NJ Town Fights to Keep Data Center Plans Alive in Landmark Housing Case
the staff of the Ridgewood blog
Montvale NJ, In a high-stakes standoff that could redefine suburban development, the Borough of Montvale is heading to court. At the heart of the battle? A 34-acre prime piece of real estate and a looming state deadline that has local officials and housing advocates at a breaking point.
As the March 15 affordable housing deadline fast approaches, Montvale is fighting to keep its “Data Center” option alive, while critics call it an “illegal end-run” around state law.
The Dispute: Silicon or Subdivisions?
The controversy centers on the former KPMG property at 3 and 51 Chestnut Ridge Road. The borough’s current plan gives the developer, S. Hekemian Group (SHG Montvale), a choice:
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A massive, high-tech data center.
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A housing development that includes designated affordable units.
While the borough views this flexibility as smart redevelopment, the Fair Share Housing Center—a powerful non-profit advocacy group—has filed a formal challenge. They argue that allowing a “no-housing” option on the town’s largest redevelopment site undermines New Jersey’s affordable housing mandates.
The Legal Maneuver: Seeking a “Stay”
On March 2, Montvale filed a request with Bergen County Superior Court Judge Lina Corriston. The borough is asking for a “stay” (a legal pause) to protect itself from “builder’s remedy” lawsuits—legal actions that allow developers to ignore local zoning if a town isn’t meeting its housing obligations.
This move follows a stinging recommendation by retired Judge Julio Mendez, who suggested the court strip the data center option from the borough’s plan entirely.
“Montvale is asking the court to bless an illegal end-run… allowing its largest redevelopment site to become a massive data center with no affordable housing at all.”
— Adam Gordon, Executive Director of Fair Share Housing Center.
Mayor Ghassali Strikes Back
Montvale Mayor Michael Ghassali isn’t backing down. In a statement released March 3, he clarified that the recent rulings against the data center are “recommendations, not final decisions.”
Ghassali maintains that Montvale’s “Round 4” housing plan is constitutionally sound, stating the borough has proposed surpluses that exceed their legal obligations. The borough argues the KPMG site is an active office campus, not “vacant land,” giving them more discretion over how it’s used.
Timeline of the Conflict
| Date | Event |
| Feb 10, 2025 | Judge Mendez recommends removing data center incentives from the plan. |
| Feb 24, 2025 | U.S. Supreme Court denies Montvale’s request to delay the March 15 deadline. |
| March 2, 2025 | Montvale files for a stay in Bergen County Superior Court. |
| March 15, 2025 | State Deadline for NJ municipalities to adopt new affordable housing ordinances. |
Why This Matters for New Jersey Homeowners
This case is a bellwether for the “Fourth Round” of affordable housing assignments in New Jersey. If Montvale wins, it could provide a roadmap for other towns looking to prioritize commercial tax-heavy projects (like data centers) over residential density. If they lose, it reinforces the strict “Realistic Development Potential” rules that housing advocates say are necessary to solve the state’s housing crisis.
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We could solve the affordable housing crisis very easily.
Remove all illegal aliens and free up tons of units.
It will also save on medical and education costs.
Would be nice to have a mayor with some stones that battles for his residents vs self interest.