A three-story 112,000 square foot storage facility is proposed for Magnolia, to be located on the White Horse Pike.
The project would be developed across several lots between Produce Junction and the Regency Court Apartments. Currently the lots are home to Warwick Auto Sales, a building which previously housed Sterling HVAC, and an undeveloped lot.
The placement of the large storage facility would be directly across from the Colombo liquor store.
This project is set to be reviewed for Final approval by the Magnolia Joint Land Use Board on December 20th at 7:30 PM.
The public notice states the applicant has previously received Preliminary Final Major Site Plan approval, and they are now returning for final approval.
A large four-story storage facility is currently under development less than a mile away, on Evesham Road in Somerdale.
Magnolia Redevelopment – Storage Facility
Magnolia has been working with this developer for most of the year. These properties have been designated part of a non-condemnation Redevelopment Plan area, which enables the town to enact special zoning for the designated properties to entice developer investment.
Magnolia documents state that going back to 2019 they had created a larger area of Redevelopment Plan zone, with the goal to entice growth and investment in properties which were in need of rehabilitation.
A Magnolia resolution in May of 2023 states that Nuvo Development Magnolia Urban Renewal LLC submitted a proposal for a storage facility on the White Horse Pike properties, and the borough amended the redevelopment plan to support the inclusion of “self storage facility uses as permitted use” for the four lots associated with the project.
Admittedly the White Horse Pike properties in question do appear to be in need of redevelopment, with an empty lot, an unused commercial building, and the small independent used car dealership.
For the most part this is exactly what the New Jersey redevelopment laws were intended to achieve.… to provide towns with additional powers to identify areas of the town that over the years have become neglected or could simply use an extra “boost” from specialized zoning considerations, in effort to attract private investment in the parcels.
And with new developments comes higher property assessments, and additional tax revenues for the town.
On December 6th an Ordinance regarding a PILOT (Payment In Lieu Of Taxes) agreement with the developer was set to be considered for final passage at the Borough Council Meeting. I do not know the outcome of the ordinance, but I would assume it passed.
PILOT tax programs are one of the capabilities available to Redevelopment Plans. Typically this means the project owners still pay funds representing taxes, but they either receive a known consistent (discounted) tax bill over a longer period of years, or they are offered an initial “stepped” tax discount.
Another advantage to municipalities with PILOT offerings is the funds paid in a PILOT program go 100% directly to the town. Typically, property taxes are split between the town (25%), the County (25%) and the School District (50%). So even if the PILOT development pays less in taxes for some period of time, the amount paid directly to the municipality can be higher.
I am not aware at this time what the PILOT program details are for this Magnolia development.
The project is being proposed by Nuvo Development Magnolia Urban Renewal LLC. Based on the root of the name, Nuvo Development is a Florida based storage facility developer which has been in business since 2014. Their founder traces his roots in the industry back to 1999.
While they do have numerous storage facility projects throughout Florida they have also developed in Pennsylvania, Arizona, and Virginia.
The company was recently approved to develop a three-story 100,000 sq ft storage facility in Mount Laurel, directly next to the Walmart on Rt 73. (70and73.com)
Links and Location
Magnolia Storage Facility
509, 511, 519 and 521 North White Horse Pike
Magnolia New Jersey
Magnolia Joint Land Use Board Meeting
December 20, 2023 at 7:30 PM
Borough of Magnolia Hall
438 West Evesham Avenue
Magnolia, New Jersey 08049