Council To Discuss Garage Bids at Special Meeting

After passing the much-discussed $16 million bond ordinance last week, City Council will gather for a special meeting Tuesday night to discuss possible locations for a new municipal garage. 

The city received seven bids last week, of which two are located in Jersey City. Mayor Dawn Zimmer said she'll be making a recommendation to the City Council. The city will lease the new property. Monthly prices of the bids range from $3,000 to almost $29,000. The city currently leases the municipal garage for $100,000 a month. 

About the bids, Zimmer said: "I'd say two of them are very strong possibilities."

The city will have to vacate the municipal garage on Observer Highway before August 13, which is the closing date with developer S. Hekemian Group, who has agreed to buy the property for $25.5 million. Before then, the city needs to acquire a "no further action" letter from the Department of Environmental Protection. 

During an interview in city hall last week, Zimmer, reluctant to give an exact date about when the city should be out of the garage, said she will push to get that letter from the DEP.

"It's going to be tight," Zimmer said. 

Both Hekemian and the city have said they are ready to close the deal on Aug. 13. And even if Hekemian isn't able to close on that day—the developer recently asked city council for amendments to the contract in order to make it more profitable—the city will still have to deliver an empty garage.

If the developer does not close, the city will be able to buy back the garage with the $16 million bond city council approved last week. That could mean that, for limited time, the city could be in possession of two locations. 

If it comes to that, the city has to decide if it wants to sell the garage or if it wants to keep using it.

"It could happen that we move out and them move back," Zimmer said. 

The special meeting will be held tonight at 7 p.m. in City Hall.