Property owner's suit stalls redevelopment
Ford Ave. owner says Milltown falls short on affordable housing
BY JESSICA SMITH
Staff Writer

MILLTOWN - - The long-controversial Ford Avenue Redevelopment Plan is on hold pending the outcome of a lawsuit filed by the owner of the site.

Lawrence Berger, president of SB Building Associates and SB Milltown Industrial Realty Holdings, has alleged that Milltown is not fulfilling its affordable housing obligation, among other assertions made toward the borough's redevelopment agency and Planning Board. Berger owns the former Michelin Tire Co. property, which the borough wants to acquire for redevelopment as age-restricted housing and retail space.

"It is a very, very serious claim that has been made," redevelopment agency chairman Anthony Zarillo said of Berger's lawsuit. "My expectation is that a reasonable solution will be the end result."

On Jan. 18, a consent order was entered by state Superior Court Judge James Hurley for a 90-day stay of any activities that would move along the redevelopment plan, according to redevelopment agency attorney David Himmelman. The Planning Board began hearing testimony on the plan in December, but the court decision has placed future hearings on hold.

The lawsuit, filed in November, names the borough and Planning Board; Ford Avenue redeveloper Boraie Development; the redevelopment agency; Middlesex County and the Board of Chosen Freeholders as defendants.

The land in question is a 22.5-acre tract consisting mainly of old industrial buildings. The redevelopment plans call for 276 age-restricted housing units, about 25,800 square feet of retail and commercial space, and 8 acres of open space, 4 of which were to be purchased by the county.

About 16 units of affordable housing are included in the plan, although the suit claims the redevelopment would not have provided for any low- to moderate- income housing.

Those 16 units have also made their way into the argument of a citizens' group that is opposed to the redevelopment.

"[Zarillo] lied to the people when he said there aren't going to be any more schoolchildren involved," said Charlie Jegou, founder of Milltowners for a Sensible Ford Avenue Redevelopment.

Although the 16 affordable housing units would possibly bring students into the borough's school system, the age restriction on the other 260 units is meant to ensure that no additional students would add to residents' school taxes.

Jegou, along with his wife, Carol, feels that neither the existing plan nor Berger's plan would be good for the town. Despite this, he said he is pulling for Berger to prevail in the case.

"If Mr. Berger wins, now we have a chance to say, 'No, this is no good,'" Charlie Jegou said.

Berger is proposing 550 housing units, which would not be age-restricted. A larger portion of Berger's units would be dedicated to meeting the borough's affordable housing obligation.

The site was previously zoned for commercial and light industrial use, but borough officials determined that residential use would be permitted as long as it was kept age-restricted for seniors. Berger would need to obtain permission from the borough to go forth with non-age-restricted housing if he wins the lawsuit.

Involved parties declined to comment specifically on the litigation and what it could mean for the town.

The plans for Ford Avenue first began to take shape in 2001 when the Borough Council established the redevelopment agency. As the plans were formulated and a redeveloper chosen in the years since, there has been much debate among residents and borough officials about whether the plans are good for the community.

"Both plans are high-density housing," Carol Jegou said. "They're both terrible plans. It's a bad situation."

The Jegous said they disagree with the town's plan to purchase or possibly condemn Berger's property only to pass it on to Boraie, another private owner.

Charlie Jegou also stated that, under either plan, the existing sewer lines would not be able to handle the new development. Necessary additions to the sewage system would cost taxpayers millions, he said, which is why his group is hoping for a chance to turn the plans around to align with the original zoning of light industrial and commercial.

Borough officials and proponents of the plan feel the redevelopment would clean up the property, improve the aesthetics of the area and bring tax relief to residents. Boraie's firm has estimated that the new uses on the site would generate more than $1.5 million in annual property tax revenue, as opposed to the $200,000 currently paid on the property.

"We'll just work for the good of the people, that's all we can do," Mayor Gloria Bradford said when asked to comment on Berger's lawsuit. "It's very disappointing, but we'll still go on."

The case is scheduled to be heard April 11 in Superior Court, New Brunswick.

Berger has previously complained that the borough and Boraie want to purchase his property based on its value as an industrial site, whereas the price would be much higher based on the future residential use.

Berger wrote a letter to Zarillo last May stating that Boraie did not intend to pay fair market value for the property and as a result should be dropped from the project. Boraie in turn said he was willing to negotiate with Berger at any time, but that Berger's concept of fair market value was far too high, even considering the residential use.