Borough pushes back; says redeveloper partner stalling, intimidating

An artist's rendering of the planned Emerson Station project on Kinderkamack Road. | File photo

EMERSON, N.J.—Two attorneys filed motions April 22 in U.S. District Court to dismiss allegations that the borough and its mayor held up its downtown redevelopment project for political or racial reasons, noting the redeveloper provided no proof or facts in support of any charges.

In separate legal filings, the attorneys for Mayor Danielle DiPaola and the borough stated that the redeveloper’s federal lawsuit’s claims were not backed by facts of any kind and are another attempt to delay construction and intimidate borough officials.

In previous federal lawsuits, the redeveloper, Emerson Redevelopers Urban Renewal LLC, had charged the mayor and borough with interfering and obstructing its redevelopment plans.

It also charged the borough with efforts to “obstruct the diverse and inclusive housing mandated by Mount Laurel, due to racial animus.”

Motions to dismiss the redeveloper’s lawsuits were filed by Attorney Richard Malagiere on behalf or Mayor Danielle DiPaola and attorney Christopher Botta filed on behalf of the borough.

Previously, Borough Attorney John McCann told Pascack Press that the redeveloper’s lawsuits against DiPaola and the borough contain “not one scintilla of evidence” supporting its allegations.

Indeed, McCann maintains the redeveloper is delaying construction in hopes of reducing the 15,000 square feet of retail space originally agreed to and replacing them with more residential units.

In its motion to dismiss the redeveloper’s claims, the borough’s filing notes, “Simply saying ‘race,’ ‘racial animus’ or ‘racial discrimination’ over and over in a pleading does not raise it to a level of a federal case.

In reality, the dispute between the parties is a state law breach of contract claim, with civil rights federal claims added as garnish in a desperate effort to maintain venue in the federal court, and intimidate the defendants with the prospect of monetary damages and fee shifting.”

The borough notes similar allegations of obstruction were not found credible in Superior Court and that Judge Gregg Padovano appointed a Mount Laurel implementation monitor to oversee both the borough and developer’s actions to facilitate construction and build 29 units of affordable housing, which was required under the borough’s 2019 affordable settlement.

McCann told Pascack Press April 26 that a monitor had yet to be approved by Superior Court. He also said it was not known when the federal court might make its decision on the redeveloper’s lawsuits against DiPaola and the borough.

In dueling lawsuits filed in mid-2020, the redeveloper accused the borough of obstructing and impeding progress on the construction of a four story, 147-unit, mixed use downtown residential-retail complex, and the borough charged the redeveloper with breach of contract for refusing to reimburse it $500,000 in construction services from the sale of its former ambulance property.

McCann said the recent federal lawsuit alleging racial discrimination against the borough was done deliberately to further delay construction, in hopes that a judge might order those false claims open to discovery, thus further delaying downtown construction.

He said the redeveloper refused to sign a developer’s agreement to hold them to any timetable or reimburse the $500,000 in construction services agreed to as payment for the ambulance property.

The redeveloper said since the borough did not meet its deadline to provide site plans and specifications by late December 2019 for a new emergency services building, it was no longer obligated to pay $500,000.

That 2019 deadline was added two years after the original redeveloper’s agreement was approved, and done in bad faith, according to a civil action filed by the borough last year.

That issue is a major point of dispute in the borough’s lawsuit against the redeveloper.

However, the borough’s reply to allegations of racial animus were clearly spelled out in their legal motion. McCann has repeatedly said the redeveloper’s lawsuits are “all about intimidation.”

“Incredibly, plaintiff goes so far as to state that the ‘ultimate goal’ of the course of action between the parties is to prevent racially diverse minorities from moving into Emerson,” states the borough’s motion to dismiss the redeveloper’s lawsuit.

“Nowhere in the amended complaint is there any factual evidence or overt actions that even remotely connect the legitimate concerns and contractual disputes between the parties to any racial animus. The amended complaint is littered with innuendo, media quotes, and supposition.

“[Emerson Redevelopers Urban Renewal LLC’ again fails to articulate in any manner how the Borough has violated their rights, acted with a racial animus, or met the above exacting and high standard which would impose liability. Bare allegations of racism sprinkled into the amended complaint, besides being offensive, are not enough to defeat this motion to dismiss,” states the borough’s response.

Recently, Padovano ordered Emerson to expedite reviews and approvals for Emerson Station, on Block 419, to provide for immediate construction of 29 units of affordable housing. Twenty-two units are planned at Emerson Station. Seven others are planned elsewhere in town.

For more, see “‘Expedite Emerson Station’ — Judge demands action on affordable housing,” March 29, 2021.