Money is earmarked for purchase, cleanup of the property
By: Kara Fitzpatrick
MONTGOMERY Taking the first step toward financing the purchase and environmental cleanup of the North Princeton Developmental Center, the Township Committee on Thursday unanimously introduced two bond ordinances totaling $22.45 million.
The funds will be used to purchase the state-owned 250-acre property which the state Department of Treasury agreed in April to sell to the township for $5.95 million, after years of negotiations. In addition, the $22.45 million will be used to contract for environmental cleanup and the demolition of unusable on-site buildings, purchase environmental insurance, transfer environmental liability, design a redevelopment plan for the property and upgrade the sewage-treatment plant.
Township officials have branded the action "short-term financing."
Mayor Louise Wilson has made it clear that the committee intends to pass along the cleanup costs to redevelopment partners. But according to a statement from the township, in order for the municipality to meet state legal requirements to enter into contracts for remediation, money must be available.
"As soon as possible, Montgomery will seek funds from the county open-space program and private developers," the statement said. "As funds are secured, they will be applied to reduce this short-term financing."
According to the statement, long-term financing may be secured for costs not recovered early in the redevelopment process.
"Montgomery expects and intends to recover costs from various parties, including private developers, after the initial purchase and once a redevelopment plan is finalized for the property," the statement said.
Mayor Wilson said the committee doesn’t take the adoption of bond ordinances lightly, "but we know that we need what we would term a ‘standby line of credit’ to get this project perhaps the most significant project in the township’s history under way.
"There are certain legal requirements we must meet as a public agency that don’t apply to private parties, to have financing available to enter into contracts to purchase and clean up the property," the mayor continued. "As soon as we have a redevelopment plan in place, we will begin the process of recovering costs."
Committeeman Mark Caliguire, the lone Republican on the five-member governing body, said he supports the method of short-term financing, but would be against property acquisition becoming a tax burden for residents.
"I support the authorization of the short-term financing necessary for the township to have the ability to close on this long-awaited purchase before another change in administration in Trenton takes place," Mr. Caliguire said. "These ordinances are critical to Montgomery finally getting control over the cleanup and development of this crucial site.
"But I will never support the long-term issuance of bonds for the cleanup or any tax increase to pay for it, since the rationale for assuming this burden was that we will be able to acquire open-space money and developer money to pay for it once we finalize our deal with the state," Mr. Caliguire said.
Deputy Mayor Karen Wintress compared the township’s current situation to previous successful efforts made by the township to offset the costs of land acquisition through redevelopment, state Green Acres funds and county assistance. In 1996, the township authorized bond ordinances for more than $10 million to finance the purchase of the Ingersoll-Rand and Schafer tracts.
"In the days when Montgomery purchased the Ingersoll-Rand and Schafer tracts, some people worried that the township couldn’t afford to buy those properties," said Ms. Wintress. "Now, people look back and realize we couldn’t afford not to buy them and that their preservation and redevelopment have been great for the township."
Ms. Wintress said she believes, when all is said and done, NPDC will have the same effect.
"I look at the acquisition of the North Princeton Developmental Center property in the same vein (as the Ingersoll Rand and Schafer tracts)," she said. "This purchase and redevelopment will go down in the books as a very good deal for everyone concerned."
Committeeman John Warms said interest in NPDC is presently brewing among developers. "We have already had informal discussions with firms that have a very strong interest in redevelopment at NPDC," Mr. Warms said. "We need to do this right, and that means we need to take the long view. Ultimately, the township will recover most if not all of the costs of acquiring the site."
Mayor Wilson agreed that the process of redevelopment must be done carefully and correctly. "We are accountable, and we will protect the interests of the people," she said. "All five of us feel strongly about that."