Economic Development in Fanwood

Timeline of Key Investments

Core Strategies

• Transit-Oriented Development Framework: Fanwood adopted a Smart Growth framework aligned with the New Jersey State Master Plan, leveraging its active NJ Transit Raritan Valley Line rail and bus access to create a centralized, less auto-centric downtown.
• • Preservation of Existing Spaces: By intentionally focusing new housing and work opportunities within transit locations and the downtown area, Fanwood successfully protected its existing single-family residential neighborhoods, open spaces, and parks. Fanwood's housing stock is comprised of over 85% single-family owner-occupied housing units.
• • Adoption of Targeted Redevelopment Plans: To guide investment and revitalize a downtown block previously filled with vacant light industrial uses and brownfields, the Borough adopted a formal redevelopment plan for Block 64 in 2005.
• • Commercial Corridor Zoning: Recognizing that the entire South Avenue corridor faced long-term vacancies of former light industrial properties and disjointed, auto-centric development, Fanwood implemented commercial corridor zoning in 2015 to establish strong design criteria and create a pedestrian-friendly environment extending beyond the initial area across from the train station.
• • Establishment of Rehabilitation Areas: Because the South Avenue corridor met state criteria for stagnation and underutilization, Fanwood designated it as a "South Avenue Area in Need of Rehabilitation" in 2016 to unlock state-level revitalization tools.
• • Short-Term Tax Abatement Incentives: The Borough utilized New Jersey's five-year exemption and abatement law — permitted in an area in need of rehabilitation — to stimulate private investment by granting a temporary tax abatement solely on the added value of new, substantial construction or property improvements.

Positive Results

• Substantial Capital Investment: The smart growth approach successfully attracted over $70 million in private investment into downtown Fanwood.
• • Complete Block 64 Downtown Transformation: The initial 2005 redevelopment plan culminated in 2018 with the opening of Station Square — an award-winning project built on a formerly polluted and vacant parcel that underwent a multimillion-dollar cleanup. Today, the downtown block is a fully occupied, vibrant core of the community.
• • Creation of Vibrant Public Spaces: Early mixed-use investments such as the Marcovecchio and Ling properties paved the way for Fanwood Crossing I, II, and III, which introduced new housing, retail spaces, a new municipal parking lot, and a community gathering plaza.
• • Fulfillment of Affordable Housing Mandates: The South Avenue commercial corridor zoning overlay provided the legal mechanism for Fanwood to demonstrate compliance with state-mandated 3rd Round affordable housing provisions (2015–2025) by clustering multifamily housing near transit. This area has also been accepted into the 4th Round (2026–2036) obligation. Notably, no additional areas within Fanwood were required to be identified for affordable housing production in the 4th Round.
• • Elimination of Long-Term Blight: Strategic tools have helped attract new businesses to long-vacant blighted properties along South Avenue, including the adaptive reuse of the former Sun Tavern into Lightbridge Academy, the relocation of Fanwood Animal Hospital into a vacant commercial building, and the development of 40 South Avenue on the site of a former restaurant that had sat fallow for over 10 years.
• • Increased Tax Revenues and Ratables: The Fanwood Animal Hospital became the first property within the commercial corridor area in need of rehabilitation to qualify for the 5-year tax abatement starting in 2021. By year six, its full assessment permanently increased tax ratables, generating additional cumulative revenue for Union County, the SPF Board of Education, and the Borough — thereby reducing the tax burden on single-family homeowners.
• • Continued Investment: Recent South Avenue developments have increased total investment in Fanwood to over $70 million, bringing new retail tenants and new residents. The significantly higher assessed property values will result in substantially higher tax revenue to the Borough, County, and Schools.
• • Far-Reaching Benefits: The zoning changes, the creation of an Area in Need of Rehabilitation, and the use of state financial incentive tools have produced significant improvements along South Avenue and supported the vibrancy of the entire Borough. These actions enabled affordable housing goals to be met without substantially changing the character of the community, while adding increased tax ratables that help relieve the burden on single-family homeowners.

Downtown Block

220 South Avenue

Before

After

• Street-level retail
• • 8 residential rental units

234 South Avenue

• Street-level retail
• • 10 residential rental units

Before

After

Fanwood Crossing I – 254 South Avenue

• Street-level retail
• • 24 residential rental units

Fanwood Crossing II – 246 South Avenue

• Street-level retail
• • 40 residential rental units

Before

After

Fanwood Crossing III – 233 La Grande Avenue

Before

After

• 16 two-bedroom residential rental units

Before

After

• 35 total residential units
• • 28 market-rate units
• • 7 affordable housing units with the Affordable duplex and flat units
• • Completed in 2018–2019

Lightbridge Academy – 15 South Avenue

40 South Avenue

• 23 market-rate rental units
• • 4 affordable housing units
• • Ground-floor retail space

Before

After

K9 Resorts Expansion – 57 South Avenue

70 South Avenue

Carano Square Redevelopment Project – 105 South Avenue

• 140 residential units
• • Brownstone-style frontage design
• • Significant resident amenity spaces
• • A 5,000-square-foot restaurant with a rooftop bar

Fanwood Animal Hospital – 137 South Avenue

New Fabio's Restaurant – 200 South Avenue

SOHO at Fanwood – 282 South Avenue

• 58 residential units
• • 9 affordable housing units
• • Ground-floor retail and amenities
• • Current retail tenants: Beem Light Sauna, Real Hot Yoga

South Avenue Streetscape Improvements

Business Liaison Program

Greater Westfield Area Chamber of Commerce (GWACC)