Hoboken Council Makes 2 Big Moves On Waterfront Development

HOBOKEN, NJ — Eminent domain may once more be in the cards at the site of a proposed ferry repair and maintenance facility in Hoboken.

On Wednesday, the Hoboken City Council gave a tentative thumbs-up to an ordinance that would give Mayor Ravi Bhalla the ability to use eminent domain to force the sale of the Union Dry Dock site on Sinatra Drive.

The council approved the ordinance on first reading by a vote of 8-0.

The site is owned by NY Waterway, a private ferry company that wants to turn it into a repair and maintenance facility. The company claims that it would enhance transportation, public security and property values on the Hudson River waterfront. But a large group of local community members have dug in their heels against the proposed location of the new facility, demanding that the area be used for open space instead.

If approved on second reading on Sept. 4, eminent domain would allow the city to force the sale of the property at a fair market price for the “public good.”

Residents of the Mile Square City may have encountered this storyline before. In 2017, the Hoboken City Council approved the use of eminent domain to buy the property. But last year – at the request of Governor Phil Murphy – Bhalla agreed to withdraw eminent domain proceedings for the Union Dry Dock to engage in "good faith negotiations" with NY Waterway.

The U.S. Army Corps of Engineers and the New Jersey Department of Environmental Protection granted NY Waterway the necessary permits for the project last year. However, last February, the City of Hoboken issued a stop work order to the company, throwing a monkey wrench into its plans.

• See related article: Hoboken Mayor Wants To Revisit Eminent Domain For Dry Dock
• See related article: Court Rules Against Ferry Company On Hoboken Lawsuit

MONARCH SETTLEMENT

During Wednesday’s meeting, the council also gave unanimous approval to another waterfront-related ordinance: the mayor’s settlement with developers over the long-running “Monarch Project” proposal.

According to Bhalla, the deal will temporarily prevent any development by Applied Development Company on two, 11-story high-rise residential buildings along Hoboken's uptown waterfront.

Bhalla previously said the settlement would provide an opportunity for the city and Applied to hammer out a redevelopment agreement to officially transfer the Monarch site to the city over "the next several months." If the council approves that agreement, the Monarch site will be transferred to the city to be used for "open space."

• See related article: Hoboken Mayor, Developer Reach Tentative Deal On Monarch Project

The main terms of the proposed settlement agreed to by Bhalla and Applied include:

• Applied Development Company gives up the right to develop on the Monarch site, a parcel of land along the Hoboken waterfront directly in front of the Hudson Tea Buildings. In exchange, the City of Hoboken will grant Applied Development Company an opportunity to redevelop the Public Works Garage site located at 256 Observer Highway, pending the passage of a Redevelopment Agreement.
• Upon execution of a Redevelopment Agreement with Applied for the development of the Municipal Garage site, the City of Hoboken may take ownership of the Monarch site for the purpose of creating open space.
• Applied Development Company will pay the City of Hoboken up to $1 million for the removal of debris or other public improvements related to this settlement.

In addition, redevelopment of the Public Works Garage site, pending a redevelopment agreement, would include:

• A state-of-the-art facility for the Department of Public Works, paid for and built by Applied Development Company
• 4,000 square feet of retail along Observer Highway
• 264,000 square feet of a transit-oriented rental building, in scale with the neighboring buildings with zero density above what is provided for in the Municipal Garage Redevelopment Plan
• At least 11% of all housing units mandated as affordable housing

Don’t forget to visit the Patch Hoboken Facebook page. Learn more about posting announcements or events to your local Patch site. Send local news tips and correction requests to eric.kiefer@patch.com