The Haddonfield Borough Board of Commissioners approved the signing of two agreements tonight, Jan. 12 for the potential purchase of the Bancroft School property and the redevelopment of the site for future public and private uses. The commissioners also accepted a recommendation from the Borough Planning Board to declare the property an area in need of redevelopment under the state Redevelopment Law. These actions, taken at a regularly-scheduled, public Board of Commissioners meeting after public comment, will allow the Borough to move forward with a Redevelopment Plan while Brian O’Neill and Recovery Centers for America (RCA) seek an alternative location in another town to build a new drug and alcohol treatment center.
“After months of discussion and negotiations, I am very pleased that we have reached an agreement regarding the future of the Bancroft property in Haddonfield,” stated Mayor Jeffrey S. Kasko. “With these agreements and the designation as a Redevelopment Zone, we are now in a very strong position to determine the future use of this valuable tract of land. After so many years of uncertainty and debate about different plans for the site, we can now move forward as a community to see this property utilized in a manner that is beneficial to the current and future residents and taxpayers of Haddonfield.”
The first agreement approved, between the Borough of Haddonfield, 2 Hopkins Lane, LLC (RCA’s company that would have purchased the property for the treatment center) and Bancroft Neurohealth, assigns the sale agreement and amendments between 2 Hopkins Lane, LLC and Bancroft to the Borough of Haddonfield, sets lease payments of $150,000 per year (for the first two years) and higher amounts up to $300,000 per year (after two years) by Bancroft to the Borough, and calls for a June 30, 2016 closing date for the sale of the property to the Borough.
The second agreement, between the Borough and 2 Hopkins Lane, LLC, sets forth numerous terms and provisions, including:
- A sale price of $12.9 million for the Borough to purchase the entire 19.22 acre property;
- Allowance for Bancroft to continue to operate on the site until its move to a new facility, subject to lease payments to the Borough as described above;
- An option for 2 Hopkins Lane, LLC to buy back 8.2 acres for $5.5 million to develop age-targeted townhomes, pursuant to an adopted Redevelopment Plan;
- An opt-out for 2 Hopkins Lane, LLC to not buy back any acres, for which the Borough will pay an additional $600,000;
- A requirement that the Borough exercise its best efforts to adopt a tax-neutral Redevelopment Plan consistent with a concept plan that includes 70 market-rate, age-targeted townhomes and 10 affordable units contained within the townhome development;
- Developing a Payment in Lieu of Taxes (PILOT) program between the townhome developer and the Borough that will generate sufficient revenue to cover the Borough’s bond payments and ensure that a public purchase, after applying available grant funds, will not result in a property tax increase for Borough residents;
- Design requirements for townhomes that are consistent with the historic nature of Haddonfield and approved the by the Borough Historic Preservation Commission and Borough Planning Board;
- Final approvals by the Borough pursuant to the adopted Redevelopment Plan and the state Redevelopment Law;
- A reasonable time period for the Borough to raise funds for the purchase through a municipal bond ordinance.
“The Redevelopment Zone designation and the agreements we are authorizing today will ensure that the Bancroft property is developed with the best interests of Haddonfield and its residents in mind,” according to Deputy Mayor and Commissioner John Moscatelli. “These are the first steps needed in a longer process of working with the Planning Board, residents, and Mr. O’Neill, in developing an appropriate, tax-neutral Redevelopment Plan for this property. I am happy to support these agreements and help advance suitable uses on this important piece of land.”
“Today marks an important day in the history of Haddonfield,” added Commissioner Neal P. Rochford. “This is an historic and valuable property, adjacent to a county park and our high school, and our ability to have control over its redevelopment is a significant achievement that will impact our town for generations to come.”
The Board of Commissioners expects to continue working with its redevelopment planner and redevelopment attorney to forward a suggested tax-neutral Redevelopment Plan to the Borough Planning Board for consideration in the near future. All three commissioners expressed gratitude for the time and effort expended by the Borough’s professionals on this matter, including solicitor Mario Iavicoli, administrator Sharon McCullough, planner Phil Caton, and attorney Ed McManimon. They also thanked Brian O’Neill and his attorneys for keeping discussions open over the past eight months and negotiating agreements supported by all involved parties.
RCA’s Brian O’Neill stated the following; “I would like to thank Haddonfield’s leaders for negotiating in good faith and reaching an agreement. I believe this is a win for all involved — for Haddonfield’s residents, for Bancroft, and for RCA. I am glad we could work this out.”
Copies of the letters of agreement authorized by the Board of Commissioners are available in the Clerk’s office in Borough Halland can be viewed online at www.HaddonfieldNJ.org.
