N.J. Agrees to Cough Up $1.8M for Demolishing Condo
Here’s the scenario that culminated in a $1.8 million settlement in New Jersey this week: Family takes plot of land that had been vacant for 20 years; developer builds condos; city condemns property to build new school; new condos are torn down; city no longer has money for new school; land is vacant.
The five-year-old case involving the property was scheduled for a hearing this week, but settled instead, the Newark Star-Ledger reports.
The ordeal involved School Construction Corp.’s bid to build a new elementary school on the Union City Palisades. But by the time the state offered to buy the land, a developer, whose family owned the one-time parking lot, erected a three-story brick building. So when the state came knocking, the developer Daniel Lopez asked for $2.2 million. The state cried foul, arguing it should only pay $326,000, claiming Lopez only build the condos to jack up the property value.
The state, however, failed to prove their claims to the satisfaction of the judge overseeing the case, and she ordered them to reimburse the family.
Meanwhile the site remains a vacant lot after the state paid $48,000 to demolish the building.
