See how this plot of land in Edgewater is tied to corruption trial of Menendez, Daibes

EDGEWATER — As the largest plot of undeveloped land along the Hudson River's Gold Coast, 615 River Road has sparked numerous lawsuits, a state investigation against local officials and was the catalyst that ended Sen. Bob Menendez's 20-year friendship with Philip Sellinger, the U.S. Attorney for New Jersey.

The 18.7-acre plot that was once filled with oil tanks and owned by Hess was indirectly mentioned during testimony last month in the Southern District of New York during the federal corruption trial against Menendez.

Menendez faces federal bribery and corruption charges and was indicted along with his wife and three businessmen — one of them developer Fred Daibes, who is responsible for most of the high-rise buildings in Edgewater and the development boom in the area.

It was Daibes' alleged influence over this plot of land that spawned the lawsuit that created a conflict of interest for Sellinger. Allegedly Menendez pressed Sellinger to intervene on behalf of Daibe's other federal banking indictment.

The tale of 615 River Road in Edgewater

Hess sold the site to The Maxal Group, a private equity and investment banking firm, and EnviroFinance Group, a land reuse and redevelopment company, in 2014 for $26 million. The two companies created a development entity called 615 River Road Partners LLC, and filed the first development application for the property in 2015.

In 2017, after years of stalled plans, 615 River Road Partners, LLC, filed a complaint in federal court against the borough, claiming officials had blocked it from building on its River Road site on because of the influence exerted by Daibes.

The firm representing 615 River Road Partners was Greenberg Traurig, LLP, where Sellinger was a managing shareholder for 19 years. Management at 615 River Road did not wish to comment on this story.

While testifying in the senator's corruption trial, Sellinger said that when Menendez was vetting him to be New Jersey's new U.S. attorney in 2020, he told him the prosecution of Daibes was unfair.

“Sen. Menendez hoped that if I became U.S. attorney, I would look at it carefully,” Sellinger told jurors on June 12.

A day after their initial conversation, Sellinger said he called Menendez to tell him that he discovered he was involved in a 2017 lawsuit against the borough of Edgewater involving Daibes. He testified that he told him that if he became U.S. attorney for the state, he would have to tell his bosses of the potential conflict of interest.

Sellinger testified that Menendez continued to press on and that he received several other calls from him as well as take part in meetings where Menendez and his associates brought up the Daibes case.

In 2018, Daibes was federally indicted in a 14-count bank fraud scheme and accused of circumventing loans through a bank he founded.

Sellinger testified that Menendez said he wouldn’t recommend President Joe Biden nominate him to be New Jersey’s next U.S. attorney and instead named Esther Suarez, now Hudson County’s prosecutor, as his choice.

When her appointment later fell through for the state position, Sellinger said he reached back out to Menendez to tell him he was still interested. On his first day as U.S. attorney, he reviewed the office’s major cases and flagged four cases of potential conflicts of interest including the Daibes case. Sellinger said he was removed from the case a week later.

Sellinger said he met Menendez about 20 years ago hosting fundraisers and was a guest as the senator's 2020 wedding.

Sellinger told jurors he called Menendez in March 2022 to see if he’d speak at the formal ceremony recognizing his appointment.

“He said, ‘I’m going to pass. The only thing worse than not having a relationship with the United States attorney is people thinking you have a relationship with the United States attorney, and you don’t'," Sellinger testified that Menendez said to him.

Sellinger told the court he interpreted that to mean they no longer had a relationship.

The tale of Edgewater officials, Daibes and an investigation

In 2023, the New Jersey State Commission of Investigation report outlined the number of Edgewater officials who had connections to Daibes,and that some of the ties included business contracts and, in one case, discounted rent for a luxury apartment, substantiating many of the claims made in that 2017 lawsuit.

“The commission’s investigation found borough officials repeatedly abdicated their sworn responsibilities to safeguard public tax monies and the interests of all residents, to protect their own personal and financial concerns and those of private developer Fred Daibes,” the report stated.

Edgewater officials denied any wrongdoing following the release of the report.

Court documents in the lawsuit showed Daibes' close involvement with the future of the property, which was once considered to be part of an eminent domain plan and home to a public works facility, rather than one benefiting from tax ratables from a development.

Court documents showed that in 2017, zoning board member Jeffrey Mathieu sent an email to Daibes asking for his opinion on the rival development, which was due before the board.

“I would like to know your take on the Hess application coming before us on September 12,” Mathieu wrote.

Daibes replied: “I’m not in favor of the project at all.”

The emails and rent totals for public officials in Daibes' buildings are among several documents included as evidence in a federal lawsuit accusing borough officials of conspiring with Daibes to drive out competitors.

Settlement reached for 615 River Road

The 615 River Road lawsuit between Edgewater eventually ended in 2019 in a settlement agreement that allowed the developer to build up to 1,200 apartments and a commuter ferry, settle the town's affordable housing lawsuits and donate land to Edgewater for a new school.

Last year, the deed for the 8 acres of donated land was officially transferred to the borough. It's earmarked for a new school and officials have plans to put a referendum to the public to fund it when the time comes.

After the property owners settled their lawsuit with the borough a handful of other lawsuits popped up preventing work from beginning.

Multiple lawsuits were filed claiming the borough was "strong-armed" into the settlement agreement to avoid revealing its conflicts of interest with Daibes.

One lawsuit by Windsor Cove Associates LLC also cites conflicts of interest, saying the mayor and council were "eager" to enter into the settlement agreement "so there would never be a trial at which evidence of such conflicts would ever see the light of day."

Windsor Cove Associates owns two parcels of land in Edgewater. According to tax records, the properties are also owned by J. Demetrakis. The postal address for Windsor Cove Associates is the same as that of attorney David Carmel, who filed the lawsuit in state Superior Court in Bergen County. The address for both is 1 Bridge Plaza, Suite 519, in Fort Lee.

James Demetrakis, the luxury high-rise developer who helped transform Bergen County's Hudson River Gold Coast, avoided prison in 2019 when a judge sentenced him to two years probation for a loan scheme that also entangled Daibes, his business partner.

Additional lawsuits were filed by SoJo Spa and Cliffside Park, which claimed the development would block their views. The borough attorney said that litigation was decided in favor of the developer and is currently in the appeals process with no current court date set.

A judge ruled against SoJo Spa and Cliffside Park, but they are currently appealing the decision.

The property sits undeveloped.

This article originally appeared on NorthJersey.com: Edgewater NJ land connected to corruption trial of Daibes, Menendez