Politics & Government
East Brunswick Approves Recognition Agreement for Golden Triangle Site
The council passed a resolution last night allowing the execution of a Recognition Agreement between Toll JM Urban Renewal LLC, Wal-Mart Stores East, LP, and the Township of East Brunswick.
Last night’s town council meeting was noticeably quiet, especially considering a particular item on the agenda worthy of note.
The council passed a resolution authorizing Mayor David Stahl and Township Clerk Nennette Perry to execute a Recognition Agreement between Toll JM Urban Renewal LLC, Wal-Mart Stores East, LP, and the Township of East Brunswick.
The Recognition Agreement concerns a lease agreement entered into in March between Wal-Mart and Toll Brothers, who will on the Golden Triangle site at the corner of Tices Lane and Route 18.
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“In summary, it’s just a recognition of all sides’ rights under their ground lease, under our Redevelopment Agreement, and it’s a tri-party agreement between Toll JM Urban Renewal, and the Township of East Brunswick and Wal-Mart,” said Jeffrey Lehrer, special Township council.
Lehrer compared the Recognition Agreement to if he were to own a house and lease it to a tenant. He said the tenant would ask that if Lehrer reneged on his mortgage payments and the house was foreclosed upon that the tenant would not be forced out of their home by the lender.
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Likewise, under the Recognition Agreement, in the event of defaults by the property redeveloper, the Township may terminate the Recognition Agreement and recapture the area, while maintaining Wal-Mart’s lease in full force and effect in accordance with its terms. However, Wal-Mart would subordinate their interest in their lease to the rights of the Township under the Redevelopment Agreement.
When asked how long the Recognition Agreement would be in place, Lehrer responded that the agreement would last as long as the agreement between the redeveloper and the Township lasts, which would be up to 30 years.
Lehrer also said Wal-Mart could not pass on its interest to another party without the township’s consent of the Recognition Agreement.
The agreement was negotiated by a special redevelopment counsel for the Township and counsel for the redeveloper and Wal-Mart.
The resolution passed with all votes in the affirmative but that of Councilwoman Camille Ferraro, who voted against, and Councilwoman Nancy Pinkin, who was absent.
