Nutley, Prism Trade 'Facts And Fictions' As ON3 Battle Heats Up

NUTLEY, NJ — On Thursday evening, Nutley Mayor Mauro Tucci sent what may be one of the shortest news releases in township history. The complete message read: “The Township of Nutley stands behind its statements regarding ON3.”

Tucci’s press release was the latest salvo in an increasingly bitter standoff between Nutley officials and a North Jersey real estate development firm, Prism Capital Partners. The shoving match revolves around the future of the ON3 campus, which is located at the former home of Hoffmann-La Roche on Route 3, at the border of Nutley and Clifton.

“What we're trying to do is gauge what the impact of that overall development would be on Nutley … on our roads, our water systems, our sewer systems – and on our people,” Tucci recently told Patch.

• See related article: Nutley Ponders Eminent Domain At ON3 Development

The property has gained a new life since the pharmaceutical giant left its former headquarters, which is located on Route 3 at the border of Nutley and Clifton. Over the past several years, its new owner – Prism Capital Partners – has been redeveloping the 116-acre complex, which is now home to tenants that include Ralph Lauren and the Hackensack-Meridian School of Medicine at Seton Hall University.

• See related article: Ralph Lauren Arrives In Nutley, Opens Office At Ex-Roche Site
• See related article: $70M Medical School At Ex-Roche Site Earns 'Good Neighbor' Award

In the past, Nutley officials have had high hopes for Prism's redevelopment plan, approving multiple payment in lieu of tax (PILOT) agreements for ON3. But after years of waiting for the campus to build out, officials said the town has run out of patience with the company's "piecemeal" progress and failure to address traffic concerns.

Now, Nutley is looking into possibly seizing unused portions of the property through eminent domain, as the project is located in an area in need of redevelopment, officials said. Read More: Nutley, Developer Butt Heads Over Future Of Ex-Roche Property

They may face an uphill battle against Prism, however.

Earlier this month, Eugene Diaz, a principal partner at the firm, fired back at the town's accusations, calling them "lies and falsehoods." Read his full statement here.

NUTLEY: ‘FICTION VS. FACT’

After Prism issued their statement, Nutley town officials retorted, releasing a document titled “ON3: Fiction vs. Fact” and adding a hashtag, #BUILDTHERAMP. Patch reached out to Prism for comment; the company’s reply is included below.

Here’s what Nutley town officials wrote.

Fiction: Nutley Commissioners have refused to meet with Prism for the past two years.

FACT: The Commissioners have met with Prism on several occasions. At our most recent meeting, the Commissioners presented a concept to build a ramp from Route 3 westbound into and out of the site. Traffic experts agree this ramp would alleviate all traffic concerns for Nutley and allow a full build-out of ON3. Prism rejected the Township’s concerns and solutions and inexplicably left the meeting.

Fiction: Nutley Commissioners spend tax dollars on lawyers who have put forth challenges to every new development proposed in either Nutley or Clifton.

FACT: While the Township has retained counsel (with expertise in redevelopment litigation) to represent it in the process, many of the funds used to pay the attorneys have been and will continue to be reimbursed to the Township by the current or future developer.

Fiction: Prism made commitments to make reasonable and necessary traffic improvements as shown in numerous traffic studies.

FACT: Prism has failed to provide a comprehensive traffic study for the site despite repeated requests from the Township. Prism has continually denied possession of a comprehensive traffic study and called for Nutley to commission their own, which the Township has done. Prism’s representatives have stated repeatedly, “Why should we fix any of the problem intersections when they were a problem 50 years ago?”

Fiction: Nutley Commissioners have refused to act on any of these plans, and they have put forth no alternatives whatsoever.

FACT: The Nutley Commissioners have acted on numerous requests by the developer including three redevelopment plans and agreements; financial agreement, or PILOTS, for the Seton Hall-Hackensack Meridian Graduate School of Medicine, Ralph Lauren Building, Building 200, (soon to be occupied by Eisai Pharmaceuticals) and the parking deck. The Commissioners have provided alternatives to traffic impacts including Metro Boulevard, Ideation Way, Kingsland Street, and its intersecting roadways.

