Controversial Housing Project In Millburn Will Be Relocated; Town OKs Settlement

MILLBURN, NJ — Millburn has reached a deal to move a major housing project from a contaminated municipal public works site to a new location downtown.

Millburn town officials recently announced that a settlement agreement has been reached with RPM Development Group (RPM) and the Fair Share Housing Center (FSHC) involving 9 Main Street.

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The property – which some residents refer to as the "town dump" – has been the subject of a long-running and thorny legal battle.

Here's how Millburn officials recapped the controversy:

"In July 2021, a previous township administration entered into a settlement agreement calling for a 75-unit, 100% affordable housing project on the municipally owned DPW property at 9 Main Street. That site houses critical municipal vehicles, along with refueling and repair facilities for those vehicles, and serves as the residents' recycling and refuse drop-off. The 2021 agreement was approved with no feasible plan in place to relocate the DPW facility, which also houses the township's salt dome and snow removal fleet which serves the entire community during winter emergencies. The 2021 agreement also moved forward despite grave concerns about the significant costs of remediating a contaminated site to residential standards. Residents further questioned the suitability of the proposed development at a location that sits within a flood zone, is surrounded by rail infrastructure and a utility substation, and has limited egress onto a busy street."

In 2024, the Millburn Township Committee voted unanimously to fight the 2021 agreement. A flurry of negotiations and litigation followed – and an agreement has finally been reached to move the project somewhere else.

WHAT'S THE NEW DEAL?

Under the terms of the agreement, Millburn Township will support the development of a mixed-income, mixed-use project on municipally owned property at the intersection of Essex Street, Spring Street and Millburn Avenue.

The new development allows for an extra 18 housing units at market-rate, raising the overall total to 93 residential units. That total will include 75 deed-restricted affordable rental units, with some reserved for military veterans and people with special needs.

The project includes commercial/retail space on the ground floor and on-site parking, with additional parking facilities located across Essex Street.

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As part of the deal, RPM and the FSHC have agreed to terminate all pending litigation with Millburn – potentially warding off millions of dollars in lawsuit costs, town officials said.

While the township's overall development cost under this settlement is expected to be comparable to the cost of the original 9 Main Street proposal – with both anticipated to be financed primarily through the Affordable Housing Trust Fund – this agreement eliminates a separate $11 million cost that would have been required to relocate the DPW facility, officials said.

The project also includes a financial agreement that will generate new payment in lieu of tax (PILOT) revenue from property that is currently tax-exempt.

Mayor Frank Saccomandi said the deal is a win for Millburn.

"This settlement achieves what a lot of people said couldn't be done," Saccomandi said. "It ends costly litigation. It protects taxpayers. It fulfills our affordable housing obligations. And it creates a mixed-income, mixed-use development that welcomes families into the heart of our downtown."

"Most importantly, it proves that Millburn can meet its constitutional obligations the right way: fiscally responsible, transparent, and fair to current residents and those still to come," Saccomandi added.

The settlement was presented to the full township committee for an official vote and final passage on July 29. Watch meeting footage here, or view it below (video is cued to the presentation about 9 Main Street):

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