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HomeMy Public PortalAbout2023-03-29 Special Meeting Minutes Mayor & Council Special Meeting March 29, 2023 Franklin Avenue Middle School Multipurpose Room—7 PM Meeting Called to Order Roll Call The following Council Members and Professional Staff responded to the roll call: Mayor Kahwaty, Councilmember Ansh, Council President Bonagura, Councilmember Cardenas, Councilmember Kelly, Councilmember Lambrix, Councilmember Sheppard, Borough Administrator Hart, Borough Attorney Smith, Affordable Housing Attorney Michael Edwards, Borough Planner Elizabeth McManus and Borough Clerk Rulli. Sunshine Law Statement The Borough Clerk read the Sunshine Law Statement. Flat Salute Moment of Silent Appreciation to Our Veterans Introductory Remarks by Mayor Charles J. X. Kahwatv Mayor Kahwaty spoke briefly and introduced the presenters. Presentation by Developer of Cigna Property Mr. Del Vecchio, attorney for Hekemian, spoke about the revised concept plan. He indicated there would be a reduction in the number of stories, as well as a height reduction. The maximum number of residential units are not to exceed 250. There will be retail space, no PILOT, and a donation of approximately 3.5 acres of land to the Borough to be used for Affordable Housing. There will be a repurposing of the commercial site to warehouse buildings where the office buildings now stand. There will be parking below. Bruce Englebaugh, Minno & Wasko, discussed the differences between the new and the previous proposals. He outlined items that did not change. Mr. Edwards gave a general overview of his previous presentation on Mount Laurel. He recommended the Borough accept this proposed agreement. Ms. McManus commented on concerns with the first concept plan, including the impact on schools, emergency services, and tax revenue. She stated that this settlement addressed those concerns. She is pleased to see proper limitations set on the intensity of the site, bulk controls and standards. This settlement is significant and can allow the Borough to move ahead with Affordable Housing. Special Meeting of the Mayor& Council Page 2 March 29, 2023 Time for Public Comment Motion to open the time for public comment was made by Councilmember Kelly, seconded by Councilmember Lambrix. On voice vote, all in favor. Brian Rand, 707 King Road, asked who is building and paying for the 55 affordable housing units. He asked about type of use. Industrial use presents less traffic than multifamily, but 18 wheelers will have an impact in other ways. He spoke about appreciating this as a better plan but suggested maybe replace the residential component with additional retail. Mr. Edwards responded that the town cannot restrict certain types of warehousing. Ms. McManus noted his concerns, spoke about property size and bulk standards to regulate. Dave Mastrofilipo, 331 Lenapi Drive, spoke about situations in Paramus and Wanaque and concerns such as noise. He suggested if this moves forward LED lighting will impact surrounding properties, as will the hours of operation. He questioned if this can be limited by blue law type restrictions, and requested that noise be reduced with sound barriers. Noah Zakim, 846 Scioto Drive, commented the affordable housing obligation never stops. The location of this property and the layout of town are not conducive. There will be more objections. Laurie Burnette, 746 Lawlins Road, asked if this goes to the Planning Board for redevelopment and expressed concerns over height, type of business, hours, and a traffic study. Mr. Edwards stated this would be a zoning ordinance and briefly explained the process. Ms. McManus stated that if the Council approves the plan it will be subject to zoning ordinances and stated it is the developer's responsibility to do the traffic study. Joseph Pullaro, 886 Iron Latch Road, stated he is a long term resident and member of the Planning Board. He stated he is speaking personally, and discussed the impact on Old Mill residents. Ms. McManus stated the Planning Board will have the opportunity to review the plan but does not have the right to determine type of use. Town ordinances will apply to the new development. Morgan Friedman, 305 Haven Road, referenced the $500,000 for infrastructure and what the cost to the town will be. She stated it sounds like we have very little control once it is adopted and feels the Council should do as much as possible for the residents surrounding this property. Borough Attorney Smith stated we don't know. The developer will be required to pay their share of impact. Mr. Edwards spoke about requesting setbacks and stated the standards will be in the zoning ordinances. Mayor Kahwaty spoke about hoping to be able to rent these units and stated her