Merck's Union NJ Facility (Legacy Schering-Plough) Subject Of Kean Family Trust Dispute -- Under 80 Year Old Documents

Well, finally! There's finally some colorful legacy Schering-Plough crunchie-newsie goodness. It turns out that the legacy Union facility on Morris Avenue has been leased for over 80 years from various scions of the Kean family of New Jersey. [Apparently as recently as 1986, however, Schering-Plough purchased the land from the Keans but in the process had to give a right of first refusal to a Kean trust to buy it all back.] Now Kean University is seeking to re-purchase 44 acres of the facility, under this right of first refusal -- one that arose from a lease dating from prior to the nation's entry into World War II.

The goofy wrinkle here is that something called Russo Investments claims that right died when the Kean family trust holding it lapsed in 1997. Is Russo Investments in any way affiliated with Schering-Plough director Patricia Russo (now a Merck board member)? I'd doubt it -- but we will look into that some other day. Naturally, the Russo-affiliates want to slip into the Kean shoes, and acquire the Morris Avenue Merck facility for a mixed use retail and residential complex. Kean would love it, because it is literally across the street from the University's main campus (pictured at right). Should be a good tug of war, here.

Here's a bit from NJ.com, do go read it all -- fun family first refusal feuding -- in NJ:

. . . .At issue is whether John Kean, a descendant of the family that has helped shape New Jersey’s political landscape, held the right of first refusal – which he transferred to Kean University – to buy the parcel. Russo, which was set to purchase the property for retail and residential development, is suing, saying it should be the rightful buyer.

The right-of-first-refusal provision was included in a deed when the Kean family sold a portion of its vast estate to Schering-Plough in 1986. Schering, which merged with Merck in 2009, had leased the property from the family since the 1930s. Kean University’s main campus, across the street from Merck, was also once part of the Kean estate.

While Merck was working out a deal to sell the property to Russo for more than $6 million, John Kean transferred the right of first refusal to Kean University, edging out Russo. The school decided to try to buy the parcel, which is across the street from its main campus, and has been in talks with Merck about the terms of a sale. . . .

Union Township is also a party in the suit because it doesn’t want to see the property go to Kean University. The township stands to lose nearly $1 million in revenue if the school – which is exempt from paying property taxes – takes ownership. . . .

This might be a fun bit of street theater. We will keep an eye on it. Happy Friday, one and all. Off to ASCO!