Foreclosure Filed Against Vonage Redeveloper
[Grab your coffee or tea! This post is a little long, but it's worth reading.]
In December 2025, we raised concerns about how CHA, the redeveloper of the former Vonage site, conducts itself, given its track record of loan defaults and broken promises. External media reports show that CHA refused to pay a $3 million promissory note to a charity that lent CHA more than $25 million.
That led us to ask a simple question: Does CHA have the financial wherewithal and commitment to complete the Vonage redevelopment?
Those concerns now appear increasingly prescient.
“When You Lie with Dogs, You Get Fleas!” — A Holmdel resident’s public comment.
At the October 13, 2026, Township Committee meeting, Holmdel’s Township Attorney announced that a mortgage holder has filed a foreclosure on the Vonage property in Superior Court. The Township will also issue CHA a notice of default under its redevelopment and financial agreements.
CHA had received 45 days to meet a refinancing deadline. Whether it couldn’t refinance or simply waited too long, the deadline passed, and the mortgage holder filed for foreclosure.
A Brief History
CHA acquired the property in October 2023 for $17.5 million—less than half its prior-year assessed value of $35.9 million. By November 2024, the Township Committee had adopted a redevelopment plan reflecting CHA’s proposed project.
But the redevelopment raised another serious concern: wastewater.
Concerned citizens reviewed the draft redevelopment plan closely and were alarmed that it would allow CHA to use an antiquated 50-year-old wastewater treatment plant, push it to its limit with gallons of pharmaceuticals, and discharge inadequately treated wastewater into a stream that feeds the drinking water source serving more than 300,000 Monmouth County residents.
In 2024, before the Township Committee adopted the redevelopment plan, Mayor Rocco Impreveduto was notified of the plan's health risks.
Holmdel has a Wastewater Management Plan and the Township Committee has enforcement authority. The Committee could have required CHA to install a modern wastewater treatment system as part of the redevelopment agreement—an agreement negotiated between two willing parties.
Despite these well-documented, highly informed warnings, the TC did nothing to change the wastewater treatment plant.
The Bell Labs Sewer Line: A History Worth Remembering
Around 1992, the Township Committee approved a “sole-source” sewer line for the former AT&T Bell Labs facility. Its limited capacity and specific restrictions meant it was intended to serve only the existing buildings—not the entire property.
In 2011, the New Jersey Department of Environmental Protection (NJDEP) proposed expanding the sewer service area to include the entire Bell Labs property. Approximately 75 residents, including dozens of Holmdel elected officials, attended a public hearing to oppose the proposal.
According to a June 7, 2011, Patch article, then-Mayor Pat Impreveduto was “cautiously optimistic” that NJDEP would reconsider. Praising residents’ preparation, he said: “People in Holmdel are very bright and they do their homework.”
Bell Works (2014): One Exception, No More
About three years later, as part of the Bell Works redevelopment, Somerset Development sought approval to build 225 homes on the campus. The Township Committee made an exception, allowing those homes to connect to the force main.
Then-Mayor Pat Impreveduto emphasized that no other connections to the Bell Works force main would be permitted.
“Déjà Vu All Over Again” — Yogi Berra
Fast-forward to January 2026. Just one week before the Planning Board was scheduled to vote on the former Vonage redevelopment, Mayor Rocco Impreveduto and the Township Committee approved construction of a force main connecting the Vonage site to the Bell Works sewer line.
Mayor Rocco Impreveduto emphasized that the new line would serve only the Vonage site and would be designed to prevent additional connections.
Residents argued that a better solution would be to require CHA to install a modern wastewater treatment system at its own expense. They warned that the force main could threaten the watershed that supplies our drinking water and encourage more high-density development in South Holmdel.
A modern system with subsurface disposal could instead allow approximately 45,000 gallons of daily wastewater to replenish groundwater aquifers.
These concerns echo warnings made years earlier by then-Mayor Pat Impreveduto, current Mayor’s father. A February 11, 2013, Patch article quoted then-Mayor Pat Impreveduto:
“If you cover up all the land with buildings, roadways, parking lots, etc. and don't allow the rain, snow and yes, septic, to meander slowly down to be cleansed and filtered by the soil, you are not going to recharge the aquifer.”
Pat Impreveduto also warned that expanded sewer service could encourage dense development, lower groundwater levels, and threaten the Township’s drinking water.
These concerns fell on deaf ears.
Removing the Guardrails—or Adding Insult to Injury?
On September 22, 2026, the Township Committee quietly approved a resolution authorizing CHA, instead of the Township, to design and construct the force main. The stated rationale was that, under certain conditions in the redevelopment agreement, this arrangement would better protect Holmdel from legal liability.
Residents are left to wonder whether the Township is protecting itself legally at the expense of its water resources and Holmdel's future.
What Happens Next?
The outcome remains uncertain. CHA could refinance its debt or renegotiate with its mortgage holders. Higher interest rates may complicate those efforts and add further financial pressure.
Meanwhile, construction has begun at the former Vonage site, where piles of rubble littered the property. How long will this eyesore persist?
More importantly, will the Township Committee use this moment to reassess its redevelopment agreement with CHA? Will the TC use CHA’s default to do more to protect Holmdel, such as insisting CHA adheres to Holmdel’s Wastewater Management Plan and build a modern wastewater management plant?
We raised concerns about CHA’s financial capacity nearly a year ago. Now, with foreclosure proceedings underway, those concerns deserve serious attention.
Will the Township Committee do the right thing to protect Holmdel, now and for the future?
Stay tuned.
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