The Jersey City Council reviewed a 139-page proposed settlement for the 6th Street Embankment project that would finally put an end to years worth of litigation at yesterday’s caucus meeting.
By Daniel Ulloa/Hudson County View
“ … We have worked to find an acceptable agreement for all parties among the turmoil … It represents the best compromise possible between all these parties,” Housing, Economic Development, and Commerce Director Annisia Cialone explained.
She pointed out that the first reading of the settlement agreement would be on Wednesday’s agenda, as well as the first reading of a 30-year payment in lieu of taxes (PILOT) deal (PILOT) agreement.
Cialone added that eight years ago, the Albanese Organization was brought in by the developers, the Hymans, to negotiate a settlement with the city after years of litigation.
The city, the Embankment Preservation Coalition, and Rails to Trails were co-defendants in several lawsuit, Cialone noted, adding that eight parcels make up the area starting on Marin Boulevard, which then runs close to Newark Avenue near Journal Square.
“This deal turns over Block 2 through 8 to the city as publicly owned accessible land. Block 7 is partially owned but will still have a walkway for the [Essex-Hudson] Greenway. This settlement agreement allows them to build all 600 units as residential,” Cialone also said.
Furthermore, she explained that there will be 15 percent affordable housing out of the 200 units converted from hotel units in the initial plan, with 600 units expected overall.
Block 1 will also have some greenway infrastructure. They will build a bridge that connects Block 1 to Block 2, and they will build Block 2 as a public park, as well as a new baseball field, that will be designed through a public process, Cialone stated.
She noted that, along with the city council, the deal has to be approved by the planning board, and an agreement has to be made with the Jersey City Redevelopment Agency (JCRA) to make sure all parties are satisfied with the outcome.
“Litigation in this case started back in 2005 when Conrail sold a segment of the Harsimus branch. At that time, the embankment coalition objected to the sale. We filed many different litigations in the last 20 years,” recalled Acting Corporation Counsel Brittany Murray.
She noted multiple mayors, council members, and city lawyers have worked on trying to finalize a deal.
Murray also pointed out that the process was drawn after even longer by having to through the U.S. Surface Transportation Board (STB) proceedings, along with the federal district court.
“We spent a lot of money litigating this case. People have spent a lot of time and effort. It’s all for a good cause, but … a settlement is preferred … We suggest the Council approve this ordinance,” Murray concluded.
“The project’s $40 million in value in public benefits and 30 affordable housing units,” declared NW Financial Principal Mike Hanley, adding that the city would receive $3 million in revenue the first year, and $120 million overall for the duration of the PILOT.
Furthermore, Eugene Paolino, Albanese’s attorney in the matter, said that the amount of property that would be transferred via the settlement is about five acres and would come with about $40 million worth of community benefits made possible through the PILOT.
“We’re not coming here to ask for additional funds,” he added, noting that process also includes a vote by the city’s Historic Preservation Commission.
“All these pieces have to gel together. Any one of them falls and it doesn’t work,” he argued.
Albanese Organization President Chris Albanese explained their role in the matter.
“We have over 600 petitions signed … that eagerly and desperately want this project after a 20-year fight. We always give back to the community … We’re very proud,” he asserted.
“We’re basically giving the community two parks…. We’re thrilled to be offering this to deliver a new baseball field.”
Albanese later mentioned that they are working with Hudson County Commissioner Jerry Walker’s (D-3) nonprofit to hire local residents to work on the project.
“It’s at the one-yard line. We’re still waiting to hear back from the embankment coalition on their view of the settlement,” began Ward E Councilman James Solomon, who represents the area where the embankment is located.
Initially, there were going to be 400 residential units and 200 hotel room units, but the IZO applies to the 200 units that were going to be hotel units, he explained.
The downtown council also expressed that having five acres of open space at the end of 20 years of litigation would be a pretty good outcome.
Council President Joyce Watterman noted developer Victoria Hyman, wife of the late Steve Hyman, who drove many of the issues, was there and was invited to address the council.
“Thank you to all of you for your time and efforts: We’re going to do some very good things for the city,” Hyman stated.
The Jersey City Council will convene for their regular meeting tomorrow at 6 p.m. at City Hall, 280 Grove St., and the public session will also stream live on Microsoft Teams.
