West Orange May End Its Legal Standoff With Nursing Home, Settlement Proposed

WEST ORANGE, NJ — West Orange is poised make a crucial decision this week on one of several “builder’s remedy” lawsuits the township is facing.

The West Orange Town Council’s meeting agenda for Tuesday includes a proposed settlement agreement with Daughters of Israel Inc.

The nonprofit nursing facility is seeking permission to expand its campus at 1155 Pleasant Valley Way. Their proposal includes the construction of a multi-story building with 311 total residential units.

If the town council approves the settlement, it could potentially end a long-running legal arm-wrestling match over the local nursing home.

Daughters of Israel has been trying to secure expansion rights for years. According to the nonprofit, the “obsolete” facility urgently needs an update. If the town refuses to approve an expansion, the only choice is to shut down operations in West Orange, sell the property and build somewhere else.

Critics of the proposal have argued that the project would cause “massive tree destruction,” increased traffic and high-rise construction that is “out of sync with residential neighborhood character.”

The West Orange Zoning Board eventually voted 4-3 in favor of the plan in 2023 after holding nearly a dozen public hearings, but since it required a super-majority for approval, the application was denied.

Earlier this year, Daughters of Israel filed a builder’s remedy lawsuit against the township. The lawsuits allow real estate developers to seek court approval to bypass local zoning laws and build higher-density residential projects – as long as they provide a certain number of affordable housing units.

West Orange is on the hook for 409 “present need” units and 660 “prospective need” units over the next 10 years, according to the state’s latest affordable housing quota. The town was late in approving its plan, which left it vulnerable to legal action from developers.

>> RELATED: Builder’s Remedy Lawsuits Pile Up In West Orange

SETTLEMENT PROPOSED

A deal that would settle the lawsuit with Daughters of Israel is in the works, which could see a vote at the town council’s Oct. 13 meeting.

Daughters of Israel would be allowed to build a “continuing care retirement community facility” with a maximum building height of five floors. There would be 311 total units, including 163 independent living units, 64 assisted living units and 84 skilled nursing units – with seven creditable affordable housing units to be accommodated by the facility as assisted living units. The deal also includes 347 parking spaces and “various site improvements.”

The lawsuit would be dismissed with prejudice in return.

The council discussed the litigation during a special meeting on Oct. 7, which also included debate about whether to allow members to take part in executive sessions remotely.

The builder’s remedy suit from Daughters of Israel isn’t the only one that West Orange has been slapped with this year.

The town is facing at least five other such lawsuits. The list includes disputes over 481 Eagle Rock Avenue (Mayfair Farms), 762 Pleasant Valley Way, 410 Main Street, 155 Prospect Avenue (Kennedy Realty), and 103 Pleasant Valley Way (Valley Hill Properties).

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