Judge: Town must scrap data center plan on affordables

Judge's gavel and law books

MONTVALE—A state Affordable Housing Dispute Resolution Program judge ruled Feb. 10 that Montvale’s amended Fourth Round Housing Element and Fair Share Plan can be deemed compliant only if the borough follows the recommendations of a court-appointed Special Adjudicator—and drops a proposed compliance mechanism tied to a possible future data center at the 34-acre former KPMG site.

Mayor Michael Ghassali said it was too early to comment on the decision, issued Feb. 10 by retired Superior Court Judge Julio L. Mendez.

In a Jan. 21 interview, Ghassali said, “Nothing in the Mount Laurel Doctrine requires us to strip away existing zoning regulations from a site and force the development of high-density housing. We believe the borough’s plan is constitutionally compliant and look forward to the Program’s decision confirming this fact.”

However, Mendez’s Feb. 10 ruling requires significant changes to the borough’s submitted plan.

Fair Share Housing Center’s Jag Davies said the ruling rejects Montvale’s proposal to allow a developer the option to build either affordable housing or a data center at the KPMG site.

“It also requires if the KPMG site is not developed with affordable housing in three years that Montvale has to come up with a different site for the same number of units,” Davies said.

Davies said the center challenged the borough’s approach as inconsistent with Mount Laurel and the Fair Housing Act, arguing it would make affordable housing “optional” while granting unrelated redevelopment rights. Davies also said public opinion surveys show many Americans oppose energy-intensive data centers.

Meanwhile, Ghassali and 28 additional towns await an expedited decision from U.S. Supreme Court Justice Samuel Alito on a petition seeking to stay the March 15 Fourth Round deadline for towns to adopt zoning and ordinances to implement their affordable housing plans. [Story, Page 1]

Several sources told Pascack Press that, because of the case’s urgency, a decision could come soon after a Feb. 17 briefing deadline.

Mendez’s 61-page decision lays out an amended compliance framework for Montvale. It includes increasing minimum residential density to 12 dwelling units per acre and retaining the KPMG site as a potential inclusionary housing location—up to 250 units, including 50 affordable units.

The decision can be found on New Jersey eCourts under docket BER-L-750-25.

The ruling cites the borough’s Fourth Round present need (rehabilitation obligation) of 30 units; a prospective need of 205 units; and a realistic development potential of 44 units between 2025 and 2035. It also lists an unmet need of 161 affordable units.