning Board/Zoning Board development applications and approvals * City of Plainfield Master Plan and Reexamination Report, adopted May 2009 * Muhlenberg Hospital Study Final Report, August 2014 + Zoning Map and Ordinances of the City of Plainfield H2M also conducted physical inspections of the interior and exterior of the Study Area during a site visit in June 2015. H2M was accompanied on the site visits by representatives from the City Planning Department, City Planning Board, and JFK Health Systems. The visit was led by Frank ‘Tsemberlis, Vice President, Corporate Facilities at JFK Health. A detailed review of this cumulative body of evidence informed the determination of whether the property meets the criteria to be “an area in need of redevelopment. DRAFT 4Muhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield VII. PROPERTY ANALYSES ‘The following summarizes the research conducted to understand the existing conditions and historic use of the property in order to make an “area in need of redevelopment” determination. PROPERTY OvERMIEN, ‘The subject site is commonly known as the former Muhlenberg Hospital Campus and is located on Block 13, Lot 38.03 on the City's tax map. It is an irregularly-shaped parcel comprising 10.78 acres (469,576 square feet). City tax records names the property owner as Muhlenberg Regional Medical Center. The site is part of the JFK Health System, formerly known as the Solaris Health System. ‘The property is currently assessed at $35,307,800. See the ownership and valuation table below. Figure 6 tistreal Ownership and Assessed Vale of Study Area, 1986 - 201 Tear Owner Asses Vale 2015 | Munlerber Raina Medial ane 307,800 2014 | subenberg Msi Frank Teeberis_| —s35a07800 | 2013 | Mablerberg Medial c/o rank Temberis | —_$35207,900 | 2012_| Mablnber Reina Medel Cane 3520700 198 [ean Sytem o sone [ ola et Sytem = The property is located in the southeast portion of the City, on the southerly side of Randolph Road. ‘The site has approximately 762.97 linear feet of frontage along Randolph Road to the north and approximately 705.59 linear feet of frontage along Moffett Avenue to the south, Residential uses lie to the north, east and south. The Hub Stein Sports Complex also lies to north, To the west of the hospital site are two lots associated with the overall Muhlenberg campus, which are not being reviewed as part of this Study. They include the Harold B. & Dorothy A. Snyder School of Medicine (Lot 38.01) and the Kenyon House Dialysis Center/future Satellite Emergency Department (Lot 38.02). ‘The Muhlenberg Regional Medical Center Campus was once comprised of a single parcel, known as Lot 38. In 2007, the Plainfield Planning Board approved a resolution granting a minor subdiviston approval to subdivide Block 13 Lot 38 into three separate lots ~ lots 38.01, 38.02, 38.03. It should bbe noted that the 2007 subdivision had erroneously drawn the lot lines to include a residence, (Block 13 Lot 39) on Lot 38.03. A 2014 re-subdivision resolved the matter’. ‘As shown in the aerial image below (Figure 7), Lot 38.03 contains a multi-story medical complex that is made up of multiple buildings connected by a series of hallways. The various wings and building additions were constructed over the hospital's 130-year long history. The tallest portions * Planning Report: Planning Board Application PB 14-22, City of Plainfield DRAFT aMuhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plai eld of the building rise six (6) stories in height. Today, the hospital complex occupies approximately £600,000 square feet (per owner) within the multiple connected wings and buildings. Figure 7 2012 Aerial Imagery of Muhlenberg Hospital Study Area - Block 13 Lot 38.03 Block 13, fer Noe lot Vehicle access to the site is via multiple driveways off of both Randolph Road and Moffett Avenue. ‘The driveways connect to parking areas throughout the site. There are approximately 451 parking spaces on Lot 38.03. Vehicle access to the Emergency Department area is via a one-way circular driveway abutting Randolph Road. Within the site interior, there is one access drive connecting Lot 38,03 to the adjacent medical uses to the west. Otherwise, a network of walkways enables pedestrian circulation between the adjacent medical campus properties. ‘The Muhlenberg Hospital was originally founded in 1876. It was constructed in its current location circa 1903 by the architecture firm of Tracy and Swartwout? In 1986, the hospital officially changed its