Challenge to Asbury beachfront plan nixed

Property owners face condemnation

Posted by the Asbury Park Press on 01/25/06
ASBURY PARK -- A state appeals court has rejected challenges to the
city's 2002 waterfront redevelopment plan, ruling that the City Council could deny individual beachfront property owners the right to develop their properties unless they reach a deal with the city's redeveloper, Asbury Partners.

The property owners, some of whom have made deals with Asbury Partners since filing the suit in 2002, challenged the city's powers to condemn and redevelop. They were appealing a 2003 decision in the city's favor by Superior Court Judge Lawrence Lawson in Freehold.

One of the city's main arguments has been a plan to develop about 28 blocks on the milelong coastline in a unified block-by-block manner, rather than parcel by parcel. Another is the judges' findings that some of those who fought the city in court had failed to develop their properties for a number of years before being subject to eminent domain -- a government's right to take private property for public purposes -- under the 2002 plan.

The unanimous ruling by Appellate Division Judges Erminie L. Conley, Harvey Weissbard and Michael Winkelstein was dated Tuesday and comes while the city is in the midst of a showdown with Asbury Partners to move ahead with renovations to historic boardwalk buildings. The developer, citing its agreement with the city, has pointed to the court cases as a reason to delay that financial investment.

"Every time someone challenges what the city does, it plays into the hands of Asbury Partners to delay going forward," James Aaron, the city's redevelopment lawyer, said Tuesday. "Without any challenges now in the way from the residents and property owners, the city can now move forward to deal in earnest to force developers to do their job as partners of the
city."

Aaron said, "To me, the greatest value of this opinion . . . is that it supports the hundreds and hundreds of hours of work that was put in by the mayor and council and the professionals of all types to create a plan that is complex in many respects, complete in all respects, and meets every statutory requirement of not only the state statutes but the United States Constitution."

City calls for update

Aaron said the decision coincides with this Friday's council meeting,
when the city has asked Asbury Partners "to bring forth the partners' plan for the build-out of the pavilions and development guidelines for Convention Hall and the Casino as well as further development of the
boardwalk north of Convention Hall."

"We're obviously disappointed by the decision," said Paul Fernicola,
the attorney who represented more than 15 property owners in the appeal. He said they would petition the state Supreme Court to hear the case.

Because the decision was unanimous, the Supreme Court would need a compelling reason to accept the case, Aaron said. The court agrees to hear perhaps 2 percent of such petitions, Aaron said.

The property owners contended that an earlier 1991 version of the plan allowed them to develop on their own and that the city could not exercise its eminent domain powers.

"Each plan needs to be supported on its own, given the circumstances of the time," the court responded.

Some challenges focused on the money the individual developers would have to pay to obtain developer's status with Asbury Partners. That is how the three subdevelopers -- Paramount Homes, Westminster Communities and Metro Homes -- signed on with the master developer and the city and are building on the waterfront.

Costs shifted to owners

A major difference from earlier plans is that the developers are paying
the cost for the wholesale infrastructure improvements now under way on the beachfront, at a cost of $60 million, according to latest estimates.

Previous agreements required the city to bear those costs. The current agreement requires the developers to pay the costs, which also would be passed on to the small property owners if they reached an agreement with Asbury Partners.

"The redevelopment law supports that the governing body has the presumption that they're acting in the best interest of the entire community," City Manager Terence Reidy said Tuesday. "That not only
supports us for the constitutionality of the plan and actions they've taken to date but also bodes well for the city's position in talking with Asbury Partners.



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