point is well taken. Sue Barbuto, 1 Deer Trail, spoke about swales for drainage,new developments coming in and their impact on the land and resources. As a former member of the Environmental Committee, she wants an independent environmental impact study performed. She listed additional options and concerns about the current buildings being repurposed and the impact the actual construction will have. Special Meeting of the Mayor& Council Page 3 March 29, 2023 Marianne Krantz, 833 Stonewall Court, stated at first she was thrilled to hear that the number of residents had been reduced; however, now feels the idea of these trucks is devastating. She spoke about the town trails,pickle ball courts, speed limit, and pollution of 371 trucks,the dog park, and walking on Old Mill Road, and stated she would choose residential units over warehouse. Bob Salerno, 854 Old Mill Road, questioned the weight limit on Old Mill Road and how tractor trailers will get in. He stated the Council is being very irresponsible by giving the developer carte blanche to use property as they see fit. Ms. McManus stated that would be addressed at the time of the site plan. Joe Barbuto, 1 Deer Trail, asked if part of Old Mill Road is part of the Green Acres property. Mr. Smith stated Old Mill Road is not covered by Green Acres and its use is not restricted. Steven Kim, 227 Mable Ann Avenue, asked if they are planning to build this warehouse on speculation or do they have tenant in mind. Mayor Kahwaty stated he doesn't have that information. Mr. Smith added that is something we don't have control over. Mr. Del Vecchio stated the S Hekemian Group has successfully developed warehouse space previously. Andrew Haas, 237 Green Ridge Road, addressed the weight limit and asked if the Council will accommodate a change, and why a limit was set. He stated that a warehouse in the middle of a residential area is the poorest planning he has ever seen. Mr. Smith stated the developer would have to request the weight change, and at that time the Council would review and decide. Mr. Edwards added that the developer would be responsible for costs. Mayor Kahwaty stated there is no perfect agreement and we all have the same concerns and don't want it. He stated he would like this to have as little impact as possible. Mr. Edwards stated if you have 88 acres and someone wanted to put 2,600 units on that property, zoning means nothing when Affordable Housing is mentioned. In this case, by putting in warehouses the other housing units were able to be negotiated down to 250. Michelle Crowe Paz, Mahwah Council Member, stated that on original agreement it mentioned federal use and asked if this was taken off the table. Mr. Edwards stated the potential is still there. Mayor Kahwaty reminded the residents because of confidentiality agreements it can't be discussed. Noah Zakim, 846 Scioto Drive, asked about a zoning agreement and stated putting in 2500 units would be financial suicide for developer. Special Meeting of the Mayor& Council Page 4 March 29, 2023 Ari Donio, 501 Kings Pointe Trail, spoke about Mr. Hekemian living in California in an area that is protected from Affordable Housing and that the traffic study is a joke. He stated Mr. Hekemian should want people to remember him for a person who made Franklin Lakes a better place, not a worse one. Timothy Shanley, Wyckoff, stated he lives on the border. He asked if when negotiating, if it ever came up for 55 and over senior housing. He stated residents don't want trucks coming down into Wyckoff, Mahwah, and Ramsey. Mr. Edwards stated it is inappropriate to discuss negotiations. Mayor Kahwaty stated that this settlement was negotiated for a year and half and many strategies were discussed. Rick Capozzi, 193 Woodside Avenue, stated he is concerned about the trucks and weight limit. The developer, who loves capitalism, should put themselves in the place of those people who live near the site. He stated this is not a good option. Loria Russo, 303 Lenapi Lane, stated she loves where she lives. It's a wonderful little community. She stated this will be a nightmare and can see Police having to put up speedometers for areas in 25 MPH speed limit zone. She didn't like the other plan, but would rather have that than this. Carol Kurlander, 269 Edgewood Road, noted that she previously lived at 809 Old Mill Road and spoke about walking near Medco and the truck noise. The traffic made it difficult getting out of driveway and her solution was to move. She stated she thinks this is a stupid idea. Michael Giaccone, 306 Waterview Drive, spoke about noise pollution and hearing beeping when trucks back up from up to 2 miles away. You don't get used to it. Stephen Sciancalepore, stated he can't imagine this place being built and thinks the plan