"In the preservation world, the term is 'demolition by neglect,' " said Brad Lay, president of the Van Harlingen Historical Society, a local heritage group. "The state is, through neglect, demolishing these buildings. Through not making a decision, they're making a decision, and we're seeing a real preservation tragedy as a result."
As the village deteriorates, its neighbors imagine a better future. Former Mayor Don Matthews uses his own tractor to mow the hip-deep weeds that are choking off one of two cemeteries where patients were buried. A local Rotary club tends to the other one. Members of Sourland Hills Actors Guild, a community production troupe, look longingly at Smalley Hall, a grandiose theater complete with balconies, dressing rooms and even an old ticket booth. If Montgomery buys the property, they would like to bring new life to the stage inside.
"It's sort of like a 'Phantom of the Opera' feeling in there," said Debbie Meola, a founding member of the guild. "Kind of like, 'Wow, if this place could talk.' "
Perhaps most poignant, the Epilepsy Foundation of New Jersey wants to refurbish Maplewood, a Greek revival farmhouse on the property that is listed on the State and National Registers of Historic Places.
"We hope to see a museum and learning center about the origins of epilepsy and how it's been handled in the United States," said Eric Joice, the foundation's executive director. "We've been very much zeroed in on the Maplewood building, because it was the very first building. It was the institution in Year 1, it was the sum total of it. Our position has been thousands of people were residents of this particular institution and they really represented how we treated people at a part of time, and how we continue to treat some people even today."
Montgomery officials imagine readapting some of the old buildings to creating a town center with parks, shops, health care facilities and housing for seniors. "If you look at the whole site, it's potentially Montgomery Township's cultural, recreational and civic hub," Ms. Wilson said, "a place where people can come together for fine and performing arts, for a good meal, for a picnic, a place where your whole family can go and spend the day together. Montgomery is one of the places that's called a poster child for sprawl. We grew really fast in the 1990's, and now we want to be a poster child for what to do about it."
One of her biggest concerns is that the property will be sold to a developer and become a new annex for suburban sprawl. Though developers have taken a keen interest in the land and have been approaching the Treasury, state officials say that they have not solicited any recent proposals.
"I think, early on, it was assumed in light of the budget crisis, the biggest return to the state would be from offering the parcel for development," said Mr. Campbell of the D.E.P. "In light of concerns raised from both the town and the D.E.P., the treasurer has been amenable to the town's proposal for alternative uses for the site."
When the town first filed its lawsuit in December, talks with the state skidded to a halt. Mr. Tom Vincz, a spokesman for the Treasury, said at the time that his department would not negotiate with Montgomery while being sued. Over the past two weeks, however, both sides have agreed to try settling the matter out of court with nonbinding arbitration. Mayor Wilson hopes the dialogue will go past the terms of the lawsuit and settle future ownership of the site. "Our intention with mediation is to address the whole enchilada," she said.
Mr. Vincz, however, said the mediation process would only tackle the environmental issues raised by the lawsuit. He added that the state had started to explore options for fixing up the site and had already started to repair an aging sewage plant that serves Village Elementary School. "The state wants a sale, not a stalemate, and the residents want the same thing," he said. "Pointing fingers doesn't get us there. Cleaning the site up will."
State officials have yet to fix a timeline for a cleanup. So the wrangling continues, and the site's future remains as murky as its past. "You think of ghost towns, and you think of the Wild West, but here's a ghost town in the middle of New Jersey," Mr. Lay said. "The unfortunate fact is the community around it wants to save it, and hasn't been able to. We're just standing on the sidelines watching it decline."
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