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Montgomery Officials Vote to Study Former J&J/Kenvue Campus as a Non-condemnation Redevelopment Site Amid Affordable Housing Lawsuit

30 minutes ago
5 min read

By Barbara A. Preston for The Montgomery News | September 24, 2026


The future of the former 360-acre former J&J/Kenvue corporate site in Skillman is now a major political and legal issue with apparently no happy ending in site. Plans put forth thus far include: a data center; limited-manufacturing warehouses; and a high-density affordable housing complex. None of these options are okay with the majority.


An aerial view of the Kenvue site in Skillman. The office building is listed as "For Sale" on LoopNet. The property was built and previously occupied by Johnson & Johnson.
Photo from LoopNet.

Facing complex state affordable housing mandates and the imminent closure of a major corporate campus, the Montgomery Township Committee voted unanimously on September 17, to direct its planning board to study the former corporate site for potential designation as a redevelopment site.


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The proposal, discussed by Montgomery Township Attorney David Minchello at the committee meeting, comes as Montgomery seeks court approval for a settlement with the Fair Share Housing Center. Superior Court Judge William G. Mennen overseeing the town’s affordable housing compliance directed municipal officials to confer with EKahn Development, the owner of the Kenvue property, before holding a final compliance hearing.


Without court certification of its housing plan, Montgomery risks losing its legal immunity against "builder's remedy" lawsuits, which allow developers to override local zoning to construct high-density housing. — Montgomery Township Attorney David Minchello

"The judge has been very clear that he would not move forward with our compliance hearing until we met and conferred with EKhan Development," Minchello told the committee, noting that failing to secure compliance would leave the township vulnerable legally.


Kenvue plans to cease operations at the campus at 199 Grandview Road by the end of the year. EKahn Development as the sole owner of the property, has filed two lawsuits in Superior Court regarding the future of the property.


The governing body voted and approved two key resolutions: Resolution 26-9-260, which instructs the Planning Board to conduct a preliminary investigation into whether the property qualifies as a non-condemnation "area in need of redevelopment," and Resolution 26-9-261, an escrow agreement requiring EKahn Development to fund the municipal planning and legal fees required for the study.


Minchello stressed that authorizing the preliminary study does not approve any building project or redevelopment plan. "It is the first step in a multi-step process where along the way there will be opportunity for review of the public and there will be an opportunity for input from the public," he said.



Currently, EKahn Development holds a "by-right" application to build limited manufacturing buildings that resemble warehouses on the site, a proposal that has drawn concern over increased truck traffic and night illumination. Additionally, the developer has filed a lawsuit challenging Montgomery's municipal ban on data centers. According to township officials, pursuing a formal redevelopment plan gives the community greater control over future land use compared to default zoning rights.


The proposed study will be conducted by the Planning Board's existing professional staff and consultants, funded entirely through developer escrow. "The taxpayers of Montgomery should not have to foot the bill for the review of this site," Minchello noted.


What Is an Area in Need of Redevelopment?

Under N.J.S.A. 40A:12A-5, an area qualifies for this designation if it meets specific statutory conditions, such as:

  • Dilapidated or unsafe buildings with poor ventilation, light, or sanitary facilities.

  • Significant commercial vacancies, including abandoned retail stores, shopping malls, or office parks vacant for two or more consecutive years.

  • Areas underutilized or stagnant due to defective land arrangements, diverse ownership, or title issues. 


Key Benefits for a Developer

  • Zoning Flexibility: Municipalities can adopt custom site-specific zoning standards for permitted uses, building heights, and density that override restrictive local zoning ordinances.

  • Financial Incentives: Property owners and developers can qualify for long-term tax exemptions or PILOT (Payment in Lieu of Taxes) agreements.

  • Public-Private Partnerships: The New Jersey Local Redevelopment and Housing Law (LRHL) allows towns and owners to enter formal redevelopment agreements to streamline project approvals

  • Redevelopment Area Bonds: Towns gain the ability to issue specialized bonds to help finance necessary infrastructure improvements supporting the area.


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Kahn Development currently has a plan before the township to build a limit-manufacturing development on the site. The application is at the Planning Board not, Township Planner and Administrator Lori Savron said. "A hearing has not been scheduled yet due to to some of the issues we are dealing with through the affordable housing process," she said.


Township Committeeman Dennis Ahn said it was his understanding that there would be no more "dark skies if [EKhan] were to build a limited manufacturing development on the site."


"Having warehousing there, and trucks going in and out of there at all times, and having it lit all throughout the night is not acceptable," Ahn said. "And this is what would happen if the [EKahn] buy-right plan would happen."


"If we do the [redevelopment] study, it would give our town and our public more say on what happens to the property," Ahn said.


Minchello assured Ahn that he is correct.


"To add to that, there's also a lawsuit filed by EKahn that challenges the data center ban ordinance that township committee adopted [earlier this year]," Minchello said. "We have not been served with that lawsuit, but it has been filed."



Public Input and Community Preservation

The public comment period drew spirited testimony from area residents and advocacy leaders. Several community members urged township leaders to resist high-density housing or industrial expansion, suggesting adaptive reuse options such as medical offices or a cultural park utilizing the campus's original I.M. Pei-designed buildings.


Lori Cleveland, Executive Director of the Sourland Conservancy, commended the committee for its proactive ban on data centers, pointing out the ecological sensitivity of headwater streams feeding regional water supplies and the surrounding Sourland Mountain preserve. Representatives from Save Montgomery noted their intent to closely monitor any redevelopment findings to ensure compliance with state land-use standards.


SaveMontgomery said they are concerned the township will employ the same consultant, Clarke Caton Hintz of Trenton, which previously handed the township a study supporting a 417-unit housing development.

 

"By voting in favor of this study, the township committee members will be voting against the residents of Montgomery who have already made their opinions known—we do not want a high-density housing development on the Kenvue site. There is no reason for the township government to grant the zoning changes required for one to be built, or to support the developer-funded study justifying it."


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Local resident Chris Newman urged the committee to consider non-residential uses, advocating for repurposing the existing I.M. Pei-designed building complex into a cultural park and arts center to preserve rural character and the nearby Sourland Mountain region.


"Think less of redevelopment or destruction and more toward repurposing the site," Newman said. "Repurposing what is already there will bring great resources to the entire township community."


Officials emphasized that the study represents an initial exploratory phase rather than an approval of any specific project. Addressing concerns over Econ Development's "by-right" application for light industrial and warehousing uses, as well as pending litigation regarding the town's data center ban, officials noted that a formal redevelopment framework provides the municipality and public greater control over site design and environmental protections.







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