PRINCETON: AvalonBay sues over hospital site decision

By Philip Sean Curran, Staff Writer
   Developer AvalonBay sued Wednesday to overturn the Princeton Planning Board’s “illegal denial” of its proposed 280-unit apartment building at the former Princeton hospital site on Witherspoon Street.
   As part of its legal filings this week, the developer also asked a Superior Court judge to fast-track the case for decision by May 1 before AvalonBay says it has to back out of its contract with Princeton HealthCare System to acquire the property.
   Planning Board Attorney Gerald Muller said Thursday that he was confident the board had acted legally and that it would prevail.
   In a statement Thursday, Princeton HealthCare System had no comment on the suit.
   In December, the Planning Board voted, 7-3, to deny the project after several hearings. The board contended that AvalonBay had not conformed with design standards that the developer says were vague and unenforceable.
   ”The application was variance-free, as acknowledged by seven of the 10 members of the Planning Board and Princeton’s staff and consultants through the application process,” AvalonBay said in court papers. “When the Planning Board voted to deny AvalonBay’s application, it was clear that AvalonBay was a an welcome corporate outsider.”
   AvalonBay also raised its financial plight. The developer must pay the owner of the former hospital $175,000 a month plus property taxes for May and June to keep the property under contract.
   ”Even by making these payments, AvalonBay can only extend the contract on the Princeton Hospital site until June 30, 2013, at which time AvalonBay must close on the property or walk from this development,” court papers said.
   So far, AvalonBay said it has invested more than $1 million to develop the site, an amount that will grow to more than $2 million by this summer.
   ”As a result of these financial and time pressures, if this court will not expedite resolving this litigation and does not reverse the Planning Board’s denial by May 1, 2013, AvalonBay intends to terminate its contract.”
   AvalonBay faced organized opposition to its project, including by residents known as Princeton Citizens United for Sustainable Development. Alexi Assmus, a member of that group said Thursday that she was not surprised that AvalonBay had appealed.
   ”I think people were wondering whether they would appeal or not,” she said.
   She said her group is discussing with its lawyers whether to jump into the legal battle, although it was not immediately clear in what capacity.
   The lawsuit comes at a time with the town looking to rezone the property.
   Mayor Liz Lempert, declining Thursday to comment on the suit, said, “We haven’t made a decision yet as to whether to suspend the hospital site rezoning task force.”
   The town, no longer in the hurry it once was in to rezone the property, had created a task force to study the site and make zoning recommendations to the Princeton Council.
   The task force is made up of opponents of AvalonBay’s project, including three sitting Planning Board members who voted against the project in December.