Mahwah Decision To Condemn Hotel 'Arbitrary, Capricious,' Lawsuit Said

MAHWAH, NJ — Nearly two months after the Mahwah Township Council determined that the Sheraton Hotel off Route 17 North was a blighted site in need of redevelopment, the hotel owners are suing in state court, alleging that the township failed to establish substantial evidence to demonstrate that need.

As such, according to a complaint filed in Bergen County Superior Court earlier this month, the council's "unreasonable, arbitrary and capricious" decision would "irreparably harm" the hotel owners, in that it deprives them of property in violation of their rights.

Hotel owners detailed three counts, each one seeking to overturn a resolution adopted by the council in June that designated the property as a condemnation area in need of redevelopment. The resolution was based upon recommendations of the township planning board, which relied upon an engineering consultant's report of the mixed-use complex that includes the hotel — the Crossroads Corporate Center.

Nowhere in the report, however, the complaint said, does it cite illicit activity or major fire code violations, nor does it conclude that the property condition had deteriorated to a point that negatively affected the area or caused a decrease in surrounding property values. It also fails to find that the hotel is not conducive to wholesome living conditions, the complaint added.

The report, prepared by Colliers Engineering & Design, stated that the property met the criteria of a vacant or abandoned property, and obsolete layout and design.

Evidence cited for the former criterion are stained carpets, unchanged lightbulbs and water damage to ceiling tiles, and a vacancy rate that increased to 44 percent from 25 percent over three years, starting in 2019.

But in an attempt to discredit the "evidence," the complaint stated that the stained carpets and unchanged lightbulbs do not qualify as evidence of the property being "allowed to fall into so great a state of disrepair as to be untenantable," under state statute.

With respect to the water damage, the complaint said, the report failed to disclose that during the previous 24 hours of inspection on April 7, more than two inches of rain was reported to have fallen.

The complaint also noted that the report "failed to properly recognize the significant impacts" of the coronavirus pandemic on the property, and that despite the pandemic, the hotel maintained greater than 50 percent occupancy.

Evidence cited for the latter criterion — obsolete layout and design — are ongoing repairs to a parking garage, presence of litter in the parking structure, signs of vegetation growth and uneven surfaces evident through pools of rainwater on the tennis courts.

However, the complaint rebutted, the report "fails to include" that ongoing repairs and litter do not qualify as evidence that the property is "detrimental to the safety, health, morals or welfare of the community," under state statute. With respect to the pools of rainwater, the complaint again pointed to the two inches of rain that fell prior to inspection.

In short, the complaint said that the township failed to set forth a record that contains more than a "bland recitation" of statutory criteria and a declaration that those criteria are met.

Mayor James Wysocki, council President David May and Township Attorney Fred Semrau did not immediately respond to Patch's request for comment.