TOMS RIVER, N.J. — The Ocean County Natural Lands Trust Advisory Committee is considering whether taxpayers should purchase a 0.33-acre property in Beach Haven with a $3.4 million asking price, a parcel that has been the subject of years of environmental remediation and a recent appellate court decision over the Borough’s attempt to designate it as an area in need of redevelopment.
During its May 20 meeting, the advisory committee authorized staff to obtain an appraisal for 1200 N Bay Avenue, known as Beach Haven Automotive, before forwarding any recommendation to the Ocean County Board of Commissioners, which has final authority over Natural Lands Trust acquisitions.
According to committee records, the property is assessed at $1,138,100, while the owner is seeking $3.4 million.
Committee documents describe the parcel as containing a structure that was formerly used as a mechanic shop. The site had previously been designated for redevelopment, but the current owners changed that designation. The property also experienced historical soil contamination that has since been remediated and remains under a required two-year monitoring program overseen by the New Jersey Department of Environmental Protection, with monitoring expected to conclude in April 2027.
The committee minutes note there are currently no Ocean County Natural Lands Trust preserves within the Borough of Beach Haven.
The proposal comes just over a year after the New Jersey Appellate Division largely rejected the Borough of Beach Haven’s attempt to classify the same property as an “area in need of redevelopment.”
Court Rejects Borough’s Redevelopment Findings
In Beach Haven Automotive, Inc. v. Borough of Beach Haven, the Borough argued the former automotive property qualified for redevelopment under New Jersey’s Local Redevelopment and Housing Law because commercial operations had been discontinued and environmental contamination allegedly made the property detrimental to public health and welfare.
The Appellate Division largely disagreed.
The court affirmed the trial court’s ruling that the Borough failed to prove the property qualified under N.J.S.A. 40A:12A-5(d), which requires municipalities to demonstrate that a property’s condition is actually detrimental to the safety, health, morals or welfare of the community.
The appellate panel wrote:
“Subsection (d) does not presume harm; it requires a showing of actual detriment.”
The judges found Beach Haven presented no expert evidence showing the contamination posed an actual danger to residents.
The opinion noted:
“Although there is no dispute the property had been contaminated, there was no proven link between the contamination and a particularized harm to the community.”
The court further found there was:
“No proof, expert or otherwise, that the contamination was in danger of affecting the Borough’s water supply.”
Instead, the property owner had entered into an Administrative Consent Order with NJDEP and was actively cleaning the site under state supervision.
According to the opinion, the property’s Licensed Site Remediation Professional testified the site was safe and that contamination had not impacted surface water or drinking water.
The judges concluded the Borough’s concerns amounted largely to speculation.
“Other than speculation about the potential risks posed by the property’s contamination, there is no evidence in the record to support a finding that the property satisfied the criteria.”
Redevelopment Question Not Fully Resolved
While the Appellate Division rejected the Borough’s public health argument, it did not completely end the litigation.
The court sent one issue back to the trial court involving whether the property’s previous commercial storage use complied with local zoning regulations.
The judges found the record was incomplete regarding whether the tenant’s storage business required a variance.
If the storage operation was not a permitted use, the court said the Borough could potentially argue that the property’s previous automotive use had been “discontinued,” one of the statutory factors for redevelopment designation.
The panel ordered additional proceedings limited to that issue.
The Borough had argued the property qualified because commercial activity ceased after the lease expired in January 2023.
The appellate court disagreed with much of that reasoning, noting the owner had continued investing significant sums into environmental cleanup while complying with NJDEP oversight.
The opinion states:
“Plaintiff reasonably explained why the building needed to be vacated while the remediation excavated underneath the foundation.”
The court also observed the property had not been vacant for the two years required under another portion of the redevelopment statute.
Natural Lands Trust Review Continues
Despite the ongoing legal history, the property is now being evaluated under an entirely different process by the county.
Rather than redevelopment, Ocean County is considering whether the parcel should become permanently preserved open space through the Natural Lands Trust Program.
The advisory committee did not recommend purchasing the property during its May meeting. Instead, members authorized staff to obtain an independent appraisal before any recommendation is made to the Ocean County Board of Commissioners.
If commissioners ultimately approve a purchase, the acquisition would be funded through the county’s Natural Lands Trust Program.
Created after voters approved a dedicated tax in 1997, the program acquires environmentally sensitive lands, natural areas, open space and farmland throughout Ocean County. According to the county, the trust generates more than $10 million annually for land preservation and farmland acquisition.
This year, voters will be voting on a referendum to double that open space tax.
County officials say the program’s goals include preserving environmentally sensitive property, protecting water resources, maintaining rural character, supporting agriculture and buffering development with permanent open space. However, the Beach Haven property lies within a heavily developed commercial center next to an existing marina and business district.
Final decisions on all Natural Lands Trust acquisitions are made by the Ocean County Board of Commissioners following recommendations from the advisory committee.
