Thursday, March 30, 2006

Jones Lang LaSalle

Developer sues for refusal to rezone site
Builder wants to add housing in 'economic development' district
Thursday, March 30, 2006
BY MATTHEW REILLY
Star-Ledger Staff


The developer K. Hovnanian is suing Hillsborough Township for refusing to rezone a large part of the former General Services Administration site in Belle Meade to allow it to build housing.

The property, purchased by K. Hovnanian to be developed by Hillsborough Properties, comprises 335 acres just off Route 206.

The township has zoned the property as part of its "economic development" district, which allows offices, corporate conference centers, restaurants, theaters, gym nasiums, tennis and pool facilities, financial institutions, libraries, museums, medical centers, hotels/ motels, retail stores and services, schools, and light manufacturing. It does not allow housing.

Last August, Hillsborough Properties asked the township planning board to rezone for residential construction. The township planning board instead recommended it be changed to "research and development," which also does not allow housing and is, in fact, more restrictive than the economic development zoning.

"A township master plan was approved last year that does a significant amount of rezoning, including that area," said Kevin Davis, township administrator and clerk. "The proposed new zone is parks and recreation, and research and development."

The new master plan was approved by the township, but the individual zoning changes are still being reviewed.

In its suit, Hillsborough Properties claims there is "no legitimate or rational land use basis to justify the continued zoning of the property in the (economic development) zone or to rezone the property to a more restrictive (research and development) zone." They said the township's actions are "arbitrary, unreasonable and capri cious."

The company is asking a judge to declare the economic development zone, as it applies to its property, null and void and direct the township to change the zoning to residential.

"A lawsuit is probably premature," said Davis, who said he hasn't seen a copy of the complaint. "We haven't adopted the new zone."

The site was a U.S. Army supply depot until 1958, when it was transferred to the GSA. It contains storage warehouses and sheds, railroad sidings, a pistol range, an incinerator and a gasoline decanting facility.

The site includes 19 miles of roads, 44 miles of railroad tracks, 2.1 million square feet of enclosed storage space and 8 million square feet of open storage space, according to the suit. There are significant environmental contamination problems on the site.

Davis said Hovnanian had a proposal to put 700 homes on the site, which the township strongly opposed. He said the developer presented its plans at a community gathering "and it was poorly received."