stinks. He doesn't think it's proper to keep people from moving in. Rich Milazzo, 35 Spring Wolf Trail, thanked the Mayor and Council for their hard work on this process. He stated Hekemian has addressed the density and walked away from the PILOT. His concern now is mainly hearing trucks. Tracy Haas, 237 Green Ridge Road, cited statistics on the number of trucks. She noted the dog park, tennis courts, and other homes back up to it. Franklin Lakes is not set up for this and expressed concern that if the Borough agrees to this,the developer can do whatever they want and we lose a say in the matter. Mayor Kahwaty stated that his expectation is they will no longer negotiate and would go to court at this juncture. He stated that if the Borough loses, they will have even less say on anything. Mr. Matarese asked Mayor Kahwaty if it was accurate to say that if not for Mt. Laurel,we wouldn't have this issue. He feels that Mt. Laurel is unconstitutional and this is wrong. It is his opinion that the Council is shirking its responsibilities if it moves forward with this settlement. He is very against this and stated there is no right way to do the wrong thing. Special Meeting of the Mayor& Council Page S March 29, 2023 Jane Pullaro, 886 Iron Latch Road, commented that it's her opinion that Hekemian sounded "commercial". IBM was a light industrial area and this is an entirely different development which will impact the lives of everyone in town. The Council is responsible for making this decision and have to be realistic, no one wants this. She asked that Mr. Hekemian, the Borough, and the residents work together. Michael Esposito, 9 Millbrook Lane, stated he is raising 5 children in town and spoke about growing up in Brooklyn near a trucking company. He inquired about the current Ordinance concerning trucks coming through on weekends, after hours, etc. He stated he has heard common sense from the residents and thinks further negotiations are required. He is appalled. Mayor Kahwaty stated there are currently no restrictions. Steve Holmgren, 702 Colonial Road, stated he lives near the McCoy property. He stated he can't put an addition on, make septic changes or even remove a tree without permits, but that seems to not apply to the developer. He stated it is disgusting and he totally disapproves. Anna Marchuk, 183 Woodside Avenue, asked about trucks and the different designations of use. She asked about filing a lawsuit. Mr. Edwards stated he cannot discuss specific negotiations and noted that many of the residents' concerns were raised and this is what the developer accepted. Mayor Kahwaty reiterated that it would be inappropriate to discuss negotiations. Mr. Smith commented that he cannot offer legal advice, she would need to hire an attorney. Ellen Stickna, 642 Ewing Avenue, stated this is devastating to people that live near the area because truck traffic will destroy their property and way of life. She said that she appreciates all negotiations that went on before but warehouses are monstrous. Edward Kim, 760 Aspen Way, stated kids go to Woodside and she is concerned about introducing workers and heavy traffic into the neighborhood. She inquired about security and Police near the area to protect the kids. Mayor Kahwaty assured residents the need will be met. Dean Ellis, 143 Dogwood Trail, stated it hurts to see this side versus that side situation and all of Franklin Lakes is in this fight together. Mt. Laurel is abused by developers. He stated we are the War Eagles and asked what we tell our children about what we decided. Motion to close the time for public comment was made by Councilmember Kelly, seconded by Councilmember Lambrix. On voice vote, all in favor. Resolution Approving Settlement Agreement Council President Bonagura made a motion to introduce and discuss the resolution, seconded by Councilmember Lambrix. Special Meeting of the Mayor& Council Page 6 March 29, 2023 Roll Call Vote: Ayes: Ansh, Bonagura, Cardenas, Kelly, Lambrix, Sheppard Nays: Abstain: Absent: Motion Approved Council President Bonagura stated a lot of great questions were raised and asked if the developer or attorney would like to address any of the questions. Mr. Del Vecchio stated he can't bring much detail without breaching confidentiality of the settlement. Regarding truck traffic, he stated the truck number refers to trip generation numbers and does not represent the number of trucks. All options are open on nature of use of the warehouse. In terms of housing, the plan is for multifamily rentals. He spoke about the number of housing units and the use of screening as a buffer. A lot of thought went into minimizing residents' concerns and may be able to do even better once they begin discussing engineering. Borough Attorney Smith asked if any