Boro, Kaplan ready to move ahead on mill
Lawsuit settlement signed by former and current redevelopers
BY SETH MANDEL
Staff Writer

The question of just who will be developing the former Helme Tobacco Co. site has been settled along with a related lawsuit against Helmetta.

An agreement was signed this week to allow the sale of the property from Helmetta Lenape LLC to Highland Park-based Kaplan Cos., which will redevelop the area with age-restricted condominiums and businesses, along with recreational and open space amenities.

Helmetta Lenape was the initial redeveloper, selected by the borough in June 2004, but failed negotiations resulted in the dismissal of the company less than three months later.

After later choosing Kaplan Cos. as the redeveloper, the borough was served last summer with a wrongful termination suit by Helmetta Lenape.

But the purchase and sale agreement struck this week between Kaplan and Helmetta Lenape stipulates that upon transfer of title of the property, that lawsuit will be dismissed.

Officials expect the transfer to take place on or about April 1.

“The borough is excited that the contract has been executed between our redeveloper, Kaplan Cos., and the owner of the Helme factory property,” Mayor Nancy Martin said. “We have spent months working on finalizing the detailed concept plan and redeveloper’s agreement, and we anticipate both taking place by the end of this year.”

Michael Kaplan, owner of Kaplan Cos., said the agreement was satisfactory to the two development firms as well as the borough.

“We’ve been sort of held back until this was completed; otherwise, we would have ended up in court, and that’s a waste of everybody’s time and money,” Kaplan said. “We have moved it forward, and hopefully now the focus can be on the development that we have put together.”

The plan for the five-parcel site, which will be known as the Village at Helmetta, includes 233 age-restricted units on four of the parcels, with the other parcel designated for open space and recreation.

Details regarding the settlement, such as the price Kaplan will pay for the property, were not made public. But Kaplan said that with any such agreement, both parties must find common ground and make concessions.

“In a common agreement, both parties have to be a little bit unhappy,” Kaplan said. “The important thing is that we have come to an agreement that’s acceptable to all parties, and now the focus can be on moving forward and getting the various necessary approvals.”

Michael Supko, an attorney representing the borough for the redevelopment effort, said the project can progress prior to the closing on the sale of the property, though Kaplan’s obligations and a more specific timeline will be laid out after the redeveloper’s agreement is finalized.

“With a project of this size, there are a lot of steps that have to come together before we can actually start doing demolition and construction, so that’s really what the borough is involved with right now,” Supko said.

The project will require approvals on the local, county and state level, and Supko said the borough is now free to file the necessary applications.

Martin said the borough hopes to obtain many of the state approvals within the next few months.

Richard Goldman, attorney for Helmetta Lenape, had claimed that the developer was terminated despite having agreed to all the amendments to the redevelopment plan that the governing body had put in place.

It was also the company’s contention all along that it still hoped to redevelop the property, and that its professional relationship with the borough, though damaged, was reparable and necessary to a redevelopment project that would be beneficial to residents while honoring the borough’s wishes for the property.

The borough’s choice of Kaplan resulted in litigation and the possibility that the land would have to be purchased through eminent domain, but Supko said officials had expected to resolve the issue without either.

“It was the borough’s intention all along to try to resolve this amicably,” Supko said.

Martin said the borough will notify residents when a public presentation is scheduled regarding the redeveloper’s agreement and the concept plans for the snuff mill site.

“The borough and the Kaplans have been working nicely together, and we expect the project to move forward as planned,” Martin said.