Poll Area

Dismissal of “frivolous” Feld lawsuit paves way for redevelopment in Orange

Redevelopment in Orange gained momentum as the result of the dismissal of the Feld lawsuit on Friday, November 19, 2010 by Honorable John C. Kennedy, J.S.C. in Essex County Superior Court.

The dismissal involved three consolidated lawsuits filed by Judith S. Feld, Robert Feld, the Four Felds d/b/a L. Epstein Hardware Company.  The plaintiffs were represented by their son Jeffrey Feld, Esq. who works at the hardware store located on Main Street in the City of Orange.

The issues before Judge Kennedy concerned the validity of various long-term tax abatements granted to developers as well as the sale of various properties for redevelopment. The properties in question were the Grand Central Senior Housing Project, the Walter G. Alexander Redevelopment Project, the Central Valley Redevelopment Project and The Washington Dodd Apartment Housing Project.

After extensive oral argument, Judge Kenney upheld the validity of the long-term tax abatements, the validity of sale of the properties and all of the city’s related actions in terms of procedure and substance.

In essence, the Court outright rejected Mr. Feld’s arguments regarding how the Administration and governing body had legally handled this process.  Judge Kennedy indicated that the City’s efforts to spur economic development were not unusual and certainly not illegal.  He suggested that if Mr. Feld had problems with certain statutes, he should perhaps take it up with the State Legislature.

Statement by Mayor Eldridge Hawkins, Jr.

“I want to thank City Attorney Marvin Braker and the Law Department for their fine work in defeating the frivolous lawsuits. This lawsuit has cost Orange taxpayers $20,000. That is enough to pay the annual cost of our football, basketball, and basketball leagues for our kids or half the cost of our after-school programs. It is time for the Felds, who don’t even live in our city, to end the war they are waging against the taxpayers of Orange. I am pleased that we can finally move forward with the projects that were held up by this lawsuit.”  

Statement by City Attorney Marvin T. Braker

“In defending this litigation, Orange has had to expend a rather extensive amount of taxpayer dollars for legal fees.  While all the bills have not come in as of yet, to date this litigation has cost the taxpayers approximately twenty ($20,000.00) dollars. In addition, the City Law Department and other departments continue to expend an exorbitant amount of working hours responding to hundreds of requests from Mr. Feld for thousands of documents.  This has been going on for at least the past two years if not more. 

I want to thank Aldo Russo, Esq. who worked closely with our Law Department and who argued the case for the City.”

 

Statement by Valerie Jackson, Director of Planning and Development

“It is hard to fathom how and why one family could do so much to hold up necessary housing and revenue for over a year.  I am glad to see the funds that the City worked so hard to secure are finally being utilized.
In addition to the legal fees expended by the City, our developers spent approximately $40,000 in legal fees related to the Feld litigation. Orange taxpayers should know that the litigation had the potential to jeopardize investment in Orange. I want to thank all of the developers for staying the course.”

Background on the Redevelopment Projects

The City of Orange Township received $1.5M in Neighborhood Stabilization Program 1 (NSP 1) funds in May 2009 from the New Jersey Department of Community Affairs (NJ DCA) to stabilize housing in the East Ward of the City.  RPM Development can now move forward with constructing 20 units of one, two and three family housing on city-owned lots in a neighborhood that is plagued by vacant lots and abandoned housing.  The City expects that the all of the units will be completed and occupied in 2011. 

In addition, the City will now be eligible to receive NSP 3 funds for additional new construction and rehabilitation of housing because the City can now demonstrate that NSP 1 funds are being fully utilized.

The Orange Housing Development Corporation (OHDC) received $23.3M for the construction of two mid-rise structures on a portion of the former Walter G. Alexander site and city-owned property.  Those developments will bring 66 units of affordable family housing and 48 units of senior housing.  The construction is expected to start February 2011 and be completed within one year.

All of these projects will bring much needed new tax revenue to the City, 130 units of new housing within one year, and dramatically improve the housing landscape in a ward that is in the middle of the City.  Restoration of these neighborhoods will ensure the City thrives and will improve the quality of life for all residents.