Cigna Property Update - Mayor and Council Approve Settlement Agreements

At a Special Meeting of the Mayor and Council held on Thursday, August 24, at the Franklin Avenue Middle School, following a brief presentation by the Borough’s Affordable Housing Planner and Affordable Housing Attorney (presentation) and public comment from many residents (and a few residents from surrounding towns), the Mayor and Council voted to approve Settlement Agreements with the developer, The S. Hekemian Group ("SHG"), and Fair Share Housing Center, for the development of the 88 acre Cigna property. The terms of the settlements include:

• The construction of 495 multi-family housing units by SHG, which would include 62 units of affordable housing;
• The construction of 70,000 square feet of retail and office development by SHG;
• The transfer of 3.5 acres of property by SHG to the Borough for the construction of 65 affordable housing units which will produce 71 affordable housing credits; and
• Allowing for the construction by SHG of a “federal use” in lieu of 245 (of the 495) multi-family housing units – under this alternative, the site would be developed with a federal use, which would not be a warehouse use, and 250 multi-family units, in addition to the Borough’s 71 affordable housing credits.

An audio recording of the meeting is available on the Borough’s website.

The next step in the process will be the consideration by the Mayor and Council of a zoning ordinance consistent with the Settlement Agreements. The public would be afforded an opportunity to provide their comments and input at the public hearing on the adoption of the zoning ordinance. There will be additional opportunities for public input as the settlement contemplates an amendment to the Housing Element and Fair Share Plan by the Planning Board, a “fairness hearing” before the Superior Court, which is currently scheduled for October 24, and a site plan application before the Planning Board – all of which provide for an opportunity for the public to be heard. The Borough will assure that, in addition to any required notices, the public will be notified by eblast of all such public hearings and the meeting information will be prominently displayed on the News and Events page of the Borough website.

The settlement is the culmination of about a year and a half of negotiations on the proposed development of the site between SHG, the contract purchaser of the site, and the Borough. The settlement supersedes a previous settlement agreement, which would have included a warehouse of up to 495,000 square feet.   

"At the end of the day, this settlement represents a good deal for Franklin Lakes' residents, given the severe limitations imposed by the Mt. Laurel doctrine," noted Franklin Lakes Mayor Charles Kahwaty. "We were able to obtain significant concessions from the developer as to the PILOT, the number of residential units to be constructed, the elimination of a warehouse component, and the size and type of any so-called "Federal Use" structure." Mayor Kahwaty added, "surrounding communities and towns throughout the State have been affected as much, if not more, by Mt. Laurel, and the settlement approved by the Council took into consideration the concerns of townspeople expressed at the various public meetings over the past several months. I express my appreciation to the Council, our professionals, and our residents in helping put this final settlement together."