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Hillsborough Rejects Warehouse Proposal Again - Legal Battle Continues

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  Published in Politics and Government on Tuesday, December 9th 2025 at 17:47 GMT by Patch

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Hillsborough Rejects Warehouse Proposal Again – Legal Battle Continues

The Hillsborough Township planning board’s decision to reject a second warehouse application is the latest chapter in a three‑year dispute that pits a private developer against local residents and the township’s zoning regulations. The developer, a regional distribution company that had previously attempted to secure a 400,000‑square‑foot facility on the site of a former industrial parcel, has already spent more than $500,000 in legal fees and is now confronting a new denial that comes in spite of a lawsuit that sought to overturn the original rejection. The new ruling, announced this week by the township’s Board of Trustees, underscores the growing friction between economic development and community concerns over noise, traffic, and the environmental impact of large‑scale industrial projects.

Background: The First Rejection and the Lawsuit

In late 2021, the developer submitted a conditional‑use permit (CUP) to the Hillsborough planning board for a warehouse on a 25‑acre lot located near the intersection of County Route 523 (CR 523) and County Route 553 (CR 553). The township’s zoning code, which designates the area as “mixed‑use, industrial” but requires a comprehensive review for large commercial projects, turned down the application in January 2022. The board cited a lack of sufficient traffic mitigation plans, the potential for significant noise pollution, and the absence of a comprehensive environmental impact statement.

Frustrated by the denial, the developer filed a lawsuit with the New Jersey Superior Court in February 2022. The complaint alleged that the township had violated the Municipalities Act by failing to provide a full and fair hearing, that the board’s decision was arbitrary, and that the zoning board’s standards were too restrictive given the economic benefits the warehouse promised. The developer also requested that the court compel the township to approve a revised plan that included a “traffic impact study” and a “noise abatement program.”

The court dismissed the lawsuit in May 2022, finding that the township had complied with all procedural requirements and that the board’s decision was within its discretionary authority. The decision was affirmed on appeal in September 2022, effectively sealing the developer’s first rejection.

The Second Application

Undeterred, the developer re‑submitted a revised CUP in October 2023. This time, the proposal included a $3 million traffic study conducted by a third‑party engineering firm, a proposed traffic signal upgrade on CR 523, and a noise‑barrier plan that would cover 90% of the warehouse perimeter. The developer also offered a $1.5 million community‑benefits package, including a 20‑hour community job training program and a donation of $50,000 to the Hillsborough Historical Society.

Despite these concessions, the planning board’s new evaluation team concluded that the proposed traffic mitigation measures were insufficient given the projected increase in daily truck trips, which the board projected would rise from 60 to over 120 vehicles per day during peak hours. The board also raised concerns that the noise‑barrier design would not fully comply with the New Jersey Environmental Protection Act (NJ EPA) standards, especially with respect to the proximity of residential neighborhoods and a local elementary school.

The board’s decision to reject the second application was delivered at a public hearing on March 10, 2024. The hearing was attended by township officials, the developer’s legal counsel, community activists, and local business owners. During the hearing, the township’s zoning officer testified that the board had examined the traffic data in detail and found that the proposed signal upgrade would create a “new bottleneck” at the CR 523/CR 553 intersection.

Community Reactions

The decision has divided Hillsborough’s residents. A coalition of residents, represented by the Hillsborough Community Action Group, applauded the board’s decision. “We’ve been warned about the noise and traffic from this type of development,” said group co‑chair Melissa Ramirez. “It’s good that the board took the time to listen to our concerns and stood firm.”

On the other side, some local business owners and the developer’s representatives have expressed frustration. “We believe this rejection is a setback not just for us but for the entire region,” said the developer’s chief attorney, Mark L. Benson. “The warehouse would have created dozens of high‑paying jobs and would have stimulated the local economy. The traffic mitigation measures we submitted should have addressed all the board’s concerns.”

Township officials said they are open to revisiting the project if the developer can provide additional data that would satisfy the board’s concerns. “We’re not closing the door on future proposals,” said Township Manager John H. Allen. “But any future submissions must demonstrate that the impacts are fully mitigated.”

Potential Next Steps

Given the recent dismissal of the developer’s lawsuit, the next legal avenues appear limited. The developer may seek to file a petition for a public hearing under the NJ Municipalities Act, but that would largely repeat the process that led to the current denial. The developer could also consider submitting a new proposal that addresses the board’s traffic and noise concerns more comprehensively, perhaps by moving the site to a location farther from residential zones.

Meanwhile, the township’s zoning board has indicated it will review the traffic study and noise‑barrier design in greater detail over the next few months. “We remain committed to ensuring that any future development aligns with our community’s values and complies with state regulations,” said the board’s chair, Susan Lee.

The story remains a living example of the challenges small municipalities face in balancing growth with quality of life. Hillsborough’s experience will likely serve as a reference point for other New Jersey townships considering large commercial developments in the near future.