Allenhurst-Loch Arbour merger moves forward
Proposal will be reviewed by state officials
A proposal to consolidate the Boroughs of Allenhurst and Village of Loch Arbour into one municipality is now subject to state review.
In a 2-1 vote on Tuesday night, the Allenhurst Board of Commissioners [shown above] gave the go-ahead to submit a proposal that provides specifics of the merger to the New Jersey Department of Community Affairs. Commissioners Christopher J. McLoughlin and Terence Bolan voted yes. Mayor David J. McLaughlin voted no.
The proposal states Loch Arbour will dissolve and cease to exist as a separate town. The boundaries of Allenhurst would be extended to include all of the properties in Loch Arbour.
There are three main components to the proposal: whether Loch Arbour can sever its ties to the Ocean Township School District without financial or legal repercussion, if the state will allow Loch Arbour to pay off Allenhurst’s $5 million municipal debt to complete the merger, and whether the state will allow the creation of special taxing and service districts in the village post-merger.
Neither town has their own school district. Loch Arbour currently pays $2.1 million to be part of the Ocean Township school system — a factor that weighs heavily in the village’s desire to merge with Allenhurst. If the merger goes through, Loch Arbour would enter into the same send-receive relationship Allenhurst has with Asbury Park schools.
Commissioners from both municipalities submitted a list of questions to the state in April of 2012 that addressed concerns about financial obligations, zoning ordinances and municipal issues. Although the state responded to the inquiry, the answers were given only in an advisory capacity and therefore not binding.
Submitting a formal application allows the state to fully review the merger proposal, and give binding answers to their concerns.
“Let’s put the rubber to the road and make them formally respond,” said Bolan.
McLoughlin disagreed.
“The issue that I have is that you are submitting something that you know is already flawed, [the state has] told us officially — unofficially, it doesn’t work,” he said. “From a business standpoint it just doesn’t make sense to do that.”
Submission of the proposal requires approval from both boroughs. Loch Arbour officials unanimously voted to send the plan through to the state Thursday, according to Loch Arbour Mayor Paul Fernicola.
“There was absolutely no risk to Allenhurst to submit the plan to DCA for approval,” Fernicola said. “This initiates a legal process to get legally binding answers from the DCA … If you don’t have substantive answers from the DCA how do you form an opinion?”
Allenhurst can exit the negotiations at any time prior to their approving a formal resolution for a referendum on the merger, according to both Fernicola and McLoughlin.
No statutory timeline exists for the state to respond with its answers. The state can also make recommendations for the towns to review and resubmit.
The measure will have to pass by a majority of voters in both towns, according to Allenhurst City Clerk Lori Osborn. However, that process is still a long way off. Should the state OK the plan, three town hall meetings will have to be conducted. One for Loch Arbour residents, one for Allenhurst residents, and one to be held jointly. The commissioners from both towns would again have to vote to place the question on the ballot, she said.
————————————————————
Follow the Asbury Park Sun on Facebook and Twitter.
