TOWNSHIP OF WASHINGTON—The township attorney told the governing body on May 17 that he expected to receive a final property appraisal for 450 Pascack Road “soon,” and that once negotiations begin for the 3.2-acre tract these “will not be a public matter… to protect the town and taxpayer.”
“I hope everybody understands that. I’ve said it before and I’ll try to say it again; it’s not in the town’s interest to discuss everything that is thought about publicly because obviously it’s a negotiation to start with and a condemnation if we can’t acquire it amicably, which we will try to do,” said Township Attorney Kenneth Poller.
He said certain closed-session discussions cannot be aired in public as these might put both the township and taxpayer at a disadvantage as negotiations continue.
Under the eminent domain law, the Township may be allowed to take private property for public use in exchange for “just compensation.” This taking is authorized under the U.S. Constitution’s Fifth Amendment.
Poller was reporting on the status of a $2,500 property appraisal of 450 Pascack Road, which the council ordered in mid-February. Poller told the council on May 3 that the appraisal was due back the first week of May.
Two residents, Diane Ferrara and Antony Udina, members of Stop Township Overdevelopment Projects, (STOP), both advocates for preserving the wooded tract between Ridgewood Boulevard East and Memorial Field and Washington Elementary School, had questioned what was going on.
Poller assured residents that the property’s appraisal would only incorporate its current zoning and repeated that its appraisal would be an “as is” valuation and not include any speculative valuation, including future development potential.
“Yes, we’re all in agreement that the appraisal is an appraisal as is the property as the property is right now,” said Poller May 17.
In addition to zoning, physical characteristics, frontage, property size, “and a whole bunch of other things,” Poller said he ordered a title search to detect any easements or encumbrances, an evaluation for wetlands/tidelands, and a property environmental assessment to uncover environmental issues on or surrounding the property.
He said all of these “go into the concept of what this property is actually worth.”
Poller noted that while an appraisal “generally encompasses all of these other things,” he would provide these documents to McNerney & Associates to incorporate into the final appraisal report and property’s fair market value.
“Ultimately the idea is to get a real sense of what the fair market value is. There are several approaches to the value of real estate … and I work with the appraiser on that. The bottom line on that is we are getting close to having a final appraisal,” said Poller.
He said once a final appraisal is in hand, the council will meet in closed session to discuss the appraised value of property and to discuss its options, including where the Township will start negotiations with an offer on the property.
Poller previously told Pascack Press that the township believes it has “more than enough justification” for condemnation.
Last summer, Lakos Construction Inc., owned by Nick Tsapatsaris, had proposed a 48-unit senior apartment and townhome complex, and withdrew the application following public pushback at council and neighborhood meetings.
Tsapatsaris is 450 Pascack Road’s contracted purchaser, although it was unclear if the township would negotiate with Robert Morris, one of 450’s owners currently living on site, or Tsapatsaris.
We reached out to Poller for comment but did not hear back by press time.
“I cannot comment on who the Township will eventually decide to make initial contact with. In the event that they contact Mr. Morris, he will in turn provide any notice to Lakos Construction, Inc. We have a good relationship with Mr. Morris and will respond in unison and in the best interest of both parties,” Tsapatsaris told Pascack Press May 24.
Ferrara, who helped organize local opposition to 450’s development, wanted assurances that the property appraisal would not include any “extravagant proposals” for development of the property, as none have been recently proposed, nor approved.
Ferrara said she continues to do research with zoning experts and noted the lot can only be appraised based on its current zoning, which is “AA” and permits single-family homes on half-acre lots.
Previously, she called the lot “unbuildable” due to its width not allowing required property setbacks and lack of space for an access road for emergency vehicles.
Also, she has cited the lot’s environmental elements, including steep slopes, stormwater retention and over 700 trees that dot the landscape, probably the township’s largest remaining contiguous tree canopy., for reasons to preserve the tract.
The elongated property serves as a wooded buffer between Ridgewood Boulevard East homeowners and a recreational field and Washington Elementary School, part of the Westwood Regional School District.
She said preserving the tract was “really an investment” for the town’s future and said she was in favor of negotiating with Morris “for a fair offer” on his property. She said what developers were proposing on the property was “a far cry from what a fair appraisal would be.”
She thanked the council and Poller for seeking a “very comprehensive and legally defensible” appraisal. The council contracted McNerney and Associates at $150 per hour for future testimony should any court proceedings be necessary.
A recent Pascack Press review of online real estate sites showed 450 Pascack Road’s value between about $450,000 to the mid $600,000 range, although several sites listed the property as off the market.
Other sites, including the property’s marketer Cody, and STEAM Realty, of Ridgewood, both list the property for $2.1 million based on its development potential, with both sites offering potential buyers likely development plans, none of which have been approved.
Cody, with Edward K. Bonner as property broker, placed an “available” sign in front of 450 Pascack Road more than six months ago.
Also recently, immediate past mayor Janet Sobkowicz told council that she negotiated with and offered Morris $700,000 for the property but the possible deal fell through when Morris requested $100,000 more at the last minute.
Tsapatsaris recently told Pascack Press, “I cannot comment on any negotiations that I was not part of except to say that I have copies of certain offers made by the Township several years back, none of which obviously materialized into a sale of the property.”
Tsapatsaris said, “At this time, however, any offers will have to be negotiated with the contract purchaser which is Lakos Construction, Inc. To date we have not received any offers and continue to list the property for sale,” he said.
While the mayor and council recently made an offer of $850,000 to purchase the Washington Township Swim & Recreation Club, with negotiations ongoing, it was unclear where funds to purchase the swim club, or 450 Pascack Road, would come from.
The Township will receive $901,379 from the American Rescue Act COVID-19 relief package, which is to be distributed in two portions, one later this summer and another one likely next year. Most towns are waiting for state guidelines on how the funds may be spent once received.