HOBOKEN — The Hoboken City Council discussed in a 3.5-hour closed session Tuesday night the likelihood of not being able to sell their public works garage on Observer Highway to a real estate developer for $25.5 million. The council majority voted for a resolution to declare the developer in “breach” of the contract, meaning the matter may now end up in court.
The sale of the garage to SHG was to go through this coming Friday, but the developer had said at an April meeting that the garage’s value has gone down and that they would rather pay $15 million.
At the special meeting Tuesday night, the council privately discussed “potential litigation” and other matters regarding the issue. By the time they came out, most of the public had gone home. The council discussed a resolution to declare the developer in breach.
Councilman Michael Lenz read that resolution, accusing the developer of trying to “sabotage” the closing of the sale by “interfering with” the city’s attempts to get timely environmental approval for the site and other matters.
Lenz alleged that the developer “stopped being a good partner and acted in a different way, and they breached the contract.”
Councilman Michael Russo urged the city to still try to go through with the sale, and if the developer defaulted, it would be the developer’s fault.
Resident Lane Bajardi agreed. He said that the onus was on the developer, and if they defaulted on the agreement, it would look bad and likely stop them from being able to develop in other parts of the state. They said if Hoboken pulled the plug, Hoboken would look bad and possibly lose money.
Councilwoman Beth Mason, who is often critical of the current administration, encouraged the council to consider the matter for an extra day.
Several council members said they could not speak about the entire issue or reveal what went on in closed session, because of potential litigation. But Councilman Ravi Bhalla said there had been “breaches.”
The council, by a narrow majority, voted in favor of the resolution, with the minority council members normally critical of the Dawn Zimmer administration voting against.
The matter is likely to be discussed again tonight at the regular City Council meeting at 7 p.m. You can watch it here LIVE by clicking below.
Besides the garage issue, discussion is likely regarding the impending police and City Hall layoffs. Watch it here:
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