Matzel & Mumford's proposal to build a 76-unit luxury townhouse community won out over eight other developers who proposed a variety of uses, including offices, a mix of residential and offices, and even a Methodist seminary. Density was an issue.

"The town originally limited the number of units to 130, but during our negotiations, everyone agreed that a smaller number would be appropriate," according to David Fisher, vice president of land development for M&M. "What we eventually came up with is less density, larger units and a high-end enclave with a sense of community, but that relates well to the area."

The project, located in a very historic part of this Morris County seat, will feature Colonial architecture. The site is located close to the Ford Mansion, which served as Gen. George Washington's headquarters in the winter of 1779 and survives today as a museum.

M&M expects to begin construction in about a year, once all permits and approvals are in place. Initial occupancy is planned for 2003.