U.F. considers adding new preservation tool to box
Right of First Refusal would give twp. first dibs on larger properties
BY JANE MEGGITT Staff Writer

UPPER FREEHOLD - The governing body may create a Right of First Refusal (ROFR) contract rather than a ROFR ordinance.

ROFR would provide the township with an alternative means for preserving open space and farmland. The Township Committee discussed the issue at its Jan. 31 workshop meeting.

Former Mayor Richard Osborn, who works for the state's Green Acres program, described ROFR. Under the terms of ROFR, an owner with a property larger than 20 acres in size that has not been preserved and is not being sold to a family member, would first have to offer to sell the property to the township, county, state or nonprofit conservation organization before selling it to another buyer, he said.

Osborn said the owner could elect to sell the development rights instead of the ownership rights. The purchaser of the property under ROFR could extinguish the development rights and auction the property to put it back on the tax rolls, he said.

Township Attorney Granville Michael Magee said the ROFR contract would work better than a blanket ordinance for targeted acquisitions. He said the township could target specific landowners, who would have the right to say no to preservation.

Magee said that under ROFR, the township would have to match any offer the landowner received from a prospective buyer, and if it could not match that price, the owner could then sell his/her property to another buyer.

Mayor Stephen Alexander, an attorney, said that a private contract would give the parties involved more room for negotiation. He said an ordinance almost seemed like eminent domain.

Magee called ROFR another tool for the township to use to achieve its preservation goals. He suggested the township send a notice out with the tax bills to large landowners about an ROFR contract.

According to Osborn, ROFR is a good long-term plan because it takes the pressure off property owners whose neighbors may be pressing them to preserve their property. He added that ROFR would help the township eliminate the need for zoning changes, slow down the need for schools, protect the water supply, protect wildlife habitat, encourage agriculture to remain, and maintain a lower tax rate.

Osborn described some advantages of ROFR and said purchases are spread out over a period of time, as are funding needs. He noted that it took 20 years for the township to preserve more than 7,000 acres and that another 20 years would not hurt as long as more preservation is achieved.

Osborn also said that ROFR could be used to preserve open space.

"We may need another recreation field in the future," he said, adding that the township could also preserve a property for both farmland and open space.

Township Administrator Barbara Bascom said the town has a list of properties it would like to acquire.

Magee said that in some parts of the country, ROFR is being used as an estate planning tool.

"Some property owners don't want to commit now," he said. "Their kids [have moved] away, and they don't want to go to developers."

Osborn said he has received many calls from elderly people who want to preserve their property before their kids get a hold of it and sell it off.

Committeeman David Reed, whose family has put much of its land in preservation, said the town almost has a ROFR program. He said township farmers know that preservation is an option, unlike 20 years ago when builders "were the only game in town."

Reed said that the township knows when a property is for sale, and gave the Cream Ridge Golf Club, which is now preserved, as an example.

Osborn agreed with Reed but said some owners see land strictly as an investment.

Alexander said properties that currently have development approval would not be targeted for preservation. He said ROFR is for landowners who are not yet in the development process and gives the township a chance to purchase properties before they get into that process.

Magee said the township is fortunate to have an administrator like Bascom, who makes preservation a priority.

"Down the road, will it be the same as today?" he asked. "I see [ROFR] as getting ahead of that curve. You need someone to keep that contact and keep people interested [in preserving]."