MONTVALE — Mayor Mike Ghassali said the borough has reached tentative settlement agreements with two developers as part of its effort to comply with state affordable housing obligations while maintaining the town’s legal immunity from builder’s remedy lawsuits.
In a Feb. 27 letter to residents, Ghassali said Montvale has reached agreements with S. Hekemian Group and Over The Hill Holdings, establishing a framework that could allow up to 680 housing units over the next 10 years, including 115 deed-restricted affordable units.
The mayor said the borough recently received a 60-day extension beyond the March 15 deadline to submit its housing plan to the state, and that some elements of the borough’s proposal remain in litigation.
According to Ghassali, the proposed development framework includes redevelopment at several major commercial properties, including sites associated with KPMG, Reckitt Benckiser and Hekemian, among others.
He said the borough rejected a separate proposal from AvalonBay Communities to build 240 units on a four-acre site on Chestnut Ridge Road.
Ghassali said the settlement agreements were negotiated to balance state housing mandates with local concerns including traffic, school impacts, and protecting single-family neighborhoods.
Some projects may include payments in lieu of taxes (PILOT) agreements, which would direct most revenue to the borough, though officials could share a portion with the school district if necessary, he said.
The mayor said Montvale could have faced a significantly larger housing obligation under state estimates.
“The DCA’s original estimate of the Borough’s obligations could have required the construction of upwards of 1,700 units over this same timeframe,” he said.
Ghassali also criticized New Jersey’s affordable housing framework, arguing the state’s formula encourages market-rate construction and limits municipal control over planning decisions.
The mayor said borough officials will continue seeking court approval of the plan while preparing ordinances and resolutions needed to implement redevelopment.
“Our goal remains clear: meet our legal obligations, preserve the character of our community, and strengthen Montvale’s future,” Ghassali said.
Related: “Data center option at former KPMG site? Montvale’s mayor, affordable housing group clash” by Michael Olohan.