August 26, 2023 – At its previous meeting on August 8th, the Township Committee authorized the Township to enter into bona fide negotiations with Crawford Hill Holdings to acquire Lots 6 and 6.01, which include the Horn Antenna, a National Historic Landmark.
At this week’s special meeting on Tuesday, the Holmdel Township Committee approved the use of eminent domain if the bona fide negotiations fail. It also approved the issuance of a $2 million bond ordinance that may be necessary as part of the eminent domain process.
The Township Attorney confirmed that late last week, the Township did send out a letter to the owner of Crawford Hill that started the bona fide negotiations. Under state law, the bona fide negotiations must be for at least 14 days before the Township can start eminent domain proceedings. For more information, please see the following articles in the Patch and Star-Ledger/NJ.com:
Star-Ledger/NJ.com: https://www.nj.com/news/2023/08/nj-town-votes-to-acquire-historic-horn-antenna-property-through-eminent-domain.html
The $2 Million Question
The Township Committee had authorized an appraisal for Lots 6 and 6.01 and on August 8th, accepted the appraised value of $1.97 million as part of the authorization to enter into bona fide negotiations.
Clearly, as part of the negotiations, the owner, Crawford Hill Holdings, issued a press release questioning the $2 million appraised value. “How do you assess such a unique site,” Rakesh Antala, a partner, said. “What price do you put on that? $10 million? $20 million? $50 million?”
Let’s review what we know.
1. The current owner purchased Crawford Hill property on December 23, 2020 for $3.7 million.
2. The property was assessed in 2020 at $8.58 million. As most Holmdel residents know, the assessed value for property tax purposes is supposed to be at the “market value” of the property.
3. Three months after closing on the property, the owner filed a direct tax appeal with the tax court on March 31, 2021.
4. In an email obtained through an OPRA request, the attorney for the owner asserted to the Holmdel Tax Assessor that:
(a) The property was listed for $3.8 million originally,
(b) The purchase price was negotiated arms-length/normally while also considering there are EPA monitoring wells on the property,
(c) Possible plans for the property (re-development) have been rejected by the “city” (presumably, the attorney meant the Township) and the property currently remains un-developable,
(d) The 34 acres on Lots 6 and 6.01 (referred to as “back lot”) have a 23-acre easement (landscape easement) recorded, as not buildable; also inclusive of woodland. Land/slope issues also encumber the property, and
(e) The owner believes the combined value of the property (all three lots) is the purchase price but the maximum assessment he would be willing to accept is $4 million.
5. On April 13, 2021, Holmdel Township and Crawford Hill Holding signed and filed a “Stipulation of Settlement” agreeing to a tax assessment of $833,700 for Lot 6 and 6.01 and $3,166,300 for Lot 7, for a total tax assessment of $4 million.
The last item on the Stipulation states that both parties “have made such examination of the value and proper assessment of the property and have obtained such appraisals, analysis and information with respect to the valuation and assessment of the property as they deem necessary and appropriate for the purpose of enabling them to enter into this stipulation.”
6. The tax assessment stayed at $4 million for 2022 but increased slightly to $972,700 for Lots 6 and 6.01 and $3,172,600 for Lot 7, or a total of $4,145,300 for 2023.
It is interesting to note that the owner agreed to a value of $833,700 for Lots 6 and 6.01 in 2021, just a little over two years ago, and now, facing possible eminent domain action, tries to argue that the value of the property is significantly higher.
The $2 million question (the appraised value of Lots 6 and 6.01) is whether the owner of the Crawford Hill property can have it both ways.
Crawford Hill, Lot 7
The remaining third lot on Crawford Hill, Lot 7, is the subject of a redevelopment study that is before the Holmdel Planning Board. A draft of the redevelopment study concludes that the lot should be designated as an area for redevelopment. A public hearing has been rescheduled for Sept. 5th, at 7 PM. Barring any surprises, the Planning Board is expected to adopt the recommendation after the public hearing and send it back to the Holmdel Township Committee.
It will be interesting to see what the Township Committee will do next.
Stay tuned!
ความคิดเห็น