Township Nears Deal on Golden Triangle.

Mayor David Stahl said the township and Toll Brothers are close to an agreement regarding the Golden Triangle development on Route 18

While the township and Toll Brothers are still in negotiations, Mayor Stahl said most of the plan is in place.

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. In addition, the total purchase price for the property would be the $22.5 million already paid to the township and all tax appeals by Toll Brothers would be dropped.

Mayor Stahl said the tax appeals were “in the neighborhood of $600,000, so in my opinion that’s additional revenue, not having to pay those tax appeals.”

The agreement also calls for a annual Payment In Lieu Of Taxes (PILOT) of $550,000, which would increase as the residential component is built, said Mayor Stahl.

“PILOT programs are designed to provide abatement, or a reduction in taxes, under the theory that they need help to stimulate building when no one would normally build,” he said. “Based on professional opinions, we’re getting full value in the PILOT program.

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.

Money given through the PILOT would still go to the school district, said the mayor.

“When the Board of Education passed it’s tax levy, the township has to pay them no matter how they get it. They get it in its entirety,” he said.

Mayor Stahl said there is still one issue that he is not happy with and that negotiations would continue. He also said the deal is a good one for East Brunswick.

“If you look at East Brunswick, we’re predominately a bedroom community,” he said. “This is the one last parcel where we have a chance to build tax ratables. This will greatly increase the ratables that go into our operating budget.”

The township and Toll Brothers have been in litigation over the property since 2008. As part of the original deal in 2005, Toll Brothers and Jack Morris were supposed 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 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.

Mayor Stahl said that even though the new agreement differs from the one originally proposed, it is still the best one for the township.

“It was designed in 2004 as a lifestyle shopping center, but the face of retail has changed over the last eight or nine years, particularly with the internet and what the capital market and the borrowing market has done to limit retailers from expanding. We’re not seeing the retail development of those lifestyle malls anymore.”

Mayor Stahl said he’s hopeful that a final agreement will be reached this summer.