Fiction: Nutley Commissioners attempted to illegally close the internal campus roadway system, the result of which would have been to overburden Passaic Avenue and Bloomfield Avenue with even more traffic.

FACT: The Township has done everything legally possible to protect the citizens of Nutley from the inevitable traffic and infrastructure burden that overdevelopment in Clifton would cause. While surrounding municipalities reap the tax benefits, Nutley gets all the traffic (reminiscent of the Clifton Commons redevelopment bordering Nutley, near the intersection of Kingsland Street and Washington Avenue).

Fiction: Taxpayers need to understand that in order for the Township to take this property, they have to float a bond worth tens of millions of dollars and raise taxes to pay for it.

FACT: The Township has the borrowing power to obtain a note to cover the cost of the condemnation. With interest rates expected to remain well under one percent, the effect on the tax rate will be minimal. In addition, if a new developer is chosen by the Township, the note will be satisfied along with the interest paid.

Fiction: Prism has provided numerous ideas to the Commissioners, only to be met with silence.

FACT: The ideas provided by Prism were for the profit of Prism and Prism only. While the developer relies on “higher taxes” scare tactics to try and sway public opinion, the Commissioners are focused on and dedicated to Nutley residents’ quality of life.

Fiction: The fault does not lie with Prism, but with the Commissioners.

FACT: This is not about whose fault it is; this is about what’s best for Nutley. The Township has asked Prism to do many things to help make the development work and be mutually beneficial to all parties involved. These include, but are not limited to:

• The agreed-upon design of Metro Boulevard for traffic calming (Prism has failed to provide this);
• The request for a water interconnect in case of water supply issues (Prism has failed to provide this);
• Developing a plan to mitigate flooding problems (originating from Prism property) at Kingsland Street and Bloomfield Avenue (Prism has failed to provide this);
• The request by the Township for Prism to provide a complete and comprehensive traffic study for a development layout on their own website (Prism has failed to provide this);
• The request by the Township to address the entrance to the site on Kingsland Street and Bloomfield Avenue (Prism has failed to address this);
• The request by the Township for assistance in preventing the closure of the railroad tracks at Highfield Lane, due to Prism's actions on the site (Prism has failed to provide this).

"Nutley has one chance to get this right," officials concluded. "The township needs a developer that will be as concerned about the citizens of Nutley as they are about their profits."

PRISM: 'MISMANAGEMENT AND BAD DEEDS'

On Friday, Patch reached out to Prism for comment on the town's recent list.

According to Diaz, the Nutley board of commissioners is "stretching half-truths into whole lies to cover up their mismanagement and bad deeds."

Diaz offered a counter-list of "facts and fictions," which follows below.

FACT: On July 13, 2020 (16 months ago), Prism was asked to attend a Zoom meeting with Township Officials and their experts who presented for the first time a fly-over on Route 3 and threatened Prism with closures of campus roadways and other interference if Prism did not agree to build the fly-over.

FICTION: Prism dismissed the fly-over out of hand.

FACT: The next day, Prism responded to the Township that Prism was not wholly opposed to consideration of a fly-over as a mechanism to provide any necessary and required traffic mitigation. However, the Township presentation lacked any comparison to and evaluation of other mitigation options. The fly-over would also require NJDOT and City of Clifton approval, condemnation of businesses on Route 3, lacked any public funding, and has extremely low probability of success.

FICTION: The Commissioners have met with Prism on several occasions.

FACT: Not since the July 13th 2020 “fly-over” Zoom meeting have the Commissioners met with Prism. In fact, Prism has been told that unless Prism agrees to build the fly-over the Commissioners have nothing to talk about.

FICTION: The Commissioners have tried to work cooperatively with Prism.

