Toms River Mayor Dan Rodrick announced at a township council meeting Wednesday that his administration has terminated an agreement with a developer to build a multi-story waterfront residential and commercial complex on the downtown riverfront.
Rodrick - who ran for office on a platform opposing dense development in town - said he terminated the redevelopment agreement with Capodagli Group, the North Jersey development firm that had received approval to build a six-story mixed use residential and retail complex on the site of the former Red Roof Inn motel along Water Street because they failed to meet deadlines set forth in the redevelopment agreement pertaining to financing and reaching certain benchmarks.
The administration will also turn down millions of dollars in federal funds to create a “loop” traffic pattern in the downtown section because this grant would require the Township to approve more high density development in the downtown area, Rodrick announced.
The Red Roof Inn property on which the complex would have been built, previously conveyed to Capodagli for $1, will revert to township ownership in 60 days.
“I think this is going to cost the town lots of money in legal fees,” said Councilman David Cicozzi. “Only time will tell.”
The mayor responded any legal fees that the township may have to pay would be dwarfed by the cost of adding residential development downtown.
“If you think about 300 apartments and the $20,000 [per pupil] cost per year, I think it would have far exceeded the $380,000 that would have been generated at full occupancy,” he said.
Rodrick added that under a tax abatement agreement, Capodagli would pay just $380,000 per year for a development project worth $60 million.
The developers are not at all sitting idly by.
On Thursday, Meridia Toms River 40 Urban Renewal LLC, who has already expended more than $3,200,000 in obtaining their approvals slammed the Township and Rodrick with a 10-count civil lawsuit.
The complaint, filed in New Jersey Superior Court in Ocean County by Roseland Attorneys Steven G. Mlenak and Steven Firkser, Esq., insists that "prior to January 1, 2024 (when Rodrick took office), the Township complied with its obligations under the Redevelopment Agreement and supported and assisted the developers in obtaining the approvals for development of the project," and that the Township "has undertaken arbitrary, capricious and unreasonable efforts to prevent the development of the project since the Mayor’s inauguration," simply due to Rodrick's stated intentions to do all he can to "to fight these guys and get the Township out of this terrible deal."
"Plaintiff has worked diligently to address the conditions of approval in the Planning Board resolution in order to commence construction of the Project," the complaint stresses.
"Plaintiff has obtained the permits to conduct this work and is ready, willing, and able to commence construction pursuant to the Redevelopment Agreement prior to the January 31, 2025 deadline set forth in the Agreement.
"This political interference is frustrating the purpose of the Redevelopment Agreement and making Plaintiff’s performance impossible. The interference is beyond the Plaintiff’s control and constitutes a Force Majeure Event under the Redevelopment Agreement, staying all schedules and timelines. Plaintiff was not in default, because the failure to comply with the Project Schedule was subject to delays caused by the Township’s failure to timely perform its obligations, as provided in Section 11.01(7) of the Agreement.
"This is the culmination of the Mayor’s antagonism to the Project duly authorized and approved by the Township and his efforts to “bring in a high-powered attorney to fight these guys and get us out of this terrible deal," the complaint alleges.
The suit, which includes counts of civil rights violations, demands judgment enjoining the Township from proceeding with its notice of default and interfering with the developers' efforts to develop the property; compensatory and punitive damages; interest; attorneys’ fees; costs of suit; and such other and further relief as the Court may deem equitable and just.
The Township has 35 days to answer the complaint.
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