By Linda Seida, Staff Writer
WEST AMWELL — The auction of a 130-acre preserved farm on Route 179 failed to draw an adequate bid, leading the Township Committee to vote against selling, Mayor Thomas Molnar said.
The township will hold on to the property, which was operated as a tree farm, for about a year to see if the market improves, and in the meantime will keep up with the task of mowing the property, according to the mayor.
”We realize that the real estate market has been better in the past, but I feel that it may be better next year and we can realize a better offer for the land,” Mayor Molnar said. “This property has an existing house, a building lot and over 100 farmable acres. There are also about 100 nursery stock trees that could be sold.”
The committee on April 27 voted 2-1 to reject a $385,000 bid. Mayor Molnar and Committeeman Zachary Rich voted against accepting the bid. Deputy Mayor George Fisher voted in favor of selling the parcel.
A sale is subject to approval by the Township Committee and the State Agriculture Development Committee.
”I was looking for about $550,000,” the mayor said. “That’s the magic number that was needed to break even, meaning not having to dip into the Open Space Trust Fund. Also the appraisals came in above $550,000.”
Two appraisals were performed earlier this year. One valued the farm at $690,000. The other placed a value on it of $740,000.
”The value of the 25 building rights that were retired as part of the acquisition was $1,121,260 based on the average of the two appraisals,” township Open Space Committee Chairman Sean Pfeiffer said.
”Toll Brothers donated over $700,000 of market value. Factoring in that donation, the end purchase price for the land costs was only $375,909.38 over the value of the development rights. While the $385,000 bid was in line with that cost, the two appraisals that were done in January 2011 indicated the preserved property is currently worth between $690,000 and $740,000. The auction company’s informal estimate of what the property would return at auction was also considerably higher than what ultimately materialized at the auction.”
The Max Spann Real Estate and Auction Company conducted the auction April 21 at the township municipal building.
The preserved farm, formerly owned by Toll Brothers, is located at 1454 Old York Road, also known as Route 179. The property has more than 2,200 feet of road frontage along Route 179.
The land is permanently preserved for agricultural use. The township plans to place the property in private hands for use as a working farm.
With the Hunterdon Land Trust Alliance, the township purchased the property in March 2010 for $1.5 million. The price tag was 32 percent off the certified market value at the time. Toll Brothers sold it for $11,506.60 an acre.
The township was helped in the purchase by $825,000 from a State Agriculture Development Committee grant, secured with the assistance of the Hunterdon Land Trust Alliance.
Hunterdon County contributed a little more than $220,000. The county agreed to share the cost only of the property’s easement value.

