The rustic industrial complex squeezed between Newark Street and Observer Highway is still known as Neumann Leathers, but for the first time ever, it is no longer owned by the family of tanners that founded it on the edge of a stream in 1863. Last month, Bill Bernheim, a descendant of original owner Rafael Neumann, sold the complex to a team of four new developers, sparking rampant speculation among the building’s artisan tenants.
In a city that has largely moved away from its industrial past, Neumann Leathers is still occupied by a colorful mix of artists, architects, niche manufacturers, DJs, and vendors. For the past 10 years, though, Bernheim has sought to demolish the complex and allow developers to construct mixed-use developments that would take full advantage of the location near the Hoboken train station.
Now that the building is sold, tenants are cautiously optimistic that they will be allowed to remain indefinitely.
In an interview this past week, Norman Weisfeld, one the building’s new owners, said he was working with the city “to find a compromise that retains a lot of the existing buildings as well as some development that will help us pay for the restorations” needed for the complex.
On Sept. 11, the property was purchased by Norman and Bruce Weisfeld, Tony LoConte, and Tony Hector for $25 million, according to public records.
“An old factory building can be run with this new mix of tenants and it can make money and it can pay a mortgage.” – Tom Newman
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Out with the old
It is not known why Bernheim decided to sell at this juncture. The outgoing building manager, Vic Zarish, declined to answer questions from The Hoboken Reporter via email, and on Monday, an individual in the Neumann Leathers building office refused to identify himself or speak to a reporter.
One possible explanation for the sale lies in Hoboken’s recent property revaluation, which increased the assessed value of the Neumann Leathers complex by almost $8 million. The higher value means more in property tax bills, but could also have meant a higher asking price for Bernheim in the sale.
However, the key sticking point was undoubtedly the committed opposition of civic organizations like the Neumann Leathers Tenants Association (NLTA) and the city government to any plans to demolish the complex and evict its tenants.
In a March Hoboken Reporter article, Zarish said the city was using backwards rehabilitation processes to fight the natural progression of the free market.
All of Bernheim’s attempts to redevelop or sell the Neumann building have been stymied. In 2008, for example, the building was under contract to be sold to national developer Trammell Crow Residential, which sought permission from the zoning board to replace the current structure with a five-story residential building and a smaller artist’s building. In the end, the zoning board rejected the plan and Trammell Crow backed out.
According to NLTA President Tom Newman, Bernheim stopped giving leases after the flight of Trammell Crow, forcing current residents to rent month-to-month and leading to growing vacancies in the complex.
Case closed
Last week, a panel of three state appellate court judges unanimously vacated Hoboken’s 2011 designation of the Neumann Leathers complex as an area in need of rehabilitation. The case arose from a legal challenge to the city’s designation filed by Bernheim three years ago.
The ruling came down to a single incorrect word. The 2011 City Council resolution stated that the water and sewer lines in the Neumann area are “at least 50 years old or are in need of substantial maintenance.” Conversely, New Jersey’s Local Redevelopment and Housing Law permits municipalities to seek rehabilitation if it determines that water and sewer infrastructure “is at least 50 years old and is in need of repair or substantial maintenance.”
Mayor Dawn Zimmer said she was not sure how the wrong word came to be placed in the resolution. She noted that alterations had been made to the document when it came before the City Council in 2011, but did not know if they affected the passage in question.
Despite the rejection of Hoboken’s rehab resolution, Zimmer said the ruling represented a significant success for the city and other municipalities seeking to use the legal process as a tool for balanced development. Bernheim’s lawyers had also argued that the rehabilitation zone was illegitimate because the water and sewer infrastructure was not beneath its property, was controlled by independent entities, and less than half of its buildings are over 50 years old.
The court strongly rejected all of these claims. According to Zimmer, the ruling actually serves to “protect and strengthen the city’s ability to use [the rehabilitation] process to move forward other important projects.”
This past Wednesday, City Council voted unanimously to send a revised resolution re-designating the Neumann Leathers Rehabilitation Area to the Planning Board. If the Planning Board approves the move at its Oct. 8 meeting, the City Council could officially re-designate Neumann Leathers at its next meeting on Oct. 15.
Tenants speak out
The unique cluster of artisans that occupies Neumann Leathers cannot be found anywhere else in Hoboken, and is rare even in the Tri-State Area. The Drum Den sells specialty drum kits. Radii makes scaled architectural models for planners. Systems Group builds sets for broadcast studios.
Many rely on the building’s proximity to New York City, one of the biggest markets in the world for the specialized goods they make. Neumann Leathers is located mere blocks from both the Hoboken transit terminal and the Holland Tunnel.
However, it is the structure itself that many tenants say makes Neumann Leathers so indispensible. Tom Newman, an 18-year tenant and former City Councilman, makes custom furniture, and said Neumann Leathers is one of only two places left in Hoboken that offer the raw industrial space he needs.
“An old factory building can be run with this new mix of tenants and it can make money and it can pay a mortgage,” said Newman. He pointed to successful New York industrial non-profit Greenpoint Manufacturing and Design Center as a model for how Neumann could be run.
Plans for the future
Weisfeld and his co-owners have given every indication that they intend to keep the lion’s share of Neumann Leathers’ current tenants around.
They have hired John Nastasi, a prominent Hoboken architect and Neumann tenant. He was behind a 2009 proposal – that competed with the Trammell Crow proposal – to open up the inner courtyard of the main building as a retail piazza but keep almost all of its industrial space.
The foursome are also fully on board with the city’s rehabilitation process. In fact, Weisfeld sent a letter asking Bernheim’s lawyer Peter Dickson to withdraw his legal challenge to the designation once the building was sold. However, the judges ruled that the case was a matter of public importance and allowed it to go forward.
“Our plan is to develop with [the city] a redevelopment that’s good for the tenants, the city, and for us as developers,” said Weisfeld.
Zimmer said Maser Consulting, the planner appointed for the Neumann Leathers area, was close to presenting a plan before the area’s classification was overturned. If the zone is reestablished, Zimmer said Maser will pick up right where they left off.