A group of companies owned by a major Newark developer are behind new litigation that is looking to void approvals for a two-tower project that would create over 1,000 units of housing.
On July 24, 11 plaintiffs filed suit in Essex County Superior Court looking to block the recently greenlit Mulberry Pointe. The 31-page case names both the Newark Central Planning Board and a subsidiary of Mulberry Pointe developers KS Group and GIGA Holdings as defendants.
The plaintiffs consist of several land-owning LLCs that can be linked to Paramount Assets, one of which is linked to a still unbuilt development at 1010 Broad Street that was approved in 2019 but is currently listed for rent as a vacant lot.
Mulberry Pointe was approved by the board earlier this year and is slated to consist of a three-story podium under two 51-story mixed-use towers. The plan includes 1,008 dwelling units, which would comply with Newark’s 20% affordable housing requirement and create 203 affordable units.
The street level includes approximately 3,500 square foot commercial space along East Kinney Street, while an outdoor garden and walking path will link the towers on the roof of the podium. Amenities will be featured on the top of the podium as well as recreational spaces on the 51st floors of both towers.
But the recently filed lawsuit is seeking to void the board’s approvals, mostly on two separate grounds. The first involves a public notice for the Mulberry Pointe application that the case deems “insufficient” and not in compliance state regulations.
Specifically, the lawsuit claims that Mulberry Pointe’s notice “fails to mention the total heights of either of the 51-story buildings (each 586 feet tall) or the square footage of the buildings” and also “fails to mention that the property is located in a redevelopment plan,” among other shortcomings.
“The notice is materially deficient in that it provides a severely deficient description of what is actually being proposed,” the case says.
Separately, the lawsuit claims that while plaintiffs’ counsel was allowed to cross-examine Mulberry Pointe’s expert witnesses, “said cross-examination was unduly and illegally encumbered by…constant objections to valid inquiries and cross-examination questions. The case also says that the board placed “arbitrary time limitations” on the availability of the applicant’s expert witnesses for cross-examination.
The biggest issue, according to the lawsuit, emerged when the board decided “to deny Plaintiffs the opportunity to present an ‘objectors case’ through the testimony of [their] own expert witnesses; all of whom were ready, willing and able to testify on the final night of the hearings and at the requisite time.”
Upon the denial of the objectors’ case, the board proceeded straight to a vote and approved the development. The case says the board’s refusal to allow them to present expert testimony during the hearing renders Mulberry Pointe’s approvals null and void.
The lawsuit had been somewhat anticipated following contentious previous hearings. Attorney Rob Simon, who represents Paramount Properties and other nearby owners, objected to Mulberry Pointe during a March meeting by claiming that improper public notices were provided.
The issue initially caused a delay in hearing the application, as there was additional back and forth when an attorney for KS Group claimed during the same meeting that Paramount’s objections stemmed from a failed land sale that was allegedly in place between the parties.
A date has not yet been scheduled for future court proceedings on the lawsuit, which could certainly throw a kink in Mulberry Pointe’s plans.