name to the "Muhlenberg Regional Medical Center.” ‘The building is not listed on the State or Federal registers of historic sites; however, the oldest, intact buildings were listed by Preservation New Jersey in 2011 as one of the ten most endangered historic sites in New Jersey. The hospital building is greatly valued by the City and its residents and is considered a historically significant community asset. Moyer and Gruel, Muhlenberg Hospital Study. DRAFT a8‘Muhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield ‘The Hospital closed as an in-patient acute care facility on July 29, 2008 with approval fram the State Department of Health, and in accordance with the NJ Certificate of Need Process. Upon closing, the State Department of Health mandated that JFK Health System (formerly Solaris) continue to provide a 24-hour Satellite Emergency Department (SED), outpatient imaging center, and various outpatient specialty services at the hospital for a period of five years, The agreement also required JFK provide transportation services to transport Plainfield residents to other medical facilities for the 5-year period, f Following its closure, the 600,000 square foot building has remained largely vacant, except for approximately 14,000-15,000 square feet dedicated to the Satellite Emergency Department (SED) operations. Now seven years since the closure, the SED continues to operate on site and JFK has fulfilled the terms of its facility closing agreement. In October 2015, JFK plans to transfer all SED ‘operations to the building on adjacent Lot 38.02, which will also continue to operate the existing Dialysis Center. At this point, the former hospital complex NIDEP EnvinoyMeNTat.DATAREVIEW ‘The New Jersey Department of Environmental Protection (NJDEP) does not classify this site as a Known Contaminated Site (KCS). ‘The NJDEP does identify several program interests relating to enforcement or compliance at the Mublenberg Regional Medical Center including Air, Hazardous Waste, Radiation, Solid Waste and Water Supply inspections. Most inspections completed since NJDEP's data gathering began in 1996 were standard compliance inspections and no inspections completed were a result of responding to incidents or complaint calls. Non-compliance violations found at the site fell under Air, Solid Waste and Water Supply program interests but all violations were satisfied by January 2006, two years before the Hospital's closing. It is unclear from the report provided which violations are specifically associated with Block 13 Lot 38.03. Cone ViowaTioNs ‘According to the City of Plainfield Division of Inspections, the property has no recorded history of building code violations. According to the Health Division, from the period covering 2000 to present day, there were no complaints found in the Muhlenberg files maintained by the Health Division. The City of Plainfield Bureau of Fire Prevention provided confirmation that there are no current outstanding fire violations at the site. POLICE RECORDS ‘The Plainfield Police Department provided records associated with the site over the last five years. ‘The reports, however, include all incidents reported by the Hospital having to do with reasons why ® New Jersey Department of Environmental Protection's Data Miner, Open Public Record Act DRAFT aiMuhlenberg Hospital Area in Need of Redevelopment Investigation Report City of Plainfield patients were brought to the Satellite Emergency Room. For example, ifa patient entered the SED because of an injury associated with a domestic dispute or a vehicle accident, the Hospital would need to report the dispute or accident to the police. ‘The Police Department incident data, which is tracked for the entire site address, does not parse out incidents pertai ing to emergency room cases, verses incidents otherwise occurring at the site. Anecdotally, a JFK Representative stated that they are aware of criminal activity at the site being limited to cases of illegal trespassing. ‘Therefore, the 73 incidents recorded by the Plainfield City Police Department within the last five years (Figure 8) are likely to be largely associated with SED incoming patients. Figure ® Police Incident Report Count of Study Area, 2011 - 2015, Incident Type Total Disorder Dispute ‘Theft Lost Property Motor Vehicle Accident. Harassment Fight Sexual Assault Suspicious Vehicle Suspicious Person Criminal Misconduct ‘Trespass ‘Terrorist Threat Weapons Noise ‘Total Incidents BRENT. CONDATIONS / SITE VISIT