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Allendale leaders say litigation tied to Avalon Bay settlement preserves downtown and secures temporary immunity

Borough of Allendale Mayor and Council · March 27, 2026

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Summary

Officials told the Jan. 5 reorganizational meeting that recent negotiations resolved Allendale’s affordable-housing obligations linked to the nearby Avalon Bay project, yielding a plan they say avoids downtown rezoning and provides roughly a 10-year immunity from builder-remedy exposure.

Council members and municipal counsel described a year-long effort to resolve Allendale’s affordable-housing case and a related dispute involving the Avalon Bay project in neighboring Saddle River, saying the parties reached settlements on Dec. 31 that the borough’s leaders called protective of local character.

“We were able to settle both of them” by year’s end, a council member said, adding that the borough obtained what he called “the least impactful possible plan” and “10 years of immunity” against certain builder-remedy challenges. He described the result as “a significant win for the borough.”

The report to the governing body said the litigation had raised the prospect of rezoning downtown to meet housing obligations; officials credited coordinated legal strategy, consultants and close work by the mayor and council for producing an outcome they said avoided major downtown changes. Meeting remarks also said the borough received developer consideration described in the meeting as about $500,000 (the exact amount and structure were discussed orally during council remarks).

Speakers warned the settlement does not end regional development pressures: Council members recounted multiple Saddle River projects and said they would continue to press neighboring boards on sewer and service impacts. One speaker said several pending developments lack sewer capacity and noted that Allendale’s system is the nearest option.

The council did not adopt additional ordinances or vote on changes tied to the settlement at the Jan. 5 meeting; officials said they would provide more details and hold public outreach as next steps.

Ending: Council members said they will continue to monitor related applications in neighboring towns and expect to provide more formal public briefings at future meetings.