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TOWNSHIP OFHARDYSTON*

HARDYSTON, NEW JERSEY 07419

February 16,2007

Offlcc of TownshIp ManaeerM.rlanne Smith

149 Wheat81110rth Road, Suite A~.rdy.lon, NJ (17419

(973) 823-7020 or (973) 6~-4895Extenllon: 9410

Pax: (973) 823-7021E.-mall: IrIImilh~hardy.ton,com

New Jersey Highlands Council100 North Road

Chester, New Jersey 07930

I

~~M: ~ ~~~u~~; InO~ 1

BY~VIA FAX: 908-879~4205

Ladies and Gentlemen:

Enclosed ple8.gefind various documentationsupportingour position that specificproperties within the planning area of HardystonTownshiphave been inappropriatelydesignated in the proposed Highlands Draft M8.9terPlan.

As per various conversationswith Highlandsstaff, we are presenting this materialto you on this date for review and consideration.

While we are hopeful that we Carthave fruitful discussions that result in resolutionof our concerns, we retain our right to provide official additionalcommenton theHighlands Draft Master Plan prior to the close of the commentperiod.

Thank you for your considerationand your staff time in further discussion of theseIssues.

Very truly yours,

, ./(___~dMarianne SmithTownship Martager

MS/ahf

- 01/22/2007 14:22 FAX 973 383 4922 HHH&P 141002

tit Hollander, StreJzik, Pasculli,Hinkes, Vandenberg & Hontz, L.l,.C.

Anor71l!JJ"at UW

S,\nfQt'd L. Holland.:rAI..!)Streh:ik

}af.liceD. PasculliWilliam E. HUlkcs

Joho C. VandCtlbcrg, IIIMarkJ. Hont~

. 40 Park PlacE:

P.O. Box 99

N~wron, New Jersey 07860Phon.:; 973-383-3233Fax: 973-383-4922

omc~ of Mark /. Hontzmark.honrzllV.earthlink.ner

] anuary 22, 2007viafat'J'imile and regular mail

Hardyston Township Comro.itteeMunicipal Building149 Wheatsworth Road

Hardyston, New Jersey 07419

Re: Hardyscon Township Municipal Utilities Author.ityHistory of Sewer Obligations and Allocations

Dear Member of the Hardyston Township Committee;

Please allow this letter co respond to the inquiry of Township Manag~r, Ms.Smith, regarding thehistoric agreements and obligations of the Hardyston Township Mudcipal Utilities Autho.rity('lHTMUA") relared co development and sewer allocanon- The attached narrative br.ieflyexplainsthe existing dunes and rights of the HTMUA, as set forrh in the active and enforceable agreementsto which the HTMUA is a party.

If I can provide any further assistance or explanation of the HTMU}.'s activities and obligations,please do not hesitate to contact me.

Very truly yours,

HOLLANDER, STRELZIK, PASCULLI,HINKES, VANDENBERG & HONTZ, LLC

AttoT7J91.f for the Hardyf)otJ Town.fhip Municipal U tilitles AuthoritY

.~MarkJ. HOl1tzFor the Finn

MJH:mjhEnclosurecc: HTMUA

01/22/2007 14:22 FAX 973 383 4922 IllIH&P [4J 003

Page1

Obligations and Rightsof the

Hardyston Township Municipal Utilities Authority-A Bn'ef History-

Creation of the HTMUA

The Hardyston Township Committee cr.eated the Hatdyston Township Municipal Utilities

Authority ("HTMUA") as a "public body cOIporate and politic as an agency and

instrumemality of the Township of Hardyston" in or about 1985) by ordinance, pursuant to

New Jersey's Municipal Utilities Authority Law) N.T.S.A.40:14B-1 ~<;eq. One of the

founding ptttposes of the HTI\1UA was to secure sewer allocation from the Sussex County

Municipal Utilities Authority ("SCMUA") for development projects located within

Hardyston Township. SCMUA would not negotiate directly with developers for such

allocarion, but only through a municipality or.proper utilities authority.

