MONTGOMERY — With an appraisal of the property completed, negotiations are moving forward on the possible purchase of the Skillman Village property by Somerset County.

   The market value of the 256-acre property is $14.135 million as of February 26, according to an appraisal report dated June 1 that was obtained by the Packet.

   The value of the property was discounted by over $2.3 million, the estimated cost of demolishing the remaining 21 buildings on the property, according to the appraisal.

   The Board of Chosen Freeholders expressed interest in purchasing the property in the fall of 2008, after the township’s three finalist redevelopment teams declined to submit proposals for the 40-acre portion of the site slated for mixed-use, which was attributed to the economic downturn.

   The township acquired the property, formerly the North Princeton Development Center, from the state in early 2007, and embarked on a clean up and environmental rehabilitation the site, including the restoration of Sylvan Lake.

   Ninety-two buildings were demolished on the property in the summer of 2007, which were mostly in substandard or unsafe condition. The remaining buildings were boarded up for possible reuse as part of redevelopment on the property.

   The township has about $22 million of debt associated with the purchase and cleanup of the property, according to township Mayor Louise Wilson.

   In the purchase, the township also acquired the adjacent wastewater treatment facility on seven acres, behind the state-owned Skillman Dairy Farm. However, the debt associated with it will be recovered through user fees, Mayor Wilson said.

   Freeholder Director Rick Fontana said the board remains interested in the purchase, and confirmed that it intends to enter into negotiations with the township.

   ”I’m of a thought process that it would be great if we tried to buy it as a park, the whole piece,” he said.

   The Board of Chosen Freeholders will next discuss the issue at its July 14 meeting, by which time a committee may be formed to negotiate with township officials, he said.

   If a deal is reached, the future of the property would be determined through a committee made up of local officials and residents, who would evaluate and develop a master plan for the project, he said.

   A professional would evaluate the property, he said, taking input from the community on its future use, such as active or passive recreation, or the possible creation of a community gathering place such as an amphitheater.

   The township committee has met several times recently in executive session to discuss the future of the property, including a special meeting on June 16, as well as executive sessions after the June 18 and July 1 committee meetings.

   The committee has appointed a negotiating team that consists of Committeemen Brad Fay and Mark Caliguire, as well as township attorney Kris Hadinger and administrator Donato Nieman.

   Councilwoman Kacey Dyer, who originally approached the freeholders last year about a possible purchase of the property, said the appraisal is “great news” for the township.

   ”It’s a great starting point for the negotiations between Montgomery and the county,” she said.

   However, she said the committee is currently divided on whether to retain a portion of the property for future use by the township. Ms. Dyer said she envisions a low-impact, open space park on the property, and she does not support foregoing millions of dollars in revenue in a purchase for the sake of unformed plans.

   ”We need the revenue,” she said. “We need the debt relief.”

   However, Mayor Wilson said she would like to see a portion of the property, perhaps 20 percent, retained for future township uses, which could be educational, cultural, civic or recreational.

   But she recognizes that the situation has changed since the township acquired the property with the vision to turn it into a mix of parkland and village center, with the original village layout maintained, that would serve as a cultural, educational, recreational and civic hub.

   ”The landscape has changed, and I think we’re opened to fresh thinking about what may happen on what the township does continue to control,” she said.

   She would like to see at least a few of the remaining buildings preserved rather than demolished, citing their historic significance.

   ”There’s a really special feeling in the town for Smalley Hall, which is just a really beautiful old structure not far from the Village School,” she said. “It served as a theater, a church and a community meeting place.”

   Ms. Wilson said she hopes that there will be at least one face to face meeting between the township and the freeholders this month.

   ”I do believe we have an opportunity here to come to a general agreement on the framework of the deal sometime this summer,” she said. “Maybe that won’t be possible but I believe if we all work hard and come at it determined to reach an agreement that we will.”

   Mr. Fay said he is “very enthusiastic” about a county park at Skillman Village, and he is eager to sit down with county representatives to discuss the financial terms as well as a vision for the park.

   ”Somerset county has some wonderful parks, and I think that the Skillman Village site would be a fantastic addition to the county park system,” he said.

   He said he sees a wealth of opportunities for passive recreation, such as hiking, on the property, but also for something related to health and wellness or the arts. However, he said he doesn’t want to prejudge the site before receiving further input.

   ”I think this calls for a new round of planning and discussions, and my hope is not only will we get input from the county, but that our residents will be part of it as well,” he said.

   Mr. Caliguire said he also looks forward to talking to the Board of Chosen Freeholders about what their plans for the site. Just a couple of years ago, the property was a “total eyesore,” he pointed out, and it now has the potential to become a county park with low impact use that would be beneficial to residents.

   ”I just think that’s a total home run for Montgomery, as well as the county,” he said.

   However, he said he’s also wary of retaining a portion of the site for future use, and feels the township should seriously consider any offer for a total purchase of the property.

   ”It’s awfully important that we be realistic, in the economic environment that we’re in,” he said. “I just don’t see redevelopment on the property as a viable alternative.”

   If a significant portion of what the township put into the property can be recouped, then “the difference would be money well spent,” he said.

   Mayor Wilson said that despite the difference between a possible purchase price and the township’s investment, she considers it a “vastly better outcome” than a possible 1,000-home development on the property.

   ”When you preserve a piece of property that’s this large and significant and historic, it’s not out of the question that you might leave some money on the table at the end of the day,” she said.

   ksnodgrass@centraljersey.com