County extends deadlines for loan

SAYREVILLE - Middlesex County officials agreed last week to extend certain deadlines for the borough's repayment of $39 million borrowed to purchase the 400-acre National Lead site, but stressed payment is still due in full by next April.

The decision by the Board of Chosen Freeholders came in response to a request made by the Sayreville Economic Redevelopment Agency (SERA) on Sept. 14 after that agency determined that its chosen redeveloper, LNR Northeastern Investments Inc., had failed to fulfill several obligations with the National Lead project. LNR has since withdrawn from the redevelopment entirely.

SERA, now beginning negotiations with other potential redevelopers, sought to extend two deadlines. One required the redeveloper to submit a letter of credit to the county by Sept. 1; this is now extended to March 1. Also, an administrative fee, originally payable to the county on a monthly basis, will continue to accrue monthly but will be payable April 1, 2007. The principal payments, which were due to be paid this Nov. 1 and Dec. 1, will now be payable Dec. 15 and April 1, 2007.

"The changes to the agreement protect the county's investment while giving SERA time to take the steps they deem necessary," Freeholder Director David B. Crabiel said, noting that the total repayment obligation is still due by next April.

He described SERA's requests as reasonable in light of the recent events, and said the various parties all have the same goals.

"The freeholders' goals of reclaiming the National Lead property for public use and protecting our taxpayers' money remain. SERA and the [MCIA] Middlesex County Improvement Authority share those goals, and together we will meet them," Crabiel said.

In the original March 2005 agreement between the freeholders, the MCIA and SERA, the redevelopment agency was given one year from the time it took ownership of the National Lead property to repay the county. SERA also was required to name a developer, begin the redevelopment process and provide for repayment of the loan.

The agreement also provided the county with a mortgage and the ability to take ownership of the property and assume responsibility for the redevelopment process after the one-year period if SERA did not make sufficient progress. It was also stated that SERA could request a payment extension.

Last March, the freeholders agreed to a one-year repayment extension but applied nine conditions, including the provision of a letter of credit and monthly administrative fee payments. LNR did not adhere to those conditions.