ANALYSIS As indicated, the hospital is made up a series of connected buildings of varying size, height, and age. Floor plans of the building are provided in Appendix B. Some of the larger hospital buildings are named, including: © Fitch Building, 3 Stories ‘+ Main Building, 6 Stories ‘© Main Central, 5 Stories © Stevens Building, 6 Stories © West Building, 3 stories + Radiology DRAFT 18Muhlenberg Hospital Area in Need of Redevelopment Investigation Report City of Plainfield ‘The newest building on site was constructed in 1989, However, the use of many areas of the older buildings, and in some cases entire buildings, was discontinued by the hospital over time due to their functional obsolesce or because of an overabundance of space. Multiple floors of the old buildings have not been used since the 1990's, while most of the West Building, for example, has been closed since before the JFK merger in 1986. ‘The state of abandonment is evidenced by navigating the maze of buildings, rooms, hallways, elevators and staircases. Some rooms are filled completely with equipment and storage, and some cases, are unnavigable. In other areas, rooms appear just as they must have been before the hospital closed, with medical equipment still in place. ‘There are a number of issues that have degraded the condition of the hospital so as to make large portions untenable for use. Leaks in the roofing, coupled with breaks in the old sewer lines, have caused substantial water damage. The old-style cast iron sewer lines have corroded and rusted overtime, with the corrosion accelerating since they stopped being used after the hospital's closure. The pipe gaskets dried out, creating cracks, and causing leaks. ‘The leaks throughout the ceiling have caused the ceiling tiles to soak and crumble to the floor, ‘The photos on the following pages show the extent of deteriorated building conditions. To summarize, some of the issues impacting site conditions include, but are not limited to, the following: Mold on the walls © Damaged ceilings + Flooded rooms + Antiquated heating/cooling systems + Rusted plumbing + Rooms filled with abandoned equipment © Non-compliant ADA facilities + High likelihood of asbestos, ie, the old powerhouse building, window caulking and glazing © High likelihood of the presence of ead paint JFK cites a number of investments it made in the years leading up to the hospital’s closure, suggesting the company was not deliberately deficient in its maintenance, These include a renovation of the “Stevens 6" building approximately 12-18 months before the closing, and the construction of a new state-of-the-art colorectal operating room. The hospital underwent renovations of a number of patient rooms and purchased new MRI machines. Renovations to the roof and capital improvements to the cooling towers were also conducted. JFK had also recently built an automated pharmacy, complete with a robot arm and costly operating software. According to JFK, these investment cost in the millions. In the end, the continued operations for such a large facility were not financially feasible considering ever-decreasing patient numbers and revenues. Today, only the temporary SED is operational at the site. The SED sees approximately 17,000 patients per year. JFK expects to expend several million dollars to move the SED to the Kenyon DRAFT 8Muhlenberg Hospital Area in Need of Redevelopment Investigation Report City of Plainfield House building, where they are currently doing renovations so DeVita Dialysis can operate on the second floor. In the meantime, to keep the SED running, the hospital must operate utilities for the entire 600,000 square foot building. This includes operating a chiller that is sized for a 600,000 square foot building for only a 15,000 square foot SED area. Utilities expense for the SED are currently costing upwards of $1 Million per year, an estimated $67 per square foot, where expenses for such a facility would typically be in the range of $3 per square foot (per owner). EXTERIOR SITE PHOTOS — View of temporary emergency room Older medical building Mix of building ages View of SEDs next to older building View from upper stories View from upper stories DRAFT 20.Muhlenberg Hospital Area in Need of Redevelopment Investigation Report City of Plainfield Construction office attached to building Operating Pavilion's old exterior Iyregion Sire PHoTos Water damaged floor tile Damaged drop-down ceiling ‘Molded wall DRAFT caMuhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield Outdated, inefficient heating View of old operating room in Stevens/Surgery A Larger, more modern hallway in new building DRAFTMuhlenberg Hospital Area in Need of Redevelopment Investigation Report City of Plainfield Cluttered nurse's station View of rusted plumbing View of mold damage View af non-camnliant ADA elevator Viow nf West tbh mold and deteriaration DRAFT. 2BMuhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield View of water damage near electrical outlets View of mold and dilapidation Medical equipment Outdated electrical outlets and bed controls DRAFT. 3‘Muhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield VIII. Designation ‘The above analysis was conducted to determine if the study area meets the statutory criteria for designation as an “area in need of redevelopment,” pursuant-to Section 5 of the Local Redevelopment and Housing Law (the “LRHL’, P.1992, (.79,s.1) of the New Jersey Statutes. CAITERUA ARPLICARILITY ‘The building has outlived its functional use as a Hospital. According to an Urban Health Institute (UHI) report titled “The Feasibility of Reestablishing a Hospital in Plainfield, NJ" and dated January 2012, “it is unlikely that legitimate for-profit hospital company would invest in the service area, although the 17-acre HRMC site might be of interest as a real estate development option... there is no viable future for a new hospital in Plainfield” The hospital consistently generated multi-million dollar annual operating losses; by 2007, the deficits threatened the financial viability of the JFK/Solaris Health System. Chronic underfunding, exacerbated by declining patient volumes and a substantial cost burden associated with caring for the uninsured and undocumented, suggested little opportunity for financial stability and to further reduce expenses without risking quality patient care, Consequently, Muhlenberg Hospital closed in 2008. Since that time, the site has failed to attract any serious investors. ‘An oversupply of area medical facilities is another reason Muhlenberg Hospital could not remain competitive. The high vacancy rates of medical office space, and the close proximity of other nearby facilities offering similar medical services, contributed to the supply and demand problem. There are eight (8) other area hospitals located within a 13 mile radius of the site that also cover Muhlenberg's health care service area (JFK Medical Center, RWJ University Hospital at Rahway, Overlook Hospital, St. Peter's University Hospital, RW] University Hospital New Brunswick, Raritan Bay Medical Center ~ Perth Amboy, Somerset Medical Center, and Trinitas Hospital). As a result of Muhlenberg's closing, the viability and efficiency of these hospitals will be strengthened. The site would be severely constrained for hospital re-use considering its obsolete design. The sheer size and arrangement of the building limits what could be accommodated on the site. ‘According to JFK, a new modern-day, long-term care facility of this kind would be 1/6 the size of the current building. ‘The obsolescence of the building, coupled with the high expense of maintaining such a large facility on 11-acres, makes the site undesirable from a hospital reuse perspective. Furthermore, significant investment would need to be made to the building to modernize and convert it to another medical use, The hospital does not meet the new standards for healthcare facilities, promulgated in 2012 by the Affordable Care Act, and adopted by the State of New Jersey. While active hospitals are “grandfathered” in, any opening of a hospital at this site would be considered a new facility that would need to comply with the regulations. ‘A massive investment would be required to bring the facility into compliance with the standards. ‘The HVAC systems would need replacing, for example, as the standards no longer permit re- DRAFT eeMuhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield circulation, and require the use of 100% outside air, To this effect, the HVAC units need to be much larger than the existing units, and all of the ductwork would need to be replaced with larger sizes. The facility's mechanical systems would need replacing, as well as the electric distribution system. Where today’s standards require upwards of two dozen emergency outlets for each hospital bed, the hospital beds have access to, at most, four electrical outlets. The outlets are also outfitted with outdated writing, consisting of wire