BY CHRISTINE VARNO
Staff Writer
Property owners in one of Long Branch’s redevelopment zones have received notices from the city giving them two weeks to negotiate the sale of their homes before eminent domain proceedings are begun.
Each of the approximately 36 homeowners in the three-street area known as the Beachfront North, phase II, redevelopment zone, began receiving “14-day letters” from the city last week, which give the homeowners two weeks to negotiate the purchase of their homes with the city.
“I don’t believe I am going to negotiate,” said Denise Hoagland, Ocean Terrace, after receiving her letter. “My home is not for sale. This is an unreasonable seizure.”
Hoagland, along with approximately 20 other residents in the area, have formed an alliance to fight what they say is an abuse of the city’s right to invoke eminent domain. The group is known as MTOTSA (Marine and Ocean Terraces and Seaview Avenue) alliance.
The group retained Peter H. Wegener of Bathgate, Wegener and Wolf, Lakewood, who said Monday, “MTOTSA, as a group, has taken a position to reject the offers on the account that this is not a proper use of eminent domain.”
Plans for the zone call for designated redeveloper MM-Beachfront North II — made up of co-developers Matzel & Mumford, a division of K. Hovnanian, Middletown, and the Applied Cos., Hoboken, to bulldoze the neighborhood and construct three buildings containing a total of 185 condominium units in its place.
According to the senior vice president of Applied, about one-third of the property owners have already accepted offers.
“There have been 12 deals already made,” Greg Russo said Monday. “Several more property owners are negotiating with us now, and two owners have accepted a condominium swap.”
The condominium swap, which was offered to a select number of homeowners, includes trading their current property for a condominium unit in the new project, according to Russo, who said the developers have also agreed to prepay 20 years of maintenance fees, which amounts to $50,000.
He added that the offer also includes a 10-year real estate plan.
“If a homeowner is currently paying $5,000 a year in taxes on their property, a new condominium could boost their taxes up to $10,000,” he explained. “We are willing to pay the difference for 10 years.”
In the 14-day letters, the city offered homeowners the appraised amounts for the purchase of their properties, which were conducted in the spring by McGuire Associates, Jersey City.
According to Wegener the appraisals ranged from $400,000 to just over $500,000, which he said are unreasonably low for waterfront properties.
But Russo said that anyone who has negotiated with the developers knows that the appraised amount is only the initial offer.
“Everyone knows we are willing to pay more,” Russo said.
For the residents who choose not to negotiate with the city, 14 days after the letter is received, the city can file a complaint asking the state Supreme Court to determine that the power of eminent domain was properly exercised, and the court will then determine a fair value for the property, according to Wegener.
An order is then filed in the courts, asking for a final judgment for the taking of the properties, according to Wegener, who said “at that hearing, MTOTSA will object that proper eminent domain proceedings were not followed and move to dismiss.”
But Russo said eminent domain will only be used as a last resort.
According a resident who received a 14-day letter, the city wrote, “We prefer to acquire the property by mutually acceptable agreement and do acquire most parcels in this matter. However, if we are unable to reach a negotiated agreement with an owner at what appears to be fair price, the city is authorized by law to resort to statutory condemnation proceedings.”
A resident in the zone, who is not a member of MTOTSA, said she did not have a reaction when the letter came to her home last week.
“I knew all along that this is what they were trying to do,” Fran DeLuca, Ocean Terrace, said. “It is just what I expected. This property has always been valuable to the city There is a lot of corruption going on.”
DeLuca said she is not giving up her home without a fight, and although she is not a member of MTOTSA, she said, “the group is stronger than ever.”

