Builder’s housing scheme for NPDC deepens dispute with state

US Homes writes letter to Department of the Treasury seeking sale of land for 200 houses.

By: Kara Fitzpatrick
   MONTGOMERY — The already tumultuous relationship between the township and the state Treasury Department took a nosedive when township officials learned this week that a national homebuilder is seeking to build 200 single-family houses on the abandoned North Princeton Developmental Center site.
   US Home, one of the nation’s largest homebuilders, sent a letter to the Treasury Department in early November seeking to acquire a portion of the 250-acre property for age-restricted homes.
   Mayor Louise Wilson said the letter is evidence that the department is using deceptive tactics to obtain a deal "that puts as much money as possible into their pockets."
   The mayor said the letter was "deceptive and wrong" and any talks over a sale to US Home tamper with a legal public bidding process necessary to acquire property from the state.
   But Treasury Department spokesman Tom Vincz said the letter was an "unsolicited proposal on how (US Home) would propose to develop the land."
   David Grunwald, vice president of US Home’s New Jersey land division, who signed the letter, said it was a "very preliminary" proposal. He said no substantial discussions have taken place and the letter was sent "simply opening up discussions."
   The letter, obtained by Montgomery resident Sue Repko under the Open Public Records Act, explains the company’s interest in the NPDC site and sets forth a number of terms and conditions for the possible purchase of a piece of the land. The letter states that "informal discussions" took place with Montgomery as the basis for concluding that 200 single-family homes was an acceptable number.
   But Mayor Wilson said no one on the Township Committee has discussed a development plan with US Home and the township has made it "crystal clear" to the state that single-family residential housing "is just not an option" for the NPDC property. The land is currently zoned for public use, parks and education.
   Township Administrator Donato Nieman said he spoke with a representative from US Home. He said he relayed to the representative that if the township were to consider development on the site, it would be a public process. Mr. Nieman said he also made it clear to the company that negotiations have stalled between the township and the state.
   The mayor said it is the intent of the township to use the land, if acquired, for cultural, recreational, educational and civic uses. Some discussion of age-restricted or low-income housing units at NPDC has taken place to make "adaptive use of historic buildings" on the site, said Mayor Wilson.
   Mr. Vincz said the Treasury Department has not taken a position on the appropriateness of single-family dwellings at NPDC. He said the department verbally conveyed to US Home, "in clear terms the zoning restrictions on the property" and referred the company to township officials for more discussion. "I would assume they received the same pitch," he said.
   Mayor Wilson said US Home representatives have never met with any member of the Township Committee or anybody who would have given them that assurance.
   "Earlier this fall, they placed several calls to me, which I didn’t return," said the mayor. "We’re not interested in establishing a relationship before the township acquires the property."
   Mayor Wilson said she bears "no ill will" toward the developer. "They’re just doing what they do," she said, adding that the company is likely unaware "how vigorously the township would fight what they want to be able to do."
   Although not assuming that state Treasurer John McCormac is aware of "discussions between US Home and treasury staff," Mayor Wilson said it was troubling the department was encouraging the company to pursue this type of development on the site.
   "Montgomery has made very clear (to the Treasury Department) that we do not want and will not accept single-family and detached units. It is not the vision of NPDC and never has been," said Mayor Wilson.
   The construction of 200 single-family units, said the mayor, "is completely at odds with smart-growth principles."
   The NPDC site has been vacant since 1998 and is home to approximately 100 dilapidated buildings. Village Elementary School was built in the middle of the property in 1999.
   The township and the state have been in negotiations over NPDC since the mid-1990s, but have failed to reach agreement that both sides consider fair.
   The site has been the focus of controversy in recent years because of health and safety issues the township says has come about because of the state’s neglect of the property.
   Last month, the township formally notified the state of its intent to file suit against the Treasury Department under New Jersey’s Environmental Rights Act for violations of state environmental law. In September, the township announced its intent to file suit against the state under the federal Resource Conservation and Recovery Act.
   "We have made it clear that the township will talk anytime that the Treasury Department gets serious about settlement," Mayor Wilson said.