Politics & Government

Mayor Unveils Golden Triangle Deal

An agreement between East Brunswick and Toll Brothers regarding the property has been tentatively agreed to.

Mayor David Stahl and representatives from Toll Brothers presented a concept plan to develop the Golden Triangle property on Route 18 and Tices Lane, Monday.

The project is part of a proposed settlement between the township and developer that could put an end to several years of litigation. The property was originally owned by the township and leased to a company that in turn subleased the land. In anticipation of that deal expiring in 2008, the township explored alternative uses for the land and in 2005 reached a deal with Toll Brothers and Jack Morris to purchase the 32-acre property from the township for $30.4 million. However, the developer had the right to terminate the agreement, and the township would have to buy it back, plus 8 percent. The clause came into play years later when the developers backed out and after seven payments totaling $22.5 million said the township was in default of the contract and demanded East Brunswick buy the parcel back. The township in turn sued and the two sides have been litigating the issue since.

As part of the proposed settlement, there will be no additional payments from Toll Brothers to the township, meaning that the land has been bought for the $22.5 million already paid.

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“When taken into context with my discussions with other developers over the years, this is an excellent price,” said Mayor Stahl, adding that if a proposal to sell the property for $22.5 million that night were discussed, “everyone would be thrilled.”

In addition, the developer also has the right to sell the property back to the township within three years - but at no interest - if the township does not live up to its end of the bargain, said Mayor Stahl. However, the township’s responsibilities are largely administrative and ones that can be easily performed, he said. In addition, the deal would be nullified the moment a “shovel hits the ground,” said Mayor Stahl.

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“I agreed to that provision because I believe the project is ready to go forward,” said Mayor Stahl. "They have a letter of intent from a leading retailer to use the site and have given up the right to approximately $8 million they would have been entitled to. It was a pragmatic decision on my part.”

Part of that $8 million Toll Brothers would have been entitled too would have come in the form of numerous tax appeals it has filed with the township. Part of the agreement calls for those agreements to be resolved between the two parties. Mayor Stahl said the township would have had to pay $600,000 to Toll to deal with the tax appeals.

Also, if the agreement is approved, Toll Brothers can build up to 220,000 square feet of commercial retail space - with no one store being larger than 180,000 square feet - and 200 to 400 housing units. Under the agreement, no more than 10 percent of those units can be three bedroom apartments. Mayor Stahl said he expects Toll Brothers to build close to the maximum number of units allowed.

The agreement also calls for an annual Payment In Lieu Of Taxes (PILOT) of $550,000, which would increase as the residential component is built, said Mayor Stahl. Under state statutes, the PILOT program would be approximately 65 to 70 percent less than the normal property taxes, with that level increasing until 100 percent of property tax levels are reached.

An additional clause allows the developer to lease 150 parking spaces for use by employees of the retail center. The agreement provides that those spaces will be on the top floor of the deck, which is an area that has not been used yet.

During the presentation, Toll Brothers presented a concept drawing of it’s basic proposal, which included a 155,000-square-foot building located in the same area as current structures on the land, and a 400 unit apartment complex behind that, at the corner of Tices Land and Old Bridge Turnpike. Entrances for the Transportation Center would remain on Old Bridge Turnpike and Tices Lane, and a new one would be built from Route 18.

Mayor Stahl said he was pleased with the deal and believes that it will be beneficial to the retail business climate along Route 18.

“We’re on the cusp of adding to the economic growth that’s occurring along the 18 corridor,” he said.

Christopher Gaffney of Toll Brothers said the developer was very close to finalizing an agreement with a major anchor retailer to “provide a springboard for us to move ahead.”

Residents in attendance expressed some concerns with the project, but most agreed that the proposal was better than previous designs.

Alan Wishna talked about the lack of a playground in the area for children in the apartments to use, and about the impact those children would have on the school system.

Councilman Michael Hughes said that 80 kids are expected to come out of the development and would attend Lawrence Brook and Hammarskjold, Churchill and the high school.

In addition, drawings on display Monday were concept plans, and things such as landscaping, parks and playgrounds would be discussed in the Planning board phase.

Resident Andre Conte suggested that the designers plan something that is denser and possibly, more green.

“I think that 10 years down the road, we’re going to regret this development,” he said.

Resident Sharon Sullivan expressed concerns about the jughandle that takes drivers from Route 18 northbound around and over to Tices lane. The problem, she said, is that drivers sometimes have to cut across three lanes of traffic once on Tices in order to get to the Route 18 southbound turn lane.

Mayor Stahl said that there are plans to improve the intersection, making the middle lane of Tices near Route 18 as well as the far left lane available for drivers seeking to go to Route 18 south.

The Golden Triangle proposal will be discussed at the next two meetings of the Township Council, with a public hearing scheduled for Sept. 12.


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