Hoboken ‘Improvement District’ Approved, But Some Residents Worry

HOBOKEN, NJ — The Hoboken City Council has officially approved a Special Improvement District that’s predicted to give a shot in the arm to local businesses and property owners. But some community members are questioning whether the reality will live up to the expectations.

During their Wednesday public meeting, the City Council voted 8-1 in favor of a special improvement district (SID), a legal mechanism that allows a municipality to collect a special assessment on the commercial properties and/or businesses in that area. (Learn more about SIDs in New Jersey)

Hoboken’s SID – which will be administered by a nonprofit called the Hoboken Business Alliance – will be allowed to collect an assessment from property owners. Those funds will then be reinvested back into the neighborhood.

Investments could include “streetscaping, street fairs and marketing tools for businesses,” according to Hoboken Mayor Ravi Bhalla, a supporter of the SID.

A feasibility study for the Hoboken SID was released in June. (Read the full report)

Hoboken’s SID will carve the city into eight separate areas, which will be assessed at different rates decided by the Hoboken Business Alliance.

For example, businesses on Washington Street will be given a different assessment than a business on the west side of the city, with businesses on main commercial corridors like Washington Street, 1st Street and near Hoboken Terminal given a higher assessment, Bhalla stated.

The areas include:

• Washington Street
• South Waterfront/Terminal
• First Street
• Fourteenth Street
• North Waterfront
• North Gateway
• South Gateway
• Hybrid/Remaining Properties

On Thursday, Mayor Bhalla said the new district is a “game changer” for the city.

“The SID has been a proven way to help revitalize commercial corridors across New Jersey, and will play an important role in promoting economic growth and support to our local small business owners,” Bhalla said.

Bhalla previously said said the development mechanism has proven to be successful in more than 90 cities across New Jersey, including seven in neighboring Jersey City.

Councilwoman Tiffanie Fisher, another supporter of the SID and a member of the steering committee, also referenced the success of Jersey City’s SIDs in a June email.

“Much of what you read about the thriving parts of Jersey City relates to the many SID’s they have in different commercial areas,” Fisher stated. “Unlike Jersey City though, Hoboken will just have one incorporating the entire city.”

Other members of the SID steering committee included about 15 commercial property and business owners such as the owner/landlords of Elysian Café/Amanda’s, Hoboken Business Center, Little City Books, LaIsla/Sparrow’s, Roig Art and Swift Interiors, as well as representatives of SJ Properties, Pegasus Properties and Bijoux Properties.

“The Hoboken Business Alliance SID can be the driver behind economic development in Hoboken and address things like vacant stores on Washington Street and what is needed to attract more people to support our small businesses and commercial properties city-wide,” Fisher wrote.

However, there are those with their doubts about the city’s new SID, including Councilman Michael Russo, who provided the sole dissenting vote on Wednesday.

Referring to a large group of people who showed up at the meeting to question the SID, Russo said that many of his constituents in the 3rd Ward don’t want any part of the new entity.

“Most of the people who came here tonight are 3rd Warders, people saying they don’t want to be included in this… multiple residents have called me and emailed me to say no to the SID,” Russo told his peers.

During public comment, several 3rd Ward residents took to the floor to express concerns about possible higher taxes without enough benefits to justify them, Hudson County View reported. (See below video)

The Hoboken Business Alliance’s initial budget is expected to come in at $1.35 million, NJ.com reported.

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