Cigna Property Update - Developer Presenting Revised Plan - updated 3/22/2023

Charles J.X. Kahwaty, Mayor

Wednesday, March 29, 7:00 PM, FAMS
Message from the Mayor

Fellow residents:

After an extended period of discussions between the Borough of Franklin Lakes and The S. Hekemian Group (“SHG“ or “the developer”), the contract purchaser of the Cigna commercial property on Parsons Pond Road, SHG provided a proposal to change the use of the 88 acre site adjacent to Parsons Pond Park to predominately multi-family residential housing. At a public hearing, residents expressed their opinions for and against the plan. Based on the comments and concerns received from the public, SHG has amended its proposal.

SHG will be presenting its amended proposal for consideration and possible approval by the governing body at a Special Meeting of the Mayor and Council scheduled for Wednesday, March 29, 2023, at 7:00 PM, in the Multipurpose Room at the Franklin Avenue Middle School. All are invited to attend and offer their input. It is contemplated that, after the public has provided their input, the Mayor and Council may consider a resolution approving a Settlement Agreement between the Borough and SHG, which would be based on the terms and conditions as described below.

To help visualize one way this site could be developed, SHG has provided a concept plan. Click here to view the concept plan. The proposal is for a substantially reduced number of residential units (250) and a warehouse use. The developer has also provided a traffic study to the Borough. Click here to view the traffic study.

I assure you, given complete freedom to control the development of this property, the Borough would not accept this proposal. Unfortunately, the owner of this property has demanded the right to construct affordable housing. Once that occurs, under the New Jersey Supreme Court’s Mt. Laurel doctrine, which imposes significant obligations on every municipality in this state to construct this housing, the development of the site is then under the control of the court. The Borough must agree with the property owner and that agreement must be approved by a judge. If we do not agree, the judge will decide how the property is to be developed.

Our goal is to minimize the intensity of the use on this property while realistically accepting the law we live under. Our attorneys have described the potentially damaging range of outcomes relative to the density and intensity of use on this site if it is designed by a judge under the Mt. Laurel doctrine and have warned us against allowing that to occur. We understand and agree with your concerns about the impact a project of this size can have on our community and like you, we are angry with the impact the Mt. Laurel doctrine and judge-controlled zoning can have on Franklin Lakes. However, we can’t ignore the law we are forced to live under.

The primary elements of SHG’s proposed development of the property are as follows:

250 multi-family rental units of which 15% to 20% shall be affordable (depending on whether they are rental or sale units) – substantially less than the 2,500 units the developer has suggested is the development capacity of the Property;
No Payment In Lieu of Taxes (“PILOT”) of any kind;
A retail component, consisting of a retail stores of approximately 50,000 square feet;
Two warehouse structures with a total footprint of 495,000 square feet, replacing the current office building of nearly 700,000 square feet in floor area (230,000 square feet footprint);
3.5 acres of property to be donated to the Borough for construction by the Borough of 55 units of affordable housing; and
A contribution of up to $500,000 towards on and offsite infrastructure improvements.

All residents should know that any discussions with the developer required strict confidentiality in order to avoid prejudicing the negotiations, and for the developer to respond with the amendments reflected in the revised plan. But whatever the final vote and outcome may be on this project, I want you to know that the governing body’s goal is and has been to determine and support a result which is the best available and best for Franklin Lakes, guided by our legal obligations.

Charles J.X. Kahwaty
Mayor, Borough of Franklin Lakes