SCMUA Service Contracts

In 1987) the H1MUA entered into a Service Contract with thl~SCMUA, the operator of an

interceptor sewer system and sewage disposal plant ser.vingth.~Upper Wallkill Basin. Under

the tenns of this 1987 Service Cont.ract) the SCMUA agreed to accept and treat domestic,

commercial, institutional and/ or indusrrial sewage originating from the H1MUA's te.tdcorial

area in a volume not exceeding and annual aVe1:ageof 365,000 gallons per day.

As payment for this allocation of sewage flow) the HTMUA p ""ysto the SCMUA an annual

charge consisting of: (a) an "Operating Charge)) for HTMUA'~: proportional share of the

SCMUA)s ope.tating, repair and maintenance expenses; and (b>a "General Charge)' for

HTMUA's proportional share of the SCMUA's related indebtf:dness and financial

obligations.

The 1987 Service Contract has been amended several times to keep pace with the expansion

of the H1J\1UA's sewer allocadon. The 1987 Service Contr.act continucs to gOVCJ;Qthe tight~

nn -- n- - - - -- -

01/22/2007 14:23 FAX 973 383 4922 lffiH&P 141004

Page 2

and responsibilities of the parties and is a necessary component of the SCMUA's annual

budget.

Developer Agreements

Unlike other municipal utilities au~orities in the State of New Jersey, the HTMUA has a

limited number of actual end-using customers. Until such tin:e as the approved and/or

projected residential and commercial developments in Hardy:;ton Township a.r.ecompleted

and all of their O\VI1etsand occupants are actual water and sewer users, the financial

obligations of the HTMuA will demand far more income than can be provided by any

reasonable water and sewer rates from so few users. Accordhgly, the HTMUA has been

careful to secure payment £tom developers to satisfy allocarioD.obligations to the SCMUA

through a series of pa1:allelagreements. The HTMUA only takes on those obligations that it

can finance through income from developers until such time :tSthe actual water and sewer

customers are using and paying for their water and sewer system use. ~-he financial bahuIce

of the HTMUA, and, accordingly, payments to the SCMUA, are premised upon the ability of

the developers to pursue their pr.ojects according to existing a~provals.

Sewer Allocation.

Since 1987, the HTMUA has acquired additional sewer allocadon from different sources, as

follows:

.1999: 125,000 g.p.d. acquired from Franklin Borough for Sussex National

Development, Inc.;.2002: 25,000 g.p.d. of CtexcessHsewer capacity from Sussex Botough on behalf of

High Ridge Properties, LLC;

2003: 25,000 g.p.d. from Franklin Borough, previously reserved for WaUkillValley

Regional High School, for the benefit of said school and for Hardyston YMCA.

.

HTMUA's total sewe,t allocation at the SCMUA treatment plant is cunently 540,000 g.p.d.

and is presently reserved for developers and developments, pursuant to written agreements,

as foJlows;

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01/22/2007 14:23 FAX 973 383 4922 IlliH&P I4J005

Page 3

. Crystal Springs Builders, LLC ("Crystal Springs"): 327,500 g.p.d.;

HFI-I Development Corporation ("Indian Field"): 152,500 g.p.d.;

High Ridge Properties) LLC: 25,000 g.p.d.;

Wallkill Valley Regional High School: 17,000 g.p.d.;

Anton Pilz: 9,650 g.p.d.;

Hardyswn YMCA: 8,000 g.p.d.;

Storage Solutions, Inc.: 350 g.p.d.

.

.

.

.

.

.

VOGEL, CHAIT, COLLINS AND SCHNEIDERA PROFESSIONAL CORPORATION

<-~"'!Ie'''''''~ARNOLD H. CHAIT

THOMAS F. COLLINS, JR.RICHARD L. SCHNEIDER .:l

DAVID H. SOLOWAY

THOMAS J. MOLICA, JR.

25 LINDSLEY DRIVE, SUITE 200

MORRISTOWN, NEW JERSEY 07960-4454

(973) 538-3800

TELECOPIERS

(973) 538-3002

(973) 538-8225HERBERT A. VOGEL

OF COUNSEL

d MEMBER N. 1., N.Y. & GA. BARSE-MAIL: [email protected]

VISIT THE FIRM's WEBSITEAT VCCSLAW.COM

January 30,2007

New Jersey HigWands Council100 North Road

Chester, NJ 07930

Re: Hardyston Township's Concerns Regarding Mapping of the DraftHighlands Council Master Plan

Dear Mr. Chairman and Council Members:

I represent Hardyston Township as their Special Mt. Laurel Counsel for SubstantiveCertification pending before the Council on Affordable Housing (COAH) and the HardystonPlanning Board. I am an Attorney and Professional Planner with a Masters in City andRegional Planning. I am writing to request that the Council and its staff revise the draftMaster Plan Mapping as to Hardyston Township's Planning Area to reflect informationwhich we have provided to your staff and is attached hereto. On behalf of the Township, thePlanning Board and Township staff we thank the Council and its staff for working with theTownship on these requests and thank Senator Littel's office and the Council for scheduling astaff meeting with your staff. The information provided with this letter has been compiledby the Township through its Professional Planners, Heyer and Gruel, its ProfessionalEngineers, Guerin and Vreeland, and its Township Manager and Departments.

V aGEL, CHAIT, COLLINSAND SCHNEIDERA PROFESSIONAL CORPORATION

2/16/2007Page 2

At the outset, it should be noted that Township of Hardyston has utilized SmartGrowth Principles in developing its current Land Use Ordinances and 2003 Master Plan and2005 Housing Element. In 2003, the Township retained Heyer and Gruel to prepare acomprehensive Master Plan including a full review of the entire Land Use Plan and the

Master Plan of the Township. The 2003 Master Plan and 2005 Housing Element has beenprovided to your staff. The Township has followed smart growth and "smart planning"principles in its Master Plan, Housing Element and Land Use Ordinances. These "smart

growth" tools should be utilized by the Highlands Council and staff in formulating theHighlands Plan as required in Sections 10c(9) and (10) and llb(6).

The Township has the following primary concerns regarding the draft plan:

1. Within the Township's Master Plan and the Wastewater Management Plan, theTownship has identified the NJDEP approved Sewer Service Area. This areashould be incorporated into a Community Development Zone in theHighlands Draft Master Plan. The attached map prepared by the TownshipEngineer, Robert Guerin, P.E., sets forth the requested area for inclusion in aCommunity Development Zone as opposed to the Protection Zone and/orConservation Zone of the Planning Area Draft Master Plan Map.

2. The Township's proposed Village Center in the Crystal Springs Area alongRoute 94 is essential for the Township to comply with the Council onAffordable Housing (COAH) petition for Substantive Certification submittedto COAH in December 2005 and currently pending before COAH. TheTownship's Petition for Substantive Certification is pending before COAHwithout any objections and without any demands for mediation. We

respectfully point out to the Council that it is essential to the Township'scompliance with the COAH Regulations that the Township be able toundertake the Housing Element proposals including a provisions of its

affordable housing needs in the Village Center and the NJDEP approved sewerservice.


2/16/2007Page 3

3.

4.

5.

6.

Failure to obtain COAH's Substantive Certification would subject Hardyston

Township to potential builder's remedies at sites elsewhere in the PlanningArea portion of the Township, which would not be intended or preferred bythe Township.

The Township has provided, through its Master Plan and Land Use

Ordinances, for appropriate growth and appropriate locations in a manner

directly consistent with the Municipal Land Use Law (MLUL), the HighlandsAct and the State Development and Redevelopment Plan. It should be noted

that as a result of COAH regulations, Hardyston Township experienced a verysignificant retroactive growth share obligation which could not be imposedupon existing approved developments. Three of the existing developmentshave agreed to cooperate with the Township by providing some affordableunits in their developments. In addition, with much cooperation between the

Township and the developer in the Village Center, the Village Center zoningwill provide sufficient opportunity for fulfillment of the remaining housingobligations. However, the Planning Area mapping needs to be changed toshow on the proposed revised Highlands Master Plan Map. This area alsoincludes the areas of the YMCA and nearby site that may be used for amunicipal affordable site.

The Township has vested in significant economic resources in reservingallocation of sewage treatment capacity gallonage for developments andexisting projects. The attached letter and report from the Hardyston TownshipMunicipal Utilities Authority (HTMUA) explains and summarizes these

important investments and commitments. In addition, the Upper Wallkill

Wastewater Treatment Plant should be included in the CommunityDevelopment Zone.

The Township has also expended substantial resources over 20 years ofdevelopment in terms of water and sewer resources in its existing water supplysystem which is located within the Town Center.

Failure of the Township to obtain Plan Endorsement of its Master Plan from

the State Planning Commission could jeopardize the Township's Housing


2/16/2007Page 4

TFC:db

Element which is pending at COAH. COAH's rules explicitly requireTownships, like Hardyston, which have petitioned for Round 3 SubstantiveCertification, to obtain State Planning Commission Endorsement. No COAH

rules have been changed to allow any other alternative. We, therefore,respectfully request the Highlands Council to ensure that your Master Plan isconsistent with the Township's Master Plan and Housing Element so that wecan achieve this requirement of COAH.

7. The attached documents, maps and CD provide the additional data supportingthe prior approvals and the prior economic investments and commitments bythe Township in both sewer and water and other planning efforts as well.

8. The Township concurs with the Highlands staff recommendation of the

creation of a lake community zone for existing developed lake communities.We would request that the existing lake communities be included in lakecommunity zones rather than community development zones..

9. We urge you and your staff to take more time to work with HardystonTownship to coordinate our plans and address these and other issues.

Very truly yours,

VOGEL, CHAIT, COLLINS,ANDSCHNEIDER

z;a~maMAS F. COLLINS,JR.~Special Counsel to the Township ofHardyston and Hardyston Planning

Board Attorney

NORTH CHURCH TECHNICAL CENTER

(20 LOT INDUSTRIAL SUBDIVISION WITHIN SEWER SERVICE AREA)

BLOCK LOT PROJECT NAMESTATUS OF MUNICIPAL STATUS OF OTHER

STATUS OF CONSTRUCTIONAPPROVALS AGENCY APPROVALS

62 18.01 Four Winds Plaza I Preliminary & Final Approval All Approvals Received Construction 90% Completed62 18.02 J & L Enterprises Preliminary & Final Approval All Approvals Received Construction Completed62 18.03 Ferraro Holding Company Preliminary & Final Approval All Approvals Received Construction Completed62 18.04 Brittashan Holding Company Preliminary & Final Approval All Approvals Received Construction Completed62 18.05 Four Winds Plaza Company No Approvals Received No Approvals Received No Construction Started62 18.06 Genuine Parts Company No Approvals Received No Approvals Received No Construction Started62 18.07 Genuine Parts Company No Approvals Received No Approvals Received No Construction Started62 18.08 Edward Boscia Preliminary & Final Approval All Approvals Received Construction Completed62 18.09 All County Fuel Oil Preliminary & Final Approval All Approvals Received Construction Completed62 18.1 KAW Corp. Preliminary & Final Approval All Approvals Received Construction Completed62 18.11 Oehrlich, Danielle & Benbenek Preliminary & Final Approval All Approvals Received Construction Completed62 18.12 Allnfurna Preliminary & Final Approval All Approvals Received No Construction Started62 18.13 Greco Landscaping Preliminary & Final Approval All Approvals Received Construction Completed62 18.15 S&R Enterprises Preliminary & Final Approval All Approvals Received Construction Completed

Approvals Pending from

62 18.16 Four Winds Plaza II Preliminary & Final ApprovalSussex Co. Planning Detention Basin Completed. NoBoard & Sussex County other work started.SCS

62 18.17 Jonathan Brett Preliminary & Final Approval All Approvals Received Construction Underway

62 22.01 PODS Preliminary & Final ApprovalSussex County Planning No Construction StartedBoard PendinQApprovals Pending from

62 22.02 Metra Industries Preliminary & Final ApprovalSussex Co. Planning No Construction StartedBoard & Sussex CountySCS

Approvals Pending from

62 22.03 Crex-Castello LLC Preliminary & Final ApprovalSussex Co. Planning No Construction StartedBoard & Sussex CountySCS

WALDEN VILLAGE/CARLTON VILLAGE/RIDGEFIELD COMMONS

(MIXED USE DEVELOPMENT IN SEWER SERVICE AREA WITH COMMUNITY WATER SYSTEM)



67.01 167.02 1 Carlton Village Apartments Preliminary & Final Approval All Approvals Received Construction Completed

