Cinnaminson Can't Seize Long-Vacant Properties, Appeals Court Rules

CINNAMINSON, NJ — A state appeals court tossed a ruling that would've allowed Cinnaminson Township to acquire two long-vacant properties through eminent domain.

The case centers around 305 and 307 Route 130 — two century-old dwellings built when the bustling business corridor was just a limited roadway. The owner has left both properties in such disrepair that they risk public safety, according to township officials.

Township officials tried to convince Thao Le, the owner, to sell the properties multiple times, according to Mayor Ernest McGill. But no transaction was ever finalized, and Le never backed up claims that she had development plans for the land, according to local officials. As a result, the municipality filed a complaint in November 2022 to acquire the parcels via court order.

Last fall, a trial judge determined that the township could acquire the parcels through eminent domain, stating that the properties' "obsolescence was detrimental." But the state appellate court struck down the order Dec. 4, claiming the township failed to provide sufficient evidence that the disrepair was detrimental to the community.

For such acquisitions to occur, state law requires governing bodies to show that the areas in question "are detrimental to the safety, health, morals, or welfare of the community." The two-judge panel found that Cinnaminson Township's evidence fell short of the legal standard.

The township is "considering all options" in light of the court's decision, says Mayor Ernest McGill. That could include trying to take it to the New Jersey Supreme Court, which hears appeals against Appellate Division rulings.

"The Township is prepared to take whatever action and legal recourse necessary to hold this property owner accountable for her continued failures and to advocate for our residents and our business community," McGill said in a statement.

The court opinion heavily cited a recent case in which a West Orange resident claimed the North Jersey township improperly designated the site of its public library as an area in need of redevelopment. In March, the state supreme court sided with resident Kevin Malanga, stating that West Orange failed to establish that the old building harmed the community's welfare.

Richard P. DeAngelis Jr., Le's attorney, says they are "pleased the appellate court reversed the trial court's opinion which was contrary to settled law by the New Jersey Supreme Court."

"We trust the Township will respect the well-reasoned opinion of the appellate court," DeAngelis said via email, "based in part on a recent Supreme Court decision that undercut entirely the trial court's decision here."

In 2013, the Cinnaminson Township Committee directed the Planning Board to investigate whether certain properties along Route 130 could be deemed areas "in need of development or rehabilitation" — a designation that can help spur redevelopment efforts. Two lots — 305 and 307 Route 130 — had old dwellings that had previously been used as offices but stood vacant for three years, according to the ensuing report.

Both buildings needed significant upgrades for future commercial use, according to then-Township Planner Barbara Fegley. Neither property is connected to a public sewage system.

The properties also had tax liens in the past — Fegley noted that the owner's taxes were delinquent for most quarters from 2007-13.

Since then, the dwellings have remained vacant, McGill said.

"(The properties have been) the recipient of complaints from neighboring residents, subject to numerous police department responses, deemed unsafe by the Fire Marshall (sic) and a structural engineer and generally pose an immediate risk to the public," McGill's statement said. "To date, the Township has not been provided with a single report by any professional or agency which refutes these findings."

In 2019, the township became aware of a developer's plan to construct a fast-casual restaurant at the location. Although the developer reached an agreement to purchase the parcels, Le later claimed she had different development plans and rescinded the deal, McGill said.

Township officials met with Le in December 2020 to get a better understanding of the plans, which she didn't provide, McGill said. When the township followed up in July 2021, the owner said she was subject to a tax lien and no longer controlled the properties.

In September 2022, the township contacted the controlling entity and facilitated a sale agreement on the developer's behalf. But "at the eleventh hour," Le found the resources to regain control of the property, thwarting the sale, McGill said.

Independent appraisals valued the properties at nearly $600,000, according to the mayor. The developer placed the funds in escrow, but the property owner hasn't withdrawn the money.

"The property owner has generally failed to be a positive member of Cinnaminson Township's thriving business community," McGill said. "The property owner has failed Cinnaminson Township."

View the appeals court's ruling below:

Mayor Ernest McGill's full statement: