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Solicitor outlines options and liabilities for acquiring stormwater pond property tied to $1.13 million of judgments
Summary
The borough solicitor told council the stormwater detention basin and adjacent streambank owned by Altieri Enterprises carries mortgage and judgment liens totaling roughly $1,128,407.55; councilors discussed options to acquire the parcel to advance MS4 stormwater improvements and asked staff for direction and follow-up documentation.
The borough solicitor reported that a stormwater detention basin and adjacent streambank—proposed for municipal acquisition to support upcoming MS4 stormwater work—is owned by Altieri Enterprises and subject to an unresolved mortgage and a set of judgments dating to around 2008–2010 that together total approximately $1,128,407.55.
The solicitor explained the legal consequences of buying the parcel while judgments remain active: “If you buy the property after 5 years and the judgment creditor has not revived the judgment, then that judgment doesn't flow through and the new buyer of the property will take that property free of the judgment.” He added the borough would not take the property free of a mortgage unless the borough pursued a more complex process (for example through bankruptcy or an eminent-domain-like process) and that taking the parcel “subject to the mortgage” could leave the borough vulnerable if the mortgagee sought foreclosure.
Why it matters: Borough staff and council members said acquiring the property would allow an extension of a stream-restoration and detention-basin project that the borough hopes will satisfy forthcoming MS4 (municipal separate storm sewer) requirements and increase eligible credits for stormwater-volume reduction. The acquisition could add roughly 2,000 linear feet of streambank restoration and nearly an acre of project area, the solicitor said.
Council discussion focused on trade‑offs between cost and clean title. The solicitor framed the choice as whether the borough preferred a cheaper acquisition that might leave the mortgage in place or to pursue a costlier, more certain path to a free-and-clear title. Borough staff and the engineer described the site as currently overgrown and not operating as designed; the engineer said design work could meet upcoming MS4 requirements if approved by DEED and permitting authorities.
Next steps and directions: The solicitor asked for direction on how to proceed and said he would prepare the necessary documents for the council to vote at a future meeting. Council members also discussed enforcement tools and long‑term mechanisms—such as requiring homeowners associations to maintain detention basins in new developments—to reduce future maintenance liabilities.
Ending: Council did not vote to acquire the parcel at the meeting. The solicitor and borough staff will return with formal options, cost estimates and draft documents at a subsequent meeting so council can decide whether to pursue acquisition, take the property subject to existing liens, or pursue a litigation/bankruptcy pathway to obtain clear title.
