The long-running battle over Menachem Gutfreund's proposed development on Spruce Street at Washington Avenue in Lakewood is now heading to the New Jersey Appellate Division, FAA News has learned.
Attorney Jan Meyer, Esq., representing neighboring property owners who have fought development proposals at the site for years, has now filed a Notice of Appeal seeking to overturn the Lakewood Zoning Board's approval permitting four single-family homes on the property.
The appeal comes after Ocean County Superior Court Assignment Judge Francis Hodgson rejected the neighbors' challenge following a trial held on August 4, 2026.
In a written opinion issued August 26, 2026, Judge Hodgson rejected the neighbors' arguments and dismissed their Complaint in its entirety, leaving the Zoning Board's approval intact.
Meyer has now taken the fight to the New Jersey Appellate Division.
The latest litigation stems from the Zoning Board's 6-1 vote approving Gutfreund's application following contentious public hearings held on May 5, June 16 and July 21, 2025.
The application sought approval to construct four homes on Spruce Street at Washington Avenue.
The neighbors subsequently filed a Complaint in Lieu of Prerogative Writs challenging the approval as arbitrary, capricious and unreasonable.
Among other things, the lawsuit emphasized the substantial amount of variance relief required for the project, including multiple "d" variances and numerous bulk or "c" variances from the requirements of Lakewood's R-40 zone.
The neighbors also challenged various aspects of the proofs and findings relied upon by the Zoning Board in granting the application.
Following the August 4 trial, however, Judge Hodgson sided with the Zoning Board and developer and declined to disturb the approval.
That ruling will now be reviewed by the Appellate Division.
The appeal marks yet another chapter in an extraordinary land-use saga surrounding the Spruce Street property that dates back to 2019.
Gutfreund has repeatedly returned to Lakewood's land-use boards with various development proposals for the site, while neighboring residents have repeatedly mounted vigorous opposition.
The proposals over the years have included plans for as many as ten homes, revised residential developments, and a two-story child care center with a proposed capacity of approximately 350 children.
One earlier Zoning Board approval was successfully challenged in court.
In 2020, the Board approved a reduced plan for four single-family homes. Meyer subsequently filed a prerogative-writ action on behalf of neighboring residents challenging that approval.
In January 2022, Superior Court Judge Marlene Lynch Ford granted summary judgment to the neighbors and overturned the approval.
Gutfreund subsequently returned with additional proposals, including the child care center and another application for six single-family homes. After three hearings between December 2023 and April 2024, the Zoning Board denied the six-home application.
The developer later returned with another residential proposal, ultimately culminating in the four-home approval now being litigated.
At one point, Gutfreund was also in discussions with Township officials regarding a possible land swap that could have allowed the Spruce Street property to remain open space and potentially someday become a public playground. Those discussions ultimately faltered.
The filing of the Notice of Appeal means the dispute will now move from the Ocean County Superior Court to the Appellate Division.
For neighbors who have been fighting development proposals at this property since 2019, Judge Hodgson's August ruling therefore did not mark the end of the saga.
The fight has simply moved to a higher court.
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