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N.J. Self-Storage Developer Requests Reduced Cash Holdover

A self-storage developer who was approved to build a new project in Upper Freehold, N.J., has asked to forgo paying the usual 10 percent of performance bond in cash.

A self-storage developer who was approved to build a new project in Upper Freehold, N.J., has asked to forgo paying the usual 10 percent of performance bond in cash. In October, the planning board gave Yong Sim the green light for to build nine self-storage buildings and an office building on his 23-acre property. Last week he sent a letter to the township asking to not holdover $100,000 in cash for the project.
 
The cost of the project has been estimated at $961,484 and the performance-bond amount at $1,153,781. Sim would like the township to reduce the cash payment to 2 percent, or approximately $23,000, and increase the bond amount. He said the nearby town of North Hanover permitted him to bond for the entirety of a similar facility he built there.
 
Upper Freehold Township adopted the ordinance requiring 10 percent of a performance bond in cash years ago. Sim may be the first to ask for a reduction in the cash portion of the payment, though the township recently returned $460,000 in cash to a developer for a project that took several years to build.
 
Mayor Stan Moslowski Jr. said granting Sim’s request is not a good precedent for the township.
 
Sim has lived in the area since 1974.
 
Source: Millstone Examiner, Storage facility developer asks to pay less cash up front

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