The Hoboken City Council voted to settle the first part of the Western Edge redevelopment litigation that includes a 30-year payment in lieu of taxes (PILOT) agreement that comes with no union labor agreement.
By John Heinis/Hudson County View
“In Chapter 23, if a project gets PILOT, or some sort of a tax abatement, they’re required to enter into a building service workers agreement. What this settlement agreement essentially does is, as part of the settlement agreement, waives that requirement,” explained Hoboken Director of Community Development Chris Brown.
” … It waives the requirement, it makes it not required. So the developer could have that choice, will have that choice, if they decide to go forward with it, but they’re not required to.”
The settlement has been on the table for several months after Pegasus Partners filed a lawsuit in Hudson County Superior Court in October alleging that Hoboken allowed Union City to interfere with the height and scope of the project at 1200-1330 Madison St.
The resolution before the council, sponsored by 5th Ward Councilman Phil Cohen, says that Block 106 would not exceed 145 feet in height above sea level, would allow them to increase their units from 701 to 801, require the developer to pay $2 million in community benefits, and an annual service charge equal to 10 percent of annual gross revenue.
Councilman-at-Large Jim Doyle acknowledged that this has been a long, arduous process, but said that he could not support an outcome that takes union labor off the table.
His colleague, Councilman-at-Large Joe Quintero, said this was a very difficult decision and was unsure how he would vote at that moment, while 4th Ward Councilman Ruben Ramos said that they shouldn’t lose sight of the fact that Union City put them in this predicament.
“When we adopted the original plan, all of these things were included in that, so as we’re there going through the litigation process, for us to try and reach an end before it goes further, this is part of that unfortunate decision that we’ll have to make just to settle the lawsuit,” Ramos stated.
” … When seven council members approved the project originally (it initially passed 8-1 in July 2020), it had all those requirements in it: it didn’t have a PILOT, required union labor, had more commercial spaces. Had all those things in there, but unfortunately, with the lawsuit that Union City placed upon us, we’re missing a lot of those components to this settlement.”
1st Ward Councilman Mike DeFusco didn’t mince words on that point, stating that “the selfish interests of Union City” led them to this point and that Mayor Brian Stack (also the state Senator of the 33rd Legislative District) “is committing environmental terror to the palisades.”
“We needed to work around that and it is an unfair deal for Hoboken, but it’s the best deal we could come to. And to say we don’t believe in union labor, that’s just putting words in my mouth. I was raised with a family of union labor. I know each of my colleagues believe that and I know the mayor does … And to Mayor Stack: stop destroying the Palisades.”
2nd Ward Councilwoman Tiffanie Fisher also laid the blame solely on Union City.
“Literally state Senator Stack has threatened to change the law to not allow development above a certain height in Hoboken, which will literally destroy our local economy,” she said regarding the Palisades Cliffs Protection Act, which is currently stalled in Trenton.
“And will negatively impact all union labor on every property. He’s maniacal about this project about protecting some sort of view on a project up on a mountain and he’s literally, literally threatened to change a state law to stop development in Hoboken.”
She added that she, DeFusco, Ramos, and 6th Ward Councilwoman Jen Giattino have sent state legislators letters letting them know they are vehemently opposed to the bill getting approved.
Cohen pointed out that this litigation has been stalled for years and that taking this litigation off the board would be a win for the city and for labor unions like 32BJ SEIU, who will have labor at other projects.
The measure passed 6-3, with Fisher, Doyle, and Council President Emily Jabbour voting no.