N※N

Developer Sues Demarest Over Historic Property Housing Project

68

  //house-home.news-articles.net/content/2025/12/2 .. rest-over-historic-property-housing-project.html
  Published in House and Home on Monday, December 29th 2025 at 4:58 GMT by NorthJersey.com

• 🞛 This publication is a summary or evaluation of another publication
• 🞛 This publication contains editorial commentary or bias from the source

2025-12-29 224 x 224 / 10384 Bytes

2025-12-29 224 x 224 / 7034 Bytes

2025-12-29 223 x 224 / 7950 Bytes

2025-12-29 179 x 224 / 14679 Bytes

Developer Sues Demarest Over Housing Project on Historic Property, Sparking Legal Battle

A contentious legal battle has erupted in Demarest, New Jersey, as a developer, Hampshire Investments LLC, is suing the borough to gain approval for a proposed housing development on a historically significant property known as the Van Wagoner Estate. The lawsuit, filed December 27th, alleges that Demarest’s planning and zoning boards have acted arbitrarily and capriciously in denying the project, effectively hindering Hampshire's ability to build much-needed affordable housing within the affluent Bergen County community.

The core of the dispute revolves around a plan to construct 68 units – a mix of townhouses and apartments – on the sprawling 14-acre Van Wagoner Estate located at 70 Van Wagoner Road. The estate itself holds considerable historical weight, featuring a late 18th-century farmhouse and associated outbuildings that contribute significantly to Demarest’s character. The property was originally part of a larger land grant given to the Van Wagoner family by King George III in 1769. As detailed in an article from the Demarest Historical Society, the estate represents a tangible link to the region's colonial past and has been recognized for its architectural and historical significance (you can find more information on their website: [ https://demaresthistoricalsociety.org/ ]).

Hampshire Investments purchased the property in 2019 with the intention of developing it, understanding that the land was zoned for residential use but also recognizing the complexities surrounding a site with such historical importance. The developer submitted plans to the Demarest Planning Board in 2021, outlining their vision for the housing project and proposing measures to preserve and integrate the historic farmhouse into the development. These included incorporating the house as a community center or clubhouse within the complex.

However, the Planning Board repeatedly rejected the proposal, citing concerns about density, traffic impact, environmental considerations (specifically regarding wetlands on the property), and the potential negative effect on the character of the neighborhood. The Zoning Board also denied Hampshire’s subsequent applications. The developer argues that these rejections were not based on sound planning principles but rather reflected a desire by the town to avoid any development whatsoever, particularly one involving higher-density housing.

The lawsuit specifically accuses the boards of failing to provide adequate reasoning for their denials and of shifting justifications throughout the review process. Hampshire claims the boards’ actions constitute an abuse of discretion and a violation of state law regarding affordable housing obligations. New Jersey has a long history of legal battles surrounding its "Fair Housing Act" and the responsibility of municipalities to provide opportunities for affordable housing, often through court-mandated development plans known as Inclusionary Zoning Ordinances (IZOs). While Demarest doesn't appear to have an IZO in place currently, the lawsuit implicitly suggests that the town’s resistance to Hampshire’s project is hindering its ability to meet its broader affordable housing obligations.

The developer also points out that they attempted to address many of the board’s concerns through revisions to their plans, including reducing density and incorporating additional green space. Despite these efforts, the boards remained steadfast in their denials. Hampshire's legal team contends that Demarest is effectively using historical preservation as a pretext for preventing development, which is an unlawful tactic under New Jersey law.

The lawsuit seeks a court order compelling Demarest to approve Hampshire’s housing project and requesting reimbursement of the developer’s legal fees and expenses incurred in pursuing the approvals. It also requests declaratory judgment stating that the town's actions were illegal.

Demarest officials have largely declined to comment on the specifics of the lawsuit, citing pending litigation. However, Mayor John Cosgrove has previously stated that the borough is committed to preserving the historical character of Demarest and ensuring responsible development that aligns with the community’s needs and values. He emphasized the importance of considering the impact of any new construction on traffic, infrastructure, and the environment.

The case highlights a recurring tension in New Jersey – the desire to preserve historic landmarks and maintain suburban character versus the need to address the state's ongoing housing crisis and provide opportunities for more diverse and affordable living options. It also underscores the potential legal ramifications when municipalities are perceived as obstructing development projects, particularly those aimed at fulfilling affordable housing obligations. The outcome of this lawsuit will likely have significant implications not only for Demarest but also for other communities across New Jersey grappling with similar challenges. The case is expected to be lengthy and complex, involving detailed examination of zoning regulations, environmental impact assessments, and the legal standards governing municipal planning decisions.

This situation echoes previous conflicts in Bergen County regarding development on historically sensitive land, as reported by NorthJersey.com (search their archives for related articles). The Van Wagoner Estate case is now poised to become another chapter in that ongoing narrative.