HOBOKEN – The saga surrounding the downtown municipal garage appears to be nearing an end.
The property on which the municipal garage sits on Observer Highway and Willow Avenue was slated to be sold to a developer, S. Hekemian Group of Paramus, for $25.5 million in 2007. Then, there was a disagreement about the price in 2010, as Hekemian wanted to pay $14 million for the property (the new assessed value, according to Hekemian), as well as offer $1 million in payments for affordable housing. The city declined the $14 million proposal, and some sources said the relationship between the two parties began to sour. The sale fell through in August 2010. Both parties, the city and Hekemian, said the other side breached the contract, dragging the case to court.
The developer had also put a 10 percent deposit of $2.5 million in an escrow account. Mayor Dawn Zimmer said last year that the city would fight to keep the $2.5 million deposit.
On Wednesday night, after a city attorney briefed the council in closed session, the members voted unanimously to approve a settlement in the case.
After the executive session, Councilman Michael Russo said he “tend[s] to agree with the settlement,” calling it “the proper thing for the city to do.”
Corporation Counsel Mark Tabakin said the details of the settlement are not yet public. The settlement will likely become public once the court case involving the parties is complete.
For more from the council meeting, keep reading HudsonReporter.com and make sure to pick up a copy of The Hoboken Reporter this weekend. – Ray Smith