Plans For Hoboken’s Hilton Hotel May See Big Changes

HOBOKEN, NJ — “Revised plans” to bring a Hilton hotel to the Mile Square City have gotten their first Hoboken City Council subcommittee briefing, and the project may not be the slam dunk that Mayor Ravi Bhalla is hoping for, its members reported Monday.

According to a City Council subcommittee tasked to evaluate the proposed project, Bhalla and KMS Development Partners have agreed to a “tentative” deal regarding new plans for the proposed 349-room hotel. KMS had originally lobbied to build a 20-story, full-service hotel behind the Frank Sinatra Post Office near Pier A Park, which would also include an onsite restaurant and bar, a rooftop event space, an off-site valet guest parking and a fitness center.

But now, there may be some significant changes coming. According to a joint statement from the committee – which includes council members Peter Cunningham, Mike DeFusco, Tiffanie Fisher and Jen Giattino – proposed modifications include:

• “Changing the overall architectural feel of the project by adding three more stories to the plan that the mayor announced in April and 20% more bulk and square footage than what was previously approved in 2017 by the City Council”
• “In exchange for this increase, KMS will provide $3 million in cash to Hoboken for community benefits which currently have been earmarked by the mayor to two, private nonprofits”

The mayor is expected to ask the City Council to approve these changes at the Wednesday, Oct. 17 meeting at City Hall, 94 Washington Street, the committee members stated.

The members of the subcommittee emphasized that they each support the efforts of the selected nonprofits that would benefit from the deal: the Hoboken Public Education Foundation (which raises private money to invest in local public schools and would get $1 million) and the Hoboken Community Center ($2 million for the potential restoration of the former YMCA).

However, the committee members questioned the deal’s “narrow focus of these large contributions” and “the lack of any public process.”

The committee also took issue with “the fact that the use of the funds will not be directed by any elected officials -mayor, school board or City Council - and that offsets to the myriad of near-term financial commitments to be paid by taxpayers were not considered.”

According to Monday’s joint statement:

“The subcommittee recommends broadening the scope of the $3 million while still including both the Hoboken Public Education Foundation (HPEF) and Hoboken Community Center (HCC) as recipients by: supporting the education mandate but expand to include all public schools including charter schools; allocating a significant amount into the city’s Capital Fund and dedicate those funds specifically for planned infrastructure improvements and other large scale capital projects like the Multi Service Center, Northwest Park and the proposed HCC when their plans are finalized; and contributing to the Affordable Housing Trust Fund which has been underfunded for years. Additionally, the City Council requests KMS to contribute $75,000 directly to HCC at the onset of construction (expected to be in early 2019), as opposed to after the hotel opens in 2 to 3 years, so that HCC can fund its much-needed feasibility study as soon as possible.”

A news release from Bhalla’s office stated that the mayor plans to host a press conference on Tuesday to announce the details of “a new multi-million dollar partnership between the City of Hoboken, KMS Development Partners, the Hoboken Public School System, the Hoboken Public Library, the Hoboken Community Center to bring 170 union jobs to Hoboken, revitalize community spaces, and expand public programs.”

Patch has reached out to the mayor’s office for comment and will include any reply we receive in this article.

• See related article: Hilton Hotel In Hoboken? Here's What The Internet Thinks
• See related article: Hoboken Hotel Could Generate $21.4M A Year For City, Developer Claims

BENEFITS TO THE CITY

Bhalla has previously argued that the hotel will bring numerous benefits to the city, including $1.7 million in annual tax revenue.

According to KMS, which created a website specifically to tout the proposal and answer local residents' questions, the new hotel would bring the following benefits to the city:

• "The new Hoboken Hotel would generate $21.4 million annually in the City of Hoboken in the form of total expenditures generated by guests spending outside of hotel and ongoing hotel operations"
• "The new Hoboken Hotel would support 120 Hoboken jobs through guest spending and by ongoing hotel operations"
• "The new Hoboken Hotel would generate $1,773,091 in real estate, hotel and school taxes annually to the City of Hoboken and the Hoboken School district"
• "The new Hoboken Hotel would generate $703,993 in new taxes to Hudson County"
• "The new Hoboken Hotel would generate $3,034,566 in new taxes to the State of New Jersey"

The site is also currently zoned for a hotel, and conforms to the Hoboken Master Plan, which specifically encourages the development of hotels in this area near the Hoboken Terminal as well as diversifying uses at the Post Office including moving the more "industrial" operations, developers said.

"The lot is greatly underutilized and as federal property it generates zero school and real estate taxes for the city," developers stated.

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

Artist's rendering via hobokenwaterfronthotel.com