Hoboken and JC join litigation over building already under
Two cities and an activist group are trying to stop two 17-story residential towers from rising on the city’s south end – but since the skeleton of the structure is already standing, what would the developer do if the cities won?
City Attorney Esther Suarez would not speculate last week on what a judge might order should the plaintiffs win the case against the development. But city Business Administrator Robert Drasheff said Wednesday that there have been cases when developers were ordered to remove already-constructed floors.
However, since it was the city who approved the project in 1998, an order for the developer to chop off several floors might simply result in more litigation.
Both Hoboken and Jersey City recently were approved by Superior Court Judge Arthur D’Italia to intervene in the lawsuit to stop the two Gateway, LLC 17-story towers that are currently rising at 101 Marshall St.
On July 1, litigation was initiated by the Hudson County Alliance, a local citizens group, to stop construction.
The lawsuit aims to overturn the project’s Zoning Board approval, and to overturn approvals from the North Hudson Sewerage Authority that will allow the builder of the project to connect the building to the city’s sewer lines.
The Hoboken Zoning Board, the North Hudson Sewerage Authority, Gateway I, LLC, and Harrison Street Apartments LLC, the corporations that own the property, are named in the suit.
Construction of the buildings has already commenced, with the steel and concrete skeleton of the easternmost building nearing completion. All told, if built as currently planned, the towers will rise 158 feet and four inches each, and will contain two restaurants, a 25,384 square foot health club, 5,240 square feet of retail space, and an enclosed parking garage that will rise seven stories. The project gained all applicable approvals in 1998 and construction on the buildings themselves began in May of this year.
On Friday, there was postponement of a hearing in which D’Italia was scheduled to listen to "show cause" arguments for injunctive relief. According to Suarez, injunctive relief in this case would essentially be a "stop work" order until the case is disposed. She added that even if D’Italia were to deny the injunctive relief, the Hudson County Alliance and the city could continue with the litigation – but the developers would also be able to continue building.
The hearing has been rescheduled for Wednesday, August 21.
A representative for Stanford Weiss, who owns Manhattan Builders, the Hoboken-based company that is constructing the project, said that he would wait to comment on the suit until after the court date.
The developers for whom Weiss is working obtained the property after the project had already gained Zoning Board approvals under a prior developer. In 1998, developer Rene Abreu, the owner of several real estate, mortgage, and tax appraisal companies, submitted and got approval for the 17-story towers for one of his companies, Gateway 1 LLC. Since that time, he has sold the property and the company. In May 2002, Abreu was indicted by the U.S. Attorney’s Office on charges of bank fraud, mortgage fraud, check kiting, money laundering and bribery of bank officials.
While 101 Marshall was not listed in the indictment, there were checks cited that were deposited into the accounts for "Gateway 1 LLC," which is the name of Abreu’s company that was developing 101 Marshall.
The indictment notes that properties involved in the activity under investigation can only be confiscated by the U.S. government if Abreu still owns them.
Legal reasons for the suit
In a statement Thursday, the Hudson County Alliance gave some of its reasons for filing suit.
"The developers’ failure to provide proper notice of public hearings resulted in the Hoboken Zoning Board of Adjustments never having the acquired jurisdiction to hear or approve the project," reads the statement. "This deficiency is so severe, that the Zoning Board’s approvals are void and can be challenged outside the normal 45-day limit established by court rules."
According to a brief filed by Michael Pane, a renowned land use attorney from Hightstown, N.J. hired by Hoboken, the city has joined the suit for several reasons. His brief claims that the project does not have proper Zoning Board approvals. It also said that that the developers failed to provide proper notice to some surrounding neighbors and that so many variances were granted by the Zoning Board in approving 101 Marshall that its actions amount to rewriting the law, which usurps the power of the City Council.
According to city officials, Jersey City has joined the lawsuit because flooding, traffic and the elimination of some scenic views and sight lines caused by the project could affect Jersey City’s residents.
City Council President Ruben Ramos said Wednesday night that the city needed the citizens’ group to file suit first so that the city avoids the appearance that it would be suing itself.
"This is what we were looking for the entire time," said Ramos. "[The Hudson County Alliance’s filing] gave the city the opening that it needed."
Fourth Ward Councilman Christopher Campos said Wednesday that he is confident that suit can reap benefits.
"It’s a step in the right direction," he said. The project is being built in his ward. "I’m glad that Jersey City has joined on because we need all the help we can get stopping this gigantic project. With all of the flooding and utility problems that we have seen this summer, I really hope that we are successful."
In particular, Campos was referring to a power outage two weeks ago that left thousands without power.