Seizing property from one developer to give to another


Reader Mike A. sends this alarming story which he calls "simply frightening". It seems as though localities are moving from seizing property from homeowners to give to private developers, to seizing money from private developers to give to other private developers who just happen to be big time campaign donors.

On May 21, Albert G. Mauti Jr. and his cousin Joseph hosted a fundraiser for Assemblyman Joseph Cryan at the Westmount Country Club in Passaic County. The two developers and family members picked up the $10,400 dinner tab, donated another $8,000 and raised more than $70,000 that night for the powerful Union County Democrat, according to state election records.

Three days later, the governing body in Cryan's hometown of Union Township -- all Democrats -- introduced an ordinance paving the way for the Mautis to build 90 or so townhouses on six acres of abandoned industrial land along the Conrail line in town.

There is just one problem: Union Township doesn't own the land.

It is owned by Carol Segal, a 65-year-old retired electrical engineer. Over the past 10 years, the Union Township resident says, he has spent about $1.5 million to acquire the property, and he, too, wants to build townhouses there.

Segal said he met with Cryan, who is head of the township's Democratic Party, and other local officials "scores of times" over the past five years to discuss the project. He claims the talks turned adversarial after he rejected proposals to work with various developers they proposed.

On May 24, the five-member township committee voted unanimously to authorize the municipality to seize Segal's land through eminent domain and name its own developer.

"They want to steal my land," Segal said. "What right do they have when I intend to do the exact same thing they want to do with my property?"

Welcome to post-Kelo America. All your property are belong to us!
Cryan, 44, a rising star in state Democratic politics, denied any connection between the fundraiser and the committee's vote. He described the Mautis as "good friends," but said he played no role in shaping the township's redevelopment plan.

"My involvement is zero," Cryan said...

While Cryan holds no official position in Union Township government, he has been chairman of the local Democratic Party since 1995. When he took that job, Democrats were the minority on the township committee; now they control all five seats. As Democratic chairman, Cryan runs the candidates' campaigns and their fundraising.

Segal is fighting to stop the seizure, but in the face of Kelo, how far can he get?
After the May vote, Segal sued the township, and on Sept. 7 a Superior Court judge in Union County issued a temporary restraining order prohibiting the township from hiring its own developer. Six days later, the township committee unanimously voted to start negotiating -- but not sign a contract -- with the Mautis' company, AMJM Development.

Segal, meanwhile, signed a contract last week to sell his property to Centex Homes for about $13 million, contingent upon local approval. Centex, a nationally known developer with projects in Middlesex, Morris and Monmouth counties, would then build 100 townhouses on Segal's property, with a potential for profits of $15 million to $20 million, Segal said. Township Mayor Joseph Florio and Deputy Mayor Peter Capodice, both members of the township committee, said they were unaware of Segal's involvement with Centex when they voted Sept. 13 to negotiate with the Mautis.

But a proposal Centex submitted to the township committee on Sept. 1 said the company "has been in negotiations with (Segal) for quite some time." When the item came up at the Sept. 13 meeting, the committee did not allow Segal's attorney to speak before the vote was taken.

Florio and Capodice said they preferred AMJM because it is a local company.

"I've never heard of Centex," Capodice said. "They're not Union County people."


Comments

More and more and more the stupidreum court has opened a hornets nest and its just liable to sting them

Posted by: screaming eagle at October 5, 2005 10:46 AM

In other countries, this is known as "land reform." It remains theft.

Posted by: Brett at October 5, 2005 4:07 PM

This would be a good litmus test for our new S.C. Justices.

Posted by: Rhett at October 5, 2005 8:11 PM

Not a bit of shame evident in any of the official comments.

Posted by: Michael at October 6, 2005 10:08 AM

Would it be better if we had KING GEORGE THE III AGAIN? its the imperial court we are dealing with

Posted by: screaming eagle at October 10, 2005 10:36 PM

That nazis called it LIVING SPACE

Posted by: screaming eagle at October 11, 2005 10:45 PM

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