wrapped in paper. Hospital beds are also required to have data outlets, where there are no data outlets at this facility. The bathroom facilities do not meet the new standards, and in particular, the showers are not ADA accessible. The patient rooms are too stall and do not have the clearance needed for ADA accessibility. Given its age and obsolete technology, essentially all of the equipment within the hospital would need replacing, a tremendous expense. A new hospital bed today, for example, costs in the range of $17,000. Any interior retrofitting of the building would also be met with substantial difficulty and expense. According to the hospital's facility manager, approximately 80% of the interior wall partitions throughout the hospital are masonry and tile block. Even the individual room closets contain masonry partitions. This is the case for nearly all buildings, except for the 1989 addition, another indication ofits obsolescence. ‘The daunting cost of demolition work (estimated at an approximate $4.8 million by the owner) for such a large facility, and the current zoning for the area, has also likely contributed to the site's prolonged vacancy and deterred any credible sale or development offers. Since its vacancy in 2008, the building has fallen into a great state of disrepair so as to be untenantable. A lack of regular use and maintenance has contributed to the site’s visible deterioration. As discussed, despite the investments put into the property prior to the site's closure, the building is simply too large, too outdated, and too costly to maintain, With the 24-hour Satellite Emergency Department (SED) move expected in October 2015, the site will be fully abandoned. A completely vacant site will create an increased security risk to the surrounding neighborhood. With little daily activity occurring on site (“eyes on the street”) because of the facilities closure, the further abandonment of such a large complex upon the SED's closure, may contribute to higher incidence of criminal activity. This presents a faulty arrangement for the site. For the reasons discussed above, the continued vacancy of such a large site has negative implications for the surrounding neighborhood and is detrimental to the safety, health, and welfare of the community. The long-term vacancy could impact property values for the surrounding area and deter investment in other locations. As demonstrated in the analysis above, the property's conditions have not improved over time. The nearly 11-acre deteriorated property is a symbol of disinvestment, a beacon of long-standing abandonment for a once-thriving landmark that provided an essential service to the community. DRAFT 25Muhlenberg Hospital Area in Need of Redevelopment Investigation Report | City of Plainfield (CRITERIA RECOMMENDATION Based on the above research and analysis, the property meets the “a’, "b” and “d” redevelopment criteria, as defined in Section 5 of the Local Redevelopment and Housing Law: (a) The generality of buildings are substandard, unsafe, unsanitary, dilapidated, or obsolescent, or possess any of such characteristics, or are so lacking in light, air, or space, as to be conducive to unwholesome living or working conditions. () The discontinuance of the use of buildings previously used for commercial, manufacturing, or industrial purposes; the abandonment of such buildings; or the same being allowed to fall into so greata state of disrepair as to be untenantable. (@) Areas with buildings or improvements which, by reason of dilapidation, obsolescence, overcrowding, faulty arrangement of design, lack of ventilation, light and sanitary facilities, excessive land coverage, deleterious land use or obsolete layout, or any combination of these or other factors, are detrimental to the safety, health, morals, or welfare of the community. DRAFT HEMuhlenberg Hos al ran ead of Redevelopment vesignion Report | Cl of Panel IX. REHABILITATION ANALYSIS OVERVIEW Designating an Area in Need of Rehabilitation pursuant to the LRHL permits a municipality or redevelopment entity to use all of the powers of redevelopment, except that a municipality may not use eminent domain, nor grant long-term tax exemptions. A rehabilitation designation permits ‘municipalities to grant short-term tax exemptions (5-Year abatements) to developers and private property owners within a designated area to encourage property owners to rehabilitate and reinvest in their properties. A rehabilitation Area can be designated