67 4867.01 1.01 THRU 1.2567.11 2567.12 1

Walden Village - Lower Section67.13 5 Preliminary & Final Approval All Approvals Received Construction Completed67.14 14 Residential Development

67.15 467.16 36

67.17 1 Walden Village Commercial Preliminary & Final Approval All Approvals ReceivedTwo buildings Completed, Two

Buildings not started67.17 2 Carlton Village Offices Preliminary & Final Approval All Approvals Received Construction Completed

67 42.02 THRU 42.0967 43,43.01 THRU 43.1767 44, 44.01 THRU 44.0867 4567 47,47.01 THRU 47.11 Walden Village (Middle Section) i Preliminary & Final Approval All Approvals Received Construction Completed67 49,49.01 THRU49.04 Residential Development67 52, 52.01 THRU 52.3467 53, 53.09 THRU 53.2967 54, 54.01 THRU 54.0667 55,55.01 THRU 55.10

67.18 1 THRU 11 Ridgefield Commons -Section 1 Preliminary & Final Approval All Approvals Received Construction Completed67.18 12 THRU 38 Ridgefield Commons -Section 2 Preliminary & Final Approval All Approvals Received Construction Completed

RIDGEFIELD COMMONS (FORMERLY WALDEN VILLAGE - UPPER SECTION) - HARDYSTON TOWNSHIP(RESIDENTIAL DEVELOPMENT IN SEWER SERVICE AREA WITH COMMUNITY WATER SYSTEM)

67.19 19 THRU 24Ridgefield Commons -Section 5 Preliminary & Final Approval All Approvals Received

Roads and utilities completed67.24 10 THRU 18 Units under construction

67.19 25 THRU 38Ridgefield Commons -Section 6 Preliminary & Final Approval All Approvals Received

Roads and utilities completed67.25 1 THRU 6 Units under construction

67 2.01 Ridgefield Commons - SectionsPreliminary Approval All Approvals Received

Roads and utilities under7 - 13 construction

INDIAN FIELD (FORMERLY FOREST HILL VILLAGE) - HARDYSTON TOWNSHIP(MIXED USE DEVELOPMENT IN SEWER SERVICE AREA WITH COMMUNITY WATER SYSTEM)



67.04 1.01 THRU 1.65 Section 1A Preliminary and Final All Approvals Received Construction Complete67.03 1.01 THRU 1.41 Section 1B Preliminary and Final All Approvals Received Construction Complete67.06 1.01 THRU 1.40 Section 2A Preliminary and Final All Approvals Received Construction Complete67.07 1.01 THRU 1.88

Section 2B Preliminary and Final All Approvals Received Construction Complete67.08 1.01 THRU 1.1267.09 1,1.01 THRU 1.62

Roads and utilities Complete.67.10 1,1.01 THRU 1.09 ISection 3 I

Preliminary and Final All Approvals Received Units approximately 90%'-----G7.27 1,1.01 THRU 1.21I

67.28 1,1.01 THRU 1.20Complete

Water Main ExtensionPermit Received. Sussex

County Planning BoardSite disturbed through use as67.30 1 Section 4 Preliminary and Final and Sussex County SCS

are pending. Sewerstaging area for Phase 3

Extension Permit not yetsubmitted

67.29 1 Section 5 Preliminary and Final No Approvals Received No construction started67 18.01

Section 6 No Approvals Received No Approvals Received No construction started67 19

67.04 16.03Commercial Section No Approvals Received No Approvals Received No construction started

67.05 1

CRYSTAL SPRINGS - HARDYSTON TOWNSHIP

(MIXED USE DEVELOPMENT IN SEWER SERVICE AREA WITH COMMUNITY WATER SYSTEM)

BLOCK LOT PROJECT NAME STATUS OF MUNICIPAL STATUS OF OTHERSTATUS OF CONSTRUCTIONAPPROVALS AGENCY APPROVALS

16.09 1 Thru 1416.10 1 Thru 6

Angel Fire All Approvals Received All Approvals Received Construction Complete16.11 1 Thru 1216.12 1 Thru 917.02 1 Thru 67 The Bluff All Approvals Received All Approvals Received Construction Complete16.06 1, 1.0116.07 1 The Bourne All Approvals Received All Approvals Received Construction Complete16.08 116.17 1 Thru 3916.18 1 Thru 10 The Bracken All Approvals Received All Approvals Received Construction Complete16.19 1 Thru 30

