Talks on Route 18 site will move into 2005 Town using Heavenly Farms money to fill budget gap BY VINCENT TODARO Staff Writer EAST BRUNSWICK — The township will use funds earmarked for the Heavenly Farms purchase to fill a $4 million budgetary shortfall. The move is being made due to unresolved redevelopment negotiations for the Golden Triangle site, as officials had initially sought to use funds from the sale of that township-owned property as revenue in this year’s budget. Though officials had hoped to reach a deal on the property by 2005, that will not happen, said Township Attorney Michael Baker. The council therefore voted at Monday night’s meeting to extend negotiations on the purchase of the Route 18 property through Feb. 28. The extension will also allow talks with developers other than Toll Bros., which since the spring has been in discussions to buy the property where stores including Sam’s Club are located, along with a municipal park-and-ride. Toll Bros. initially offered just over $30 million to redevelop the area, and the township anticipated $4 million of that in the budget. The funds were being used to avoid a potential 20-cent municipal tax rate increase this year. Officials have now decided to instead use $4 million from a county grant to plug the hole in the budget. The money was given to the township to help pay for the purchase of the 147-acre Heavenly Farms tract, but Monday night the council voted to transfer the money to cover the gap. Come October, though, the $4 million will be needed to start paying the debt on the Heavenly Farms purchase. Had the township used money from the developer in the budget instead of the open space funds, the open space money would have instead been invested, a move that would have yielded about $220 per day for the township’s coffers, Township Finance Director L. Mason Neely confirmed. Though officials described the county funds as “surplus,” but critics said the move was deceptive and being made in desperation. Regarding the negotiations, Baker said the township has come to an agreement with Toll Bros. over some aspects of the Golden Triangle project. For example, the two sides have apparently agreed on the proposed parking deck and what interim payments could be made until the developer actually begins construction in 2008. The developer must wait until that time because the current tenants on the property, such as Sam’s Club, have three more years on their leases. Baker said the 40- or 50-page final agreement, including the final design, is not complete. Because the total cost to Toll Bros. depends on unresolved issues, it would be difficult to agree on a final price, he said. Some of those outstanding issues include the amount of office and retail space. Toll Bros. did offer $9.5 million as part of a preliminary agreement, Baker said, something the township rejected. Because it has funds to cover the budget gap, it did not need to accept the offer. Township officials also feared the loss of leverage in the negotiations in accepting the preliminary agreement. Officials did not say if the township will negotiate with another potential buyer. The town received several proposals for the site last year after issuing a request for proposals. Councilwoman Christi Calvano said the town has dug itself a deep hole and is forced to accept the budget transfer or report its debt to the Securities and Exchange Commission. Going to the SEC with the budget gap could cause the township’s bond rating to fall. Calvano, the lone Republican on the governing body, cast the only vote Monday night against the transfer of funds. Councilman Edwin Brautman, whose term expires Dec. 31, abstained from the vote because he did not attend the closed session regarding the situation. “Our feet are really to the fire,” Calvano said, later adding that residents need to be aware of the situation. “Are there gonna be any other surprises that come along? I hope not,” she said. Councilwoman Catherine Diem said she was frustrated with the lack of a deal. Regardless, she said she still feels the township should not hold onto an asset that could save taxpayers money if sold. Council President David Stahl noted how the township has made a good deal of progress in its negotiations with Toll Bros. Mayor William Neary said the deal is taking longer than expected, but said it is wise that officials avoid rushing the township into a deal with the developer.