Case could determine whether towns may seize private property in order to trade it for land intended for open space preservation
At issue is whether Jackson Township can use eminent domain to seize private property not for direct public use, but instead to trade it to a developer as part of a land swap intended to preserve another property as open space. The Appellate Division ruled the Township overstepped its authority, finding the condemned parcels were essentially being used as “currency” in the deal. Jackson Township argues the courts should look at the broader public plan — preserving farmland as open space — rather than the specific parcels taken. The New Jersey Supreme Court must now decide which interpretation of the law is correct.
In January 2025 the New Jersey Appellate Division overturned former Jackson Mayor Mike Reina’s controversial land-swap deal with developer Mordechai Eichorn. Now the case has reached the State’s highest court.
The New Jersey Supreme Court heard oral arguments today in a closely watched dispute over whether Jackson Township can use eminent domain to seize private property in order to trade it to a developer as part of a deal intended to preserve another tract as open space. The ruling could determine whether municipalities across New Jersey may condemn property for use in land-swap agreements.
Back in October 2022, as previously reported here on FAA News, the Jackson Planning Board heard an application submitted by Bellevue Estates, LLC — owned by Lakewood resident Mordechai Eichorn — to build four schools on a 30-acre parcel at 443 Leesville Road between Burke and Diamond Road.
Soon afterward, as previously reported here on FAA News, then-Mayor Reina announced that the Township had negotiated to acquire Eichorn’s farm in order “to protect existing neighborhoods within Jackson Township and to protect and honor the rights of all Jackson residents.”
The Township proposed acquiring the land as open space through a land swap that would give Eichorn several Township-owned parcels near the Lakewood border.
As previously reported here on FAA News, the Jackson Township Council unanimously approved the proposal in February 2023.
However, the plan included four lots that the Township did not actually own. Township officials intended to purchase those properties and then transfer them to Eichorn as part of the swap.
When the owner of two of those lots refused to sell, the Township moved forward with eminent domain to take the properties.
In October 2023, Ocean County Assignment Judge Francis Hodgson allowed the Township to proceed with the condemnation process.
The property owner appealed.
In a published decision in January 2025, the Appellate Division reversed Hodgson’s ruling. Judges Sabatino, Gummer, and Berdote Byrne concluded that the Township had failed to show that the condemned properties themselves would be used for a public purpose.
“Although municipalities enjoy discretion, the Eminent Domain Act requires a local entity demonstrate the land being condemned will be used for a valid public purpose,” the appellate panel wrote.
“The record before us is bereft of any indication as to the use of the condemned lots, other than what is, in essence, currency, to exchange for open space.”
Because two of the properties were not owned by the Township when the land-swap agreement was approved, the court also ruled that the agreement could not be enforced with respect to those parcels.
Jackson Township then appealed to the New Jersey Supreme Court, which agreed to review the case.
In its brief to the Court, Jackson Township argues the Appellate Division misunderstood eminent-domain law and improperly ignored key U.S. Supreme Court precedents.
The Township contends that the condemnation should be viewed as part of a broader plan to preserve open space.
“This matter is one of first impression before this Court on a governing body’s authority to condemn land to utilize as part of a land exchange to preserve open space within the municipality,” the Township wrote.
Jackson further argues that the appellate court failed to properly apply landmark federal cases including Kelo v. City of New London and Hawaii Housing Authority v. Midkiff. According to the Township, those cases make clear that courts must examine the overall public purpose of the government plan, rather than focusing narrowly on the specific parcel being taken.
“The proposed condemned land does not itself need to be used for public use,” the Township argued, emphasizing that the relevant inquiry is whether the taking advances a public purpose such as open-space preservation.
Township attorneys also argue that courts traditionally give municipalities broad discretion when determining what constitutes a public purpose, especially when environmental preservation and recreational opportunities are involved.
The property owners and developer opposing the condemnation — represented by Roseland attorney Richard P. DeAngelis — argue that the Appellate Division correctly found the taking unlawful.
In their brief, they argue the Township never established any actual record demonstrating a need for open space before filing the condemnation actions.
“The record before us is devoid of any evidence of a valid public use of Defendants’ Property,” the brief states.
They further argue that the Township’s stated justification of preserving open space was “pretextual.”
According to the respondents, the public record showed the real purpose of the taking was simply to transfer the land to a private developer as part of the land swap.
“The record before us is bereft of any indication as to the use of the condemned lots,” their brief states, noting that the swap agreement placed no restrictions on how the developer could ultimately use the property.
They also argue that Jackson lacked authority to promise the developer property that the Township did not yet own.
The New Jersey Supreme Court heard oral argument in the case today.
The Court must now decide whether municipalities may use eminent domain to acquire land not for direct public use, but instead to trade it for other property that will ultimately become open space.
A written decision is expected in the coming months.
The ruling could have significant implications for how municipalities throughout New Jersey structure land-swap deals and open-space acquisitions.
Why This Case Matters
Although the dispute centers on a handful of parcels in Jackson Township, the Supreme Court’s ruling could have statewide implications for how municipalities use eminent domain.
New Jersey law clearly allows towns to condemn land for traditional public uses such as roads, parks, and open space. But this case raises a more unusual question: can a town condemn one property simply to trade it for another property that will ultimately be used for open space? Jackson Township argues that courts should evaluate the entire public plan, not just the specific parcel being condemned. Under that view, the Township says the land swap serves a clear public purpose because the end result would preserve a large tract of farmland as open space. The property owners argue the opposite — that the government must show a specific public use for the property being taken, and cannot seize land merely to use it as “currency” in a private exchange. If the Supreme Court sides with Jackson, municipalities across New Jersey may gain broader authority to structure land swaps and redevelopment deals involving eminent domain. If the Court affirms the Appellate Division ruling, towns may be required to demonstrate a direct public use for the exact property being condemned, significantly limiting the use of eminent domain in land-swap arrangements.
The decision is expected in the coming months.
Broader Context
The dispute comes amid ongoing tensions in Jackson Township over development proposals tied to Lakewood’s rapidly growing population. In recent years, several school and housing proposals by Lakewood developers have sparked heated debates in Jackson about zoning, open space preservation, and neighborhood character.
Supporters of the land swap argued that preserving Eichorn’s 30-acre farm as open space would prevent the construction of multiple schools in the area. Opponents, however, questioned whether the Township could legally use eminent domain to acquire other private properties in order to make the deal happen. The New Jersey Supreme Court’s decision will not only determine the fate of the Jackson land swap, but may also shape how municipalities across the state balance development pressures, open-space preservation, and the limits of eminent-domain power.
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