Hawthorne council authorizes settlement, clears path for Pan Chemical redevelopment with cleanup and PILOT

Hawthorne's borough council on Dec. 22 authorized a settlement in its fourth-round affordable-housing litigation that clears the way for redevelopment of the former Pan Chemical site and secures a 10-year judicial immunity window for the municipality.

Attorney Laurier told the council that amendments to the Fair Housing Act in October 2024 and DCA's subsequent municipal allocations prompted an aggressive unit target for Hawthorne that the borough contested. "Trenton has us over a barrel," Laurier said as he recommended settlement to avoid exposure to builder's-remedy lawsuits and to retain local control over redevelopment details.

Why it matters: Without a settled, judge-approved plan the borough risks having developers challenge local zoning under builder's-remedy claims. The settlement reduces contested proposals and attaches design, parking and cleanup conditions the borough said will protect nearby residents.

What the settlement covers: The council-approved plan scales the contested Dugan Development proposal for a roughly 1.47-acre parcel at the former Pan Chemical site to 69 total units, of which 14 would be affordable and 55 market-rate. Laurier described developer concessions on massing and design: a below-grade garage so the building reads as three stories from the street, a 7-foot setback of upper floors to reduce massing, and a 100-foot striped drop-off lane at the train-station plaza.

Parking and transit accommodations included an agreement for 1.6 parking spaces per unit inside the building plus a two-year lease for 12 overflow spaces on Grand Avenue; the developer also agreed to repave and expand the adjacent New Jersey Transit lot to 27 spaces.

Cleanup and reporting commitments: At Councilwoman Leosa's urging, the developer will provide progress reports filed with borough staff and must remove contaminated soil and concrete, restore the site to a residential cleanup standard, and avoid hauling soil down Washington Avenue. Laurier said the site is 7'to'10 feet below street grade and will require substantial soil handling before construction.

Financing terms: The deal includes a revenue-based payment-in-lieu-of-taxes (PILOT) rather than traditional ratable taxes; Laurier said the PILOT term mirrors a prior local project and will run 30 years. Under the agreement the county share is reduced to 5% and the school board share is eliminated; the attorney said the arrangement reflects the high cleanup costs the developer must absorb.

Council reaction and vote: Several council members expressed frustration at the state'driven mandates and the scale of new housing forced on suburban municipalities. Bruce said he opposed the principle but would vote for settlement because the borough had limited options: "I'm going to vote for this resolution because I've got a gun to my head right now and I have to," he said. The motion (R196-25) was moved (mover recorded as "WKI"), seconded by Councilwoman Leosa, and carried in a roll-call with Skiara, Sasso, Leosa, Bennett (who said he voted "under duress and with extreme resentment"), and Matthews recorded as yes.

Next steps: With the vote the borough moves to finalize settlement paperwork, enforce the developer's cleanup and reporting commitments, and implement the PILOT. Laurier noted the draft resolution contains a reservation tied to ongoing state litigation in Montville: if that litigation succeeds the borough may seek to revisit parts of the agreement. The council also accepted a separate municipal-alliance grant (R197-25) later in the meeting.

What the record shows: The council's action is a negotiated settlement intended to limit litigation risk and secure site remediation and community protections while meeting state-mandated affordable-housing obligations.