Redevelopment attorney sits on Hovnanian board
City: No conflict in Greenbaum being director, shareholder
BY CHRISTINE VARNO
Staff Writer

LONG BRANCH — The senior partner in a law firm hired by the city to handle eminent domain issues related to the redevelopment is also a director and shareholder in developer Hovnanian Enterprises.

Arthur M. Greenbaum, senior partner in Greenbaum, Rowe, Smith & Davis, Woodbridge, sits on the board of directors of Hovnanian Enterprises, Middletown, and is a shareholder in Hovnanian as well.

But Mayor Adam Schneider said this week, Greenbaum’s interest in the developer, one of two chosen for phase of II of the Beachfront North redevelopment zone, “will not be a conflict in interest.”

In April, Greenbaum, Rowe Smith & Davis was awarded a contract to handle constitutional issues that may arise between the city and the property owners of Beachfront North phase II who are resisting losing their homes to what they say is an abuse of eminent domain.

The designated co-developers for the three-street zone known as MTOTSA — Marine and Ocean Terraces and Seaview Avenue — are the Applied Cos., Hoboken and Matzel and Mumford Corp., a division of K. Hovnanian.

“If it was a conflict, then they could not do the job,” Schneider said in an interview this week.

“[Greenbaum, Rowe, Smith & Davis] will only represent the city if there is, in fact, a constitutional challenge to the redevelopment. K. Hovnanian has nothing to do with that.”

The city attorney agreed.

“The interest of the city and K. Hovnanian are the same,” James Aaron said.

“There is no conflict.”

A total of three law firms have been retained to represent Long Branch in condemnation proceedings for the Beachfront North phase II redevelopment zone.

At the May 10 municipal meeting, the City Council adopted a resolution to retain Paul V. Fernicola, of the law firm Bowe & Fernicola, Red Bank, for negotiations and evaluation hearings with the Beachfront North phase II properties, according to Schneider.

“[Fernicola] will be negotiating offers with the residents in [Beachfront North phase II for the purchase of their properties],” Mehlhorn said.

“If the offers are not resolved, then the other law firms will be used.”

The contract was awarded at $25,000, at the rate of $250 an hour.

A contract was awarded to Ansell, Zaro, Grimm and Aaron, Ocean Township, city attorney James Aaron’s firm, for $25,000.

Greenbaum, Rowe, Smith & Davis will be paid $75,000 for its services.

Chief Financial Officer Ronald Mehlhorn said Aaron’s firm will be used only if the city and the homeowners cannot reach an agreement and the city must use eminent domain proceedings as a last resort.

MTOTSA is comprised of 36 properties that are slated for eminent domain, to be replaced with luxury town homes and condominiums.

MTOTSA represents 26 of the 36 property owners who are not willing to sell their properties. The group has retained Peter H. Wegener, of Bathgate, Wegener and Wolf, of Lakewood, to represent them.