Borough Issues Stop-Work Order on Cigna Property, But Asbestos Cleanup Continues Under Agency Watch
the staff of the Ridgewood blog
The controversial demolition and redevelopment of the former Cigna corporate campus off Parsons Pond Road in Franklin Lakes has hit a major roadblock. The borough has issued a stop-work order to the developer, SHG LLC, alleging that the demolition work exceeded the scope of the permits granted.
This latest development adds a new layer of complexity to the future of the massive 89-acre site, which has been the subject of an intense debate over proposed affordable housing and high-density development in the quiet Bergen County community.
The Permit Problem: Why Was Demolition Stopped?
Borough Construction Official took action by issuing the stop-work order, asserting that the current demolition activities were moving beyond what was legally allowed by the existing permit.
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The Appeal: Developer SHG LLC (S. Hekemian Group) is reportedly appealing the order to the Bergen County Construction Board of Appeals, as confirmed by Mayor Charles Kahwaty in a recent email notice.
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Demolition vs. Remediation: Borough Administrator Greg Hart clarified that the stop-work order is only related to the structural demolition work and is not connected to the ongoing, highly scrutinized asbestos removal process.
Asbestos Safety: Under the Federal and State Microscope
The issue of asbestos removal has been a major concern for Franklin Lakes residents, particularly those near the Woodside Avenue School and local athletic fields. In response to community inquiries about safety, a critical information session was held on December 5th.
Attended by officials from the borough, the school district, and the offices of Congresswoman Nellie Pou, State Senator Kristin Corrado, and Assemblymen Christopher DePhillips and Al Barlas, the meeting brought together four key regulatory bodies:
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U.S. Environmental Protection Agency (EPA)
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NJ Department of Health Environmental & Occupational Health Assessment Program (NJDOH)
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NJ Department of Environmental Protection (NJDEP)
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NJ Department of Labor and Workforce Development (NJDOL)
Key Findings on Asbestos Remediation:
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Compliance: All agencies reported that the asbestos removal work by Sky Contracting has been inspected—mostly through unannounced visits—and is currently in full compliance with federal and state regulations. No violations have been cited.
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Documentation Concerns: Despite the favorable compliance reports, the Borough is still pursuing missing documents and addressing apparent discrepancies in records related to the asbestos removal from the EPA and NJDOH.
The Future of the Site: Housing, Zoning, and Legal Battles
The stop-work order is the latest twist in the ongoing saga over the property’s future use. The 89-acre site was initially approved in August 2023 for affordable housing with two options:
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Residential Option: 495 multifamily units (62 affordable).
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Federal Option: 250 multifamily units (62 affordable) plus 330,000 square feet of office/warehouse space.
The developer has yet to submit a formal construction application and may be awaiting a ruling from the state’s Affordable Housing Dispute Resolution Program. Franklin Lakes is one of 16 municipalities recently called out for being behind in meeting its state-mandated affordable housing obligations.
Separately, a developer, Trelia Franklin Lakes LLC, has objected to the borough’s affordable housing plan, proposing a nearby 46-unit development on Pulis Avenue. The Borough Council recently authorized negotiations with Trelia to potentially settle this objection.
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