Lawsuit Raises Questions About Vonage Redeveloper

Holmdel’s Township Committee has been working towards the redevelopment of the Vonage property for the past two years.  It has chosen to work with CHA Partners (“CHA”) as the redeveloper.

In a presentation to the Township Committee in July 2024, CHA stated that it owns and operates 20 facilities, including the acquisition and repositioning of five hospitals in NJ.

An outstanding 2023 lawsuit filed against CHA and William Colgan, CHA’s Managing Partner, raises questions about how CHA operates and behaves when things don’t go according to plan.

Background

In 2019, as part of an agreement to acquire Memorial Hospital in Salem County, CHA approached the Salem Health and Wellness Foundation (“Salem Foundation”), a non-profit organization, for financial assistance.  According to the lawsuit, over time, the Salem Foundation provided $39 million to CHA to allow it to acquire and operate Memorial Hospital. The $39 million consisted of $14.5 million in grants and $24.5 million in loans.

About two years after the purchase, CHA sold Memorial Hospital to Inspira.  As part of the process, CHA requested the Salem Foundation to forgive some of its indebtedness.  In turn, the Salem Foundation forgave $20 million of the $24.5 million in loans it had given to CHA.  Inspira agreed to and paid $1.5 million to Salem Foundation at closing.

$3 Million Promissory Note

CHA was supposed to pay the remaining $3 million at the closing of the Inspira transaction.  However, shortly before the Inspira closing, CHA asked to defer payment of the $3 million for several months, until April 15, 2023.  The $3 million was restructured as a CHA promissory note and personally guaranteed by Colgan and Steven Rosefsky, a partner at CHA. 

April 15, 2023 came and went and CHA did not make any payments.  After notifying CHA that they were in default, the Salem Foundation filed a complaint in May 2023 seeking payment of amounts owed to it pursuant to the promissory note.

Two Court Orders of Contempt

On January 23, 2024, a judge granted a Motion for Summary Judgment to the Salem Foundation for the $3 million, plus accrued interest, plus attorneys’ fees and costs.

According to court records, a judge issued a Contempt Order on December 6, 2024, against CHA for failing to comply with a Court Order issued in September 2024.

A second Order of Contempt was issued by a judge on July 18, 2025, against CHA for failing to comply with the original September 2023 Order, the December 2024 Orders for Contempt and a December 2024 Charging order.

Attempts to Evade Payment?

In its attempts to collect the $3 million owed, the Salem Foundation has had to place multiple liens against CHA, Colgan, and Rosefsky. 

In a letter by Salem Foundation’s attorneys dated September 15, 2025, it was revealed that Colgan attempted to transfer a property to his wife in an attempt to place it beyond the reach of the Salem Foundation.  However, Salem Foundation had perfected a lien earlier.  Due to that lien, when the property was sold, the proceeds of $400,000+ were used to partially pay off a portion of the amounts owed to Salem Foundation.

In the same letter, Salem Foundation’s attorney also revealed that Mr. Colgan admitted in a deposition that he has been receiving $5,000 to $10,000 monthly from CHA, in violation of a December 2024 court order.  The Salem Foundation also discovered that Colgan has been receiving $5,000 to $10,000 from another entity, a possible violation of that same December 2024 court order.

Conduct Unbecoming?

It appears that Salem Foundation, a nonprofit organization, gave $14.5 million in grants and, additionally, forgave $20 million of the $24.5 million in loans to help CHA with Memorial Hospital before CHA sold it.  Despite that, CHA decided to ignore its own promise to pay the remaining $3 million when due, evidenced by the promissory note and personal guarantees.

Worse yet, CHA continues to ignore court orders and Colgan appears to try to circumvent paying Salem Foundation the money that it is owed from the proceeds of a real estate sale.  Furthermore, Colgan has personally received monthly payments from CHA, in direct violation of New Jersey court orders.

The outstanding lawsuit raises several questions.

1. Is this the kind of conduct and behavior that Holmdel Township seeks in a developer to forge a redevelopment agreement?

2. Did the Holmdel Township Committee do its due diligence?  Was the Township Committee aware of the above when it chose to enter into a redevelopment agreement earlier this year?

3. Given the optics that it can’t or doesn't want to pay off a $3 million promissory note, does CHA have the financial wherewithal and commitment to complete the Vonage redevelopment project?

4. What assurances has the Township received from CHA?  Holmdel Township has an affordable housing deficit from the last round due to a project that did not move forward.  Will history repeat itself?

5. The Township Committee plans to introduce an ordinance giving a tax break, known as a PILOT, to CHA for the Vonage redevelopment at its Dec. 9, 2025 meeting, with a public hearing scheduled on Dec. 22, 2025.

Holmdel citizens have voiced concerns about Vonage’s wastewater management and the contamination of our drinking water.  Given CHA’s conduct and behavior in the Salem Foundation lawsuit, is it deserving of a tax break from Holmdel Township? Should concerns about wastewater contamination be addressed first before the granting of a tax break?

6. Records also show that CHA suggested they may be able to fulfill their obligation to Salem Foundation on December 25, 2025.  Is it a coincidence that this is only days after a continued hearing by the Holmdel Planning Board on December 16, 2025 and the public hearing by the Holmdel Township Committee for the Vonage PILOT program on December 22, 2025?

Stay tuned.  Things may come to a head soon.