Montgomery Township Committee Adopts Data Center and Detention Center Ban, Advances Shared Services, Liquor Licenses and Stormwater Work

Nicholas Mistretta

The Montgomery Township Committee approved several resolutions and adopted a land-use ordinance during its June 18 meeting, including a prohibition on data centers and detention centers within the township, a shared-services agreement with Peapack and Gladstone, multiple liquor license renewals and a stormwater basin retrofit project.

The most extensive discussion came during the public hearing on Ordinance #26-1779, which amends Montgomery’s land development code to prohibit data centers and detention centers within the township’s geographical boundaries.

The ordinance drew comments from representatives of E. Kahn Development, as well as residents and environmental advocates who spoke in support of the ban.

Craig Gianetti, an attorney representing E. Kahn Development, objected to the ordinance as it relates to data centers and asked the committee to table the measure for further review. He said E. Kahn has a pending site plan application before the Planning Board for the former Kenvue site at 199 Grandview Road, and that the application had already been deemed complete. According to Gianetti, the ordinance would not affect that pending application, but could have future impacts by making an otherwise approved use a pre-existing nonconforming use.

Gianetti argued that an outright ban should have a reasonable relationship to a legitimate planning or zoning objective and should not be arbitrary or unreasonable. He said data centers represent modern infrastructure and that the township should evaluate whether such a use could be accommodated under appropriate conditions rather than prohibited entirely.

Peter Kilty of E. Kahn Development also addressed the committee, describing existing infrastructure at the Kenvue site that he said could support a data center use. Kilty said the property has dual 69-kilovolt transmission lines, an on-site substation, redundant power feeds and access to fiber networks along nearby rail infrastructure. He also said the site has space for setbacks, berms and buffers.

Kilty said the existing campus uses a closed-loop cooling system, which he said differs from evaporative cooling systems associated with high water consumption. He said the system recirculates water and uses a glycol mix to prevent freezing, with limited annual loss. He also said noise could be addressed through engineering, equipment placement, berms, acoustical walls and vibration dampening.

Gianetti asked the committee to reject the ordinance or carry it for additional study.

Several speakers urged the committee to adopt the ordinance.

Belle Mead resident Dawn Cohen spoke in support, saying she was concerned about both detention centers and data centers. She referenced recent concerns in Roxbury, where a property sale raised the possibility of a detention facility, and said Montgomery should act before facing a similar situation. Cohen also raised concerns about the possible impacts of data centers on electricity costs, noise, water use, air quality, property values and quality of life.

Mary Reese, Chair of the Environmental Commission also spoke in support, saying the commission had discussed the spread of data centers in New Jersey and had communicated concerns through its liaison, Committeeman Mike Martin. The speaker said data centers can place heavy demands on electricity and water and provide relatively few local jobs compared with their physical and environmental footprint.

Mike Pisauro, Esq., the Policy Director, also supported the ordinance. He said Montgomery is largely a rural-suburban community with farms and residential areas and argued that data centers could bring significant water, energy, noise and environmental concerns. Pisauro said The Watershed Institute supports a temporary statewide ban or moratorium on data centers until stronger regulations are developed.

After public comment, the committee voted unanimously to close the hearing and adopt Ordinance #26-1779. Committeeman Mike Martin, Dennie Ahn, Deputy Mayor Patricia Taylor Todd and Mayor Neena Singh voted yes.

The committee also approved Resolution #26-6-185, authorizing a shared-services agreement with the Borough of Peapack and Gladstone for chief financial officer, tax collector, qualified purchasing agent and other accounting-related services.

Township officials said the agreement continues a shared-services arrangement that began in 2020. The current extension would run from 2026 through 2029, and Montgomery will receive $85,000 in revenue for providing the service.

The committee then approved Resolution #26-6-186, authorizing renewal of active plenary retail consumption, plenary retail distribution and club liquor licenses for 2026-2027. Township officials said all active licensees had met requirements, paid fees and completed inspections.

Resolution #26-6-187 renewed an inactive plenary retail consumption liquor license for Skillman Hospitality, LLC. Officials described it as an inactive “pocket” license expected to be placed into use.

The committee also approved Resolution #26-6-188, renewing inactive liquor licenses for MTC Restaurant I, MTC Restaurant II, MTC Restaurant III and an inactive plenary retail distribution license for MTC Restaurant IV.

Amanda Taylor, representing the license holders, said recent state law requires licenses to move toward active use, but that state guidance allows licenses to qualify for “interim active use” if significant steps are being taken toward activation.

Taylor said the licenses are tied to planned uses at Montgomery Promenade. MTC Restaurant I is under contract for sale to Robinson Ale House in Phase One of the project. MTC Restaurant II is under contract for sale to Maximato Montgomery LLC, which plans to open a modern Mexican restaurant, with construction and opening timelines extending into 2026 and 2027. MTC Restaurant III is expected to be used as part of Phase Two of Montgomery Promenade, and the distribution license is also planned for use at the site.

The committee also approved Resolution #26-6-189, awarding Bid #B04-2026 for 2026 retrofits to stormwater basins at Catbriar Court and Red Fox Run Court.

Township Business Administrator Lori Savron said the project is part of Montgomery’s broader stormwater management work. She said the township owns and maintains many aging stormwater basins and previously received grant funding from the New Jersey Department of Environmental Protection to retrofit some of them.

Savron said the retrofits are intended to improve both water quantity, including flood prevention, and stormwater quality. The work will include changes to the basins and new plantings. She said the project had been delayed while the township awaited the DEP agreement but is now moving forward. The grant is structured as a reimbursement grant and is expected to cover the majority of the project cost.

The committee also adopted Resolution #26-6-190, supporting left-turn prohibitions at the driveway entrance to The Somerset at Montgomery, a new apartment complex north of the Montgomery Shopping Center and movie theater.

Savron said the New Jersey Department of Transportation recommended prohibiting left turns during peak hours for vehicles traveling south on Route 206. The restriction would apply Monday through Friday from 7 to 9 a.m. and 4 to 7 p.m. During those times, drivers would use the shopping center entrance and travel through the connected road network.

Savron said DOT requires a resolution of support from the governing body for a traffic regulation order.

Committee members also discussed pedestrian safety in the area, including the lack of a crosswalk near the Wawa intersection and the anticipated opening of Village Drive. Savron said the Village Drive connection had been discussed by the township’s Traffic Advisory Committee and was expected soon, likely in July.

Resolution #26-6-191 authorized extensions of performance guarantees for various projects. Savron described the measure as routine housekeeping, explaining that the township holds performance guarantees until projects are complete and extends them when needed so funds are not released prematurely.

The committee also approved Resolution #26-6-192, authorizing a one-year contract extension for chemicals used in wastewater treatment. Officials said the township periodically bids for chemicals used at wastewater treatment plants, and this action renews a contract awarded last year.

All listed resolutions were approved unanimously by the committee members present.

Photo Credit: Nicholas Mistretta/headlinenewsmontgomery.com