Builder challenges GSA depot zoning

Lawsuit says Hillsborough should allow housing development on the 335-acre site.

By: Charlie Olsen
   The Township Committee and the Planning Board are being sued by Hillsborough Properties over zoning of the General Services Administration (GSA) Federal Supply Belle Mead Depot — a lawsuit which Mayor Carl Suraci said has "no merit."
   The lawsuit, filed March 24 in Somerset County state Superior Court in Somerville, alleges that the current zoning of the depot near Mountain View Road as an economic development (ED) zone has not resulted in development of the land and should be changed
   Furthermore, the suit claims that the proposed rezoning of the site for research and development (RD) and recreation — as the recently updated Master Plan recommends — will not result in development of the land.
   "This latest attempt to circumvent the planning and zoning process to try and force a massive 700-unit housing development into Hillsborough has no merit and I will recommend pursuing recovery of any legal costs incurred by the township from K. Hovnanian and Hillsborough Properties," said Mr. Suraci.
   Doug Fenichel, a spokesman for K. Hovnanian Homes, said that although his company was identified as a contract buyer, it has no other involvement in the suit.
   "K. Hovnanian would still like to work with the town and I feel we offered a terrific plan, but we are in no way involved with the lawsuit," said Mr. Fenichel.
   The property — a 335-acre site bought in 2003 by resident Bhrugesh Patel through Hillsborough Properties for $2.5 million — is a former WWII-era U.S. Army Supply Services depot.
   Due to the presence of 19 miles of roads, 44 miles of railroad tracks and other infrastructure including massive indoor and outdoor storage, a pistol range and a facility for gasoline decanting; the depot is in need of environmental remediation.
   The lawsuit alleges that if the "significant environmental contamination" present in the soil and groundwater were cleaned up, it would be suitable for development as a residential zone.
   As it stands now, the property is just open space, said Henry L. Kent-Smith, attorney for Hillsborough Properties.
   "If you zone a property for a group of purposes that nobody wants to use it for, then it’s just open space," said Mr. Kent-Smith. "If we’re (the township) not giving you viable development options, the government has to pay the owner if it’s going to be used as open space — which is what will happen if no options are available."
   But the mayor disputes this, claiming that the property is a "gateway" to the environmentally sensitive Sourland Mountains.
   While the depot is surrounded by residential zoning to the north, east and northwest, to the south and west of it, land is zoned agricultural and further west of the agricultural zone is the mountain valley preservation zone.
   "Under the new Town Center Master Plan, the township’s aim is to rezone the area appropriately as Parks and Recreation and Research and Development," Mr. Suraci said.
   The property has changed hands twice, with no development.
   In November 1986, it was transferred to Kaplan Associates for development as an economic development zone. In the early 1990s, the property was foreclosed by Chemical Bank, then owned by Belle Mead Land Holding Corp.
   Vacant since 1991, Mr. Patel purchased the land in December 2003.
   "The fact is Mr. Patel knew the zoning when he purchased the property three years ago," said Mr. Suraci. "Neither K. Hovnanian, Hillsborough Properties, nor Mr. Patel have made any land use applications to the township."
   The controversy regarding the depot began when K. Hovnanian contracted to buy and develop the 300-acre site into a housing development. The company held an "informational presentation" presentation at Woods Rood firehouse Aug. 2 with plans for a residential development with 400-700 units, but hasn’t presented site plans to the township.
   Former Mayor Bob Wagner, a member of the Planning Board at the time, contested the proposed development in the Township Committee meeting on Aug. 9.
   "We do not want any more housing development in Hillsborough," said Mr. Wagner. "It’s nice that they came and gave the presentation but they can get the hell out of here as far as I’m concerned."
   Hillsborough Township and Somerset County have been actively engaged in negotiations with the GSA regarding ownership of a roughly 400-acre site that is still owned by the federal government. This site is directly adjacent to Mr. Patel’s property and they’ve agreed it is suitable for use primarily for parks and recreation.
   Mr. Suraci said he would recommend to the Township Committee that it should fight the lawsuit "utilizing legal resources to fullest extent. This is an area for preservation, not housing."
   Mr. Kent-Smith said it could be months or even a year before the lawsuit makes it to court.