By Audrey Levine, Staff Writer
The borough is finally ready to collect some money as Council President Sue Asher announced Monday that the final judgment was granted about two weeks ago on the contaminated property on the corner of Kyle and South Main streets, and the borough will be taking ownership of it.
”We are now the owners of the property,” said Borough Administrator Gary Garwacke, who cited that the borough is now just waiting for the final paperwork about the decision. “The next step is for the council to decide what it wants to do with it.”
Last year, the borough appointed Somerville tax attorney William Cooper to proceed with an “in rem foreclosure” on the property, owned by Pennsylvania resident Kenneth Grant, who had failed to pay taxes for more than 18 years and owed more than $458,000.
Mr. Cooper said that, with this type of foreclosure, the borough takes control of the property as an innocent purchaser, and is not necessarily responsible for cleaning the contamination.
”It is not necessarily the borough’s responsibility because it is only foreclosing on the property on a tax lien,” he said.
Still, the borough has to decide what the best course of action is for the property, which includes determining whether it wants to move forward with the cleanup.
”The borough could go to Trenton for grant money for the cleanup,” Mr. Cooper said. “And then it could market the property as clean. Or it could market the property as is.”
According to Karen Hershey, spokeswoman for the New Jersey Department of Environmental Protection (NJDEP), the state has a program to provide financial assistance to municipalities that have foreclosed on contaminated properties. Grants are given through the Hazardous Discharge Site Remediation Fund, she said.
”The state provides 100 percent of the cost of the remediation (if the municipality qualifies),” she said.
To qualify for the grant money, Ms. Hershey said, the municipality must have tax certificates for the property it has acquired through foreclosure and have plans for the redevelopment of the land.
The property which is about 22,500 usable square feet with the remainder of the property taken up by the Royce Brook was cited in March 1993 by the NJDEP as being contaminated from leaking underground gas tanks. It was also cited for soil contamination and contamination of the Royce Brook.
At the time, the NJDEP directed Mr. Grant to prepare for a cleanup of the site, but he did not comply.
Aside from the cleanup decision, Mr. Cooper said the borough needs to assess the best use of the property, whether it be for municipal purposes or private use. At this point, he said, the only thing definite is that the borough can start collecting rent from the current tenant, Frank Racz, who leases it for an auto repair business.
Business owner Dean Sheppard questioned Monday about Mr. Racz’s intent with the property and asked if there has been discussion of him taking it over.
For right now, Mayor Lillian Zuza said, the borough just knows that it can start collecting funds, and other final decisions will be made at a later date.
”We don’t know where he’s been sending the rent money until now, but it belongs to us now,” she said.
According to Mr. Cooper, there is always the possibility that Mr. Racz might choose to purchase the property from the municipality, but that all depends on what the borough decides is the best use for it.
Now that the borough officially owns it, Mr. Cooper said, it has many options for what to do next.
Still, Mr. Cooper said, it cannot be expected that the decision will be made very quickly.
”This was a problem long in the making,” he said. “That doesn’t make for an easy solution.”

