Against residents' wishes, Franklin Lakes approves Cigna site development

Marsha A. Stoltz, NorthJersey.com
Updated ·3 min read
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FRANKLIN LAKES — The Borough Council approved two settlement agreements for the development of the 89-acre Cigna/IBM/Express Scripts property by a 4-2 vote at a special meeting Thursday.

Fourteen speakers from an audience of 150 spent two hours objecting to the agreement terms with developer S. Hekemian Group trading at SHG LLC, asking for a delay until more specifics are known and better terms negotiated.

However, Borough Attorney William Smith advised the agreement has been in discussions for two years, and that it was "the best deal possible."

The 89-acre Cigna property in Franklin Lakes includes a 16-acre forest conservation area (upper left) and is now vacant. Much of the property's office buildings and parking lots will be removed to make way for multiple housing.
The 89-acre Cigna property in Franklin Lakes includes a 16-acre forest conservation area (upper left) and is now vacant. Much of the property's office buildings and parking lots will be removed to make way for multiple housing.

"We have heard the concerns of the residents regarding this development, which none of us would support but for the Mount Laurel doctrine," Mayor Charles Kahwaty said. "But the courts have not been friends to New Jersey municipalities with regard to enforcement of Mount Laurel. By way of example, Wayne will be building nearly 3,000 new residential units of which 529 will be affordable for failing to meet their obligation for 20 years," Kahwaty said.

The agreement with the developer contains two options, and no conceptual plan.

The Cigna options

SHG Residential Option calls for:

  • 495 multi-family units, 62 affordable;

  • Donation of 3.5 acres to the borough for 65-unit affordable housing complex previously planned for McCoy Road with 71 credits including special-needs units;

  • 70,000 square feet of office/retail space.

SHG Federal Use Option calls for:

The Borough of Franklin Lakes and developer S. Hekemian Group propose to convert the former Express Scripts complex, a 89 acre office complex for multi-houisng and warehouses in Franklin Lakes, NJ
The Borough of Franklin Lakes and developer S. Hekemian Group propose to convert the former Express Scripts complex, a 89 acre office complex for multi-houisng and warehouses in Franklin Lakes, NJ

  • 250 multi-family units, 62 affordable;

  • Donation of 3.5 acres to the borough for 65-unit affordable housing complex previously planned for McCoy Road with 71 credits including special-needs units;

  • 70,000 square feet of office/retail space;

  • 330,000 square feet of "Federal use" space.

The "Federal use" option prohibits prisons, hazardous materials and warehouses except for storage of currency, monetary assets and "valuable metals." However, it does not specify a specific use, which residents questioned.

Audience members listen to testimony on Cigna development at Franklin Avenue Middle School in Franklin Lakes on Thursday.
Audience members listen to testimony on Cigna development at Franklin Avenue Middle School in Franklin Lakes on Thursday.

"If you can't tell us what's going there, don't do it," said Michael Guttoso of Birch Road.

The borough's affordable housing counsel Michael Edwards said the developer was in a nondisclosure agreement regarding the federal option, which could still be declined. However, Smith emphasized repeatedly that the federal option cut 245 multi-housing units from the plan and would be a "home run" if the developer could secure that agreement.

PLAN 2 Warehouses are now part of the Franklin Lakes affordable housing plan. Here's why

Affordable housing planner Beth McManus said the retail component was limited to "stores selling goods" and did not include gas stations.

The borough first proposed a conceptual plan for 585 multi-housing units plus the borough's 65-unit affordable housing project being moved from McCoy Road in January without taking a vote. In March, the borough approved a settlement agreement for 305 multi-housing units and two warehouses. However, the Fair Share Housing Council then engaged the borough and developer in three-way mediation for unspecified reasons, resulting in the third plan.

THIRD VERSION Plan for Franklin Lakes property continues to change with third version heading to hearing

Fair Share Housing Council agreed to amend the borough's 2018 affordable housing agreement with the newest proposal on condition that it be approved by the Superior Court in a fairness hearing now scheduled for Oct. 24, and that construction begin within two years.

Frankli Lakes Borough Council addresses audience at Franklin Avenue Middle School at Thursday's meeting on development of the Cigna property.
Frankli Lakes Borough Council addresses audience at Franklin Avenue Middle School at Thursday's meeting on development of the Cigna property.

Voting in favor of the settlement agreements were Council President Dennis Bonagura, and Council members Joel Ansh, Thomas Lambrix and Gary Sheppard. Saying "the cost of a lengthy legal battle is less than the cost of losing our freedom," Councilwoman Ardith Cardenas voted against the agreements with Councilwoman Gail Kelly, who voiced reservations about the lack of specifics. Kahwaty did not vote.

The next steps include the adoption of a revised housing element and Fair Share Plan, the adoption of a zoning ordinance for the site, and choosing a developer for the borough's affordable housing project.

This article originally appeared on NorthJersey.com: Franklin Lakes OK's Cigna site development against residents' wishes