Battle Erupts Over Edison Village Redevelopment In West Orange

WEST ORANGE, NJ — It’s been in the works for nearly two decades. But a new twist to the saga of Edison Village has left some West Orange town officials shaking their heads in disappointment – and a development firm demanding legal recourse.

The West Orange Town Council first approved a redevelopment plan for the area in 2003, which encompasses 21 acres on Main Street. Prism Capital Partners eventually secured the role as developer in 2006, planning to revamp the historic Thomas Edison Battery Building and surrounding grounds with thousands of square feet of retail space and hundreds of units of housing.

At the time, both Prism and West Orange officials were optimistic about the future of Edison Village, with officials saying the project would “revive a now-vacant, contaminated site that is a burden to the township.”

Since then, Prism has completed some key work on what it calls “the largest non-waterfront adaptive-reuse project in New Jersey,” such as the completion of the award-winning Edison Lofts residential complex, which the township promoted in a 2018 Twitter post.

But after years of allegedly “stagnant” development, some officials are now seeking another company to complete what Prism began.

Declaring Prism to be “in default” of the redevelopment agreement, the township terminated the deal in June. Earlier this month, the town council introduced an ordinance that would create a new plan for the area. And if the council eventually gives it a green light, one of the largest redevelopment projects in West Orange could have a drastically different future.

• The ordinance can be seen here
• The current draft plan can be seen here
• The original plan and previous three amendments can be seen here

PRISM: ‘REPREHENSIBLE AND UNETHICAL’

Prism isn’t taking the town’s decision lying down, and has launched a lawsuit to stop the process.

In an Aug. 10 statement, principal partner Eugene Diaz blasted town officials, calling their actions “unconscionable and totally unorthodox.” He wrote:

“Residents of West Orange have a right to know the truth about what is happening with the Edison Village redevelopment area. At a recent town council meeting, the mayor and council members falsely framed their intent to purchase redevelopment property back from Prism Capital Partners by saying that Prism, as designated redeveloper, has not delivered on its promises to the township and is financially unable to move forward with Phase 2 of the project.

“Both claims are lies. And the motivation behind them is reprehensible and unethical.

“Council President [Cindy] Matute-Brown, Mayor [Robert] Parisi and Councilman Bill Rutherford are disingenuous in their characterization of their intent for the downtown property. In fact, a lawsuit was filed July 22 against West Orange officials, Whoopi Goldberg's company and other real estate developers, who have together conspired to breach our redevelopment agreement in an opportunistic and nefarious scheme to acquire the property for below market value so they can use the land for a sound studio.

“That is what the council has as their ‘vision’ for the downtown.

“Mayor Parisi said it himself, ‘This is probably the hottest real estate market in all of our lives.’ And for that, the township is attempting to deny Prism and its partners the opportunity to reap the benefits of the increased property values in the downtown area realized by the more than $120 million we invested to turn the Edison Battery and Invention Factory into one of the most successful and luxurious apartment buildings in the state.

“Prism has always been supportive of redevelopment of the downtown. Instead of working with us so that we may finish the good work we started, the township has abruptly, and with no consideration for our investment and commitment to the township, shifted its interest to a celebrity and an unproven redeveloper, neither of which have any experience or history in large scale developing in the township.

“For years, Prism and its partners stood by the township to bolster public support for the downtown redevelopment, and we spent millions fighting legal challenges brought against the township’s flawed approvals of the project. Despite more than six years in delays, Prism still delivered on its promise to complete a world class redevelopment of the formerly dilapidated building for which numerous awards have been given. Now the township is reneging on its promises.

“The township is threatening to take the remaining land for less money than we paid for the properties in 2007, despite agreeing that values have risen tremendously. Values in the area are so improved, Mayor Parisi bragged to us that a small building across the street from the project was sold for three-times its prior assessment. So now, instead of living with the agreed upon deal and giving Prism the promised opportunity to recoup its initial investment and create a vibrant 24/7 neighborhood, we are faced with having to fight a lawsuit over recovering our investment in our property in the downtown.

“The township’s actions are unconscionable and totally unorthodox. Municipalities are not supposed to compete with private developers, they are supposed to facilitate redevelopment, not buy and flip properties to politically favored residents.”

OFFICIALS: ‘OUR RESPONSIBILITY IS TO THE COMMUNITY’

Reached for comment about Prism’s statement, Matute-Brown, Parisi and Rutherford offered Patch a scathing rebuttal.

“West Orange categorically denies each and every allegation made by Prism in this lawsuit,” Parisi said, referring to a four-count complaint filed by Prism Green.

“While we do not intend to litigate in the press, the township stands firm in its position that Prism Green has defaulted, breached and ended its redevelopment relationship with West Orange,” Parisi continued. “They have had almost 15 years to complete Phase II of this project and despite approvals, have failed to live up to their commitments. For Prism Green to attack prominent members of the West Orange community and volunteers in our collective effort to improve the township is atrocious and unacceptable.”

“Our responsibility is to the community – not to Gene Diaz,” the mayor added.

Matute-Brown said the town’s only interest is working with “a group that can actually finish.”

“I was involved in the attempt at negotiations with Prism Green’s representatives, and I can easily report to the public that the township of West Orange and all of its representatives acted with the utmost good faith in an attempt to resolve the long-standing and numerous issues involving Prism Green,” Matute-Brown said.

Rutherford agreed.

“It is unfortunate that Prism Green has chosen to attack the township and its leaders for attempting to complete this redevelopment effort,” the councilman said, accusing Prism of “name calling and hyperbole.”

In a joint statement, the three officials said the township is “looking forward to expeditiously resolving these meritless claims and moving forward with completing a redevelopment of this neighborhood.”

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