Chapel Hill Land-Swap Ordinance Gets Final Approval in Middletown

The Middletown Township Committee has introduced an ordinance that would prohibit data centers in every zoning district, with a public hearing and final vote scheduled for later this month. Middletown joins a growing list of New Jersey municipalities that have adopted or are considering restrictions on data centers.

Neighboring Holmdel recently adopted its own ordinance restricting data centers. Before the ordinance was adopted, the township received an application to construct a data center at Bell Works. That proposal, submitted under the previously allowed zoning uses, is now being considered by the township.

Ordinance 2026-3536 is not yet in effect. The committee is scheduled to consider final passage on September 21, 2026, following public comment on the proposed restriction.

Middletown Township has published the full settlement agreement and conceptual renderings showing what a proposed 450-home development at the former Circus Liquors property could look like.

The newly released plans show a mix of traditional townhomes, stacked townhomes and affordable flats, along with internal roads, parking, amenity areas and open space. The settlement between Middletown and AAMHMT Property LLC remains subject to court approval at an October 2 fairness hearing.

As Public Record NJ reported previously, the hearing is the latest development in a years-long builder's remedy dispute over the Route 35 property.

Middletown Township has reached a proposed settlement that would allow construction of up to 450 homes at the former Circus Liquors property on Route 35, potentially ending a years-long affordable housing dispute over the site.¹

Under the agreement, AAMHMT Property LLC, the contract purchaser of the property, would reserve 68 of the 450 homes for very-low, low- and moderate-income households. If fewer than 450 homes are ultimately built, at least 15% of the development would be designated as affordable housing.¹

A Superior Court judge will consider whether to approve the settlement at an October 2 fairness hearing. The agreement follows a lengthy legal fight over the property, including Middletown's unsuccessful effort to pursue condemnation of the site for commercial redevelopment.

UPDATE, AUG. 31, 3 P.M.: After publication, Public Record NJ was contacted by a resident living on property involved in the proposed land swap. This story has been updated with their account of receiving notice to vacate the property.

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The Middletown Township Committee is scheduled to hold a public hearing September 8 on a proposed land transaction that would exchange township-owned property and $8 million for 83 acres along Chapel Hill Road and Kings Highway East.¹

The deal, introduced by ordinance on August 17, involves property owned by two LLCs formed in October 2024. Public business records reviewed for this article connect those LLCs through a shared registered agent and address to two companies that contributed to Mayor Tony Perry's 2024 reelection campaign the day after the LLCs were registered.

The proposed transaction also resembles a land swap described nearly three years earlier in a sworn certification filed in separate litigation against the township. In that certification, developer Seth Gerszberg alleged that Perry told him in August 2023 that he planned to make a deal in which the Montecalvo family would purchase the property and trade it to Middletown for township-owned land.²

The Township Committee introduced the ordinance without discussion. Full text of the ordinances is available in the Township public notices. Public comment and possible final action are scheduled for September 8 at 7 p.m.