Broadway is the sixth and final redevelopment zone designated in the city. The area is a patchwork of businesses, empty buildings and vacant lots.

Broadway Arts Center LLC presented its plans for a two-block tract within the zone to the City Council Tuesday night.

The Katz and the Siperstein families, which together own Siperstein's Paint and Decorating Centers, and the Pereira families, which own Pax Construction, among other properties, are the partners who now have 120 days to pursue exclusive negotiations with the city, according to a memorandum of understanding approved Tuesday night.

Both Siperstein's and Pax Construction are Long Branch-based.

Their proposal, in many ways, validates the redevelopment, which city officials said had to begin on the oceanfront but, if successful, would inspire redevelopment westward into the city where it was direly needed. Todd Katz estimated that construction could start within two years.

"The rest of the (Broadway) redevelopment area is in pretty good shape and that will slowly move forward on its own," said Katz, who sits on the boards of the city Chamber of Commerce and Urban Enterprise Zone. "Our two-block area is really the weak link of the whole redevelopment area."

The entire Broadway redevelopment zone encompasses 72 acres, stretching from Second Avenue west to the railroad tracks. The area would be transformed into an arts and entertainment district, as envisioned by the city's redevelopment plan. Katz said while he hoped it would be competitive with New York's cultural scene, his real goal was to create a regional destination and provide local people with more cultural choices.

"There was at one point several theaters on that block, and I know (the city) wanted to keep that integrity and historical reference," Katz said. "The main part is to make this something for the local community to come and enjoy."

Although Katz wouldn't discuss specifics about financing, City Business Administrator Howard H. Woolley Jr. put the value of the project at $100 million. The agreement signed Tuesday could lead to a more formal developer's agreement down the road.

The developers will move forward on their own, without any financial incentives from the city, which is unusual in these circumstances, said Patience O'Connor, president of O'Connor & Co., a Washington, D.C.-based marketing firm for the project.

The proposal calls for the preservation and restoration of the old Paramount Theater, which is now used as a warehouse by Siperstein's. The zone also would be anchored by the New Jersey Repertory Company, which would keep its existing location at 179 Broadway, for educational purposes or perhaps a children's theater, and would move other operations into the area to be redeveloped, Katz said.

Officials said there are a few rental housing units in which tenants might have to be displaced, and also some businesses that will have to go.

"The process has really just begun," Katz said when asked how many businesses would be affected. "Our plan is if there is an existing business, doing well, being successful, we want them to remain."

One person not in favor of the proposal is Kevin Brown, a Baptist minister who's Church owns a building at 162 Broadway that he has been trying to develop into a church and mission but who has been rebuffed because churches are not a permitted use in the zone. In fact, Brown has taken the city to court, claiming his constitutional rights are being violated. That suit is pending In the Federal Courts.

Brown is also concerned that Katz's now wants to redevelop the very area he has owned most of the buildings in for 20 years.  What faith can we have in him, as he did nothing with his own lands and buildings for 2 decades, now he wants every ones land and buildings.  Another concern Brown has, is that Katzs record is actually not all that good.  The buildings he has leased out have on more occasions than he cares to mention been illegal sex-oriented massage parlors, strip joints, etc.  "Now he wants to be designated the developer in the "Entertainment" district. That's laughable."

Meanwhile, Pratap R. Talwar, a consultant who is the principal architect of the entire city redevelopment plan, has said a church use in the redevelopment zone would be incompatible with entertainment uses such as theaters, restaurants and bars. City Planner Carl H. Turner Jr. has said churches are allowed in 90 percent of the city.

"I am the biggest obstacle you have on that block, and no one has even had the decency to invite me to one meeting which is making plans to do something on land we own," Brown told the council. He said he might amend his lawsuit to include other defendants, implying the developers of this project. "All you are doing is building greater damages (from his lawsuit) as this comes to an end." Brown is not against the plan as it hopes to create the new area, however he is fighting to be included as a Church, which pre existed any plan for redevelopment.  Actually Brown showed interest in the area a full decade ago when he purchased the building which was abandoned and unused since 1976 until he moved into in 1995.

Mayor Adam Schneider said the Broadway Arts Center proposal is not a finalized one.

"What will be built there will be a negotiated process," he said. "It will take at least six months to get there. Some things will be razed. Some will not."

The project, as proposed, would have about 170,000 square feet of retail space; there is about 60,000 square feet there now, said O'Connor. So far, about eight retailers have expressed an interest, said O'Connor. Many of the shops would be between 1,800 and 2,500 square feet, shops that would be different than what could be found in a mall or strip center, she said.

"Our whole" goal "with the retailers that exist now is to try to start working with a number of them to help them be competitive," O'Connor said.

The proposal also includes a parking garage with about 1,288 spaces.

Housing is another element of the plan, with the addition of "live-work" stations in which say a gallery would operate on street level and the gallery owner would live upstairs. Housing also would wrap around the parking deck, ac-cording to Steven Schukraft of the Hok Planning Group, the Washington, D.C.-based architects for the project.

Proposed are 100 affordable and 56 moderate-priced housing units and 296 market-rate units. Housing prices would be-gin around the $180,000 mark, and officials said there was an urgent need in the city for housing in that price range.

There would also be 100 units of rental housing for Mon-mouth University students.

"We believe in the importance of growing the university activities," said Schukraft. "It is important it is done in balance."