Jones Lang LaSalle


Developers negotiate Epstein's plan
Morristown building's owner hopes to avoid eminent domain
BY ROB SEMAN
DAILY RECORD

MORRISTOWN -- The owner of a building that effectively stands in the way of the redevelopment of the Epstein's Department Store site has again put an offer on the table to partner with the developers, rather than fight them in court over his property.

Cedric Shabsis, the owner of the building occupied by Hollywood Tans on DeHart Street, said he held a teleconference with Robert Goldsmith, attorney for the Morristown Parking Authority, and Steven Santola, the attorney for Woodmont Properties, the two entities that will be redeveloping the site.

Shabsis, 85, who lives in Florida, had been served with a complaint by the developers to condemn the property, which would serve as a staging area for most of the construction of the seven-story condominium, apartment and retail buildings, and eventually as the site for a loft building.

But Shabsis said that while the developers had begun steps to take his property by eminent domain, the attorneys appeared willing to listen to his idea to partner with the developers to build a five-story office building instead of lofts.

"They seem to be very nice and I felt this was the first time where they were looking upon things a little bit differently," Shabsis said.

Goldsmith and Santola could not be reached for comment Tuesday.

A year of talks

Negotiations between Shabsis and the developers have taken place for more than a year to no avail. Shabsis contends that the property is worth $3.8 million to $5 million. Though the property is assessed at $492,000, Shabsis said the property is worth more because the tenant pays for and handles maintenance of the building as well as a portion of the tax.

The Parking Authority contended that the property was appraised at $650,000, and offered to swap its current home at 10 Pine St. for Shabsis' building, or pay him $1 million. But Shabsis said that the authority's building currently houses several tenants.

Shabsis on Tuesday repeated an offer to become a partner in building a five-story office building that would feature elevators exclusive to each floor. He would not reveal his idea for an anchor tenant.

Shabsis said Tuesday that he is hopeful because the attorneys took the time to consider his offer.

"Legally they don't have to do anything," Shabsis said. "I was just hoping they would consider all this and not just push me aside."

"If there is not a favorable consideration, I will battle it the best I can because what they are offering me is peanuts," Shabsis said.

Watchful lawyer

But Shabsis' attorney, John Parmigiani, said that he was unsure of whether the offer would be any more fruitful than prior negotiations.

"I don't know what will come of this," Parmigiani said.

"The Parking Authority has been more than generous in listening to him," Parmigiani said. "I think they have been more than kind in that way. Whether or not this is a good project, they at least listened."

David Rahn, chief executive and financial officer for Hollywood Tans, in Florida, said that the company had been informed of the proceedings.

"Our attorneys are going to be reviewing it with me on Friday and we're going to see how to proceed legally," Rahn said.

Besides Shabsis, Woodmont is also in the midst of negotiating a deal with Starbucks Coffee, which has occupied a space in the Epstein's building since before the department store closed. The coffee chain's lease included a provision that called for an automatic 10-year renewal when the lease expired in March.