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Errico Acres – Affordable Housing Development
Melillo Equities, LLC
Pulte Homes of NJ, LP

To the Public:

This letter/memorandum is intended to provide the public with a brief history and an ongoing status update of the affordable housing, inclusionary residential development of the Errico Acres Site.  This is intended to be an evolving document, which will be periodically updated.  The Borough urges the public to continue monitor this document as it is a source for updated and new information relating to this development.
 
  • In connection with its affordable housing compliance, the Borough entered into an Affordable Housing Agreement with Melillo Equities, LLC (“Melillo”), dated December 9, 2019, for the development of an inclusionary, residential rental and for sale development consisting of 105 age-restricted townhouse dwellings and an apartment building consisting of 29 affordable apartments (25 family affordable units and 4 age-restricted affordable units) on the property identified as Block 5, Lot 4, located at 220 Route 202, consisting of approximately 42.3± acres (hereinafter referred to as "Errico Acres Site").
  • Pulte Homes of NJ, Limited Partnership (“Pulte”), received preliminary and final major site plan and subdivision approval, with variance relief and design waivers, from the Far Hills Borough Planning Board (the “Board”) on February 7, 2022, for the inclusionary development of the Errico Acres Site, which approval was memorialized in the Resolution No. 2022-10, adopted by the Board on February 7, 2022 (the “Approval”).
  • The Approval was granted by the Board after holding public hearings on the application, at ten (10) Board meetings held on July 5, 2021, August 2, 2021, August 14, 2021, September 22, 2021, October 4, 2021, November 1, 2021, November 23, 2021, December 6, 2021, January 3, 2022, and February 7, 2022.
  • As a requirement of the December 9, 2019 Affordable Housing Agreement, and the conditions of the Approval, Pulte/Melillo is required to grant the Borough various easements encumbering the Errico Acres Site, including a Perimeter Buffer Easement, Stream Corridor Easement, Scenic Corridor Easement, Stormwater Drainage Management Easement, 100 Foot Common Area/Open Land Easement, Nature Path Easement and Sight Triangle Easement. These Easements are being granted to the Borough and are benefiting the Borough. These Easements are currently being finalized.  Pursuant to the Local Lands and Buildings Law, N.J.S.A. 40A:12-1, et seq. (“LLBL”), and N.J.S.A. 40:67-1, the Borough is authorized to accept interests in real property, including easements, by ordinance.  The Borough introduced this ordinance at the February 27, 2023 Council meeting, and after the public hearing at the March 13, 2023 Borough Council meeting, the Borough adopted the ordinance.
  • Additionally, as a condition of the Approval, Pulte is required to enter into a Developer’s Agreement with the Borough, the contents of which apply to the public improvements, the repair and ongoing maintenance requirements, and other obligations specific to the affordable housing apartments. The Borough authorized the Developer’s Agreement by resolution, at the March 13, 2023 Council meeting.
  • On December 7, 2022, the NJDEP issued various wetlands permits allowing for the proposed development of the Errico Acres Site pursuant to the Approval. These permits included a Freshwater Wetlands General Permit 10A and 11, Transition Area Waiver-Averaging Plan, and Water Quality Certificate.
  • As a condition of the NJDEP wetlands permits, there can be no removal of any trees five inches in diameter at breast height or greater between April 1st and September 30th of each calendar year to protect the federally listed Indiana Bat.
  • Also, as a condition of the NJDEP wetlands permits, Pulte/Melillo has to record a conservation restriction for the compensation transition area with the NJDEP within 90 days of the permit issuance (or by March 7, 2023).
  • On January 24, 2023, Pulte/Melillo received Treatment Works Approval No. 22-0355 from the NJDEP granting the permit to construct and operate the proposed wastewater conveyance system, treatment and disposal system servicing the development of the Errico Acres Site.
  • At the February 27, 2023 Council meeting, the Borough made a presentation to provide an update to the public on the status of the approvals for the development of the Errico Acres Site, along with identifying the Easements being granted to the Borough.
  • The Borough engaged The Otteau Group to perform a financial/fiscal impact study of the development of the Errico Acres Site.  This study was completed on March 11, 2023 and on March 14, 2023 was posted to the Borough website for the public’s review.
  • The Borough is having representatives of The Otteau Group make a public presentation of its financial/fiscal impact study planned for the March 27, 2023 Council meeting.
  • The Borough has negotiated the removal of the $6.9 million payment to Melillo Equities and retained the age restriction on the 105 market rate units. These will be memorialized in a written agreement, which will need to be authorized by resolution of the Borough Council at a Council meeting, planned for March 27, 2023.
  • Melillo and FSHC filed Motions to Enforce Litigant’s Rights in the Borough’s Third Round Compliance litigation alleging that the Borough violated the Affordable Housing Agreement with Melillo, the Settlement Agreement with FSHC, and the conditions of the Borough’s Judgement of Compliance by failing to move forward with the compliance review process relating to Pulte’s Approval for the Errico Acres development. If these Motions are successful, Melillo and FSHC are seeking relief in the form of removal of the Borough’s builder’s remedy immunity, removal of the age-restriction from the market rates units in the development, elimination of the Borough’s bonus credits for the development, and forcing the Borough to execute the Developer’s Agreement in a form acceptable to the Court. On March 17, 2023 Melillo Equities, LLC withdrew their motion with the Court. On March 22, 2023, Fair Share Housing Center withdrew their motion with the Court.
  • The Borough Council authorized the Developer's Agreement with Pulte Homes of NJ, LLP at the March 13, 2023 Borough Council meeting.
Documents, currently available to the public, as indicated in this letter as well as the Planning Board application materials are available through the following links:

  https://www.farhillsnj.org/how_do_i_/view_affordable_housing_agreements/index.php   

https://www.dropbox.com/sh/mjy9u6122qt1j54/AADdtZeuKL4edE45bXB5OUG4a?dl=0

OtteauGroup Consulting Report – Errico Acres Site

Developer's Agreement - Pulte Homes of NJ, LLP

 

Dated: February 17, 2023
Revised/Updated: March 10, 2023 – Date of OtteauGroup presentation
Revised/Updated: March 14, 2023 – Items in bold
Revised/Updated: March 27, 2023 - Items in bold