Shops lost in Haddon Twp. deal on homes

A long-awaited effort to redevelop a former diaper laundry site may soon move ahead in Haddon Township's Westmont section — but not everyone is pleased at that prospect.

The township's planning board Monday night will consider a proposed settlement of a lawsuit over Towne Center at Haddon, a planned apartment complex off Haddon Avenue.

The legal challenge is the largest obstacle remaining for redevelopment of the former DyDee Service site, a project that has faced multiple hurdles since 2003.

"It's been a long haul, I'll tell you that," said Donald Cofsky, a Haddonfield lawyer who serves as the planning board's attorney. He noted a costly environmental cleanup and the weak economy also slowed progress at the site, where the former laundry was demolished in 2007.

Fair Share Housing Center of Cherry Hill sued to block the plan in 2011, challenging a lack of low-income units. The township is obligated to provide affordable housing as a result of state Supreme Court rulings, the nonprofit says.

Under the proposed settlement, the developer, Fieldstone Associates, would create space for low-income units by scrapping plans for retail and commercial tenants in ground-floor space.

Instead the complex would be entirely residential, with 227 apartments in seven buildings, some of them four stories high. Plans originally called for 201 homes and about 24,000 square feet of commercial space.

The proposed settlement calls for 35 units of affordable housing, although Fieldstone would build only 23. The balance would be produced within the next five years by the township or some third party.

Some residents are unhappy with the loss of retail space.

"First-floor residential in our downtown Haddon Township is all wrong," asserted Doug Kelly, a Haddon Avenue business owner and board member for the business improvement district.

"I support a transit village, which has been the plan all along — a pedestrian-friendly, urban downtown next to PATCO's light-rail service," said the longtime township resident.

Indeed, Fieldstone once touted the retail component as a key part of its plan.

"We will produce attractive buildings, sidewalks that can accommodate outdoor dining, sufficient parking and a visible sign that the township's downtown has been reborn," the firm said in a May 2006 report.

The initial plan also called for the complex to hold mostly condominiums, plus about 40 rental apartments and 26 townhouses.

"If we had been talking about building an apartment building and not mixed-use, I would not have supported the project," said Kelly.

Kevin Walsh, Fair Share's associate director, praised the proposed settlement.

"The redevelopment of the site is good for people who face New Jersey's expensive housing market and good for Haddon Township," he said in a statement.

Walsh predicted the settlement, if approved, "will lead to the development of homes for working families in a wonderful location."

Township Mayor Randy Teague said some discontent is inevitable.

"Basically, the settlement is a compromise," he observed. "It's probably not what every party to the litigation wants."

Teague said the township has spent close to $100,000 in professional fees for the affordable-housing fight and faces substantially higher costs if the lawsuit continues. The township previously has resolved legal challenges from property owners in the redevelopment area and from disgruntled developers seeking a role in the project.

"We want to stop the expenses, get construction under way and bring much-needed tax revenues to the township."

He added construction could begin by the fall if the settlement takes effect. Under the proposal, Fieldstone is to provide $2 million toward the site's $8 million purchase price. Haddon Township will issue $6 million in bonds.

The settlement also would need approvals from the mayor and board of commissioners and must be accepted by Superior Court Judge Robert Millenky in Camden, who is hearing the lawsuit. A hearing is set for May 19 in Camden.

A similar settlement last year ended Fair Share's challenge at another redevelopment site in the township's Westmont section. A decision to include eight affordable units cleared the way for ongoing construction of 82 apartments at a former cement factory on Albertson Avenue.

That project also was proposed in 2003.

Reach Jim Walsh at jwalsh@cpsj.com or (856) 486-2646.

If you go

Haddon Township's planning board will meet at 7:30 p.m. Monday at the municipal building, 135 Haddon Ave.