Sussex Borough to seek $322K in owed sewer money

SUSSEX — Borough Mayor Jonathan Rose will work with Hardyston Township to collect $350,000 in back sewer charges owed by the High Ridge Development group.

The group owes $322,000 or 92 percent to the borough and the remaining $28,000 to the Hardyston Municipal Utilities Authority, an amount certified by a 2012 court judgment.

Hardyston plans to sell the property in a tax sale on Friday, Dec. 27. If the parcel is sold, Hardyston will take the $22,0000 it is owed and reimburse Sussex Borough. If the property is not sold, Hardyston will have to wait six months for a foreclosure on the property. Then, the property will be sold on the open market. After the property is sold, both municipalities will be paid.

According to Borough Attorney John Ursin, the borough auctioned a sewer allocation in 2002 to the Hardyston Municipal Utilities Authority, therefore making the township the middleman between High Ridge Development and the borough. It also created what Ursin called an unnecessary complication.

The parcel was planned to be developed within two years.

It wasn't and eventually the High Ridge developers stopped paying sewer charges, putting the borough in litigation with the developer to collect the overdue payments.

In addition to the $28,000, Hardyston also is owed about $150,000 in back taxes and interest with attorneys fees taken out of what's owed. If the property sells for more than the amount owed, 1/3 of the excess money would go to Hardyston, 1/3 to the Hardyston MUA, and 1/3 to Sussex Borough.

The property is a large, vacant commercial location. There is no building on the property.

Ursin said he is “hopeful that eventually private money will come through,” along with the borough’s reimbursement.

Ursin also said some site plan work has been completed on the property. Going forward, the borough will provide 25,000 gallons of sewer usage to the new user as in the original High Ridge contract.

The borough also would benefit from new connection fees with a new user. In order to create incentive for a new developer to move forward quickly, regular user fees would begin after six months.

Ursin told the council it would be a “bigger win if the actual development takes place because the borough would have a substantial customer.”