An Ocean County judge has ruled a lawsuit filed by two residents to stop a township redevelopment pact they claim amounts to a $9 million public gift to a religious organization should proceed because it has “important public interests.”
Attorneys for Lakewood and the endowment fund of Beth Medrash Govoha, the world’s largest university for Talmudic studies, filed a motion to dismiss the 2010 lawsuit brought by plaintiffs Joseph DeFalco and Yehuda Shain, both of Lakewood. Their motion to dismiss the case was based on a time limit typically used on land deal lawsuits.
However, Judge Vincent J. Grasso on June 5 denied the motion, contending a time limit was not enough to warrant dismissing the suit.
The focus of the lawsuit is 240-plus acres called the Southwest Acquisition Area, which stretches behind BlueClaws Stadium at Cedarbridge and New Hampshire avenues and Pine and Vine streets, and a Township Committee plan in 1996 to redevelop 50 acres along Pine Street into senior residential housing.
In November 1999, the Cedarbridge Development Corporation, formed to act as a for-profit arm of Beth Medrash Govoha, offered a plan for the land to township officials, according to township records. The Cedarbridge proposal offered "high end employment opportunities and tax ratables and generally lift up the whole image of Lakewood," according to court documents.
However, Cedarbridge CEO Jack Mueller had said the 50-acre tract along Pine Street had to be part of the deal to be used as seed money.
By June 2000, plans were in place for a high-tech business park. By 2005, with the township’s assistance, Cedarbridge paid $10 for the 50 acres and then sold the land to Somerset Development LLC for $9 million.
The township agreed to transfer the property if Cedarbridge installed water and sewer service for the potential new businesses.
Cedarbridge officials had said BMG and Lakewood would flourish with the proposed mixed-use corporate park. In exchange, the township would reap a large taxable income from the business development.
But between a downturn in the economy and problems obtaining permits, among other issues, the corporate park never happened.
Now DeFalco and Shain want the agreement between Lakewood and BMG nullified and the township reimbursed the $9 million that the university made in their land deal.
“There are 240 acres of land sitting in the southwest area that could bring in $150 million to the township,” DeFalco said during a recent interview. “The township is embarrassed or refuses or whatever to knock out that option agreement and free themselves so those 240 acres can freely be put it to the open market.”
DeFalco originally filed the suit with Hershel Herskowitz of Lakewood. Shain, a licensed real estate developer who was added a year later as a plaintiff, said there is viable residential development waiting to bring much needed tax revenue for residents now.
Michael M. DiCicco, the attorney for Lakewood, defended his motion to dismiss, saying the deadline to act on the deal has passed. Grasso disagreed, and his decision allows the lawsuit to continue, though no trial date has been set.
“The failure is the township is not minding the store and is giving away the store and the township has to be called to task for that,” DeFalco said.
Cedarbridge also should reimburse state-invested money — $8 million worth of Department of Transportation grants obtained for the project’s infrastructure that Cedarbridge agreed to provide, said DeFalco’s and Shain’s attorney, Michelle Donato of Lavallette.
Cedarbridge representatives have claimed they spent “millions” on the property, but Donato said there is no proof. The next phase of the lawsuit will include discovery made by both sides including expenses, she said.
Read more at APP
".... is denied for the reasons set forth in the court's written opinion...."
Can we see the court's written opinion?
As I recall, if the land was not built up within 10 years of the "sale" the land reverts back to the township. 10 years is past. The land belongs to the township now.
Very interesting, What do the BMG Balei Batim say about all this?
glad to see that this is going forward and that it will be decided in a court of law as it should .The backdoor politics that have given away valueable land at the expense of all lakewwod residents STINKS ! May the whole truth be brought into daylight and justice be served to stop this kind of nonsense
Hershel Herskowitz originally allowed his name to be used as one of the plaintiffs in the lawsuit because he believed that since the defendant was the Township of Lakewood and not BMG or any Jewish person or institution, he was permitted to bring suit in secular court, because after all how could he call the Lakewood Township, a completely secular institution, to a Din Torah?
However, when he was instructed by Rav Aaron Leib Steinman directly to discontinue his participation in the suit because of the possibility of a resultant Chilul Hashem, he immediately withdrew from the claim.
Although Rav Steinman's psak didn't make sense to Hershel because he Hershel, wouldn't be responsible for the Chilul Hashjem, but rather those who participated in the appearance of an improper transaction, nonetheless, Heshel bowed to the superior wisdom of the Godel B'Yisroel, Rav Steinman.
If only all Bnei Torah could be MeVatel themselves to Daas Torah with as much sincerity and humility that Hershel Herskowitz did.
P.S. So when are we starting to learn together, Hershel?
This is the beauty of the internet. Once you are associated with something, you can never erase it. Just one clarification. My name was not on the lawsuit for a year. I asked that it be removed after three months. Although the lawsuit does not concern me, I feel we could all come to an agreement that could benefit the town, and the institution that created much of the growth of the town in the first place. We just need to find a common ground where we can all agree on what would be the best use for one of the last remaining tracts of land in Lakewood.
Finally justice is being served. This is all the work of Bob Singer who sold out the Township when he handed the Blue Claws GPU statdium for nothing. Now those who are using public porperty to enrich the private few will be called to task. I hope the plaintiffs will resist calls to settle this case and follow it througth to the end. It is absurd that Christie's Attorney general has not joine dthe lawsuit.
why did Hershel go out and Shain replace him?
May the truth emerge victorious!
ES IS NISHT KAIN VINNDER AZ TO LO YEHUDDIM HASSIN INCE
BMG's Board of Directors are discussing this item at their monthly meeting. Ask them what the outcome was?
r shteinman told hershel since the kotlers are so bad who knows what they will do to you so pull out but yudel is not scared of them even though they are trying to kill him now
BMG is putting together the "group" to attack him. All of the big Rabonim are being asked to join in the campaign against shain. Shain is running scared, he davens very long shemonei esrah. At least he davens.
Oi vei, shain is in trouble, they're comin after him, the commies.
Reb malkiel wanted to put in cherem Meir hertz for lossing last election and went to novminsker rebbe and rav ahron scheter and they both refuses.
Let the truth prevail no matter what !!!!!!!!
Shain says the only thing he needs is more financial support, as he's considering some additional legal chalenges.
dus is de bmg, es vet kumin amull aza broch oof zei.genaiva is kasher.zei beiten zach anader milchuma funn ah niah hitler.dus is a chilul hashem.eich gleib nisht az es iz geven nur 9 million,vifull is gagangin inter dem tisch?du seit ihr,der oilem vie es geat de taxes vus darshticked aink.traab aveck da lo yahidim fun shtut, luz a yid nisht far digen a hois tze kein lo yid chulila.strashe der yid maserder yid vus fardink zu der urel afelu az er chepit nisht keinem.az a hunt loift in der gahs reaf de polizia.val ihr halt nisht fun kein huunt darff min az ehr der urel tur nisht.a mull vet de lo yehidden rifen fun der masa umatan az me zal far dingin tzu zei vos vet ehr zugen demaltz?haba lorgach haskem la horgo.fang unn mit der real estate comitzia.der heileka BMG bregnt de alla zachen oif der shtut.zei vellen bazallen far deam.
Let them put Gavriel Finkel in Cherem for all the Mesirra and Arkous and Yidden he puts in Jail. OOPS I Forgot Gavriel Finkel is R Malkiels uncle he can do whatever he wants