Issues remain unresolved in Golden Triangle project
EAST BRUNSWICK Several issues remain on the negotiating table as the township works toward finalizing a redevelopment agreement with Toll Brothers for the property known as the “Golden Triangle.”
The general elements and the layout for the project, bound by Route 18 and Tices Lane, appear largely settled for between 200 and 400 residential units along with a large retail space for a ""big box'' store. Toll Brothers will be restricted to building no greater than 10 percent of three-bedroom units for the residential component.
The builder has the right to build up to 220,000 square feet of commercial retail space which could include a small strip mall on the property.
East Brunswick Mayor David Stahl said the issues regarding financing and the final terms of the redevelopment agreement still remain open.
“The issues that remain are very important to both the township as well as to the redeveloper.” said Stahl who declined to discuss them in detail due to confidentiality concerns. “Ultimately, I believe that we can reach a resolution and that this deal can move forward.”
The financing issues largely concern the Payment in Lieu of Taxes which the township would receive from Toll Brothers through the state’s PILOT program. Those payments would total about $550,000 a year minimum on the commercial component. Stahl notes that the PILOT payments have the potential to climb to as high as $1 million a year for residential components which he does not believe will have a significant impact on the Board of education in terms of bringing more school-aged children to the district.
As a rule, PILOT payments to not go toward the school district with about 95 percent going to the township and the remainder to the county. Township Council would need to pass an ordinance approving such an arrangement.
In addition, Stahl said he is still working through details of some basic terms of agreement with Toll Brothers.
Should an agreement be reached, Toll Brothers has agreed to drop litigation against East Brunswick should the township continue to pass ordinances to allow the proposal to move forward.
The township and Toll Brothers have been locked in a court battle since March 2009 after
suing each other for breach of contract. As part of its lawsuit, Toll Brothers was looking to require the township to repurchase the property with 8 percent interest-payment damages.
The redevelopment deal turned sour in November 2008 after Toll Brothers proposed a major revision to the original site plan that would have eliminated the residential component, replacing it instead with purely commercial construction. The township refused to approve the proposed changes and Toll Brothers sued before the township counter-sued
In 2005, Toll Brothers originally purchased the Golden Triangle property from the township for $30.4 million. It has made since five payments of $4.5 million to the township for a total of $22.5 million.
Under the new proposed settlement, $22.5 million would be the final price.
Should a new agreement be reached, Toll Brothers would also agree to drop three years of taxes that they have appealed totaling about $600,000. A new agreement would stop the township from having to refund any of that money.
“I’ve been incredibly patient throughout this entire process — it’s been two and half years since I’ve been mayor that I’ve been working on this,” said Stahl. “I’ve been incredibly patient to work out what I believe is the best transaction I can on behalf of the township.
“I’m certainly willing to be patient if it takes a few more weeks to get this resolved.”
Gene Racz covers East Brunswick, Milltown and North Brunswick; 732-565-7306; gracz@njpressmedia.com