UNION CITY — Union City officials just announced that a “condemnation matter” involving the city has been dismissed five years after it was initially filed and after the city was forced to incur thousands of dollars to defend itself against accusations.
In 2005, the New Jersey School Construction Corporation was considering building a school at 1501 Palisade Ave. in Union City. The NJSCC expected to purchase the plot for the appraised price of $326,000 and expand the Christopher Columbus Elementary School.
However, before the NJSCC could move forward with its plan, the property owner sold the site to his brother for one dollar. The brother, David Lopez — a contributor to Mayor Brian Stack’s campaign committee — then successfully obtained construction permits from the local Zoning Board to build new apartments on the land, which spiked the property value to $1.48 million. He even started building.
Some wondered whether there was a conspiracy at work to get the SCC to have to pay the developer more money.
The city stated in today’s release that Lopez obtained approval from the Union City Zoning Board of Adjustment for his building without advising the board of the letter of interest that had been sent to the property owners from the NJSCC.
The SCC eventually purchased the property from Lopez for $1.48 million, significantly more than the $326,000 the agency had planned to pay.
Attorneys for the SCC later alleged that the Zoning Board approvals were improperly granted and that the board and other city officials deliberately drove up the price of the 1501 Palisade Ave. site.
After settling the case with the property owner, the NJSCC filed an appeal to the Appellate Division, but they dismissed the appeal on Feb. 19.
A release from Union City announced the dismissal, saying, “The city is very pleased to see this matter, for which it has incurred thousands of dollars in legal fees to defend itself against what it deemed as baseless allegations, finally come to a close.” — LRD