Yet Another COAH Surprise!

Jan. 26, 2019 – The journey for Holmdel’s affordable housing plan (also known as COAH) seems to have as many twists and turns as an Alpine road.

Prior to the November 2018 election, Lea Shave, the independent candidate for the Holmdel Township Committee Member, made public the allegations of a conflict of interest by then-Mayor (and also a Township Committee Member candidate) Tom Critelli. The allegations were made in a court filing dated Dec.1,2017 by a developer of a property known as Potter Farms on Red Hill Road, near Exit 114 of the Garden State Parkway. The court papers cited a purchase contract for North Beers Street property, one of the sites included as part of the current affordable housing plan, signed by Tom Critelli, President of Danitom Development, Inc.

However, what was lost in this explosive revelation is the filing by the developer as an intervenor in the affordable housing litigation. The developer, MFC Real estate Development, LLC, contends that it was led down a path whereby Potter Farms was to be included as part of the affordable housing plan that was approved at the August 2017 Township Committee meeting.

Specifically, MFC indicated that in response to a Holmdel request, it made “a colossal and expensive effort to cause to be prepared to plans and documentation requested by the Township to meet the required tight timeline”. However, much to its “utter shock and amazement”, the plan approved at the August 2017 meeting did not include Potter Farms and MFC was never informed of the decision.

Instead, two new sites, so-called “Route 35” and “Palmer Ave”, that have never previously identified were now included. As of the Dec. 2017 filing date, MFC had incurred $325,000 in expenses as part of its efforts with the Township.

At its Dec. 2018 meeting, Holmdel Township Committee unveiled and approved the latest iteration of the affordable housing. As previously reported, this meeting was well attended (standing room only) and many residents made public comments regarding this plan. Of note is that “Route 35” property was not included as part of the plan.

Now, there is yet another surprise in the affordable housing saga. In court papers made public by Barbara Singer, the Democratic candidate for Township Committee Member in the Nov. 2018 election, we learned that Paradigm Hedge LLC and Paradigm Deviation LLC (Collectively “Paradigm’), the owner/developer for the “Route 35” property, have filed to be an intervenor in the litigation.

In its January 8, 2019 filing, Paradigm asked for the enforcement of the settlement reached with Holmdel Township in 2017. In a story similar to the MFC filing, Paradigm claims it was led down the primrose path. It asserted that the settlement reached in 2017 was amicable and resulted in Paradigm – at Holmdel’s request – changing and abandoning its original plan for senior housing with no affordable housing claims to a plan that has a set aside for affordable housing.

It further asserted that despite three years of negotiations that resulted in the 2017 agreement for the development of the “Route 35” property, Paradigm was never advised that Holmdel would not proceed with the rezoning (as required in the agreement) or that “Route 35” property would not be included in the latest settlement agreement.

There is a new judge for the litigation and the Fairness Hearing has now been rescheduled to Feb. 26, 2019 at 10:00 AM at the Monmouth County Courthouse at 71 Monmouth Park, Courtroom 21, in Freehold.

In addition to the MFC and Paradigm court filings, residents at Palmer Square Condominiums have previously raised an objection to the Palmer Ave property, citing chronic flooding problems. Holmdel’s Planning Board had rejected a previous plan at this site that called for 50 instead of the current 60 units just 2 years ago due to flooding concerns. Representatives of Palmer Square Condominium have participated at a previous court hearing. So, it would not be a surprise if representatives are there again. The Feb. 26th hearing should be interesting to watch.

Given the two court filings, the appearance of a conflict of interest by a Township Committee Member that has led to his recusal, and the whole affordable housing process, some residents are starting to ask the question whether this is symptomatic of how the Holmdel governing body is functioning.

Stay tuned and fasten your seat belt, the road might get bumpy!