MONTVALE, N.J.—As the borough leads a legal charge to slow the state’s next wave of affordable housing mandates, it’s quietly reshaping its commercial core to avoid the very thing it’s fighting: large-scale residential development.
Two new projects—a 180-bed nursing home and a self-storage facility—will replace dormant corporate properties and bring in new tax revenue without adding schoolchildren or straining local services, Mayor Michael Ghassali told residents in a recent update.
The developments include a “state-of-the-art” self-storage facility at 21 Phillips Parkway and a new nursing home at 100 Summit Ave., replacing the former Western Union campus.
“We welcome these developments to our community,” Ghassali wrote.
He said the nursing home could contribute up to $300,000 annually in tax revenue. Projected revenue from the self-storage complex was not disclosed.
Occupancy at the nursing home is expected in 2027. The self-storage facility replaces what Ghassali called “an empty and dilapidated building.”
Both projects were approved by the borough Planning Board. Ghassali said they reflect a growing need to adapt as demand for traditional office space declines. Across the Pascack Valley, towns are repurposing commercial campuses once anchored by big employers.
The nursing home, approved in mid-2022, will be built on the eastern portion of the 15-acre Summit Avenue site. A western building will be repurposed for offices, support services, and meeting rooms, and refaced to match the new facility. Site improvements include parking, landscaping, and stormwater management.
The self-storage facility, approved in 2024, will occupy a three-acre lot on Phillips Parkway.
Ghassali noted the former Western Union campus had been eyed for major residential development, but that local officials steered the proposal in a different direction.
“Plans for hundreds of residential units were presented, and we reached a compromise that I believe is in the best interest of our town, considering the size of the property and circumstances,” he said.
Pascack Press could not verify the project approval dates. A public records request for documentation was not immediately returned.
Generally, about 10% of beds in long-term care facilities are reserved as “Medicaid beds” for residents who exhaust their private funds. It was not immediately clear whether this facility would include such beds. In some cases, Medicaid beds may count toward a municipality’s affordable housing obligations.
The applicant, Gray Capital LLC, received approval in August 2022 to construct the three-story facility.
After promoting the projects, Ghassali said he welcomed residents’ input—even criticism.
“If you have complaints about the changes and question why we’re allowing this to happen, keep in mind we don’t own these properties and we can’t purchase them all,” he wrote. “So, if you have alternatives to condos or residential development, put on your thinking cap. I’m happy to meet and hear your ideas.”
Ghassali also said Montvale and 26 other towns preparing to appeal the state’s Fourth Round affordable housing mandates are headed to the New Jersey Supreme Court.
The towns, which previously filed unsuccessful complaints in Superior Court, have joined forces under the banner Local Leaders for Responsible Planning and contributed $20,000 each to a shared legal fund.
Montvale is the lead plaintiff in a lawsuit against the state Attorney General’s Office and the state’s Affordable Housing Dispute Resolution Program. Fair Share Housing Center and the New Jersey Urban Mayors Association are intervenors. The state has filed to dismiss the case.
In January, Superior Court Judge Robert Lougy postponed a decision on pending motions to dismiss until May 9. That delay gives plaintiffs time to amend their complaint, notify the court that they won’t amend it, or await action from the Appellate Division or Supreme Court.
For more on the Fourth Round housing challenge, see “Valley towns face lawsuits after Fourth Round filings” by Michael Olohan, March 8, 2025, at thepressgroup.net.