After what some have described as “visions of grandeur,” the decade long struggle to develop the former Military Ocean Terminal (MOTBY) came to an end at the June 24 meeting of the Bayonne Local Redevelopment Authority when that body authorized Executive Director Chris Patella to negotiate with the Port Authority of New York and New Jersey to sell three key parcels of the former Military Ocean Terminal (MOTBY) to the Port Authority.
“I am pleased to report that, after lengthy negotiations between the BLRA and the Port Authority, this is a done deal, which will bring long term tax stabilization and job creation to the City of Bayonne,” said Mayor Mark Smith. “The City of Bayonne and the BLRA announced the potential sale to the Port Authority of The Point, The Landing, and The Loft districts at the Peninsula at Bayonne Harbor.”
“This acquisition will enhance future business opportunities and help spur job creation.” — Governor Chris Christie
________
In a release, the Port Authority said the increased property will add 4.5 percent to its total acreage on both sides of the Hudson River.
“Keeping New Jersey’s ports competitive is vital to the state’s long-term economic growth,” said Governor Chris Christie. “This acquisition will enhance future business opportunities and help spur job creation.”
The Port Authority has tentatively agreed to pay the Bayonne Local Redevelopment Authority a total consideration of $235 million over 24 years to obtain the title to the property together with permanent easements over the roadways on the MOTBY peninsula for operational and emergency use.
No decisions have been made yet by the Port Authority on how to redevelop the parcel, which represents nearly one-third of the total MOTBY peninsula. But the agency’s action will lock in the land for port use and preclude other development.
“Waterfront industrial property is a precious commodity on both sides of the Hudson River and we are pleased to be able to take advantage of the MOTBY purchase to help position the port for future growth, “said Port Authority Executive Director Chris Ward.
Future growth and expansion of port marine terminals is a key element toward helping the Port Authority manage capacity, develop infrastructure, and fund programs on a port-wide basis. The underutilized waterfront property at the MOTBY will help the Port Authority meet its long-term port business needs because of its location and proximity to other port facilities, according to the official release.
Environmental engineers with the Port Authority have reviewed environmental studies prepared by consultants for the U.S. Army Corps of Engineers and the BLRA, and found there are no material environmental issues that would preclude future development of the tract. Attempting to create port property by developing underwater lands would carry significantly higher costs to the agency along with extensive environmental issues.
The MOTBY is currently home to 38 different businesses whose lease payments and tariffs will cover all the agency’s operational costs on the peninsula.
The BLRA recently expressed interest in selling the 130-acre section to the Port Authority.
While the Port Authority was making its announcement, BLRA Executive Director Chris Patella was telling the BLRA Board of Commissioners at a special meeting on June 24 that not all of the terms had been finalized, and that he hoped to come up with an agreement on all the material terms of sale, the closing of which will take place within 45 days.
In a statement issued after the Port Authority announcement, Mayor Mark Smith lauded this as an historic agreement with the Port Authority as benefiting all the people of Bayonne and the region. Smith thanked Governor Christie and the Port Authority’s deputy executive director, Bill Baroni, the commissioners of the BLRA and their executive staff for their support in moving this agreement forward.
Questions remain, however, in regards to Port Liberty and the cruise line operated by Royal Caribbean, which has a 30 year lease with the BLRA. Also uncertain is the fate of the 9/11 memorial, which is situated at the end of the Peninsula, a gift to Bayonne from the people of Russia. The U.S. Marines monument, Patella said, is also inside the area of sale.
Barry Dugan, who represents the Bayonne Marines contingent, said his group lobbied hard to get the monument placement and would like to have a say in where it is relocated.
The sale was not without critics
In a sharp exchange with Patella, John Budnick asked if the sale had been competitively bid on before negotiations were conducted with the Port Authority.
Patella, saying that nothing was being done in secret and questioning Budnick’s experience in real estate transactions, said Requests for Proposals were sent out and the BLRA received seven in total, six of which would have caused the BLRA to lose money on the deal and one which would have allowed the BLRA to just break even.
Louis Ripps asked what happened to the legislative process that established the original development zone for the MOTBY, saying that these involved approval from the Bayonne Planning Board and the City Council.
Chairman Howard Fitch said this resolution was not about the redevelopment plan, but about allowing Patella to negotiate, but did add that the redevelopment plan would be addressed in the future if necessary.
Kathleen Henderson questioned if this deal had been brokered as part of the settlement with the Port Authority over a lawsuit filed three years ago. Patella said no, this was separate and distinct, and something conducted under the watch of Governor Christie.
When discovering that the deal was announced a short time later, Henderson said she felt she had been deceived by the BLRA because the deal was taking place while the BLRA acted as if they were only authorizing negotiations.