FACT: Following the July 13th 2020 meeting, the first act by the Commissioners was to pass an illegal ordinance in October 2020, which attempted to erect barriers on the Campus roadways to prevent the free flow of traffic through the Campus to Kingsland Street. The courts determined this ordinance to be invalid and of no force and effect. Nutley spent your tax dollars on attorneys defending the litigation and on planners and consultants to draft the illegal plan.

The Commissioners hired legal counsel to challenge the approval of a new Medical Office Building in Clifton and a new luxury hotel with a roof-top bar. Nutley continues to spend your tax dollars fighting development in Clifton rather than working cooperatively with Clifton and Prism. Instead, they are depriving the community of quality healthcare and the ability to enjoy high quality hospitality.

Nutley’s interference has caused significant delays and costs, and hurts the existing tenants of the Campus who are interested in bringing employees back to a vibrant location.

FICTION: Prism has failed to provide a comprehensive traffic study and a fly-over is the only way to address future traffic from additional development at the Campus.

FACT: The Commissioners have had a comprehensive traffic study since November 2013, which was prepared by Michael Maris Associates for Nutley. It is available as a download at www.on3nj.com. That traffic study concluded that by addressing several key intersections in both Clifton and Nutley, the traffic under a fully built out scenario would be no worse than the current traffic without additional development. A fly-over was never suggested.

In accordance with Land Use Law, Prism has submitted at least three additional traffic studies and the new traffic study the commissioners brag about does not conclude that only a fly-over will help traffic.

FICTION: Don’t worry, the redeveloper will pay for all the town’s legal bills and consultants.

FACT: Prism is not obligated to reimburse the Township costs and expenses that do not help further redevelopment and has filed a lawsuit over misuse by the Township of the Escrow Funds and is demanding reimbursement because of the improper use of such money.

FICTION: The effect of condemning the ON3 Campus on the Tax rate will be minimal.

FACT: Condemnation requires the Municipality to pay the property owner Fair Market Value to acquire it. We have 25 acres remaining in Nutley. Given the value increases associated with the successful redevelopment of the Campus, the ON3 land would likely cost more than $40mm. That’s a lot of money when the Township has no plan to say how they make their investment back.

It’s still your tax dollars, and you the taxpayer should be able to determine whether the impact is minimal. Look at Ciccolinni. The Commissioners paid $3.2mm and then had to demolish the building. Now to get the Taxpayers money back, they are going to have to approve a much larger development including apartments and other uses.

FICTION: Prism’s ideas were only for profit.

FACT: Prism presented plans for an Assisted Living facility after receiving over 1,500 Nutley signatures requesting one. The Commissioners would not approve it.

Prism agreed to assist the Town in satisfying its affordable housing obligations and has proposed an immediately available solution on its property. The Commissioners fight against the solution in favor of one that adds more residential units.

Prism volunteered improvements on Kingsland Street, which were supported by Essex County, including a traffic light at redesigned intersection at Cathedral and Kingsland and improved circulations at Kingsland and Bloomfield Avenue. The Commissioners would not approve it.

Prism offered to fix the flooding at Kingsland Street, caused by the Township’s undersized pipe, and had access to federal infrastructure funds to do it. The Commissioners would not approve it.

Prism agreed to a water interconnect, subject to the Township working out a deal with Passaic Valley and NJ American Water. The Commissioners could not strike a deal with the two water companies.

FICTION: The Township will win!

FACT: The Township’s “Phase 3” redevelopment plan was invalidated by the court, because it illegally proposed closing Metro Boulevard to through traffic without approval of the NJDOT. The lack of cooperation and litigious acts by the Commissioners in challenging approvals for the ON3 Campus in Clifton has wasted valuable time and money. Every dollar wasted on challenges and arguments is a dollar that could have been put to better use improving the ON3 redevelopment and the area for everyone.

"Prism takes its responsibilities as a community-based developer with the utmost in seriousness and commitment for the greater good," Diaz added. "Our approach has always been to make it work for everyone. Why the commissioners are now arguing against more success for ON3 is a travesty and not in the best interest of Nutley taxpayers and businesses that all reap the rewards of a thriving commercial campus."

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