Despite the dissent of one member, the East Brunswick Township Council last week approved a recognition agreement that protects Walmart’s interest in the Golden Triangle property.
The council voted 3-1 on Aug. 19 to recognize the contingency agreement between Walmart, Toll JM Urban Renewal and the township.
The 151,500-square-foot Walmart store is slated for the property at Route 18 and Tices Lane, which is being redeveloped by Toll Brothers. Construction of the Walmart was approved in April, and is expected to precede a residential-unit construction phase.
The recognition agreement provides for certain contingencies. For example, if Toll Brothers was to default on the property, it would first have the right to cure that default, but subsequently that option would be given to Walmart. As such, a default by Toll Brothers would not necessarily jeopardize Walmart’s ability to build and operate on the site, which the township sold to Toll Brothers.
Mayor David Stahl said after the meeting that Walmart is making a significant investment in the community, and it makes sense that the corporation would want a document that could protect its interests.
The dissenting vote came from Republican Councilwoman Camille Ferraro, who said after the meeting that the document “brings no benefit to the township.”
She said she had questions that went unanswered, such as whether the entire deal was contingent on this agreement. She also said this type of agreement is not something she has previously encountered.
“If it’s sound business practice, why have I never heard of this?” she said. “I didn’t see the need for it.”
Ferraro said the council was only made privy to the 100-page lease agreement between Toll Brothers and Walmart a little more than two weeks before the meeting. She said she was uncomfortable voting on an agreement that supports a lease agreement that had missing documentation.
“I take offense to that,” Stahl said of Ferraro’s claim that council members only had two weeks to review the document, adding that the agreement was three months in the making. “I was adamant that until I saw the lease we were not going to recognize anything.”
Ferraro also said she had concerns about Walmart’s business practices.
Stahl said that as the township looks to keep both vacancy rates and property taxes down, Walmart coming in is a positive thing for the township, and if people disagree with its practices, they do not need to patronize it.
“If you don’t like Walmart, don’t shop there,” he said, adding that he doesn’t condone questionable business practices, but singling out one business is unfair as well.
Stahl added that the store will provide both short-term and long-term employment opportunities in the construction and retail sectors. He said that in an environment where other municipalities are having trouble attracting new businesses, there has been a 40 percent decrease in the Route 18 vacancy rate over the past four years.
Ferraro said she is looking to represent the will of the people, and a number of residents have approached her with concerns about the Walmart. She said she tried to address the issue with other council members, but had no luck convincing them to vote against the agreement.
Also among her concerns was the relationship between Toll and Walmart, and her belief that Toll Brothers is more focused on its residential properties, including the housing element of the East Brunswick project. Stahl, however, said there are experienced professionals working on this project who have overseen similar successful commercial projects.