Golden Triangle Deal Moves Ahead

The Township Council moved a step closer to an agreement with Toll Brothers that could put an end to years of litigation.

On Monday, the council approved a resolution that gives the go-ahead for Toll Brothers to apply to become a part of the Payment In Lieu of Taxes (PILOT) Program. It also introduced two ordinances regarding the Golden Triangle Property, one that would approve PILOT agreement with Toll Brothers, and another that would approve a concept plan proposed by the developer.

The plan calls for the construction of up to 400 apartments and the renovation of the existing building to accommodate a “big box” style store. Toll Brothers has said it has a letter of intent to lease the space from a major retailer.

On Monday, resident Anthony Riccobono, a former Township Councilman, expressed concern about what that retailer would be. He said he feels the project has been designed with a specific business in mind and that Mayor David Stahl owes it to residents, land owners and business owners to tell them what that retailer would be.

“People have a right to know what’s coming in, business owners have the right to know, landowners effected have the right know. This could potentially affect a mile up and own Route 18.”

Following the meeting, Mayor Stahl said he was not at liberty to announce which retailer had signed the letter of intent to lease the property, especially since that agreement is between the retailer and Toll Brothers.

“I don’t have the right to say anything,” he said. “They haven’t signed a lease.”

Mayor Stahl said that the fact that a major retailer wants to come to the area should be taken as a sign that East Brunswick, and Route 18, is a prime area for investment.

“It should be seen as them making an investment and a commitment,” he said. “It’s telling the business community and residents ‘hey, we think we can make money here.' ”

. 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.

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. The agreement also calls for Toll brothers to drop approximately $600,000 in tax appeals it has filed with the township.

If 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 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 earlier this month, 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.

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.”

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