Data center zoning OK'd despite concerns
Data storage campus proposed for 300 acres of Crossroads property
BY JESSICA SMITH Staff Writer

OLD BRIDGE - Township officials amended the Crossroads redevelopment plan Monday to allow for a controversial corporate campus of data storage centers.

"It looks like we actually have the prospect of providing tax relief," Township Council President Pat Gillespie said. "We'd be foolish not to pursue it and see where it leads us."

The ordinance now includes a zoning overlay on a 300-acre section of the townshipowned Crossroads tract where the corporate campus is proposed. The land's initial zoning, which allows retail and age-restricted residential housing, will remain, but the overlay allows data centers to be considered as well.

Despite the assertion from a majority of township officials that the data center proposal is simply being considered at this point, Councilman Richard Greene, a vocal opponent of the idea, said he thinks the decision has already been made.

"It's all set in stone," Greene said. "The executive director [of the redevelopment agency], his nephew is the engineer for the program. Wow."

Both Greene and Councilwoman Lucille Panos, the only Republicans on the otherwise Democratic nine-member council, voted against the ordinance.

Greene maintained his stance that he would like to see the 500-acre Crossroads property, located near Routes 9 and 18 at the township's southern end, be kept as open space.

"If I'm wrong, if you think the property should be developed, give me something that I can step back and say, 'Wow, I'm proud of this,'" Greene said. "Are three data centers going to attract a hotel? Are they going to attract a business center for real, continuous tax relief? If you think we need tax relief, give me something I can smile about. Give me real tax relief instead of three stupid, ugly buildings."

Residents in attendance at Monday's council meeting applauded Greene's statements. Dr. Anita Greenberg, a former Planning Board member, disputed officials' claims that the data centers would bring tax relief to residents. She cited towns like Secaucus and Piscataway that have such facilities.

"Their taxes didn't go down, so I want to know why you think our taxes are going to go down because of the data centers," Greenberg said.

Gillespie said the proposed centers would bring over $1 billion in investments into the township, along with hundreds of union construction jobs.

Panos suggested a referendum on the subject in order to let residents decide. Other council members did not respond to her recommendation.

Councilman Edward Testino said that although he has not decided whether the data centers are a perfect fit for the tract, he at least wants to move forward on considering the proposal.

"I do think it will bring much-needed utilities to that end of town," Testino said.

A limited liability corporation formed by David Arena, Joseph Jingoli Jr. and Joseph Ryan proposed the data center idea, and has discussed at Old Bridge Redevelopment Agency meetings this fall. The firm proposed what it calls the Deep Run corporate campus, which would consist of four 350,000- square-foot, two-story data storage centers. Its entrance would be on Marlboro Road.

Mayor Jim Phillips has estimated that, based on building construction figures discussed at redevelopment agency meetings, one building could be worth about $7 million in property tax revenue, or about 21 cents on the tax rate.

Resident Brian Adams, a close neighbor to the Crossroads redevelopment site who is opposed to the project, has said residents in his neighborhood have been asking for water and sewer lines for years, to no avail. He took umbrage to the town's willingness to install them for the corporate campus.

Greene has cited possible terrorism as one of his reasons for opposing the centers, as has Adams. According to Greene, such facilities maintain a high level of security, and are constructed in settings where they cannot be seen from roadways, with walls of a greater thickness than most buildings, for defense purposes. Mayor Jim Phillips, along with members of the council, have refuted his claims.

At the meeting Monday, Councilman Kevin Calogera called Greene's claims "ridiculous," saying the facilities are common and that they store information on everything from medical records to Internet search engines.

Calogera went on to say that being open to such a proposal aligns itself with keeping promises to residents to look out for their best interests.

Critics of the project said it is not in the best interests of taxpayers, partly because of a possible payment-in-lieu-of-taxes (PILOT) agreement that would take place between the township and the developers. When Greenberg questioned why the town would be willing to accept a PILOT, Township Attorney Jerry Convery and Gillespie pointed out that it had nothing to do with the vote taking place that night.

"There's no PILOT before this body, or anybody else," Convery said. "Any action on a PILOT, if ever, would later have to come before the Township Council."

Greene, however, wanted to address the topic, saying that such agreements are typically reserved for blighted areas that are looking to attract developers.

"Under a PILOT program, the schools get zero," Greene said.

Still, the majority of the council supported the ordinance.

"I think this is a very promising project. I think it holds a lot of merit," Calogera said. "There's nothing negative I've seen about it so far. You don't get traffic, you don't get kids [and] they bring in a lot of money. There's really a lot of promise here. I think this is something that's long overdue."