Long-term issues with the 32-acre Route 18 property known as the Golden Triangle may soon be resolved now that the developer has proposed a settlement with East Brunswick.

East Brunswick officials received a letter from Toll Brothers on May 24 stipulating terms of a new deal that would potentially end a twoyear dispute. The offer, which originated from ongoing negotiations, was presented in executive session during a meeting of the Township Council later that day.

“We needed to determine the best course of action, and we had been talking about how to get this project moving forward. That was the key — moving forward with this was best for the residents of East Brunswick, and after long discussions and several ideas, we finally reached an agreement,” said Mayor David Stahl.

In 2005, Toll Brothers agreed to buy the property, which the township had owned and leased to Sam’s Club and other businesses, for $35 million. The builder later received approval to build 402 residential units and more than 180,000 square feet of retail space, thus replacing the existing uses on the site.

Toll Brothers was required to make structured mortgage payments for the parcel each year, and had made five annual payments of $4.5 million for a total of $22.5 million before the agreement stalled. However, the developer decided that the approved project was no longer viable due to economic and real estate market changes, and proposed major revisions to the site plan in November 2008. Among the adjustments were the elimination of the residential component and an expansion of the property’s commercial uses.

East Brunswick officials said at the time that they intended to negotiate with Toll Brothers, but as a precaution, the township adopted a $25 million bond ordinance that could be used to buy back the Golden Triangle if necessary. The negotiations did not come to fruition, and Toll Brothers and the township both filed breach-ofcontract lawsuits against each other.

Toll Brothers contended that the township’s unwillingness to comply with site plan adjustments was in violation of their 2005 agreement, and that it had the right to terminate the contract and require the township to repurchase the property with interest payment damages. The township claimed Toll Brothers had not met the conditions that would allow for termination and had therefore defaulted.

State Superior Court Judge Diane Pincus denied the township’s motion for a partial summary judgment on Jan. 22. If approved, the motion would have expedited the return of the property to the township, and separated the repurchase from perceived contractual issues between both parties. Township officials hoped to resolve such disputes in an independent trial so that it could entertain other offers to buy and redevelop the Golden Triangle.

However, Stahl said entertaining prospective buyers may no longer be necessary.

“My goal was twofold — to move forward with the project and to have the litigation dismissed,” Stahl said. “It doesn’t behoove the township to be involved in such litigation, and we needed to do what’s best for East Brunswick.”

In the agreement drawn up by Toll Brothers, the original purchase price would be reduced to $22.5 million as the final cost of the property, and the builder would not be required to make any further payments. The developer would construct between 200 and 400 residential units along with a large-scale retail store, and eliminate the office space portion and the strip mall portion of the site plan.

“The original idea was a modern-style strip mall, but strip malls are just not viable anymore. The economic conditions in 2010 are remotely different from the conditions five years ago,” Stahl said. “Especially since we’re still trying to climb out of a recession, we needed to get something in there that was a sure thing.”

Toll Brothers would make a payment in lieu of taxes (PILOT) annually, starting at $550,000 in 2011. East Brunswick would receive 95 percent of PILOT fees due to the way the long-term tax exemption law is written. Middlesex County would receive the other 5 percent.

Stahl said that the actual amount that the township would receive in the future would be dictated by the square footage of the commercial and residential development.

“More information will be provided as to what the PILOT program is going to look like in the future. The $550,000 fee is the minimal fee, and we will most likely receive more revenue from the project over the next few years,” he said.

As a result, Toll Brothers would agree to drop litigation against East Brunswick, should the Township Council amend its ordinances and allow the revised project to move forward. In addition to dropping the lawsuit, Toll Brothers would abandon property tax appeals filed over the past two years.

“From a business standpoint, this is a successful plan for everyone involved,” Stahl said. “It’s another building block in reaching financial stability.”

Stahl taped a nine-minute explanation about the recent deal, and that has been airing frequently on EBTV.

“I’m not looking to do anything in secret,” he said. “I want people to understand what this is all about, and I welcome a healthy debate as long as it’s respectful.”

The Township Council will vote on the proposed settlement at a June 14 meeting. If approved, officials will work with the developer to redraw the development plans.