Stipulation/Resolution-Highland Farms-'04,'05, '06, '07 (A0389477;1)

Resolution #050515 Authorizing the Township Special Tax Attorney to Enter Into a Stipulation of Settlement Relative to the Tax Appeal Captioned Highland Farms Partners vs. Bernards Township, Tax Court of New Jersey, Docket Nos.:003961-2004 and 000868-2005

WHEREAS, Highland Farms Partners, the owner of Block 2, Lot 1 on the Township of Bernards Tax Assessment Maps (the “property”), filed an appeal of the 2004 assessment in the Tax Court of New Jersey, Docket No. 003961-2004, and the 2005 assessment in the Tax Court of New Jersey, Docket No.: 000868-2005; and

WHEREAS, the Township Committee of the Township of Bernards met and discussed the aforesaid tax appeal and the recommendations of its Township Tax Assessor and Special Tax Attorney; and

WHEREAS, the taxpayer and the Township obtained appraisers’ preliminary restricted opinions of the market value of the property for valuation of the property for the 2004 tax year; and

WHEREAS, the taxpayer’s appraiser’s preliminary restricted opinion of the market value of the property was $7,700,000 as of the 2004 tax year valuation date of October 1, 2003; and

WHEREAS, the Township’s appraiser’s preliminary restricted opinion of the market value of the property was $11,500,000 as of the 2004 tax year valuation date of October 1, 2003; and

WHEREAS, the property was assessed for the 2004 tax year at a total tax assessment of $10,630,000, and the property was assessed for the 2005 tax year at a total tax assessment of $10,669,100; and

WHEREAS, an acceptable settlement of the aforesaid tax appeals have been negotiated in which Highland Farms Partners agrees to the dismissal of the 2004 tax appeal thus affirming the 2004 assessment of $10,630,000 levied upon the property; and

WHEREAS, the settlement which has been negotiated will adjust the 2005 assessment to reduce the total tax assessment from $10,669,100 to a reduced total tax assessment of $10,000,000 for the property; and

WHEREAS, the settlement also provides that the taxpayer waives the payment of interest on account of any refunds so long as those refunds are paid within sixty (60) days of judgment to the taxpayer’s attorneys “Schneck Holtzman, LLC;” and

WHEREAS, the settlement provides that the Freeze Act will be waived; and WHEREAS, the settlement also provides that if the Township Tax Assessor sets the 2006 and the 2007 total tax assessments at $9,500,000, then the owner, its successors and assigns waive any right that they may have to appeal the 2006 and 2007 assessments as adjusted; and

WHEREAS, Highland Farms Partners agrees to affirmative notify any successors and assigns of the binding waivers contained in the settlement agreement; and

WHEREAS, Highland Farms Partners acknowledges, pursuant to the settlement, that the Assessor may only set the assessment for the 2007 tax year at $9,500,000 if there is no “change in value” (as that phrase has been defined by the Tax Court) of the property as of the valuation of the property for that tax year; and

WHEREAS, the Township Committee leaves the allocation between land and improvements of the aforesaid 2005, 2006 and 2007 tax assessments on Block 2, Lot 1 to the Township of Bernards Tax Assessor’s discretion with the direction that same be set so as to be most beneficial to the Township; and

WHEREAS, the aforesaid settlement has no general application to other properties within the Township of Bernards as a result of the aforesaid specific facts situation; and

WHEREAS, the Township Committee will make this settlement with Highland Farms Partners without prejudice to its dealing with any other Bernards Township Taxpayers’ request for tax assessment reduction.

NOW, THEREFORE, BE IT RESOLVED by the Township Committee of the Township of Bernards, County of Somerset, State of New Jersey, as follows:

1. The Township of Bernards Tax Assessor is hereby directed to establish the allocation between land and improvements for Block 2, Lot 1, which is most beneficial to the Township of Bernards and advised the Special Tax Attorney of the allocation of a $669,100 total tax assessment reduction for the 2005 tax year, and to set and allocate the total tax assessment for the 2006 tax year at $9,500,000, and the 2007 tax year at a total tax assessment of $9,500,000, so long as there is no “change in value” as that term has been defined by the Tax Court, as of the valuation date for the 2007 tax year.

2. The Special Tax Attorney is hereby authorized to execute a Stipulation of Settlement relative to the tax appeals of Highland Farms Partners, Docket Nos.: 003961-2004 and 000868-2005; in which settlement Highland Farms Partners has agreed to the withdraw, dismiss and as a result affirm the assessment for the 2004 tax year in regard to Docket No. 003961-2004; and further agrees, at the allocations to be made by the Township Tax Assessor, to a reduction in the total tax for the 2005 tax year from $10,669,100 to a total tax assessment in the total amount of $10,000,000; which further provides for the waiver of the payment of interest on any refunds so long as those refunds are paid by refund check made payable to the attorneys for Highland Farms Partners, “Schneck Holtzman, LLC” within sixty (60) days of judgment; which further provides that the owner, its successors, assigns and tenants waive any rights that they may have to appeal the 2006 and/or the 2007 assessments, if adjusted by the Township Tax Assessor to total tax assessments for each year in the amount of $9,500,000, and acknowledge that this settlement is being made in part in consideration for that waiver, and acknowledges that the 2007 assessment will be set as provided above subject to the Assessor's determination that there has been no “change in value” as that phrase has been defined by the Tax Court, and agree to affirmatively notify any successor and assigns of this binding waiver.

