Hoboken Preps For Clash With NJ Transit, NY Waterway Over Dock

HOBOKEN, NJ — NJ Transit may be lining up to make a second attempt to purchase the Union Dry Dock in Hoboken after a controversial, aborted effort to buy the property last November.

NJ Transit has proposed buying the property – which is currently owned by NY Waterway – and leasing it back to the privately owned company for use as a maintenance and fueling depot for its ferry fleet on the Hudson River.

NJ Transit’s purchase of the Dry Dock would help NY Waterway fend off an attempt from the Hoboken City Council to use eminent domain to force its sale to the city for the "public good."

• See related article: Hoboken Makes $11.6M Offer To Buy Dry Dock From NY Waterway
• See related article: Hoboken Continues Tug Of War Over Union Dry Dock

According to a NJ Transit special meeting board agenda, the “acquisition and lease” of the former Union Dry Dock property, known as Block 259, Lot 1, in the City of Hoboken, is the only item slated for discussion on Wednesday, April 4.

The public meeting takes place at the NJ Transit Headquarters Building, One Penn Plaza East in Newark at 2 p.m.

Several Hoboken public officials and community activist groups have blasted the potential sale, alleging that the property will better serve the city as open space and that the transaction is taking place "with zero public input by an agency deeply in debt and plagued by safety, fiscal and management problems."

• See related article: Gov. Phil Murphy Orders 'Full-Scale Audit' Of New Jersey Transit

Hoboken Mayor Ravi Bhalla was among those who immediately lined up to denounce the possible sale and lease of the Dry Dock. He released the following statement on Monday:

“Since learning about NJ Transit's intention to acquire this property in Hoboken late last week, I have been in regular communication with the governor's office and other stakeholders. The so-called ‘emergency’ requiring a special meeting is an offer to purchase the Union Dry Dock property made by Hoboken for $11.63 million, which requested a response within 14 days. It was from this offer that NJ Transit manufactured a legal fiction and ‘emergency’ rush to buy the property before the expiration of the 14-day period, based on the false claim that Hoboken would be able to lawfully exercise eminent domain immediately thereafter."

Bhalla continued:

“To put this fear to rest, I extended this 14-day period by 45 days this past Friday, so the parties can discuss a compromise that met the dual interests of NJ Transit to sustain ferry commuter operations for the region, and consider serious environmental, planning, and other concerns from local Hoboken residents about the location of the proposed refueling, repair, and maintenance station. This good-faith offer to find a compromise was rejected by NJ Transit in its letter to me last Saturday night.”

According to the mayor:

“After thoughtful consideration this weekend, I have decided to formally suspend the City of Hoboken's legal effort to exercise eminent domain over the Union Dry Dock property in Hoboken, currently owned by New York Waterway. I am taking this action so that there can be no question that an ‘emergency’ no longer exists, and to allow the parties, including Hoboken, to work cooperatively towards a solution that balances all valid interests.”

Bhalla concluded:

“This decision is in direct response to a proposal Governor Murphy made directly to me last week: suspend or withdraw eminent domain proceedings, and the board meeting will be cancelled so we can all get in a room this week and find a way forward. I wholeheartedly agree with Governor Murphy that we all want to end up in the same place in finding a workable solution for everyone. By suspending eminent domain proceedings, I have met my end of the bargain and respectfully ask the governor to do the same. The emergency meeting should be cancelled so we may find a way forward that considers all legitimate interests.”

Shortly after Bhalla released his Monday statement, city officials announced that Hoboken will be providing a “free bus service” to the April 4 NJ Transit board meeting in Newark. The pickup location will be 1025 Maxwell Place. The bus will depart at 1 p.m., and riders should arrive no later than 12:45 p.m. Participants need bring ID to get into the meeting. Learn more or sign up here.

New Jersey Senator Brian Stack (District 33) issued a statement in support of Bhalla on Monday:

“I commend Mayor Bhalla for making a good-faith effort and accepting Governor Murphy‘s terms to suspend eminent domain proceedings on the Union Dry Dock Property. I am hopeful that the Wednesday meeting of NJ Transit will now be canceled, as such a meeting is not in accordance with the wishes of the residents of Hoboken.”

However, NY Waterway founder Arthur E. Imperatore, a member of the New Jersey Hall of Fame, released an impassioned statement last month about the company’s right to operate a maintenance facility on the Dry Dock property at 901 Sinatra Drive, which it purchased last year for $11.5 million.

• See related article: NY Waterway Founder To Hoboken Council: Leave Dry Dock Alone

According to Imperatore:

“The Union Dry Dock site has been used as a marine repair facility for more than a century. It is the only available site with the zoning required for NY Waterway to operate. There is no other available and suitable facility than Union Dry Dock with deep water, piers and heavy electrical power. It is right in the middle of NY Waterway's core operating area, with commuter ferry routes operating from eight ferry terminals in Weehawken, Hoboken and Jersey City. This central location helps us control our operating costs.

Imperatore added:

"More important, it means our ferries are in the right place in an emergency, such as the 9/11 terrorist attacks in 2001, the 2003 blackout, the 2005 transit strike, Superstorm Sandy and countless disruptions to other transit systems. When these systems go down, NY Waterway must deploy extra ferries to carry more people on an emergency basis. We are part of the public mass transit system.”

An online petition in support of NY Waterway has garnered more than 3,300 signatures as of Monday.

The NJ Transit board’s last attempt to purchase the property resulted in a public controversy when the agency slated the meeting to take place on Martin Luther King Jr. Day, a federal holiday.

• See related article: NJ Transit's MLK Day Meeting Is ‘Disgraceful,’ Mayor Says

The April 4 board meeting takes place three days after Easter.

“It is disappointing that NJ Transit deems it appropriate to send me a letter on a Saturday night before Easter about taking such an action while the district schools are closed for Spring Break and many families – mine included – are away for the holiday break,” Bhalla wrote on Sunday.

“Last year, Governor Murphy called NJ Transit a ‘national disgrace,’” Bhalla said. “Unfortunately, in terms of transparency, actions like these demonstrate that the agency has yet to make the changes it needs in how operates. It’s an insult to the public for NJ Transit to be making such important decisions under the cover of darkness and with no meaningful opportunity for public input.”

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Photo: YouTube / NY Waterway