"This is the biggest thing that's happened in Phillipsburg ... in almost 100 years," the mayor says.
Almost three years after acquiring some 200 acres for $1, Phillipsburg has agreed to sell it for $2.5 million.
The price is set in a redevelopers agreement for Commerce Park ratified by the town council on Tuesday.
"This is the biggest thing that's happened in Phillipsburg ... in almost 100 years," Mayor Harry Wyant Jr. said.
The agreement with Medford, New Jersey-based Opus Investment Group settles details for the proposed redevelopment, which includes the former Ingersoll Rand properties in Phillipsburg and Lopatcong Township.
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Opus wants to build more than 4 million square feet of warehouse space over seven buildings, along with the supporting infrastructure. The developer hopes to begin work next year and wrap the fourth and final phase by 2021.
The agreement sets a price of $12,500 per acre. Within 10 days of the developers signing the agreement, the township will receive a nonrefundable $100,000 down payment, the mayor said.
The anticipated closing date is Oct. 30. Any extensions on the developer's part come with an additional $50,000 payment to the town, Wyant said.
Each member of council thanked the mayor, the town's professionals and the work of previous councils for getting to this point.
"This is the closest we've ever gotten," said Councilman James Stettner.
The last designated developer, Conshohocken, Pennsylvania-based Preferred Unlimited Inc., purchased the entire Phillipsburg side of the property for $16 million from Ingersoll Rand in 2004. Plans fell apart after the 2008 market collapse, and Preferred sold a portion of the property back to the town in 2012 for $1 in exchange for forgiveness of about $275,000 in back taxes.
The rest of the 381-acre area is split between two other owners. Ingersoll Rand owns the Lopatcong side, and a Preferred holding company controls the remainder of the Phillipsburg portion due to mortgage issues from the financial crisis.
Wyant said Opus has made great strides in crafting agreements with the other entities.
Opus principal Erin Murphy, in a statement before the meeting, gave the town credit for its purchase of the property in 2012.
"This agreement ... is concrete evidence that the decision by the town to take over the parcel was correct," Murphy said in an email. "Mayor Wyant and town council believed in the value of this redevelopment, and their vision is coming to fruition."
Steve Novak may be reached at snovak@lehighvalleylive.com. Follow him on Twitter @type2supernovak. Find lehighvalleylive.com on Facebook.