Sheriff’s sale helped township likely nab swim club ‘below fair market value’

The former Washington Township Recreation Center, via its website, with Mayor Peter Calamari inset.

TOWNSHIP OF WASHINGTON—Township officials revealed that the 6.1-acre former Washington Township Recreation Club on Ridgewood Boulevard North was foreclosed upon in January and asserted “a real estate developer was ready to purchase this land to construct additional single-family homes and infrastructure,” before the township had a pending sheriff’s sale postponed and a bond ordinance was passed to purchase the much-sought-after property.

That is revealed in the township’s Bergen County Open Space Trust Fund grant application filed May 6 by GLD Associates, of Summit, its grant consultant. 

The application notes the bond ordinance that acquired the property for $750,000 “purchase(d) the property for what we believe may be below fair market value so that it may now be used to meet our own recreational needs and also preserving it as such for posterity.”

It adds, “If the township did not act quickly to purchase this property prior to submitting this application, clearly it would have been purchased by the real estate developer.” It was unclear what developer might have been eyeing the property.

Prior to the property becoming available, an undisclosed summer camp organization submitted the winning bid last summer but was unable to consummate the deal.

Although the property sale information was publicly available via a Bergen County sheriff’s sale notice — the one submitted was published on Wednesday, Jan. 26 — no public official mentioned the sheriff’s sale prior to the grant application, although local officials noted the property was likely a potential site for multifamily or affordable housing if it went up for public sale.

The application notes that more development “would have placed an even greater burden on our existing recreational facilities.”

The sheriff’s notice states that T.D. Bank, N.A. filed a civil action against the Washington Township Recreation Club Inc. to expose the property for sale based on unpaid third quarter 2021 real estate taxes on Lot 1 for $8,928.22 and Lot 1.01 for $61.01 in unpaid taxes. Total third-quarter unpaid taxes were $8,989.33.

Further down, the sheriff’s ad states that the property “be sold to satisfy in the first place unto the said plaintiff the sum of $215,643.08, plus interest thereon.”

It was not clear if that amount might constitute the bondholders’ investments required to be returned. Recently, Poller said the 501(c)7 not-for-profit swim club corporation was responsible for repaying swim club bondholders who have yet to be made whole.

The sheriff’s sale ad was published on Jan. 12, 19, and 26, and Feb. 2. The postponed sale of swim club property was scheduled for Feb. 4.

At the time of our Sept. 20, 2019 story “Swim Club Seeks a Way Forward: Dragging Unpaid Taxes, Stalled Reimbursements,” public records showed the club owed approximately $35,000 in quarterly property taxes, including interest, going back to the fourth quarter of 2018. A town tax official told us at the time that any property owner in this position would have to worry about a tax sale: In order to recoup the value of unpaid property taxes, statute requires that each municipality hold an annual tax sale of properties in arrears.

Hopes pinned to open space grant application

Grants consultant David Biunno anticipates a fall release of county open space funding that he hopes will reimburse $675,000, or 90% of the cost of acquiring the property.

The application notes the township is less than 3 square miles, now has 9,208 residents based on the 2020 census, an increase of 300 people over the 2010 census. It notes 2,026 residents under 18 years old and 2,762 residents over 65 years old. 

“Needless to say, open space is at a premium, which places an extraordinary demand upon the existing but limited park facilities,” the grant application reads. “Accordingly the township is now requesting to be reimbursed the highest possible percentage of funding permitted by the Bergen County Open Space Trust Fund.”

The grant notes the Washington Township Swim Club site is “in a steadily deteriorating condition and becoming an eyesore” and adds the proposed active and passive recreational land use is compatible with the nearby residential areas. “There are no known environmental clean-up issues, adverse impacts, or incompatible land uses associated with this project,” the grant states.

Recently, Poller told Pascack Press that the township is awaiting a Phase II environmental site assessment report on the swim club’s “historical fill” that might hold contaminants in the site’s northwestern area. No report timeline was made available.

Calamari previously said that he would commission a study to determine the best uses for the newly acquired property. So far, no details on the study were known.

A recreational facilities needs assessment notes that the township’s existing fields are simply not able to handle myriad ongoing local activities, including football, baseball, softball, T-ball, kickball and lacrosse.

The grant notes a total local recreational participation of 1,306, which, divided by seven available fields, equals a ratio of 187 users per field.

The grant also lists the average number of visitors/athletes at all local sports venues. The grant notes: Sherry Field Complex (three fields: two baseball, one softball/T-ball) and 474 users; Clark Field (one baseball field) and 168 users; Gardner Field (one softball field) and 153 users; Memorial Field (two fields: one baseball, one softball, also used for football, softball and lacrosse), with 511 participants.