Oceanport wins builder's remedy lawsuit
Plans for six-story building on River Street rejected by judge
BY SUE MORGAN
Staff Writer

Just like David, this small town has toppled a builder playing the role of Goliath. For now, the builder's controversial plan to construct a seemingly out-of-scale, six-story, 60-unit structure that Oceanport officials called too intense for an area off River Street has come tumbling down.

With 20 percent of the proposed units designated as Council on Affordable Housing (COAH) units, the builder, Oceanport Holdings Inc., had attempted to force the borough to accept the project via a "builder's remedy" lawsuit filed in state Superior Court in Freehold on May 26, 2005.

But a ruling from state Superior Court Judge Robert Coogan found that Oceanport Holdings failed to negotiate "in good faith" with borough officials who blocked the builder's attempts to erect the structure in an area zoned for single-family homes, according to Jeffrey Surenian, the attorney who represented the borough in court.

"This town refused to be bullied," said Surenian as he announced Coogan's recent decision before officials and residents gathered at last Thursday's Oceanport Borough Council meeting.

Sitting in Freehold, Coogan essentially upheld the borough Planning Board's May 2005 denial of Oceanport Holding's building application in which the developer had sought a zoning change that would allow construction of a six-story structure in a neighborhood of existing two-story, single-family homes.

Oceanport Holdings subsequently sued the borough, its Planning Board and Zoning Board of Adjustment, and the New Jersey Sports and Exposition Authority, owners of nearby Monmouth Park Racetrack.

River Street, accessible only via Morris Place, leads to Branchport Creek at its southeastern end. It is located less than a mile from Monmouth Park Racetrack.

The builder had also unsuccessfully tried to persuade the Planning Board to let it construct a six-story structure on a 3-acre tract in an area where two stories are the maximum allowed.

In ruling against Oceanport Holdings, Coogan actually scolded the builder as well as any other developer who would seek to strong-arm municipalities with unsuitable housing projects under the pretext of meeting the community's state-mandated COAH obligation, said Surenian, of Wall Township.

"This decision has ramifications far beyond Oceanport," Surenian said. "This opinion is a wake-up call. It is basically telling developers that 'You have a responsibility too.' There are consequences if you bring about excessive lawsuits."

In the courtroom, the attorney for Oceanport Holdings had tried to convince Coogan that the borough must accept the multi-unit structure in order to meet its COAH obligation as mandated by the state Supreme Court's Mount Laurel II decision in the late 1970s.

Nonetheless, Coogan sided with the borough officials' opinion that the structure would "stand out like a sore thumb" despite Oceanport Holdings' retaining of an attorney considered to be "the Goliath of Mount Laurel [COAH law]," Surenian said.

"This judge refused to be led by the stature of this attorney," said Surenian, whose law practice represents area municipalities facing so-called "builder's remedy" cases.

Surenian thanked borough officials and residents for putting their trust in him.

"I congratulate you all. It has been a privilege to serve you," he said.

Mayor Lucille Chaump acknowledged Surenian's expertise as well.

"We are all very happy. I'd like to thank Mr. Surenian for all his work," Chaump said.

The mayor also thanked the borough's planning and zoning boards and its master plan committees and subcommittees for their assistance in helping Surenian prepare his case.

Under the state's COAH rules, Oceanport must provide 183 units of affordable housing. The borough's Planning Board adopted that plan on Nov. 9.

Later that month, on Nov. 17, the council approved an affordable housing plan, which was put together by Surenian at the borough's request, to meet its COAH obligation.

That plan, known as the Housing Element and Compliance Plan, calls for the creation of six additional COAH units at the Monmouth Housing Alliance facility on East Main Street, called Oceanport Manor Apartments.

The plan also calls for the designation of 28 affordable units at what is now the 30-bed Checkmate Inc. homeless shelter located at the Main Street and Oceanport Avenue intersection near the entrance of Fort Monmouth.