16 1.041 Thru 1.043 The Bramble All Approvals Received All Approvals Received Construction Complete17.04 1 Thru 54, 57 Briars Crest All Approvals Received All Approvals Received Construction 90% Complete17.05 1 Thru 3216.01 1.01 Thru 1.02

The Cedars All Approvals Received All Approvals Received Construction Complete17.03 1.01 Thru 1.02

17.06 1 Thru 5 The Cornwall All Approvals Received All Approvals ReceivedRoads and UtilitiesComplete.Unit Construction underway

16.15 1The Craige All Approvals Received All Approvals Received Construction Complete16.2 1 Thru 2

16.04 1 Thru 26 The Greens @ St. Andrews All Approvals Received All Approvals Received Construction Complete16.05 1 Thru 25 Heavenly Glen All Approvals Received All Approvals Received Construction Complete16.24 1 Thru 78 The Inverness All Approvals Received All Approvals Received Construction 90% Complete16.03 1 Thru 27 The Oaks North AllApprovals Received All Approvals Received Construction Complete16.02 6 thru 32 The Oaks South All Approvals Received All Approvals Received Construction Complete17.02 1 Thru 64 Tannery Hill All Approvals Received All Approvals Received Construction Complete16.16 1 Thru 11 The Tarn All Approvals Received All Approvals Received Construction Complete16.13 1 Thru 12

The Tarryall All Approvals Received All Approvals Received Construction Complete16.14 1 Thru 1516.22 1 Thru 30 The Wentworth/Oaks East All Approvals Received All Approvals Received Construction 90% Complete

16 1 Golf Course Clubhouse All Approvals Received All Approvals Received Construction Complete16 1.09 Grand Cascades Hotel All Approvals Received All Approvals Received Construction Underway

. Water Allocation permit16 The Ardleigh All Approvals Received I received. No other No Construction Started

6.01 Approvals ReceivedWater Allocation permit

16 1.02 The Shotmeyer All Approvals Received received. No other No Construction StartedApprovals Received

CRYSTAL SPRINGS (Continued)(MIXED USE DEVELOPMENT IN SEWER SERVICE AREA WITH COMMUNITY WATER SYSTEM)

Wetland Delineation

Approved and BuffersEstablished. Stream

14 22.01 Crystal Springs North All Phase 1 Approvals ReceivedEncroachment Permit

No Construction StartedPending. Water

allocation permit receive.No Other Approvals

Received

General Development PlanWater Allocation Permit

14 24.01 Thru 24.02 Crystal Springs Commercial Received. No other No Construction StartedApproved

Approvals Received

MISCELLANEOUS PROPERTIES - HARDYSTON TOWNSHIP

(Properties Located within Sewer Service Area)

BLOCK LOT PROJECT NAME STATUS OF MUNICIPAL STATUS OF OTHERSTATUS OF CONSTRUCTIONAPPROVALS AGENCY APPROVALS

Being considered for purchase

67 2.08 Saint Clares Propertyby the Municipality for

No Approvals Received No Construction Startedconstruction of affordable

housing

Preliminary Approval grantedConstruction complete on one

All approvals received for lot (See Below). Balance of63 1.01 & 1.02 Pilz Industrial Subdivision {AKA for Minor Subdivision. Major

one lot (see below). No Project not started. SiteHighridge Properties) Subdivision Approval Expired.other approvals received disturbed based on Soil

No Site Plan Approval received.Removal operation

63 1.01 Storage Solutions (Part of PilzAll Approvals Recieved All Approvals Received Construction CompleteIndustrial Subdivision)

16 3.04 Advanced Self Storage All Approvals Recieved All Approvals Received Construction Complete16 3.01 & 3.02 Barrett Site Plan All Approvals Recieved All Approvals Received Construction Complete

16 2.01 Shotmeyer Site PlanPlanning Board Approvals

No Approvals Received Construction not StartedReceived

63 1.05 SCMUA Upper Wallkill ValleyNo Approvals Required All Approval Received Plant in operationWastewater Treatment Plan

CorrespondingDocuments inAdmin. Area