member of the Council had questions for the developer. Councilmember Lambrix stated that while we have been in negotiations for a very long time and covered a lot of issues, he wondered if they can try one more time to negotiate which might satisfy some concerns expressed tonight. Councilmember Lambrix moved to amend the motion and table the resolution; seconded by Councilmember Kelly. Following some discussion, Borough Attorney Smith clarified that the motion is to table the pending resolution, discuss at some time in the future, and in effect end the meeting. Council President Bonagura commented this is one of the toughest and biggest decisions he has had to make. He spoke about his time in town and the changes. He agreed it is unconstitutional what is being demanded by the State. He spoke about trying everything in his power to make a change, and expressed concerns about going to court. He stated we will not win and it will get dictated to us something we don't want 100% and spoke about ending up with numbers larger than original proposal. The problem is we don't get out to vote to change these rules and laws, and we have to change assembly, senate, and governor but that is going to take years. He believes what is on the table is the better of all the decisions before us. The developer is not open to further negotiation. Councilmember Ansh stated he agreed with a lot of what Council President Bonagura said. He is not happy about making this decision and is against over development in town. This is not a Franklin Lakes problem, but a NJ problem. He stated most everyone he knows is against this large scale development. He stated he has to weigh responsibilities as Councilmember and if we go to court it will open us to a lawsuit, high legal fees, and likely more residential units than we have now. He stated neither side is getting what they want, but have come to some terms we can agree upon. He stated the Council must weigh responsibility to residents. He stated a no vote is a risk Special Meeting of the Mayor& Council Page 7 March 29, 2023 he doesn't want to expose the town to. He talked about Old Mill Road court issues and stated he reluctantly agrees to not table the resolution. Councilmember Kelly spoke about the proposed 495,000 square foot warehouse being more than double what is currently there. She asked how you make a deal without knowing so much. She believes the traffic impact will be disastrous to the town, spoke about noise, air pollution,the wear and tear on roads, and trucks. She stated the warehouse is too big and if she were to vote today, she would say no. Councilmember Sheppard spoke about being presented with problems that are bad and some that are worse and feels we are in that situation now. He stated the residents' comments and concerns were heard and addressed over the past months. If we go to court and the builder prevails a special master will be appointed who does not have to abide by our zoning or rules as written today. He stated he does not believe we will get 2,500 units but 1,200 to 1,500 is a very real possibility. The problem is laws are dictated by Trenton, and doesn't believe putting this off is worth the risk/reward. Mayor Kahwaty stated he cannot imagine a more difficult decision to make and cannot explain how hard we have worked to affect a solution with this. He stated if you are dealing with anyone other than a developer, you have tools; however, the courts have taken all of that away from us and no municipality has won in this state. He stated he truly believes this is an unconstitutional doctrine and because our voters have chosen this form of government,we are now in this particular position. If this matter were to go to court, the property will be eviscerated. He spoke about the courts being in favor of the builder and not the quality of life in Franklin Lakes. He stated we try to cut best deal with can. He stated the truck issues are terrible and stated there is a hope of a possibility that may address many of these concerns. He stated there is no guarantee of any kind, and we need to accept the worst case scenario. He stated this is as good a deal as we have seen. Roll Call Vote: Ayes: Cardenas, Kelly, Lambrix Nays: Ansh, Bonagura, Sheppard, Kahwaty Abstain: Absent: Motion Failed Borough Attorney Smith stated the resolution failed and at this time the Council should vote on approving or disapproving the resolution on the agenda. The resolution was read and introduced by Council President Bonagura, seconded by Councilmember Sheppard. Resolution 112-23 RESOLUTION OF THE COUNCIL OF THE BOROUGH OF FRANKLIN LAKES AUTHORIZING THE EXECUTION OF A SETTLEMENT AGREEMENT WITH SHG FRANKLIN LAKES, LLC WHEREAS, pursuant to In re N.J.A.C. 5:96 and 5:97, 221 N.J. 1 (2015) (Mount