HOWELL – The Township Council’s recent rejection of a developer’s agreement relating to an approved residential development known as the Fountains has resulted in legal action being filed against Howell by the developer.
A developer’s agreement is an agreement between a governing body and a developer to expressly define a project’s rules, regulations, commitments and policies for a specific period of time.
In 2018, the developer of a project known as The Fountains, off Route 9 north near Howell’s border with Lakewood, received approval from the Howell Planning Board to construct 105 age-restricted residential units in several multi-story buildings.
As part of the application process, the developer removed a proposal to construct 26 residential units at a second location in Howell.
When a motion was made during the Township Council’s Oct. 26 meeting to approve a developer’s agreement relating to the Fountains, Mayor Theresa Berger, Councilwoman Pamela Richmond, Councilman John Bonevich and Councilwoman Evelyn O’Donnell voted “no.”
Deputy Mayor Thomas Russo, who is no longer serving on the council, voted “yes” to approve the agreement.
The 4-1 vote meant the motion was defeated and reaffirmed a decision the council members initially made on Sept. 14.
In the wake of the council’s decision not to approve a developer’s agreement, legal action was filed on Nov. 22 by attorney Adam Garcia on behalf of 6461 Route 9 Howell, LLC, which is the owner and developer of the Fountains, and Paula O’Neill, who is a member of 6461 Route 9 Howell.
According to the complaint, “The action seeks equitable relief with ancillary legal relief to prevent the township from thwarting 6461 Route 9’s development.
“In order to avoid financial ruin and irreparable harm, 6461 Route 9 seeks … an order compelling defendants (Howell) to issue a building permit for the development, in the absence of which 6461 Route 9 will be prevented from continuing development of the property, which will result in 6461 Route 9 being in default of its up to $23 million loan, which is guaranteed personally by O’Neill, a member of 6461 Route 9, and will result in financial ruin to 6461 Route 9 and O’Neill.
“6461 Route 9 seeks an order declaring that certain development fees and contributions already imposed or sought to be imposed by the township are impermissible,” the developer’s legal action states.
Asked for a comment on behalf of Howell, Township Attorney Joseph Clark told the Tri-Town News the township intends to take all steps necessary to protect the interests of Howell in light of the facts underlying the developer’s lawsuit.