Montclair Progressive or Corrupt

In February 2023, Mills Memorial Social Services Building, Inc. filed suit against the United Way of Northern New Jersey (“United Way”), Township of Montclair (“Township”) and the NJ Department of Human Services (“Attorney General”) to quiet title on the building located at block 2202, lot 6 and dissolve a restrictive covenant in the chain of title that prohibits the owner, New Jersey Community Capital (NJCC), from mortgaging the property (Civil Case Jacket ESX-L-000912-23).

The United Way transferred the property to NJCC on October 1, 2020 to relieve the organization from building management to focus efforts on social services.

Township plans for Mills Building

The Township of Montclair announced in August 2020 that they would not be building a senior center in the Mills building based upon financial considerations. 

NJCC had planned to execute the improvements the United Way applied for and approved by the zoning board in the May 2020 Resolution 2660. NJCC expected to make the repairs in late 2021.

Through this filing for quiet title, NJCC sought only to have the mortgage restriction removed and did not seek to remove any other restrictive covenants associated with the property, eg. the use of the property exclusively for philanthropic purposes.

Township Hires Riker Danzig

The Township of Montclair then hired Riker Danzig to vigorously attack NJCC’s filing and spent over $40,000 of taxpayer funds in doing so.

On April 19, 2023 Riker Danzig filed a brief in opposition (ESX-C-000017-23) to NJCC’s application, stating, “Indeed, if the property could be mortgaged, it could suffer foreclosure as a result of a mortgage default.” Further, “This use is supported and protected by the mortgage restriction, and to terminate such restriction would, very likely, result in a change so dramatic that the agencies may be ousted from their home-a result the mortgage restriction sought to avoid.”

Riker attorney Derrick Freijomil makes a vigorous argument concerning relinquishment of the property by the predecessor-in-interest that “in all such circumstances, the property may only be transferred to a successor corporation that assumes UCS/United Way’s programs, otherwise to a substantially similar corporation selected by the Commissioner of Institutions and Agencies of New Jersey.”

The Placek Family Foundation does not satisfy this requirement.

Riker attorney Derrick Freijomil also argues that NJCC “provided no evidence that the costs or difficulty in maintaining the building has increased or been rendered “impossible” due to the mortgage restriction.”

The deteriorating condition of the building and the obstacle that the mortgage restriction presented to addressing the state of disrepair is well known to the community.

Near the end of his long-winded diatribe, Freijomil states “While the property owner may not be able to secure funds to repair or maintain the building by way of a mortgage, there are countless other ways for the property owner to obtain such funds, including public grants and fundraising.” His hypocrisy cannot be excused considering Freijomil spent over $40,000 of Montclair resident’s tax dollars.

It is agreed that NJCC purchased the building with the intention of executing the repairs, however, NJCC and all charitable organizations suffered greatly during the pandemic, with many closing their doors and continuing to endure financial hardships to this day as pre-pandemic levels of charitable giving have not been achieved.

Evidently, it is due to the mismanagement of the trust throughout the duration of its existence and failure to properly fund a reserve for repairs that led the United Way and NJCC to this point of desperation.

In fact, the Attorney General (Eillen W. Siegeltuch, deputy attorney general) agreed with NJCC in its April 24, 2023 letter to Judge Alper, that the property was transferred from of all trust restrictions but not the restriction designating the property as a local historic landmark.

In the April 25, 2023 brief, NJCC, explains that neither the State (Attorney General) or United Way took issue with the requested relief from the mortgage restriction and instead the Townshipr “resorts to irrational fearmongering”. Furthermore, “while the property has changed owners, the nature of the building and its use remains the same, a place for all of Montclair’s social welfare agencies to call home”.

In its April 25, 2023 brief, the United Way also vehemently disagrees with the Township’s misguided characterization of prior transfers of the property as presented by Riker Danzig. Furthermore, the transfer of the property from United Way to NJCC was approved by the Township with the purpose of saving the building from disrepair.

In fact, the United Way had consulted with the Township to explore options to “address the building’s increasingly dire straits. Those options included having the Township become a primary tenant through running a senior center there and making the necessary financial investments to do so.”

Placek Acquires Mills Building

In June 2019 after lengthy discussions and meetings between the Township and United Way representatives lasting for over a year, it was agreed that transferring the property to NJCC would be best and moreover, beneficial to the nonprofit community and the township at-large.

However, the Township contradicted it’s earlier action by approving the April 10, 2024 resolution to execute a lease with Placek Family Foundation (“Placek”). Therewith, the Township committed over $1.8 million over a 10 year lease term to occupy 12% of the facility (plus utilities and maintenance) which Placek acquired for $1.4 million.  The Township could have easily taken over ownership but through a labyrinth of legal maneuvering, the property was transferred to Placek with very lucrative strings attached.

Derrick Freijomil responds to the extremely reasonable briefs filed by the Attorney General, NJCC and United Way making ridiculous accusations:

• Motion by ambush
• Untimely and unauthorized submission
• Cherry-picked and redacted communications
• Self-serving submission
• State’s claims are unsupported

At this point, both NJCC and United Way are completely worn down by the ferocity of Freijomil and essentially give-in to the demands of the Township.

Settlement and Release Agreement

Bob Russo was first elected to the Township council in 1992 and served as on the council until 2024. He also served as mayor from 2000 to 2004. The first time Bob Russo heard about this litigation was at the November 21, 2023 council meeting, during executive session. After the council returned to the public session, Resolution R-23-288, authorizing the Township to enter into a Settlement and Release Agreement with Mills Social Services Building, Inc., was approved.  Freijomil conducted this clandestine litigation without prior authorization by the council.   

The Settlement and Release Agreement claims that the Placek Foundation “constitutes a successor corporation…which is “succeeding to the functions, purposes and programs formerly pursued by the [Community] Chest”. Furthermore, Exhibit A “Amended & restated Declaration of Restrictions” states “Now, therefore, the undersigned parties…agree as follows: 2a. the property shall be owned by a non-profit charitable entity.”

Placek Family Foundation

The name “Placek Family Foundation” misleads the public into the assumption that the entity is a charitable organization or Family Foundation that is charitable in nature. But nothing could be further from the truth.

The Placek Family Foundation (“Placek”) was incorporated as a New Jersey nonprofit corporation on December 29, 2017.  The status of “New Jersey nonprofit corporation” does not confer tax-exempt status, create a charitable entity, or grant recognition of tax exemption. There is no record that the Placek applied for tax exempt status with the Internal Revenue Service as is required in order to be classified as a non-profit charitable entity (public charity or private foundation) under IRC 501(c)(3).

Schedule B to the Amended & Restated Declaration of Restrictions granted Placek an option, the Non-Exercise of Right of First Offer to the Township of Montclair (the grantee) freeing Placek to sell the property to any third party at fair market value.

Status

As of the date this analysis is published (November 2025) the Township has cancelled the ten (10) year lease previously authorized in April 2024 and with it the promised Senior Center. And Placek continues to negotiate with the Township to sell the property back to the Township for a staggering $10 million.