the staff of the Ridgewood blog
PARK RIDGE, NJ — A major affordable housing development in Park Ridge has become the center of a high-stakes legal battle, with the developer accusing the borough and its Board of Public Works of deliberately delaying construction and causing millions in damages.
Landmark AR Park Ridge LLC, the real estate firm behind a planned 448-unit project at 1 Sony Drive — with 15% of units designated as affordable housing — filed a lawsuit alleging Park Ridge has engaged in a “scorched-earth effort” to block the project.
According to the lawsuit, the development would fulfill 49% of Park Ridge’s third-round affordable housing obligations, as required under the Mount Laurel Doctrine, which prohibits exclusionary zoning and mandates that municipalities allow for a fair share of affordable housing.
Court-Approved Settlement Ignored, Developer Claims
In January 2021, a court-approved settlement required Park Ridge to take “all steps necessary” to enable construction. Landmark now says the borough has done the opposite — most notably by failing to provide permanent electrical service to the property and even removing the existing Sony service line that could have powered the site.
The lawsuit claims the borough falsely insisted millions in offsite infrastructure upgrades were required — costs Landmark says should legally be covered by Park Ridge, not the developer. Landmark also alleges officials misrepresented timelines, delayed permits and approvals, and imposed excessive, illegal charges.
Damages Estimated at Over $30 Million
Landmark says these delays have led to skyrocketing costs for insurance, financing, materials, and labor, plus lost rental income and opportunity costs. The company estimates total damages exceed $30 million.
In addition, the suit accuses Park Ridge of failing to return $1.2 million after it overestimated electrical equipment costs by more than double.
History of Affordable Housing Disputes
The property has been at the center of multiple affordable housing battles, previously under Hornrock Properties. Landmark’s lawsuit also says Park Ridge is stalling development at the nearby “Bear’s Nest” site, which was supposed to provide 51 affordable units, and is treating the company differently from other developers such as The James, a smaller project.
Borough, Legal Responses
Holly Schepisi, attorney for the Park Ridge Board of Public Utilities and state senator for the 39th District, declined to comment on the current case, pointing to prior dismissals of similar claims. Landmark’s attorney, C. John DeSimone III, also declined to comment.
Park Ridge officials maintain they ordered all necessary electrical equipment nine months ago, confirmed in court filings.
The case could have significant implications for affordable housing development in Bergen County, especially as municipalities across New Jersey face mounting pressure to meet their state-mandated obligations.
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Builders should be required to live in the units they build for five years after they become available.
Park ridge has a municipal electric company. If they removed the electrical service, Landmark is going to bankrupt the town with this lawsuit.