Auction of 28 acre-tract; rezone 127 Summit for utility use

MONTVALE—Borough officials hope to auction off a recently acquired 28.4-acre tract of at 127 Summit Ave. on Nov. 28, with a minimum bid price that includes a $250,000 profit for the borough.

The public auction of the property is set for 10 a.m. Tuesday, Nov. 28 at the Montvale Municipal Complex, 12 DePiero Drive. 

Borough administrator Joseph Voytus told us notices announcing the auction would soon be published.

Veolia North America has expressed interest in the site for future construction of a water tower to provide better water pressure for residents on the west side of town.

Mayor Michael Ghassali told Pascack Press that the property was challenging because of its hills, valleys and wetlands. “Its best use is for the utilities and it’s zoned for the utilities now,” Ghassali said Oct. 30. 

In an email update, he wrote, “We are moving forward with rezoning 127 Summit Avenue for utility use and to put the water tank on that property, to support the west side of town with stronger water pressure.  The area is located in an AH-6 zone (55+ multifamily housing, plus 20% affordable) which requires us to rezone it by ordinance so it can be used for utility purposes.”

He said, “This is a good use to benefit the public.  The water tank will be built deep in the woods.”

He said, “As a Montvale resident and living in close vicinity, actually bordering the property, I prefer  treed 28 acres with a water tank embedded in the woods rather than having hundreds of residential units built on the same property.”

Ghassali said the site’s use for possible recreation such as walking or hiking paths was still an option if acquired by a utility. He said Veolia had done a study on the best site for a water tower and it came up with an area on 127 Summit Ave.

Last summer, Ghassali ran a self-made video of himself touring the property. He said then: “There are many possibilities for this lot that has 17 buildable acres and 11 wetland acres. A hiking trail along the stream and the natural setting for residents only is ideal. We will continue to purchase properties for the town and preserve their natural setting as they become available.”

(See ‘Many possibilities’: Montvale aims at land buy; mayor sets pool center date,” John Snyder, Aug. 13, 2022, Pascack Press.

Ghassali said with all the site’s constraints, including wetlands and environmental limits, “it makes sense for us to sell” the property, adding “we hold the right to reject bidders.”

The borough acquired land late last year, after developer Waypoint Residential applied to build a 157-unit active adult senior complex there and following a year of Planning Board hearings, withdrew the application. 

The same developer had pushed to develop a 170-unit senior facility there, but reduced the proposal to 157 units.

Both development applications required nearly a dozen variances and both received pushback from the Planning Board over housing density and other concerns.  (See “Waypoint yanks its 157-unit senior complex proposal,” Michael Olohan, April 23, 2021, Pascack Press.)

The borough bought 127 Summit Ave. in late 2022 for $4.5 million, partly to prevent any future development, and for future recreational uses, Ghassali said then. 

When it was acquired, Ghassali said that the property only had about 17 buildable acres but due to wetlands, stream buffers and topography, that was also likely reduced.

Lately, based on talks with Veolia North America over months on where best to construct a water tower to help improve water pressure on the west side of town, the council approved Ordinance 2023-1544 to add “public utility facilities as permitted uses in the AH-6 (affordable housing) zone” which includes 127 Summit Ave.

At its Oct. 24 meeting, the council approved a consent resolution authorizing the public sale (auction) of property identified as 127 Summit Ave. for a minimum bid price of $4,725,000, which is $250,000 over its $4.5 million cost.  

According to Resolution No. 212-2023, “The minimum bid for this Property is $4,725,000. The Borough of Montvale expressly reserved the right to accept the highest bid received or to reject all bids in its sole discretion. Each bidder shall be required to submit two separate bids for the property.