by Resolution of the Governing Body. The Governing Body is required to submit the proposed resolution to the Planning Board for its review and comment. A public hearing by the Planning Board, however, is not required by the Statute. The Planning Board must submit its recommendations regarding the proposed resolution, including any modifications, within 45 days of receipt of the proposed resolution. Thereafter (or after 45 days if the Planning Board does not submit recommendations) the Governing Body may adopt the resolution, with or without modification, Upon designating an Area in Need of Rehabilitation, a municipality can also prepare and adopt a Redevelopment Plan for that area. The process and content of a Redevelopment Plan is governed bythe LRHL. (CAITERLA FOR. REMARILITATION AREA DETERMINATION. Pursuant to NSA. §40A:12A-14(a), a delineated study area may be designated “in need of rehabilitation” by a municipality if it is determined that a program of rehabilitation, as defined by section 303 of P.L.1992, ¢.79 (C.40A:12A-3), may be expected to prevent further deterioration and promote the overall development of the community, and that there exist in that area any of the following conditions. A delineated area may be determined to be in need of rehabilitation if; (1) A significant portion of structures therein are in a deteriorated or substandard condition; (2) More than half of the housing stock in the delineated area is at least 50 years old; (3) There is a pattern of vacancy, abandonment or underutilization of properties in the area; (4) There isa persistent arrearage of property tax payments on properties in the area; (5) Environmental contamination is discouraging improvements and investment in properties in the area; or (6) A majority of the water and sewer infrastructure in the delineated area is at least 50 years old and is in need of repair or substantial maintenance. DRAFT 28‘Muhlenberg Hospital Area in Need of Redevelopment Investigation Report City of Plainfield EVALUATION Criteria [1] - A significant portion of structures therein are in a deteriorated or substandard condition; ‘This criteria is satisfied. The findings of the preceding Area in Need of Redevelopment Study show that a significant portion of the structures on Lot 3803 are deteriorated or in substandard condition. The site meets redevelopment criteria “a,” "b,” and “d” for having structures which are substandard, unsafe, unsanitary, dilapidated or obsolescent, or possess any such characteristics conducive to unwholesome living or working conditions; abandoned and have fallen into so great a state of disrepair as to be untenantable; and are detrimental to the safety, health, morals, or welfare of the community. Criteria [6] - A majority of the water and sewer infrastructure in the delineated area is at least 50 years old and is in need of repair or substantial maintenance. This criteria is satisfied. The original buildings on site were constructed more than 100 years ago, ‘With the exception of the SED addition in the 1980's, all other additions were constructed before the 1960's, The City’s Engineer, Pennoni Associates, Inc, has provided a letter (Appendix C) indicating that to the best of their knowledge, the water and sewer infrastructure is at least 50 years old. As indicated in the above Area in Need of Redevelopment Analysis, the hospital has the old-style cast iron sewer lines, which have corroded and rusted overtime. The pipe gaskets have dried out and cracked. In these places throughout the building, water bursts from the ceiling causing massive damage to the facility. ConciusioN. ‘The study was prepared on behalf of the City of Plainfield to determine whether the Muhlenberg Hospital Study Area (Block 13, Lot 38.03) qualifies as “an area in need of rehabilitation” in accordance with NJS.A. §40A:12A-14(a). Based on the findings above, the area: meets Rehabilitating Criteria “(1)" and “(6)” Further, a program of rehabilitation may be expected to prevent further deterioration of the area. DRAFT 23CITY OF PLAINFIELD 03815 RESOLUTION AMENDING CITY COUNCIL RESOLUTION R 442-14 AUTHORIZING ‘THE PLANNING BOARD OF THE CITY OF PLAINFIELD TO CONDUCT an INVESTIGATION PURSUANT TO N.JS.A. 4A:12A FOR PROPERTY DESIGNATED AS BLOCK 13, LOT 38.03 ON THE CITY TAX MAP SHEETS 74 AND 79; AND BLOCK ‘729, LOT 1 ON CITY TAX MAP SHEET 97; AND ADJACENT LOTS As DEEMED APPROPRIATE, AND DIRECTING THE PLANNING BOARD TO HOLD THE PUBLIC HEARING AND REPORT TO THE CITY OF