Laurel IV), on July 2, 2015,the Borough of Franklin Lakes (hereinafter"Franklin Lakes Borough" or the Special Meeting of the Mayor& Council Page 8 March 29, 2023 "Borough") filed a Declaratory Judgment Complaint in Superior Court, Law Division seeking, among other things, a judicial declaration that its Housing Element and Fair Share Plan(hereinafter "Fair Share Plan"), to be amended as necessary, satisfies its "fair share" of the regional need for low and moderate income housing pursuant to the "Mount Laurel doctrine;" and WHEREAS, the Borough simultaneously sought, and ultimately secured, a protective order providing Franklin Lakes Borough immunity from all exclusionary zoning lawsuits while it pursues approval of its Fair Share Plan; and WHEREAS,that process ultimately led to the issuance of a Judgement of Compliance and Repose ("JOR"), which provided the Borough immunity from builder's remedy litigation and which approved the Borough's Round 3 Housing Element and Fair Share Plan ("HEFSP"); and WHEREAS, and the Borough's Round 3 HEFSP was predicated upon a Vacant Land Adjustment, which resulted in an unmet need of 727; and WHEREAS, the Borough's HEFSP included measures for unmet need, which are now court-approved relative to Round 3; and WHEREAS, one of those measures was a "Mandatory Set-Aside Ordinance", which required the Borough to obtain a set aside in the event of a rezoning for multifamily uses; and WHEREAS, the Borough and SHG Franklin Lakes, LLC ("SHG") have agreed to a settlement agreement in the context of the Borough's Round 3 and/or Round 4 plan which addresses unmet need through zoning for multifamily housing with an affordable housing set aside and which provides land for the production of a 100% affordable project to replace the "McCoy Road" site; and WHEREAS, the Borough and SHG also agreed to present the Settlement Agreement to the Trial Judge for approval at a duly-noticed Mount Laurel Fairness Hearing; and WHEREAS, although there is a well-established policy favoring the settlement of all forms of litigation, the settlement of Mount Laurel litigation is particularly favored because (1) it avoids the expenditure of finite public resources; and(2) expedites the construction of safe, decent housing for the region's low- and moderate-income households; and WHEREAS, in light of the above,the Mayor and Council finds that it is in the best interest of Franklin Lakes Borough to execute the attached Settlement Agreement with SHG and to take various other actions delineated below to maintain the Borough's immunity from all Mount Laurel lawsuits for the ten-year period set forth in the New Jersey Fair Housing Act, N.J.S.A. 52:27D- 301 to 329. NOW, THEREFORE, BE IT RESOLVED on this 291h day of March 2023, by the Council of the Borough of Franklin Lakes, County of Bergen, State of New Jersey, as follows: Special Meeting of the Mayor& Council Page 9 March 29, 2023 1. The Mayor and Council hereby authorizes the Mayor of the Borough of Franklin Lakes to execute the Settlement Agreement attached hereto as Exhibit A, as may be subject to de minimus changes by the Borough's affordable housing counsel. 2. The Borough hereby directs its Affordable Housing Counsel to (a) file the fully executed Settlement Agreement with the Court for review and approval at a duly noticed Fairness Hearing, (b)take all actions reasonable and necessary to secure an Order approving the Settlement Agreement. Discussion — Councilmember Cardenas stated she will take her final breath in awe and gratitude for the men who gave her freedom and this is not freedom. Councilmember Lambrix stated he prepared some comments for this evening but many of the points were already made. He spoke of time living in town, and stated we have been given "Sophie's Choice" of bad alternatives and have to pick one. He spoke about the last two meetings and while the new proposal addresses some of the concerns of the first proposal, it introduces new concerns. He stated there are unknown factors and feels the impact of a warehouse is too much. Councilmember Sheppard spoke about feeling solace in the 250 luxury units, stating he can't imagine building a warehouse that would jeopardize those units and we must now make a choice. Mayor Kahwaty stated he has the hope, but not the expectation, that this scenario will improve. He stated the worst case scenario is truly going to court and the impact on taxes and infrastructure, and therefore, votes yes. Roll Call Vote: Ayes: Ansh, Bonagura, Sheppard, Kahwaty Nays: Cardenas, Kelly, Lambrix Abstain: Absent: Motion Approved Adiournment Motion to adjourn the meeting was made at 9:53 PM by Councilmember Lambrix, seconded by Councilmember Kelly. On voice vote, all in favor. Respectfully submitted, a M. Rulli, Borough Clerk