By: Cara Latham
WASHINGTON The state Local Finance Board last week approved a waiver for a $635,000 down payment the township was expected to make to purchase the 72-acre Kushner tract on the south side of Town Center.
The approval paved the way for the Township Council to, the following night, unanimously approve a $12.7 million bond ordinance for the Kushner tract purchase, and designate itself as the redevelopment authority.
The redevelopment authority administers the redevelopment process for all actions within the municipality.
Township officials appeared before the board in Trenton on July 11 to show that the township’s intent to purchase the property allows Washington to restart the Town Center project’s south side. That part of the project has been stalled prior to the deal because the former plans for the area included a large housing density and traffic and because the state was no longer willing to pay for the proposed bypass there.
The waiver of the down payment not only paves the way for township officials to rezone the property to allow for as much as 200,000 square feet of office space and perhaps even age-restricted housing, but it puts $635,000 into surplus for next year.
"(This) is just huge," said Township Administrator Mary Caffrey last week. "It gives us so much more flexibility going into next year knowing we have extra money we’re holding onto for tax relief."
In April, township officials signed a letter of intent to purchase the tract for $11.5 million, about $4 million less than what it was valued. The $12.7 million bond ordinance covers the purchase price in addition to other funds needed for developing the property.
The deal eliminates 267 previously approved housing units from being built on that property, allowing township officials to eventually rezone the property for commercial uses and perhaps age-restricted housing, Mayor Dave Fried said then. The effort also aimed to curb a large number of new students entering the school system, which would have added to the already tax-burdened district.
In addition, the purchase allows the township to look at redesigning the road network and pulling what was the proposed Southerly Bypass connecting Route 33 from Washington Boulevard to Route 526 and redirect it away from the wetlands, Ms. Caffrey had previously said.
The Township Council passed a resolution in June asking the Planning Board to investigate whether the tract meets designation as an area in need of redevelopment. Ms. Caffrey said last week that township officials felt they presented a compelling case to the LFB regarding the importance of the purchase and that they are pleased to get the board’s endorsement.
She said the township is heading in the right direction toward improving its financial situation, including keeping tax rates steady and under control, as a result of the LFB’s approval.
The LFB’s approval also may increase the township’s bond rating, which has suffered in recent years, Ms. Caffrey said, adding that she thinks the township will be in a good position in December when it reports to Moody’s, which issues bond ratings to the township, about the progress the township has made on its tax stabilization program.
Ms. Caffrey said Friday in addition to the purchase, the $12.7 million bond includes money set aside for litigation fees, funds to pay the planning professionals and funds for those professionals to go through the permitting process for the property with the state Department of Environmental Protection and Department of Transportation.
She said the township’s plan is to go through the permitting process and prepare the tract to be handed over to developer, and that officials are anticipating getting some of that money back.

