Atty: City balks at taking home
L.B. officials say they're negotiating in good faith
BY CHRISTINE VARNO
Staff Writer

The porch of Fran DeLuca's home affords an ocean view.

Long Branch officials have reneged on a verbal offer to acquire a home in the oceanfront redevelopment zone, according to the attorney for the city homeowner.

William J. Ward, of Carlin & Ward, Florham Park, said Tuesday that city officials have failed to negotiate in good faith for the purchase of Frances DeLuca's Ocean Terrace home in the Beachfront North, Phase II redevelopment zone.

While the majority of residents in the redevelopment zone, known as MTOTSA (Marine Terrace and Ocean Terrace and Seaview Avenue), are fighting to save their homes from being condemned to clear the way for a redevelopment project, Ward said DeLuca is willing to sell her property, but the city is refusing to cooperate.

Ward said he received a letter dated Sept. 12, signed by City Attorney James Aaron, saying the city would not proceed with the acquisition of DeLuca's home at this time.

"It has been determined that the city will not move forward at the present time to file a declaration of taking ...," the letter states. "The city will, however, abide by all statutory requirements as to the filing of the declaration of taking, pursuant to statute."

"City officials are just not negotiating in good faith," said Ward, adding that the city backed off on an agreement to move on the acquisition of her property so that DeLuca could get on with her life.

But Aaron said Tuesday the city is willing to negotiate in good faith for DeLuca's property.

And City Business Administrator Howard H. Woolley added, "We are happy to sit down and talk about money [with DeLuca]. We are willing to work with anyone who wants to negotiate."

Ward said he will file a motion in state Superior Court this week, requesting that Judge Lawrence M. Lawson compel the city to follow through with filing a declaration of taking for DeLuca's oceanfront property.

When that step is taken, the amount the property is appraised at must be deposited in an escrow account with the court.

In addition, Ward will ask Lawson to appoint condemnation commissioners to fix the compensation the city will pay for DeLuca's home.

According to Ward, he and DeLuca sat at the table with Aaron on Aug. 28 to start negotiations for the purchase of his client's home in the MTOTSA neighborhood.

Aaron agreed to file a declaration of taking if they could not come to an agreement on the value of DeLuca's property, Ward said.

"They have refused to file the declaration of taking. Where does that leave us?" Ward said.

He said that in a letter dated Aug. 30, Aaron wrote that subject to the city's approval, "A declaration of taking would be filed quickly ... "

"This is evidence that they are not negotiating in good faith," Ward said.

But Aaron said that is not the case.

Ward and DeLuca, he said, asked the city "to do something ... beyond the city's responsibilities and abilities under [the state] eminent domain laws."

"The city considered it and rejected it. That is good faith negotiations. The city will comply with Mrs. DeLuca under eminent domain laws."

Currently, some 20 residents in the MTOTSA neighborhood are appealing a June 22 decision by Lawson to deny their motions to dismiss condemnation complaints served upon the property owners in the three-street neighborhood.

Attorney Peter H. Wegener, with the public-interest law firm Institute for Justice as co-counsel, is representing approximately 22 MTOTSA residents in the appeal.

Ward said he is also representing another client in the MTOTSA neighborhood who will be joining in the appeal.

Plans for MTOTSA call for designated developer MM Beachfront North II - consisting of K. Hovnanian and the Applied Cos. - to raze the neighborhood and construct luxury condominiums.

In an interview Tuesday, DeLuca, a retired educator, said she is constructing a new home outside of any redevelopment zones in Long Branch.

"I chose not to appeal the decision and was in negotiations with the city," DeLuca said. "I had to decide whether I would sell the home I am building or sell this home.

"So, [Ward] called the developers and said we are interested in negotiating, but we were not interested in accepting the appraisal they offered."

DeLuca's home was appraised by McGuire Associates Real Estate Appraisers and Consultants, Jersey City, last year at $552,000.

Ward and DeLuca hired a second appraisal firm that appraised the property at $1.3 million, according to Ward.

"That is a big difference in value," Ward explained. "We have two comparable sales on Ocean Avenue, a block from her house, that were both appraised over $1 million."

He added that the city's appraisal "doesn't make sense."

DeLuca said she is following the law and abiding by the rulings made in Lawson's opinion, but the city is holding her up.

"[The city] asked me for my house," she said. "They brought me to court. They won. So take my house.

"The mayor and company have no intention of fairness. But they don't want to negotiate. They want to dictate a price," she continued.

"The city is lying to the public and they are making a mockery out of the judicial system."

Ward said that when he met with Aaron, he also asked if the city could get a second appraisal firm to get a third value on DeLuca's home.

Then in the recent Sept. 12 letter, Aaron wrote, "Please be advised that the city will not further engage a second appraiser in this matter."

"We told them to just go ahead and file the declaration of taking then," Ward said.

"Then at least the $552,000 would be deposited in [escrow]. Now they are refusing to put up the money.

"They are leveraging [DeLuca] and making it extremely difficult for her to move on with her life," he said.

According to Ward, the city is procrastinating on moving forward on taking properties because the redevelopment project is collapsing.

"The residential market has changed," Ward said. "And with MTOTSA appealing, they do not want to put anything at risk."

Aaron said DeLuca requested money be deposited into escrow before the city is entitled to do so.

Aaron explained that a declaration of taking must be filed within six months of the commissioners setting compensation for the property.

"The commissioners are not even appointed," he said.

In addition, he added, DeLuca requested to remain in her home six to nine months after the declaration of taking, which Aaron said once a declaration of taking is filed the property immediately becomes the city's possession.

"[DeLuca] also wanted us to hire a second appraiser," Aaron said. "The city is not obligated to do that under the law. But we considered it and respectfully declined her offer."

Also in the Sept. 12 letter, Aaron wrote, "Please also note that a substitution of attorney is being filed and that Paul Fernicola, of the law firm of Bowe & Fernicola, will be substituted as counsel for the city of Long Branch in this matter."

In an interview, Aaron said in every case where valuation is an issue, Fernicola is the attorney representing the city.