BISGAIER AND PANCOTTO ATTORNEYS AT LAW 5 1 O PARK BLVD. CHERRY HILL. N.J. O8O34 TEL, (6O91665-I91 I. May 11, 1984
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2 BISGAIER AND PANCOTTO ATTORNEYS AT LAW 5 1 O PARK BLVD. CHERRY HILL. N.J. O8O34 TEL, (6O91665-I91 I ' '"". CARL S BISGAIER LINDA PANCOTTO May 11, 1984 USE SEiffiM* K HONORABLE EUGENE D. SERPENTELLI, J.S.C. Oean County Court House 118 Washington Street Toms River, New Jersey Dear Judge Serpentelli: Re: Real Estate Equities, In. v. Holmdel Tp. Doket No. L PW Enlosed please find further support for plaintiff's request for an emergeny ase management onferene in the abovereferened matter. Inluded are opies of an April 21, 1984, Mailgram from Holmdel's Mayor Popolo to City Federal Savings and Loan, an April 24, 1984, letter from Mayor Popolo to George Mikula of City Federal and a May 4, 1984, artile from the Asbury Park Press regarding this issue. It must be lear to the ourt that my lient's finanial support is essential to its suess in the onstrution industry. It is ertainly lear to the defendant. My lient is now being subjeted to a publi attak whih may seriously affet its finanial integrity solely beause of its partiipation in a Mt. Laurel II lav/suit. This is even more inredulous in light of a proposed zoning amendment whih, if adopted, would rezone at least half of the subjet lands for Mt. Laurel II purposes. Holmdel is attempting to strangle my lient finanially and diretly send a message to the finanial ommunity to withhold finanial support to any developer who might pursue a Mt. Laurel II laim. I strongly enourage you to take prompt ation on my request for a ase management onferene and an immediate trial date. Respetfully yours, CSB:emm Enls. : Hon. S Thomas Gagliano CARL S. BISGAIER ML000082L
3 PM 4-VM3972S i "» A IPMMTZZ i ' - > b a. wwr CSP NWKB unno MGM TDMT HOLMDEL NJ P EST KLUtlVt HOLMOEL TOWNSHIP CRAWFORDS CORNER RD HOLMDEL NJ THIS IS A CONFIRMATION COPY OF THE FOLLOWING* MESSAGEl ^88 MGM TDMT HOLMDEL NJ i 0811P EST A J HEDDEN PRESIDENT CITY FEDERAL SAVINGS AND LOAN EAST JERSEY ST AND JEFFERSON AVE ELIZABETH NJ HOLMDEL TOWNSHIP IS DISTURBED TO LEARN THAT CITY FEDERAL IS AN EQUITY PARTICIPANT IN REAL ESTATE EQUITIES INC, WHICH FIRM IS INVOLVED IN I N S I J u I T AGAINST THE TOWNSHIP, THE TOWNSHIP WOULD LIKE A STATEMENT FROM THE BANK REGARDING ITS POSITION. PLEASE CONTACT ME C ) OR nur mw.uto,.,«,«*,..,...,... WADINGT0N (9«6 a 53 0) AS SOON AS REGARDS J V POPOLO MAYOR HOLMDEL CRAWFORDS CORNER RD HOLMDEL NJ : 13 EST MGMCOMP RECEIVED APR Q TOWNSHIP OF HOLMDEU ; TOWNSHIP CLERKS OFFICE TOWNSHIP t TO REPLY BY MAILGRA,*/ MESSAGE. SEE REVERSE SIDE FOR WESTERN UNION'S TOLL - FREE PHC.\ NUMBERS
4 V. Popolo. Mayor James M Cox. Deputy Mayor Elaine ivl Frey Emest N. Cote frank J. Triario & Thomas Gog'iono Attorney Edword G. Broberg Engineer HOIMCJEI Tou/i\sl-iip 4 uf\w\o\<ds CORNER ROACJBOX 410 HOIMCJEI, NEW JERSEY John J Coughlln Administrator (201) John P. Wodlngton Ctert/Treasurer (201) Frank Vetange Constrution Offiial (201) April 24, 1984 Mr. George Mikula, Sr. Vie-president City Federal Savings & Loan Assoiation Equity Investment Department 200 Centennial Avenue CN 1366 Pisataway, NJ Dear Mr. Mikula: Holmdel Township sent the attahed mailgram to Mr. A. J. Hedden yesterday. His offie indiated that you would respond to our inquiry. Holmdel would like a positive statement of fat that City Federal is or is not an equity partiipant in Real Estate Equities, In. Please ontat me on Wednesday, April 26, 1984 at or John P. Wadington, Township Clerk and Treasurer at It is important that this matter be resolved sine it affets our relationship with City Federal. Very truly yours. \ rbseph V. Popolo MAYOR TOWNSHIP OF HOLMDEL
5 W.V I CJ I I It I ballet. answers wiae range of questions about fashion. Lifestyle/8 / ELJI Asbury Park Press Fri.,May4, 1984 Wlfll HOLMDEL TOWNSHIP The savings and loan from whih the township withdrew $10.5 million in short-term investments says it isn't partners with a development firm that is suing the township. "City Federal Savings and Loan (of Elizabeth) has zero relationship to Real Estate Equities In. (Middletown Township)," said * George^ Mikula* senior vie president of City Federal*. Mikula said City Federal loaned Real Estate Equities money to purhase property, but the savings and loan was not a partner of the developer. "Real Estate Equities approahed us for a traditional, arms-length agreement, and a loan was granted," he said. Real Estate Equities purhased 99 ares on Route 35 in the township and proposed a 1,836-unit housing development on the property. The township turned down the projet, saying the projet's planned density of 18.3 units per are was too high. Real Estate Equities In. is sufng the township, laiming the refusal onstitutes a violation of the state Supreme Court's Mount Laurel II deision, whih requires low- and middle-inome housing. enie "We're stiju not investing with City Federal," said John Wadington, township treasurer and lerk. "We want to get a lean-ut piture one way or another. It's still loudy at the moment." Wadington withdrew about $7 million April 25 and about $3.5 million Tuesday. The delay allowed the short-term investments to mature, he said. A title searh of the property where the proposed development would have been built, ordered by S. Thomas Gagliano, township.attorney, revealed a $2.8 million loan to Real Estate Equities In. by City Federal. It also showed that City Federal has loaned almost (30 million to six loal firms, inluding Real Estate Equities In. All the loan papers were signed by the prinipal owners of Eastern Planned Communities, Middletown Township, Albert Bresnik and Daniel Matthews. Bresnik was listed as the president and Matthew the seretary of all the firms.. "At this point, all we know is that City Federal is a substantial loaner to Real Estate Equities," Gagliano said. He said he isn't ertain how Real Estate Equities In. and Eastern Planned Communities are linked. The property deeds are made out to Eastern Planned Communities, Real Estate Equities In., Gagliano said. He said the only name on the lawsuit is Real Estate Equities In. Neither of the prinipal owners, nor the lawyer representing the developer in Its lawsuit against the township, were available for omment yesterday. Township offiials said they will ontinue to withhold investments from the savings and loan until they are satisfied no partnership exists. * Mikula said City Federal does have the first option on any joint venture the developer proposes. "That's not abnormal" Mikula said. "We do have other joint venture arrangements with Real Estate Equities, but on this speifi transation, we don't have anything to do with it. If they want to sell the property or intensify the development, it's up to them," he said. Mayor Joseph Popolo said that as long as that option exists, City Federal would be suspet "We would never know i/ they exerised that option." he said.
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