Last year, Union County approved preliminary plans to build a new county government complex in Elizabeth at a cost of up to $145 million.
In Bergen County, officials moved ahead on a major $80 million renovation of the historic Bergen County Justice Center.
But a New Jersey developer alleges both counties broke the law in their handling of the two multi-million-dollar projects, filing separate lawsuits that called into question how the contracts for the publicly funded efforts were being awarded.
In the complaints filed earlier this week in state Superior Court in Bergen and Union counties, Wayne-based Dobco claimed that the projects were conceived “without any intent on awarding the contract to the lowest responsible bidder.”
The company sought restraining orders against both counties.
“Our position is that the Local Public Contracts Law is intended to avoid corruption, favoritism, and to promote competition,” said attorney Greg Trif of Morristown, who represents Dobco.
According to the lawsuits, Dobco said the counties ignored the public bidding requirements of New Jersey’s Local Public Contracts Law by instead going through the state’s Local Redevelopment and Housing Law in the soliciting of requests for the design and construction of the projects.
In both cases, a county improvement authority was used as the vehicle to redevelop the properties.
It is not clear whether improvement authorities acting as redevelopers are bound by the state’s mandates on bidding under the Local Public Contracts Law. Experts say the issue has not been successfully challenged in court.
But according to Dobco’s court filings, state law requires every contract awarded by the counties, and their improvement authorities, with few exceptions, to be awarded “to the lowest responsible bidder after public advertising.”
The complaint said that when county improvement authorities use public funds to construct public facilities, they are obligated to comply with the public bidding requirement.
David Minchello, an attorney to the Union County Improvement Authority, dismissed the claim, or any assertion that the board or the county did anything wrong.
“Both the County of Union and the Union County Improvement Authority have engaged in a multi-year process to review its space needs and ensure open and transparent competition in the selection of a developer of a new administration building,” Minchello said in a statement. “Dobco voluntarily participated in this competitive process, without objection, and was not selected to move forward for consideration. It is disappointing that they have now sought meritless litigation in an attempt to reinsert themselves into the selection process and gain an unfair advantage over their competitors.”
He added that the county and improvement authority “have complied with all applicable laws and look forward to defending its process in court.”
A Bergen County spokesman said the county and the Bergen County Improvement Authority do not comment on pending litigation.
“However the BCIA redeveloper designation for the county’s historic courthouse will ensure the highest level of necessary expertise and savings to taxpayers,” said Michael Pagan.
He said overall restoration project of the courthouse project is a multi-year endeavor that started prior to the county’s current administration taking office, and encompasses multiple phases of renovation and rehabilitation of the entire court facility.
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Ted Sherman may be reached at tsherman@njadvancemedia.com. Follow him on Twitter @TedShermanSL.