Toll Brothers Seeks Subdivision Approval on Golden Triangle Property

Toll Brothers is expected to take the first, though small, step toward developing the Golden Triangle property, tonight (Wednesday, Jan. 18).

Toll Brothers is seeking minor subdivision approval to combine two existing lots on the property, then asking to board to subdivide it yet again to allow for future retail and future residential space.

According to the application, on file in the township Department of Planning, no improvements to the property are being proposed yet.

In September, the Township Council approved an agreement that brought to an end years of litigation with Toll Brothers regarding the property—which is bordered by Route 18, Tices Lane and the Old bridge Turnpike and was formerly home to Sam’s Club.

The agreement allows Toll Brothers to 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.

On Wednesday, Toll Brothers will ask the Planning board to consolidate two existing lots and to subdivide that new 23.3-acre tract into a 16.132-acre  parcel for retail, and a 7.191-acre tract for the residential component. The retail component will border Route 18 and the residential component will border the Old Bridge Turnpike.

The Planning  Board meeting will be held at 8 p.m. in the municipal courtroom.

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, that part of 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.

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.