COUNCIL AS DIRECTED ‘THEREIN TO REMOVE LOTS 38.01 AND 38.02 IN BLOCK 13 AND LOT TIN BLOCK ‘729 FROM THE STUDY (MUHLENBERG TRACT) WHEREAS, on November 10, 2014, the Plainfield City Council adopted Retolution 442-4 (atached berets) authorizing the Panfcld laming Board to undertake a pines investigation to determine whether Block 13, Lots 3801, 38.02, 38.03 onthe Cy taxanay secs, 134 and 79 (1203-1231 Park Avenie, 1201-1202-1354 Randolph Road, 1301-1925 Wienges, Avenue), and Block 729, Lot 1 (1204-1248 Park Avenue, 329 Randolph Road 2-34 Dass Road) on City tx map sect 97, and appropriate adjacet lis is a edeveopmen ra sccoding {othe eriteria set forth in NJLS.A.40A'I2A, and to roport such deteinaion the Cy Gao alter publie notice snd public hearing, and WHEREAS, upon futher review it has beer recognized that two ofthe ot designated 1» be included in the ‘In Need of Redevelopment Study" Block 13, Lot 38.01- Naveld See Dorothy A. Snyder Nursing School, and Black 13, Lot 38.02" Kenyon Howe Disivos GeatefSateie Emergency Departnet: aro viable stucturcy/opeatons that house a rare school and satelite emergency |deparment respectively which will contaue to opens ‘eppriless of any redevelopment study and should therefore be removed fiom thestay, ane WHEREAS, it has been furtber determined to remove Lot 1, In Block 729 (1204-1248 ati Avenue, 3.29 Randolph Road, 2-34 Lararaie Road); and WHEREAS, the City seeks identify areas in neod of redevelopment or rebabilitation, develop a plan for the redevelopment of such areas and 10 undertake or overtee the redevelopment of such area, all a prt ofan overall comprehensive city-wide redevelopment initiatives and WHEREAS, pursuant to NJSA. 40A:124, no area of a municipality shall be detemined a redevelopment area unless the governing body of the municipality by resolution stuthorizes the Planning Board 10 undertake a preliminary investigation to determing Whether te Proposed ara is a redevelopment area according to the eiteia set forth in NISA AUAI3Ac3, ‘ran area in need of rehbilttion according tothe criteria set forth at N.J.S.A. 40A 124-14, ese WHEREAS, pursuant to N.LS.A40A:12A-6 the governing body bas determined that {his resolution ruthorizes the municipality to use al of thase powers provided bythe Legisatone foruse in a redevelopment area including te use of eminent domain: and WHEREAS, pursuant to NJSA. 40A:12A, such determination shall be made afer Public notice and public hearing as provided in the statute, NOW, THEREFORE, BE IT RESOLVED, by the City Counc of the City of Plainfield, New Jersey as follows: |. Plainfield City Comneil Resolution 442-14 is hereby amended to remove Block 13, Lot 38.01- Harold B. end Dorothy A. Snyder Nursing School, and Block 13, Lot 38.02- Kenyon House Dialysis Center, and Block 729, Lot | fom the “in Need Sly Area”,2. The Planing Board is herby authorized to underake «preliminary investigation to determine whether Block 13, Lot 38.03 on the City fax map sheets 74 and 75, cn te City fax map sheet 97 (tax sheets attached hereto), and appropriate adjacent lots ie redevelopment area according to the criteria sct forth in NZS. 40A19A, end th ‘port such determination tothe City Council after public notice and public hearing 3. A ‘tice of this action shall be published in the official newspaper authorized to ‘Publish legal notices forthe City a required by law. ‘4. A copy of this resolution shall be filed in the Office ofthe City Clerk ADOPTED BY THE MUNICIPAL COUNCIL January 20, 2015 “Ab abakar TR RWC Municipal Clerc ‘SLERK'S CERTIFICATION, {nfhubakasJaloh, ly Clerk ofthe City of Plaivetd do hereby cently thatthe foregoing ie a ttue copy ofa resclution duly adopted by the Plaintels Cy Cours Pobakar AIGA RT Manipal Clerc"317 ABANDON GUYHOW oN 6 "Sto SUN XW 26Feea)(Pennon July 28, 2015 William Nierstedt, PP, AICP Director of Planning/Zoning Officer 515 Watchung Avenue, Second Floor Plainfield, NJ 07060 RE: Muhlenburg Hospital City of Plainfield, NJ Dear Mr. Nierstedt, Please be advised, that to the best of our knowledge and belief, the water and sewer infrastructure at Muhlenberg Hospital located in the City of Plainfield, is in excess of 50 years old. The facility having been originally established in the late 19" century. Please contact this office with any questions you may have. Very truly yours, Pennoni Associates, Inc. ao lee Drew M. Di Sessa, P.E., P.P. City Engineer Representative 05 Fericrest Avenue © Sute 502 « Eason, NIOBES7 + Tel 908-653-0889 © Fc 908-653-0530