The Hoboken City Council voted unanimously (7-0) to table two partial settlements in the Western Edge lawsuit that has been ongoing for nearly three years at last night’s meeting.
By John Heinis/Hudson County View
“This action implicates a City of Union City gem and something that’s been determined by our court to be a national treasure that’s been intentionally preserved and that is the Palisades, the cliffs of the Palisades,” began Vincent Ferrera, an associate at Chasan Lamparello Mallon & Cappuzzo, PC who represents Union City in the matter.
” … And this settlement will directly impact your immediate neighbors of the residents of Union City, as well as your own constituents in Hoboken … Two of the council members have chosen to recuse themselves in the vote on this matter. I would rhetorically ask I hope they recused in executive session as well because that is an essential part of the litigation that is purportedly being settled tonight. It’s not being settled tonight.”
Council President Jen Giattino and 4th Ward Councilman Ruben Ramos recused themselves from the matter on the advise of counsel. Union City has made the contention that they are conflicted from voting.
Ferrera continued that the settlements for Just Block 106 and Just Block 112 were misleading, since it would not actually end Union City’s involvement in the litigation, as well as that he felt it was hastily out together since renderings were not attached.
He also pointed out that in a May 23rd, 2020 letter from Hoboken Mayor Ravi Bhalla to Union City Mayor Brian Stack, also the state senator of the 33rd Legislative District, Bhalla said that he wanted to work together on the Western Edge.
“We want to be good neighbors and you have my commitment that not only will we work with you in good faith as the process advances, but I will not sign any redevelopment agreement until you have read and are comfortable with the plans,” he read into the record.
“I hope this information’s helpful – what happened to that tone? We’re over here with two days notice on this remarkable settlement that’s been ramrodded through without proper due process as far as the underlying litigation goes. Union City intends to continue its claims, which seems further fleshed out by the recusals tonight and those council people, and other of you sitting on this dais will be deposed in this action.”
According to the settlement agreements, Pegasus Partners would be able to build a total of 1,282 units, with 10 percent of the Block 106 units allocated for affordable housing, along with permitting five additional stories, among other things, as HCV first reported.
George Grafstein, the attorney for 400 Palisades Development LLC, said he’d never heard of a municipal settlement that favors one side so heavily.
“I’ve had the chance to review this agreement earlier today. The agreement gives approval to unknown plans, an unknown amount of buildings that are gonna be built on this site, it gives away public property to be used as part of the greenery requirement of the building,” he began.
“It’s allowing more height, more density, more open space, the developer was granted his easement again as I spoke about. The LEED certification is being excused. The city’s receiving less funding for the community benefit and they’re receiving the lowest possible PILOT payment, so the city is losing in every monetary way possible.”
Arthur Neiss, an attorney for Beattie Padovano who is representing UCMH Terra Heights in the matter, said he has just been retained earlier in the day, but nonetheless, he still objected and asked the council to give the public time to review the plans.
He also said that “our interests have been severed and they also should have not been,” and was clear that his client “objects strenuously” to the partial settlement agreement.
3rd Ward Councilman Mike Russo said he’s been committed to this settlement for years at this point, however, he could not support what was being proposed before the governing body on Wednesday evening.
“I still believe that there is a good settlement to be had, I just don’t believe that these terms are the right terms for that settlement. There are other options for us,” he said to light applause.
“We are increasing density, we are increasing height, we have the ability to defer those units over a larger portion of the City of Hoboken by having conversations with different parcels of land being brought into this conversation. Those are ideas that I think were on the table at one point and fell off the table for whatever reason. And I think it’s still a viable option.”
He also said the developer could be compelled to provide parking, veteran housing, and senior housing, none of which exist in the proposal before them.
2nd Ward Councilwoman Tiffanie Fisher said she also would not support the current settlement, noting that the council approved a Western Edge agreement in July 2020, but Bhalla decided to change his mind.
“A year later, the mayor decided he wasn’t gonna uphold his support of the project and they put out public statements threatening the developer and he told a number of people that the reason why he could no longer support was because Mayor Stack in Union City threatened to run somebody against him for mayor that year,” she asserted.
“Right, so for political expediency, we’re in this mess. And let’s talk about financially what this means. Right, so originally we had 158 feet that was approved, we had a $6 million community benefit payment towards a swimming pool, community center, whatever we wanted to do, he pushed the developer, threatened the developer to bring it down and he wouldn’t … and now we’re at 158 feet plus 50 feet.”
She continued that the developers, who she called friends, would likely receive $150 million in the value of the project with this current settlement, all at the expense of the taxpayers all because Bhalla changed his mind.
“I don’t even know how the mayor can sign this, because when you make a choice like that, to benefit yourself, that’s a questionable criminal and ethical standpoint. So I’m gonna vote no on this tonight … First of all, I think the mayor should step down over this, this is a terrible, terrible deal for Hoboken and is doing it for his own benefit,” Fisher added.
In another added twist, 1st Ward Councilman Paul Presinzano said he’d like to head back to closed session to have questions answered before he votes. Russo seconded the motion to return to closed session, which lasted about 40 minutes.
Upon return, 5th Ward Councilman Phil Cohen, he sponsored the resolution, made a motion to table, which was seconded by Russo. The motion was approved unanimously (7-0).
Funny how Hoboken is always asked to be a good neighbor while Union City, Jersey City and Wehawken are not. Something to remember when the political bosses Stack and Fulop of those other municipalities show up asking Hoboken residents for their vote.