NORWOOD, N.J.—While construction activities were ongoing Aug. 1 at the 525 Livingston St. site recently dubbed a “nightmare” by Mayor James Barsa, the mayor said he hoped the flurry of construction activity continues on the long-stalled mixed-use development of first-floor retail and second-floor apartments.
The Norwood mayor said it appeared that construction crews were working on site for several weeks, beginning not long after a special town-hall meeting held June 24, where both Barsa and Borough Attorney Robert Regan expressed dissatisfaction with site progress, which had been stopped since late March.
When Northern Valley Press observed the site Aug. 1, an excavator and crane were operating. The excavator appeared to be involved in placing large drainage pipes between the two buildings at 521 and 525 Livingston St.
The small crane was supporting a worker putting finishing touches on second-floor apartments. The ground-floor retail spaces were open and unfinished.
Both Barsa and Regan said at the June 24 meeting that no work had occurred at the 521-525 Livingston St. site since March 29, and prior to the stoppage, site construction was even more spotty over the years.
Barsa told Northern Valley Press that the Borough Council approved a resolution July 10 hiring Boggia & Boggia as special counsel to prepare for likely legal action against Daibes Enterprises. The July 10 resolution hires Boggia & Boggia as “special conflicts litigation counsel” at $175 per hour “for legal services related to the development of property on Livingston Street.”
Legal notice or lawsuit?
Despite several calls, Northern Valley Press was unable to confirm whether a legal notice or lawsuit was yet filed citing Daibes Enterprises for default on its performance bond under its developer’s agreement with the borough.
At the June 26 meeting, the Borough Council passed a resolution authorizing a lawsuit against Daibes to that effect.
“The governing body hereby authorizes the institution of litigation against all parties having interest in the 521-525 Livingston Street project as well as Liberty Mutual based on the default in performance and the failure to perform in accordance with the approving resolutions and the developer’s agreement,” states the June 26 resolution.
The property at 521 Livingston St., a mixed retail and residential building, was purchased by Municipal Judge Robert Travers from Daibes Enterprises in 2016 and received variances from the Zoning Board to build second-floor apartments instead of initially approved office space. Travers had served as attorney for Fred Daibes of Daibes Enterprises and a Norwood municipal court judge.
Two separate sites
Construction on 521 Livingston St. is nearly complete but without completion of a site-wide stormwater detention system, which has not started, that project cannot open, borough officials said.
The property at 525 Livingston St. is owned by Daibes Enterprises, of Edgewater, where work had stopped on March 29 before recently resuming.
The existing 525 site consists of partly finished apartments over unfinished empty ground-floor spaces, with much debris, dilapidated fencing and assorted garbage strewn about the site—marring the borough’s upscale downtown district.
Daibes, an embattled Edgewater developer, has been in legal trouble for years, and was recently indicted on federal bank fraud and conspiracy charges last year and a few months ago was ordered to pay $1.7 million in fines to state environmental officials.
In May, the Daibes foundation was sued for $2.7 million for failing to construct 20 affordable housing units in a 140-unit, 16-story multifamily high-rise building in Fort Lee.
A possible buyer?
Barsa said he didn’t think the June 24 town-hall meeting—which featured numerous calls for action by the developer and borough— played a role in work restarting but he said he hoped the project would finally be completed.
He wondered if the financially-stressed developer had possibly found a buyer.
He said once finished, other downtown improvements will follow and residents will enjoy a beautiful business district.
He said “tell-tale” signs of continuing site work were evident including daily deliveries of materials, an average of 15 workers on site, portable toilets, and progress such as putting in footings for foundations.
“We don’t have a good track record with this developer,” said Barsa, noting the on-again, off-again work at the site.
The original permits were issued in 2010, with work not officially commencing on site until 2012. Regan said June 24 that Daibes Enterprises had been issued dozens of construction site violations over the years and needed to be held accountable.
Barsa said the construction site’s appearance and lack of progress are constant topics “no matter where I go around town…I hope it’s full-speed ahead and get this done in the quickest and most efficient way,” he said.
Efforts to reach Daibes Enterprises for comment on development construction were not returned by press time.
