Franklin Lakes Moves Forward on “Affordable Housing” and Rezoning Efforts

the staff of the Ridgewood blog

Franklin Lakes NJ, the borough of Franklin Lakes is making significant strides in its affordable housing plans, responding to the state’s fourth-round quotas while navigating legal challenges and rezoning efforts.

Affordable Housing Quota Challenge and Legal Actions

As of January 31, Franklin Lakes submitted its response to the New Jersey Department of Community Affairs (DCA) regarding the 497-unit affordable housing quota assigned to the borough in October 2023. Borough officials disputed the figure, arguing that 463 units would be a more accurate requirement.

Key Actions Taken by Franklin Lakes

1. Challenging the State’s Housing Quota
   • The borough disputed the 497-unit mandate, proposing a revised figure of 463 units based on local calculations.
2. Joining Legal Efforts to Delay Implementation
   • Franklin Lakes continues to collaborate with 26 municipalities as part of the Local Leaders for Responsible Planning (LLRP), a coalition seeking legal delays in enforcing the state’s housing quotas.
   • The group is appealing two court rulings to the New Jersey Supreme Court.
3. Exiting a Separate Legal Challenge
   • The borough ended its association with a 12-town legal challenge led by Madison, which sought to contest the constitutionality of New Jersey’s affordable housing laws.
4. Advancing Plans for a 65-Unit Affordable Housing Complex
   • Franklin Lakes has issued a request for proposals (RFP) for the design and construction of a 65-unit affordable housing complex.
   • Originally planned for McCoy Road, the development will now be built on 3.5 acres donated to the borough under a settlement agreement with S. Hekemian Group (SHG).
5. Awaiting Development Plans for the Cigna Property
   • The borough expects S. Hekemian Group (trading as SHG Franklin Lakes LLC) to submit a Planning Board application in the coming months for the remaining Cigna property.

The Evolution of the Cigna Property: A 30-Year Transformation

The Cigna site has undergone major ownership and use changes over the past three decades:

• 1971: Originally built by IBM as a corporate complex.
• 1993: IBM vacated the site.
• 1997: Purchased by Medco, later acquired by Express Scripts in 2012.
• 2015: Express Scripts donated 100 acres to Franklin Lakes, now known as Parsons Pond Park.
• 2018: Cigna acquired Express Scripts, and by 2021, it announced its relocation to Morris Plains, affecting 2,100 employees.

Proposed Developments and Zoning Agreement

S. Hekemian Group (SHG) initially proposed a high-density development with 2,500 housing units (28 per acre). However, after negotiations, the proposal was reduced to 650 units, then 305 units, and finally 495,000 square feet of warehouse space.

In November 2023, Franklin Lakes, SHG, and the Fair Share Housing Center agreed to rezone the site under two options:

1. Residential Use Option
   • 495 multifamily housing units (including 62 affordable units).
   • 70,000 square feet of retail/office space.
2. Federal Use Option
   • 250 multifamily units (including 62 affordable units).
   • 70,000 square feet of office/retail space.
   • 330,000 square feet designated for federal agencies.

Legal Challenges and Ordinance 1927

In October 2024, Franklin Lakes settled three lawsuits challenging the rezoning agreement by adopting Ordinance 1927, which:

• Eliminates federal use for the site.
• Prohibits high-traffic drive-thru businesses.
• Restricts commercial deliveries to 7 a.m.–10 p.m.
• Bans liquor stores, bars (except as an accessory use), cannabis shops, and smoke shops.
• Prohibits warehouse development.
• Requires a 100-foot setback for commercial tenant loading areas.

What’s Next for Franklin Lakes?

With its affordable housing quota challenge, legal appeals, and rezoning updates, Franklin Lakes is strategically shaping its future development while ensuring responsible growth.

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