Hoboken Spends $1M Fighting Developer, Nears Settlement With Shipyard

HOBOKEN, NJ — After racking up $1 million and counting in legal fees, the Mile Square City is nearing a settlement with real estate developer Shipyard Associates that would prevent commercial/residential development on the waterfront but also allow an increase of 79 units at a complex in West Hoboken, officials say.

According to city officials, the five-year-old court battle between Hoboken and the Hoboken-based Shipyard Associates started over a planned residential development on a platform pier on the city’s north waterfront.

Hoboken opposed the development, which would have resulted in 70 luxury apartments replacing the tennis courts which had once been planned for that location, officials said.

• See related article: Hoboken Will Challenge Court's Decision to Approve Pier Construction

Five other legal disputes with Shipyard and Applied Monroe Lender followed, including a conflict over an effort to increase residential development at the 800 Monroe site on the western side of the city.

So far, the collected lawsuits have cost the city $1 million, which may double if a settlement isn’t reached, officials stated in a Saturday news release.

The Hoboken City Council will hold a public hearing for the proposed settlement on Wednesday, Nov. 2. See meeting info here.

“I understand and agree with the concern many residents have about rising density levels,” Hoboken Mayor Dawn Zimmer said. “I recognize this is a very important decision for our City Council, the Planning Board, and the community, and therefore we are making the terms of the agreement public in advance so that residents can consider the agreement and voice their views at the City Council meeting.”

Editor's Note: City officials issued an update on Tuesday that the settlement agreement has been removed from the Nov. 2 meeting in order to "provide the council and the public with additional time to understand all the facts prior to the council voting on the matter." The agreement is scheduled to be considered at the Nov. 14 meeting.

TERMS OF THE PROPOSED SETTLEMENT

Hoboken Mayor Dawn Zimmer said that the proposed settlement would “ensure that no residential or commercial developments will be built on Hoboken’s waterfront” and guarantee that the city’s three piers won’t be used for any purpose other than public open space.

“As part of the agreement, Shipyard Associates would make a $500,000 contribution to the city, which will be used for cleanup of the platform pier debris, an engineering analysis, and to start the work needed to design and eventually construct a new waterfront walkway park,” Zimmer said.

The proposed settlement would also allow an increase of 79 units at the 800 Monroe site on the western side of the city, 27 of which would be affordable housing units, officials said.

The existing municipal redevelopment plan for the area was approved in the 1990’s and currently permits 186 units of development, but doesn’t have any affordable housing requirements, officials stated.

Under the terms of the proposed settlement, the maximum allowable number of stories at the property will decrease from 14 to 13, but the maximum building height would be allowed to increase by 10 feet.

See the proposed settlement online here.

Photo: Google Earth

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