Howell Fountains Developer Files Lawsuit Against Township

HOWELL, NJ — The developers of the project known as The Fountains, on Route 9, have recently sued Howell Township, a lawsuit that comes as no surprise.

"We're gonna be in litigation very shortly," township attorney Joseph Clark warned in a council meeting.

The developer's agreement that would allow the project to move forward with the construction of 100 age-restricted was voted down in September, then put back into the agenda and tabled multiple times until it was finally rejected once again at the end of October.

The lawsuit names 6461 Route 9 Howell, LLC and Paula O'Neill, owner of that property, as plaintiffs.

The developer filed an injunction and is seeking a building permit from Howell and guarantee that the township will restrain from any action that interferes with construction, according to court papers.

The township has not yet responded to the lawsuit, according to Clark.

"We are waiting to be formally served with the papers. When we are, we will speak with our attorneys about the best way to defend," the attorney told Patch.

The developer argued that the project has been "fully authorized" by a series of agreements and approvals spanning more than three decades. The project in its current form has already had approval from the planning board,

"You've been recommended to sign it by your director of development, by your attorney," said Louis Kaufman, a representative of the developer, during a meeting on Oct. 12, in reference to the developer's agreement. "You have some fiduciary obligations not to set yourselves up for litigation which, in case you have any questions, it will come if you don't agree to this."

Within the agreements was a provision stating that the developers could sue the town and potentially be able to build over 400 non-age-restricted units instead of the current 100 age-restricted units that are being proposed if there were efforts to block the development.

"The developer shall have the right, but not the obligation, to reinstate the original Agreement," the lawsuit states.

It also says that the township acted in bad faith "by demonstrating their intention to 'stop the development.'"

Councilman John Bonevich said that his main reason to vote no was the fact that this is a four-story development when the current zoning only allows for two stories. The exception was due to the four stories being grandfathered in with a previous settlement.

Court documents cite councilwoman Pamela Richemond saying in a meeting in September that the democrats in council wanted to "stop the development" and that she was "happy to oblige."

The resolution failed in October in a 4-1, with only then Deputy Mayor Thomas Russo — who has since resigned — voting "yes." Councilwoman Evelyn O'Donnell had previously voted "yes" in September, but changed her vote to "no."

The developer said that if the project is blocked the company will default on its $23 million loans, "resulting in financial ruin," according to court documents.

The lawsuit also argues that the developer has "voluntarily satisfied outstanding financial obligations imposed," including payments of fees, inspection escrow, and other financial obligations, in excess of $209,657.50. So far, the developer has invested at least $2.83 in the project.

The lawsuit also seeks a refund of a woodlands management permit fee of $98,600, which the developer argues was overpaid.

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