Chapel Hill Land-Swap Ordinance Gets Final Approval in Middletown

The Middletown Township Committee authorized an agreement to acquire and preserve approximately 83 acres and adopted new rules for special events on large farms on September 8, following public hearings that drew questions about displaced tenants, financing and which farms would qualify.

A broad array of speakers supported preserving the Chapel Hill property, but the hearing also included a tenant who said he had received 60 days to leave his home. Committee members said the transaction could not be treated as certain until there was a written agreement, while the property owner said she had tried to help him find another place.

The committee also heard concerns about the proposed redevelopment of the property commonly known as Circus Liquors and introduced a separate ordinance that would prohibit data centers throughout Middletown.

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Committee authorizes Chapel Hill agreement

The committee unanimously adopted Ordinance 2026-3531, authorizing Middletown to enter an agreement to acquire approximately 83 acres identified as Block 832, Lots 92, 92Q and 93. Under the agreement, the township would transfer approximately 67 acres at Block 835, Lot 18 and pay $8 million. The ordinance authorizes the transaction but does not establish that the transfer has closed.

Most speakers urged the committee to approve the agreement, describing the property as an increasingly rare opportunity for preservation. Others asked about financing, public access and possible improvements.

Officials said there were no immediate plans beyond opening the property for public use as open space. Possible walking and horse trails were discussed, but no specific improvement plan was approved. Mayor Tony Perry said future use decisions would be left to later township committees.

The ordinance anticipates approximately $4.5 million in Monmouth County funding. Officials said Middletown still had to apply and expected a county grant covering 75% of eligible costs.

The committee also introduced Ordinance 2026-3542, a related bond measure that applies specifically to the acquisition of Block 832, Lot 93. It would appropriate $7.4 million and authorize up to $7.03 million in bonds or notes. The bond ordinance requires final adoption after a public hearing scheduled for September 21.

The vote followed Public Record NJ’s earlier reporting on the Chapel Hill transaction and the parties involved.

Tenant questions 60-day notice

During the hearing, Tyler Barry said he lived in a residence involved in the exchange and had been given 60 days to move. He asked why residents had not received six months or a year to find affordable housing if the preservation plan had been under discussion for an extended period.

Perry disputed Barry’s characterization that the township had known about the plan since 2023, saying officials could not treat a potential acquisition as certain before there was an agreement.

“There are pieces of property around town that I look at and I’m like, boy, I wish we could get that,” Perry said. “But you don’t have an agreement. You don’t have a negotiation.”

The committee did not announce any change to Barry’s timeline during the hearing.

Valerie Montecalvo, who said she purchased the property several years ago and is Barry’s landlord,spoke after him and said serious discussions with the township had begun only weeks earlier.

“We all dreamed of something like this, but we only really started talking about it a couple of weeks ago,” Montecalvo said.

She said Barry and the other tenants had remained on month-to-month arrangements since she purchased the property. Montecalvo said the previous owner, George Conway, had told the tenants that if the property were eventually sold, whether to her or to a developer, they would likely have to find another place to live.

“I do not have anything on any of my other properties either,” she said. Montecalvo added that she had tried to provide as much notice as circumstances allowed.

The committee unanimously approved the ordinance after the exchange.

Farm-event rules retain 50-acre threshold

Ordinance 2026-3530 establishes a permitting system for special-occasion events and direct-marketing activities on commercial farms. During the hearing, Perry said the special-event provision would apply to farms of at least 50 acres.

Residents questioned how many Middletown farms would qualify. Timothy Mulhern asked for an exact count after Perry estimated, “off the top of my head,” that at least five farms met the threshold. Lawrence DeBola urged the committee to lower the minimum, and Perry acknowledged that the Planning Board had recommended a smaller threshold.

Perry said officials were concerned that weddings and similar events on smaller properties could affect neighbors. He also said the ordinance could be amended later. The committee adopted the measure unanimously.

Circus Liquors redevelopment draws questions

During general public comment, residents raised concerns about the scale of the proposed redevelopment of the property commonly known as Circus Liquors.

Martin Donahue, a member of the Environmental Commission, said he had reviewed the settlement agreement concerning the property and that the commission would seek additional information. He also recommended that the township publicize the settlement hearing beyond the legally required notice because of the short period available for public feedback.

Data-center ban moves to public hearing

The committee introduced Ordinance 2026-3536, which would make data centers a prohibited use in every Middletown zoning district.

The proposal states that the prohibition would remain until New Jersey establishes uniform development standards and technological improvements reduce potential community impacts. Introduction does not enact the ban; the measure requires a second vote after a public hearing scheduled for September 21.

Public Record NJ examined Middletown’s proposed data-center ban in a separate story and will follow the proposal as it moves forward.