3. The form of Stipulation of Settlement is annexed hereto, having been reviewed by the Township Committee of the Township of Bernards.

4. The settlement outlined above shall be without prejudice to the Township’s dealings with any Township’s taxpayers’ request for tax assessment reductions.

Agenda and Date Voted: 12/27/05

Explanatory Statement:

This resolution authorizing the Township Special Tax Attorney to Enter Into a Stipulation of Settlement Relative to the Tax Appeal Captioned Highland Farms Partners vs. Bernards Township, Tax Court of New Jersey, Docket Nos.:003961-2004 and 000868-2005.

Martin Allen Our File No.: C13892 / MA:jav DiFRANCESCO, BATEMAN, COLEY, YOSPIN, KUNZMAN, DAVIS & LEHRER, P.C. 15 Mountain Boulevard Warren, New Jersey 07059-6327 (908) 757-7800 Attorneys for Defendant, Bernards Township ______HIGHLAND FARMS PARTNERS, : TAX COURT OF NEW JERSEY : : DOCKET NO.: 003961-2004 and 000868- 2005 Plaintiff, : : vs. : Civil Action : : STIPULATION OF SETTLEMENT BERNARDS TOWNSHIP : a Municipal Corporation of : the State of New Jersey, : : Defendant(s). : ______:

1. It is hereby stipulated and agreed that judgment be entered dismissing the Complaint and the Counterclaim in regard to Docket No. 003961-2004.

2. It is hereby stipulated and agreed that, as to Docket No. 000868-2005, the assessment of the following property(ies) be adjusted and a judgment be entered as follows: Block : 2 Lot : 1 Street Address : 225 Morristown Road Basking Ridge Year : 2005

Original County Board Requested Tax Assessment Judgment Court Judgment

Land $ 2,290,000 $ n/a $ 2,290,000

Improvements $8,379,100 $ n/a $7,710,000

Total $10,669,100 $ n/a $10,000,000

3. The undersigned have made such examination of the value and proper assessment of the property(ies) and have obtained such appraisals, analysis and information with respect to the valuation and assessment of the property(ies) as they deem necessary and appropriate for the purpose of enabling them to enter into this

Stipulation. The assessor of the taxing district has been consulted by the attorney for the taxing district with respect to this settlement and has concurred.

4. The taxpayer waives the payment of interest if refunds are paid within sixty

A @ (60) days after entry of Final Judgment to its attorneys, Schneck Holtzman LLC.

5. Based upon the foregoing, the undersigned represent to the Court that the above settlement will result in an assessment at the fair assessable value of the property(ies) consistent with assessing practices generally applicable in the taxing district as required by law.

6. The parties agree that the provisions of N.J.S.A. 54:51A-8 (Freeze Act) shall not be applicable to this case.

7. The parties acknowledge that the Court may not have jurisdiction over the remainder of this Stipulation of Settlement at this time. However, the parties agree that the following provision is integral to the Stipulation of Settlement and that the parties have entered into this Stipulation of Settlement, in part in consideration of the following provisions and agreements. The Plaintiff, its successors and assigns, and the Defendant further agree to waive any rights they may have to file appeals of the 2006 and 2007 assessments of the properties, and the Plaintiff agrees that it will affirmatively notify any successor and/or assign of the terms hereof, if the Bernards Township Tax Assessor sets the total tax assessment for the property located at Block 2, Lot 1 in each of said tax years at $9,500,000. The Plaintiff acknowledges that the Defendant has entered into this

Stipulation of Settlement in part in consideration for this 2006 and 2007 tax year tax appeal waiver. The assessor of the taxing district has been consulted by the attorney for the taxing district with respect to this provision and has concurred with the agreement to revise the 2006 and 2007 tax assessments, subject to and conditioned upon there being

A @ no change in value as such phrase has been defined by the Court, pursuant to the

Freeze Act (N.J.S.A.54:51A-8).

DiFRANCESCO, BATEMAN, COLEY, YOSPIN, KUNZMAN, DAVIS & LEHRER Attorney for Defendant, BERNARDS TOWNSHIP

By:______Dated: MARTIN ALLEN, ESQ.

SCHNECK HOLTZMAN, LLC Attorneys for Plaintiffs, HIGHLAND FARMS PARTNERS

By:______

Dated: