Middletown Sets Hearing on 450-Unit Settlement at Former Circus Liquors Site
A proposed settlement would allow up to 450 homes at the former Circus Liquors property on Route 35, including 68 affordable units.
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.
Settlement allows up to 450 homes
The settlement concerns Block 825, Lot 55.01, within Middletown’s Circus Liquors Redevelopment Plan Area. According to a public notice posted by the township, Middletown would amend its redevelopment plan to permit construction of up to 450 residential units.1
At maximum buildout, 68 units would be deed-restricted as affordable housing. The agreement divides those units among 34 moderate-income, 25 low-income and nine very-low-income homes. The proportions would be adjusted if fewer than 68 affordable units are constructed.
The affordable units would count toward Middletown’s Third Round affordable housing obligation.1
The development would also be required to conform to engineering drawings, renderings, bulk standards and architectural guidelines attached to the settlement agreement.
Environmental and site protections
The agreement includes several provisions governing wetlands, stormwater management and landscaping at the property.
AAMHMT would grant conservation easements to Middletown, the State of New Jersey or both over delineated wetlands and wetland-buffer areas. An area near Kings Highway East and Carton Way, along with a portion of the site’s wetlands, would remain in its existing condition.2
AAMHMT and future owners would remain responsible for retaining walls and stormwater management at the property.
The agreement also requires AAMHMT to use its “best efforts” to preserve two trees near Route 35, with a 50-foot construction-avoidance area where reasonable. Landscape buffering along Route 35 would include double rows of evergreen trees and additional plantings intended to reduce the development’s visibility from the highway.2
Years of litigation over the property
AAMHMT filed a builder’s-remedy lawsuit against Middletown in August 2023, alleging the township had failed to satisfy its affordable housing obligations and seeking to develop housing at the property.
Days later, Middletown began a process that could have resulted in condemnation of the property for commercial redevelopment. A Superior Court judge later blocked the township from proceeding with that effort, and the Appellate Division upheld the decision in 2025.
The property has more recently served a different purpose. Earlier this year, the former Circus Liquors site was transformed into a fictional Midwestern truck stop for Rabbit, Rabbit, a Netflix series starring Adam Driver.
Public comments due September 15
The settlement still requires approval from Superior Court Judge Gregory L. Acquaviva, who will determine whether it is fair and reasonable to the region’s low- and moderate-income households.1
Residents, property owners and other interested parties may submit written comments or objections to the settlement. Comments, along with any supporting documents, must be filed with the court by September 15 and copies provided to the parties identified in the township’s public notice.2
The executed settlement agreement and accompanying documents are available for inspection at the Middletown Township Clerk’s office. The township also says the settlement documents will be posted on its website.
The fairness hearing is scheduled for October 2 at 9 a.m. in Courtroom 210W at the Monmouth County Superior Court, 71 Monument Street in Freehold.1
The township’s notice states that publication of the hearing does not indicate whether the court will ultimately approve the settlement.3
Notes
- Township of Middletown, “Public Notice of ‘Fairness Hearing’ to Approve Settlement of Mount Laurel Litigation,” AAMHMT Property LLC v. Township of Middletown, Docket No. MON-L-2588-23, posted September 1, 2026, p. 1.
- Ibid., p. 2.
- Ibid., p. 3.