Middletown Sued By Developer Seeking To Build 478 Apts. On Red Hill Rd

MIDDLETOWN, NJ — The plot has thickened in a developer's quest to build 478 apartments behind Memorial-Sloan Kettering Cancer Center on the Middletown/Holmdel border:

The developer is Adoni Property Group and they sued Middletown Township over the four properties in April. The lawsuit was filed April 21 in Monmouth County Superior Court and accuses Middletown of not fulfilling its obligation to the state of having enough affordable housing in town.

Also, just last week, the Holmdel Township Committee decided that Holmdel Twp. will join the developer's lawsuit as well — except in an "intervenor" capacity, according to Holmdel Committeeman Greg Buontempo. Holmdel is joining the lawsuit on the side of Middletown, the defendant, and only did so because Holmdel wants to have a say in traffic patterns should the 500 apartments be built, he said.

"We're not looking to stop the lawsuit per se," said Buontempo. "We're looking to protect our interests as this thing plays out."

Adoni owns four lots directly behind the cancer center on Red Hill Road, right off the Garden State Parkway. The four lots are 490 Red Hill Road, two lots at 1114 Nut Swamp Road and one lot that is technically on Dwight Road.

Currently, the lots are nearly entirely woods and empty fields. However, Adoni has plans to build seven four-story apartment buildings there, with 478 apartments total and parking lots. It would be called "The Franklin at Middletown, LLC," according to a search of public property records.

About 74 of the units would be low- to moderate-income affordable housing, the developer revealed in the lawsuit.

While Middletown is trying to buy the land from the developer — and may use eminent domain to do so — Adoni appears to be trying to use New Jersey's affordable housing mandates to force the project to go through.

Such lawsuits are called "exclusionary zoning" or "builder's remedy" lawsuits.

It goes back to this 2019 decision made by Middletown government to simply stop complying with New Jersey's mandate that all towns in the state have a certain amount of affordable housing. At the time, affordable housing advocates called Middletown "one of the worst actors in the state" for not complying with low-income housing mandates.

Middletown Mayor Tony Perry said Thursday that Adoni filed the lawsuit only after Middletown informed the developer that the Township seeks to buy the land, and will use eminent domain if it has to. Middletown would have to declare the land condemned to use eminent domain.

"They filed the lawsuit in response," Perry told Patch on Thursday. "We are going to make an offer in good faith and we are currently having (the land) appraised. If that cannot be done, the Township Committee has the ability to use eminent domain to acquire the land."

Adoni Property Group has not responded to Patch's requests for comment.

Middletown Twp. is currently in the process of appraising the land, and will make Adoni an offer to buy the four lots. Perry said it is still too early — as of Thursday — to disclose what Middletown will offer to pay for the four lots.

At the most recent Township Committee meeting Monday night (watch it here), the Township Committee unanimously approved an ordinance that authorizes the town to buy the land. Perry said the town wants to preserve it as open space, and has plans to convert the lots into some kind of public recreational area.

"I don't know if they will accept our offer," said Perry, of the developer. "I am very confident Middletown has done its duty to create affordable housing throughout the town, and I feel like we are in a strong position to win this lawsuit. The NJ Supreme Court says a municipality can use eminent domain; I am confident we have precedent."

"The Township Committee will acquire open space through condemnation when and if necessary," said Middletown Twp. in a statement this week. "This method was used in 2022 to acquire Fairview Fields, which had been owned by Fairview Cemetery, to prevent it from being developed and forever preserve this as recreational space for our youth."

When Middletown decided to withdraw from affordable housing mandates in 2019, Twp. administrator Tony Mercantante admitted it opened Middletown to the risk of being sued by developers.

"There is a risk we'll get sued," he said at the time. "But we'll take those on a case-by-case basis."

For background: Middletown Fighting Plan For 500 Apartments Behind Sloan-Kettering (May 17)

Middletown Withdraws From NJ's Affordable Housing Mandate (July 2019)