LACEY – A group of residents were stunned to learn that two buildings they contend hold historical significance are again set for auction. This comes even after a contract had been signed for the sale of the properties located at the northeast corner of Route 9 and Lacey Road.
The turn of events stems from the vigilance of advocates for the preservation of the original Charles A. Smith Community Hall and the Worden House. Their efforts to protect these two structures led to the discovery of a clerical error in the bidding process.
“When the property was originally put up for auction, there was a resolution adopted by the governing body,” said Township Attorney Christopher Connors. “That authorized the online sale of the property for $2.9 million.”
New Jersey state law required the municipality to publish a notice of sale in a print newspaper that reached certain criteria, which was done. There were no bidders at that auction at the asking price. The auctioneer relisted the property, but the $2.9 million was not advertised as a minimum bid.
“There was a bidder for $1.5 million,” Connors said. “The governing body awarded a contract to that bidder, and it is now under contract.”
Connors acknowledged that during a review prompted by a “conscientious, good-minded and hard working citizen,” officials discovered they had inadvertently neglected to advertise the “second chance offer” of $1.5 million according to state law.
While the township works to rectify the error, Michael DeGeorge of DeGeorge Realty, LLC finds himself caught in the crossfire. DeGeorge’s company entered into the contract for the property after his bid was accepted.
DeGeorge disputes the claim that the sale lacked proper notice, pointing to the property’s online listing for 160 days on a multiple listing service and 86 days on a government auction site. He maintains these listings fulfilled the requirement of informing potential buyers about the auction.
“It is a fact that there are multiple listing services that provided advertising; it is a fact that the auctioneer also advertised,” said Connors to the governing body as DeGeorge is represented by legal counsel. “But, the one advertisement, the only advertisement that’s required within the statutes and regulations is that it is published in a newspaper circulated within the municipality where the property is located, and that was not done.”
The Charles A. Smith Community Hall is for sale. (Photo by Stephanie Faughnan)
Notably, a New Jersey Assembly bill proposed allowing electronic publication of legal notices on official government notice websites instead of in newspapers. It was marked dead in January of this year.
Township Administrator Veronica Laureigh acknowledged she inadvertently erred by failing to place the proper legal notice for the second auction. However, Laureigh disputes claims that the reduced $1.5 million auction was only available for a mere five minutes before DeGeorge Realty submitted its bid. She insists that DeGeorge’s bid arrived on the last day of the 30-day window during which the “second chance” offer was listed.
Connors addressed the committee members, publicly sharing his legal opinion. He explained the existence of both void and voidable contracts, emphasizing his belief that the current situation falls under the former category.
The township attorney stated that a legal violation, such as the lack of the requisite public notice, cannot be disregarded simply because a contract exists. He stressed the importance of following proper procedures and suggested that only a court has the authority to determine if the contract with DeGeorge Realty can be upheld.
DeGeorge has remained tight-lipped about his plans for the property. He did reveal, however, that he’d already begun preparing for the closing process and expended thousands of dollars. In the meantime, DeGeorge has been surprised by anonymous code violations from the DEP and Ocean County Health Department that arose during that timeframe.
As a gesture of good faith, DeGeorge offered to facilitate the relocation of the Worden House, mirroring its successful move in 1982. This comes amid concerns about the structure’s future, especially after a recent pipe burst at the former Vetwork’s location causing water damage.
Lacey resident Richard Bidnick speaks to the governing body and renews his request for them to preserve two buildings on Route 9. (Photo by Stephanie Faughnan)
Historic Buildings
Lacey resident Richard Bidnick revealed he is part of a team of people attempting to preserve the two buildings for their historical significance. He denounced the transaction with DeGeorge as illegal, saying he was the individual who first noticed the absence of a resolution for the sale.
“I do have a problem with why they’re putting it up for auction again when there’s a public outcry not to sell the property,” Bidnick said.
“The problem is that we have facilities that are owned as public property by the citizens of Lacey Township,” continued Bidnick. “That is, Community Hall and the Worden House.”
Although Vetwork leaders have revealed they are pleased with their relocated headquarters within the Lacey Food Bank, Bidnick suggested that keeping the property would allow them to return to the Worden House.
Another resident, Barry Bender, filed a cease and desist letter with the governing body on February 22, 2024 to prevent the sale of the two properties.
According to Bender, the community hall property was left to the residents of Forked River by Charles A. Smith in his will and the sale would violate the terms of the bequest. However, Connors has said that the government body is in compliance with that request. The Township Attorney noted that a title insurance company reviewed the background of the property when DeGeorge applied for title insurance. They had no objections.
The Worden House, built in 1850 by Jacob A. Vaughn, has a rich history, including ownership by Benjamin Burd Worden from 1890 onwards. Donated to Lacey Township in 1982, the house was moved to its current location in 2005. In that same year, following the NJ DEP Historic Survey, the Worden House was officially designated as “eligible” for listing in the National Register of Historic Places based on Criterion C.
Bender submitted a request in December of last year to list the house on the National Register of Historic Places.
The post Potential Sale Of Community Buildings Causes Ire appeared first on Jersey Shore Online.
