In a long awaited decision released Monday morning, New Jersey’s highest court gave a huge N-O to former Jackson Township Mayor Mike Reina's contentious land swap with Mordechai Eichorn, FAA News reports.
The ruling is expected to have statewide ramifications as it limits when municipalities across New Jersey may condemn property for use in land-swap agreements.
Back in October 2022, 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, 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. 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 the two condemned properties were not owned by the Township when the land-swap agreement was approved, the appeals court ruled that the agreement could not be enforced with respect to those parcels.
Township attorneys petitioned the state's highest court to review the decision, which was a matter of first impression.
Township attorneys argued that courts traditionally give municipalities broad discretion when determining what constitutes a public purpose, especially when environmental preservation and recreational opportunities are involved.
“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.
The New Jersey Supreme Court did agree to review the case.
Today the Court released a decision affirming the Appellate Division’s decision.
"Neither the statutes that govern condemnation proceedings, nor case law from the United States Supreme Court or this State, authorize the type of land swap that took place here -- condemning someone’s land only to exchange it for property of another that would be put to public use. Further, the Township did not act forthrightly in dealing with the owners of the private land it condemned," wrote Chief Justice Rabner. The high Court’s ruling was unanimous.
The final status of the land swap is not yet determined as the Township rushed to execute the property exchange while the appeal was pending and no stay was issued. Thus, "the Township no longer owns or controls," the subject properties, Township attorneys argued in court.
"We are not in a position to address the question of remedy. We do not know what, if anything, has happened to Lots 84 and 90 since they were transferred to the developer. We note as well that the issue of remedy was not raised before the Appellate Division, and the petition for certification did not present legal argument on the issue. Courts have equitable powers to fashion appropriate and just relief tailored to specific disputes. We remand to the trial court to consider and determine what relief should be granted."
This ruling is a major blow to Council President Mordechai Burnstein who championed the land swap and the contentious litigation.
This decision is expected to have statewide ramifications in limiting municipal government’s regulation authority as 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.
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