BREAKING NEWS: JUDGE RESTRAINS LAKEWOOD'S PLANS FOR DORMITORIES, WEDDING HALLS AND MID-RISE RESIDENTIAL APARTMENT BUILDINGS ON CROSS STREET

In a big win for area residents, Ocean County Superior Court Assignment Judge Francis Hodgson today restrained Lakewood's Township Committee ordinance permitting for more dormitories, wedding halls, and mid-rise residential apartment buildings to be constructed in the Township.

Back in December 2024, ignoring heavy opposition from the neighbors, the Township Committee adopted two ordinances. One which creates a School Overlay Zone and a second which creates a Joint Venture which requires the neighbors to help pay for the roads and utilities.

The School Overlay Zone is in the area generally located east of the Jackson Township/Lakewood Township border, northeast of Farady Avenue, west of Cross Street and south of Maplehurst Avenue.

The final version, which was adopted as Ordinance 2024 - 41 provides as follows:

• Any school shall be permitted to construct and maintain primary use, stand-alone dormitories.

• Schools shall further be permitted to construct residences for married students, staff, including teachers and administration affiliated with the school. Residences may include single family/duplex units and apartment buildings up to 65 feet high.

• Wedding halls will also be permitted as an accessory use to a school provided that sufficient verification, documentation and professional testimony that adequate parking has been provided for - which shall be reviewed by the Planning Board at the time of application.

The Joint Venture ordinance requires the residential neighbors to chip in for the costs of the road and utility improvements for the new School Overlay zone. Pertinently, the Ordinance grants authority to the developers to require the neighbors to chip in - a yet indeterminate amount of money.

As previously reported here on FAA News, back in January 2025, the neighbors, who are represented by Attorney Vincent J. DelRiccio, Esq. of the firm of R.C. Shea & Associates filed a major lawsuit seeking to overturn both new ordinances on multiple procedural and substantive grounds.

Following oral arguments on the matter a few weeks ago, Judge Hodgson today granted an initial win to the neighbors.

"Plaintiff challenges the conditions for assessing and reimbursing the Developer. Although municipalities may require such reimbursement (Vrabel v. Sayreville, 253 N.J. Super. 109, 118 (App. Div. 1992)), there must be a rational nexus between benefit and assessment, with reimbursement not exceeding the benefit conferred.

"Further, Drake v. Town of Boonton, 106 N.J. Super. 79 (Law Div. 1969), cited in Meglino v. Twp. Comm. of Eagleswood, 103 N.J. 144 (1986), holds that after a municipality takes over an improvement, a private developer cannot collect fees from other property owners; instead, the municipality must manage collections and reimbursements.

"Plaintiff argues that the ordinances impermissibly force property owners to seek permission from a private developer before exercising property rights, and subject them to special assessments imposed by that private entity. However, the specific mechanics of reimbursement and cost allocation remain undefined because the necessary agreements (the Development and Joint Venture Agreements) have not been finalized.

"To avoid prejudicing residents before enforcement mechanisms are clearly defined, and given the Ordinances’ severability clause, the Court severs the provision rendering them effective immediately. The Ordinances shall not take effect until the agreements are finalized, providing Plaintiff the opportunity to review and appeal within the appropriate time limits," Judge Hodgson wrote.

Essentially, the ruling requires the Township and developers to finalize and execute the operative agreements with the full transparency - and permits the neighbors to return to court on their substantive challeng after the agreements are complete. The ordinances are restrained from taking effect in the interim.

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