A New Jersey municipality that sought to block construction of a residential development has agreed to withdraw its objections and to pay $130,000 in legal fees to the developer. The settlement, ending a lawsuit in Monmouth County Superior Court, stands as a cautionary tale for elected officials attempting to usurp the powers of the local planning board.

In 2018, the planning board in Howell Township granted approval to a proposal for 100 age-restricted units on a 58-acre parcel. But the so-called developer’s agreement, which covers financial terms between the township and the developer, as well as the timing of the project and implementation of the planning board’s conditions, falls in the purview of the township council. Members of the Howell town council voted down the developer’s agreement, which meant the project could not get building permits and construction could not begin.