To the editor:
There is still time for the Township Committee to reconsider the resolution to acquire the Updike property contingent upon the approval of $1 million in county funds.
A bargain sale price of $3.3 million ($200,000 less than the appraised market value of $3.5 million) has been agreed to by Sharbell Corp. Green Acres has approved the Township’s application for $1.78 in reimbursements half of the full value of the property.
There are very good indications that Middlesex County would contribute $1 million nearly one-third immediately upon closing. At the end of the day, the acquisition would cost the township about $520,000. Not a bad price to pay for 52 acres of open space to call our own.
The Township Committee must have four votes in favor of the acquisition in order to exceed the current debt limit for the cash needed at the time of closing. One way to look at this is as temporary financing until reimbursements are paid to the township. Almost immediately upon closing, $1 million would be reimbursed from the county, with $650,000 from the state following at year’s end, leaving a balance of $1.13 to carry over the course of 3-5 years until the balance of the Green Acres reimbursements are paid. The cost of bottom line cost to the township of $520,000 would be further reduced by individual donations.
According to the township’s bond counsel, the process of extending the debt limit would be a straightforward matter given both the nature of the improvements and the anticipated reimbursements. If the credit ratings of the state and county reimbursing agencies are good enough for the Local Finance Board, it should certainly be good enough for the township. Moreover, because the expenditure is for an open space acquisition, the request would not be viewed adversely since the board recognizes that open space acquisitions save money on infrastructure and other costs in the long term.
What we are really looking at then, are the "net" costs to the township of $520,000, plus estimated carrying costs, all of which, it might be argued, fall within our current debt limit. Viewed in this light, to say that we are exceeding our debt limit is a kind of "red herring." It is nothing more complicated than getting a short-term extension of credit in order to reduce expenditures in the future.
Carrying debt for the acquisition of open space is not a new concept for Cranbury. We purchased the Wright parcels in 2000, but have yet to be reimbursed from the county farmland preservation program for the development rights, which must be in hand before we are able to sell the deed-restricted properties. None of this is likely to happen until early next year. Likewise, the reimbursements for the Barclay property are still a long time off. Few would argue that these were not risks worth taking.
What about the Fischer property? Buying Updike does not obviate the acquisition of Fischer. We can (and should) acquire both. The Township Committee has consistently rated Updike and Fischer as among the highest acquisitions priorities, as evidenced in our application to Green Acres to fund both, and in contracting with the D&R Greenway to undertake negotiations for these and other parcels. But the two properties are apples and oranges, in terms of their relative per-acre values. We are still a long way off from reaching a compromise between the appraised value for Fischer and what the owner’s expectations are. And time is needed to analyze which funding sources are best for the acquisition.
Meanwhile, time is running out for Updike. Sharbell will soon have the right to begin development. If the township exercises its one-year option to buy, it will surely cost us more money the farther away we get from the very favorable offer that is on the table now.
Can we really walk away from an offer of $2.78 million in public funds? Our tax dollars? I am writing to respectfully urge my colleagues on the Township Committee to reconsider the Resolution, mindful of the enormous desire of residents to see this tract of land so close to the heart of our village remain open forever.
Pari Stave
Cranbury
Ms. Stave is a member of the Cranbury Township Committee.