Construction at the former Military Ocean Terminal, which has been stalled for years as the city was mired in lawsuits with developers, may now be able to move forward as Bayonne reaches settlements with the remaining three companies involved, city officials said.
A major step was taken at the Dec. 10 City Council meeting, when the council voted to approve specific agreements concerning litigation against the city undertaken by Trammell Crow Residential, according to Business Administrator Joseph DeMarco.
The move by the council closes the door on the negotiations with Trammell Crow.
The agreement with the Fidelco Bayonne Realty LLC, developers of the Harbor Station North on the Peninsula at Bayonne Harbor, has virtually been completed. The council approved a plan in October at which the city granted a 30-year tax abatement to Fidelco as part of the pact.
Lawyers were dealing with the final language on the contract.
“All that’s left is for the city to sign all of the documents,” DeMarco said.
A third lawsuit, brought by Bayonne Bay Developers LLC is still being worked on, and the city hopes an agreement can be forged in the first quarter of next year.
All three lawsuits resulted from the city’s sale of major parcels of land at the Peninsula to the Port Authority of New York & New Jersey in 2010. The Port Authority, the Bayonne Local Redevelopment Agency, and the city were all named in the suits. The BLRA was disbanded last year.
Trammell Crow, developers of the Alexan CityView complex, had made its deal three years earlier with the proviso that the city would not allow a container port to be built at the Peninsula. When the city made the sale to the Port Authority, Trammell contended that its agreement had been violated.
“Essentially, they said in so many words, that the sale to the Port Authority affected their ability to develop their property and interfered with their development and violated the master plan and the deeds,” DeMarco said. “So the city got the money, but also three lawsuits.”
DeMarco likened the three proposed developments of the Peninsula as looking for a combination on a lock.
“The goal is to find the right combination numbers,” he said. “The combination has three numbers: Fidelco, Trammell Crow, and Bayonne Bay.”
Once all three disagreements have been settled, the developments can begin to take shape, begin to contribute to the tax base and benefit the economic well being of the city, according to DeMarco.
“ … They said in so many words, that the sale to the Port Authority affected their ability to develop their property and interfered with their development. …” – Business Administrator Joseph DeMarco
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The settling of three contracts will mean a major step forward for the city.
“With the empty lots owned by the city, there is no revenue generated,” DeMarco said.
DeMarco said that parts of the agreements call for a buffer zone for the residential complexes should the Port Authority build a rail line from the port. Any increase in vehicle traffic to and from the Port Authority properties would also be steered away from those same developments.
DeMarco said the one finalized agreement and two impending ones will have a domino effect on the growth of the Peninsula.
“Those lawsuit resolutions give a green light to proceeding at full speed with development of Harbor Station South,” he said.
Earlier this year, during the administration of former Mayor Mark Smith, the city had accepted proposals from a number of companies seeking to develop at the former military base. Six plans were being looked at closely, but then the municipal elections changed the landscape, as Mayor James Davis defeated Smith and a transfer of government took precedence.
Joseph Passantino may be reached at JoePass@hudsonreporter.com.