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McLoone's Woodbridge Grill at Favorites off-track wagering in Fords.

(McLoone's Restaurants)

HILLSBOROUGH — The site of the former Maestro 206 restaurant, vacant since early 2012, could reopen by summer as an upscale dining, drinking and horse race betting parlor — but its approval may rest in the state's hands.

McLoone's Woodbridge Grill at Favorites off-track wagering in Fords.

McLoone's Restaurants and Darby Development, the corporate arm of the Monmouth Park race track of Oceanport, are partnering to bring upscale dining, drinking and off-track wagering to Somerset County.

The establishment is expected to be similar to the McLoone's Woodbridge Grill within the New Jersey Sports and Entertainment Authority's Favorites off-track wagering location in Fords. In 2012 the parties also partnered for McLoone's Bayonne Grill and wagering location.

Hillsborough Mayor Doug Tomson confirmed that on March 11, the Hillsborough Township Committee passed a resolution transferring Maestro 206's liquor license from Pragati Spirits LLC to Monmouth Park Spirits LLC, for use by the new establishment.

But Tomson said the township has no approval over the project because state legislation put regulation of off-track wagering in the hands of the New Jersey Racing Commission, allowing such businesses in commercial and industrial zones.

But he still wants the public to know what McLoone's and Darby are proposing, and to be involved in the process.

Tomson said the committee has been doing its due diligence on the proposal, including having Hillsborough Police Chief Paul A. Kaminsky speak with Woodbridge Township's police chief to see what kind of a neighbor McLoone's has been.

"He said it's very clean, and with very good security," Tomson said.

Tomson made a personal visit to McLoone's in Woodbridge to see what to expect.

"You get a real sense of what it will be like in Hillsborough," Tomson said. "It's not off-track betting like in New York City, it's a restaurant first, and a betting parlor."

McLoone's Woodbridge Grill at Favorites off-track wagering in Fords.

The establishments are eligible for an exemption that would phase in over five years from 20 percent to 100 percent of the full property tax amount payable each year.

The Maestro property at 150 Route 206 South paid $41,564 in property taxes in 2013, according to Anthony Ferrara, township administrator.

But the township committee introduced an ordinance at its March 11 meeting allowing it to offer McLoone's a "payment in lieu of taxes," or PILOT, which lets the two parties negotiate an agreeable annual payment that would also rise to the full property tax amount over five years.

He said that the township has negotiated a $32,000 annual payment from the McLoone's Darby joint business, with about $3,000 of that going to the county. But the PILOT agreement can't be confirmed until after a March 25 public hearing and subsequent committee vote.

Tomson asked the development team to show the committee and residents a presentation on the project at the March 25 township committee meeting, although it has not yet confirmed an appearance.

The state Racing Commission is expected to announce a public hearing with McLoone's and Darby sometime in April, which will likely include a more formal presentation.

Tomson, a lifelong Hillsborough resident, said that he's seen the Maestro 206 site change hands many times over the years, but he's optimistic that an upscale restaurant with betting on the side would do well.

"I think having name like McLoone's in town is going to be great," Tomson said. "The ratables are certainly appreciated, but after visiting the Woodbridge location, I'm not concerned about the betting anymore."

Tim McMahon, president of McLoone's Restaurants, told NJ.com Tuesday that the plans for Hillsborough will be similar in style to the Woodbridge location, but smaller.

"I think this is the direction these next ones are going to go, as opposed to 23,000 square feet in Woodbridge," McMahon said. "Everything has been done to stay within the footprint to expedite things — it's 9,000 square feet. I think this will be a more efficient model moving forward."

"It's been a fantastic experience for us," McMahon said. "We're thrilled to be involved in the horse racing side of it, being key players in the industry's rebirth as everyone focuses on getting a younger demographic. In our restaurants, regulars visit us twice a month, but here we have regulars in five, six, seven days a week."

McMahon said that the state and McLoone's had a "dramatic episode" when they tried to open a Green Brook location at a former Saturn dealership on Route 22 but were rejected by the township and its residents based on concerns about traffic, parking and betting. BEGIN RELATED LINKS

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"We bought the liquor license and then it came to a screeching halt," McMahon said. "There's a level of assurity that it's going to move forward (in Hillsborough) but you never know until everything is done."

"Our branding and partnership with the state and Darby Development has been great for both companies," McMahon said. McLoone's brings a certain level of expectations the guests are going to have — the facilities are beautiful. The ambiance is literally the opposite of an OTB parlor in New York City and that catches people by surprise."

McMahon said another plus for the township is employment, since McLoone's hires from the immediate area of each location.

"We've directed people to our website with a sign at the location," McMahon said. "We've had a flood of applications from Hillsborough already."

McMahon said he is "hopeful" for a May or June opening. Monmouth Park opens its thoroughbred season on May 10.

"A number of things have to happen, but we're not driving the schedule," McMahon said, referring in part to the township and Racing Commission public hearings. "We're at the beck and call of Darby Development, but we'll be ready."