Hoboken Mayor Wants To Revisit Eminent Domain For Dry Dock

HOBOKEN, NJ — After months “without any movement on a compromise” between the City of Hoboken and NY Waterway, Mayor Ravi Bhalla is revisiting a possible twist for a controversial, proposed ferry facility: eminent domain.

Last week, in the face of stagnating talks with NY Waterway over a ferry repair and maintenance station at the Union Dry Dock property, Bhalla suggested that the city resume its prior efforts to seize the land under “eminent domain,” which forces a property owner to sell at a fair price in the name of the public good.

NY Waterway wants to build the facility at the Dry Dock property at 901 Sinatra Drive in Hoboken, which it purchased for $11.5 million in 2017. But despite the company's claims that the facility would enhance transportation, public security and property values on the Hudson River waterfront, local community groups and elected officials – including Bhalla – have dug in their heels against the proposed location of the new station, demanding that the area be used for open space instead.

The City Council approved the use of eminent domain for the property in 2017. But last year – at the request of Governor Phil Murphy – Bhalla agreed to withdraw eminent domain proceedings for the Union Dry Dock property to engage in “good faith negotiations” with the ferry company.

That good faith may be drying up, Bhalla said last week.

“While my preference is to accept a compromise solution that doesn’t jeopardize the health, safety and well-being of residents with a heavy refueling station, the lack of any real progress in negotiations with the governor’s office, while NY Waterway engages in a propaganda public relations campaign and simultaneously suing the city, is discouraging,” Bhalla said.

According to Bhalla, some of the city’s “good faith offers and concessions” have included:

• “Partnering with NY Waterway to identify an appropriate location for their refueling station”
• “Holding off on eminent domain proceedings to continue negotiations with the governor’s office”
• “Purchasing the Union Dry Dock property for a fair price, saving NJ Transit over $11 million”
• “[Offering] a lease to New York Waterway while they develop an alternate location”

“Negotiations are a two-way street, and my administration has gone above and beyond to accommodate the requests of the governor’s office,” Bhalla continued. “However, given the lack of progress, we must protect the interests of the City of Hoboken. Now is the time to once again begin eminent domain proceedings so we don’t lose the opportunity to transform Union Dry Dock into a public, waterfront park for good.”

According to Bhalla, last week, a city appraiser was granted access to Union Dry Dock to come up with an updated figure for the property.

“This is a necessary and required first step to bring back eminent domain proceedings before the City Council to directly acquire the land,” Bhalla said.

• See related article: Hoboken Nonprofit, Ferry Company Clash On Dry Dock (Op-Eds)

Story continues below

‘SAFE, RELIABLE, ENVIRONMENTALLY FRIENDLY SERVICE’

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 NY Waterway, throwing a monkey wrench into the company's plans.

Earlier this month, NY Waterway announced it filed suit against the city in Hudson County Superior Court. The lawsuit would clear up the logjam and allow the company to continue transforming the Dry Dock, spokespeople said.

• See related article: Battle Continues Over Ferry Station; NY Waterway Sues Hoboken

"NY Waterway must be allowed to repair and maintain our ferries at Union Dry Dock so that we can continue to provide safe, reliable, environmentally-friendly service to more than 30,000 New Jersey commuters each day, and be ready to respond quickly in an emergency," president and founder Arthur Imperatore said.

"We own this property and have been paying taxes on it for 18 months," Imperatore stated in the court complaint. "We have the necessary state and federal permits and the site has the proper zoning. Yet Hoboken politicians are preventing us from doing our job. We respectfully ask the court to rectify this injustice."

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