The Hoboken City Council passed a partial settlement with Pegasus Partners for their Western Edge project, despite opposition from counsel for Union City.
By Daniel Ulloa/Hudson County View
“I’m kind of shocked we’re back here … given what occurred just two weeks ago when the council decided to go back into executive session,” Vincent Ferrera, an associate at Chasan Lamparello Mallon & Cappuzzo, PC who represents Union City in the matter, said, referencing the matter being tabled at the council’s prior session.
Council President Jen Giattino and 4th Ward Councilman Ruben Ramos recused themselves from the hearing and vote on the matter on the advise of counsel, which Ferrera insisted was because they were too cozy with Pegasus Partners Principal Hany Ahmed.
“Be mindful of slandering individuals,” Councilman-at-Large Jim Doyle, the council vice president, interjected while presiding over the meeting.
“This litigation is not going to be settled if you vote yes tonight. Union City is not going to evaporate into thin air. Myself and my colleagues will continue to litigate the case. You’re circumventing the entire planning board … People haven’t read this,” Ferrera continued.
Attorney Arthur Neiss, who represents UCMH Terra Heights LLC – the 50 percent owner of the Yardley building in Union City – claimed what the proposal before the council was illegal.
“This has the appearance of buying approvals and not legal,” Neiss claimed, adding that a copy of the updated plan was still not available online.
“How much of Monroe Street is going to be affected? Is it shown on the concept plan you have not seen?” Neiss questioned.
“Stalling any longer creates great uncertainty in the city, the taxpayers, and the American Legion Post 107,” Jim Vance, a member of Hoboken American Legion Post 107, said (Pegasus Partners Principal Mark Villamar is the finance officer for Post 107).
He also said a focal point of the project has been to house homeless veterans and this litigation has curtailed that goal.
“I can’t imagine trying a negotiation with this clutter of cats, especially with half of them running for mayor and the other half trying to hold onto their council seats,” Vance declared.
He further declared that Hoboken Mayor Ravi Bhalla “has acted in an underhanded and deceitful manner, reneging on contracts, meddling in the business of an independent board.”
“Were there changes to the proposed settlement in the intervening two weeks?” Doyle asked litigation counsel Jessica Almeida.
“These two settlements that were amended to each give a $50,000 payment to the city as opposed to it being given over a number of years. The one building, which would be at [Block] 106, has the ability to construct age-restricted units,” Almeida explained.
“The [Block] 11 2… that will have a $50,000 upfront payment to the city to be used for teen supportive services.”
Almeida also noted that 1200 Madison St. will included a two-building development with 1,001 housing units, which includes 30 additional affordable housing units.
Furthermore, she said 10 percent of the units would be affordable, Block 106 will no longer include commercial space, and the retail space will be reduced from 78,000 square feet to 50,000, with the office space eliminated.
Furthermore, the community benefit payment will be $3 million and the project will be LEED certified and include 526 parking spaces, with the project being five stories and 50 feet taller than initially planned, Almeida explained.
According to Almeida, the project also includes a 30-year payment in lieu of taxes (PILOT), arguing that the city would get less money via conventional taxation.
Finally, at 1300 Jefferson St., there will be two buildings with 257 residential units and a hotel.
“In 112, they also have an extra 300 units they can build on the Western Edge. Is that true? Can those be built on 106?” 2nd Ward Councilwoman Tiffanie Fisher asked.
Almeida said the 300 units are in the Block 112 agreement and can be moved to 106.
“It doesn’t feel like it’s 300. It feels like it’s 600,” Fisher said.
Almeida said under the Block 106 agreement there would be 300 additional residential units. At 1300 Jefferson St., there are also 300 additional units.
“So, they can put 600 more on 106?” Fisher asked.
“Yes, but they would not be able to put the 300 there and then take that same 300 and move it,” Almeida replied.
“If they can squeeze in an additional 600, then you’re going from 701 units on Block 106 to potentially 1300 units,” Fisher said.
She also noted it would be about 20 stories tall, far more than initially proposed, and that taxpayers would be on the hook if the matter went to court.
“We’re in an unfortunate situation,” 1st Ward Councilman Paul Presinzano noted.
“If this went to trial and was ruled against us and that number is $100 million, we might have to bond for that. That’s not what I signed up for,” he asserted.
“I inherited this issue, as did he,” Councilman-at-Large Joe Quintero said about Presinzano since neither was on the council when the development was first approved in July 2020 .
“Would I prefer a better deal? That’s not the nature of negotiations,” he added, noting he’d support the settlement.
5th Ward Councilman Phil Cohen declared that a good settlement is one where both sides have concessions, noting that Union City was obviously not pleased with the outcome.
“They’ve sued us and continue to threaten to sue us. At the last council meeting, Mr. Ferrara waved a sheet of paper saying Mayor Bhalla said he made a representation that he wanted to accommodate Union City. The city tried. It didn’t work out. We have to settle this case,” Cohen continued.
“I don’t think Union City thinks much of Hoboken when it comes to their development choices. The Palisades have been blasted under the watch of Union City’s leadership for future development.”
He added that he’d prefer that the final outcome had a project that wasn’t as tall and dense as this one, also referencing the latest back-and-forth between Fisher and Mayor Ravi Bhalla yesterday, calling his colleague’s assertions of corruption “ridiculous.”
“In 2020, the mayor and the city council at the time … approved both of the developments. I may not have approved of it,” Fisher said, though only Doyle voted no in July 2020.
:The council has always been supportive of these projects. But our interests stopped being aligned in 2021 when the mayor went a different path. We want to have a good relationship with elected officials in other cities, especially one like [state] Senator [Brian] Stack, who has a lot of influence,” Fisher said.
“The mayor made the choice to breach the contract he already signed with this developer. He did it without support from the city council.”
She also doubled down on her remarks she put in a newsletter Wednesday accusing Bhalla of malfeasance, claiming he only called her racist to change the subject.
“We need to avoid writing a big check. But how do we have confidence the settlement that’s put been before us is the right settlement when it was negotiated by the person that put us in this situation?” she asked.
“I’ve voted against it every time. I’m somewhat amused by the counsel from Union City who said there’s some kind of backroom deal going on,” Doyle said, adding that the continued bad blood between Fisher and Bhalla isn’t productive.
“We may not be out of this tonight by any means. But I think it’s a step forward.”
“I don’t think the councilwoman’s a racist. I don’t think the mayor broke any laws. This probably is not the best deal,” 3rd Ward Councilman Mike Russo asserted.
“I would like the administration to recognize and acknowledge everything that will come with moving forward. I have strong concerns about our infrastructure … and everything that comes with a project of this size,” noted Councilwoman-at-Large Emily Jabbour.
The measure ultimately passed 5-1(1), with Cohen, Doyle, Jabbour, Presinzano, and Quintero voting yes, Russo voting no, and Fisher voting present.