Hoboken Announces Monarch Waterfront Development Settlement

HOBOKEN, NJ — Hoboken Mayor Ravi Bhalla said Tuesday that the city and Ironstate Development have agreed on a newly proposed settlement agreement that prevents two 11-story high-rise buildings from being built on Hoboken’s waterfront and gives the city 1.4 acres of land for open space. In exchange, Ironstate would get to build an 11-story residential building at the site of the Municipal Garage near the city's southern border.

The proposed agreement will be presented to the City Council for consideration and a possible vote on Wednesday, Feb. 3. (Residents can get details of the agreement and speak at the virtual meeting using the links later in the story.)

[UPDATE: Find out the results of the vote on the settlement here.]

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The proposed agreement includes the transfer to the city of 1.4 acres of undeveloped land at Eighth and Monroe streets for the purposes of public open space that is currently owned by Ironstate and zoned for a 10-story building, the city said.

As a part of the proposed agreement, Ironstate will be permitted to build at the garage site at 256 Observer Highway, near the city's southern border and down the road from the Hoboken Train Terminal. The building will include ground-floor commercial retail space.

Ironstate will not build its proposed two 11-story "Monarch" buildings on the waterfront.

The proposed settlement agreement, which has gone through several iterations over the years, will also provide the city the option to fund a temporary municipal garage in northwest Hoboken with funds from the developer. The city will identify a location for a permanent Municipal Garage in a suitable location in Hoboken’s North End, as reflected in the draft North End Redevelopment Plan.

More details

“Not only will this newly revised settlement preserve and protect our waterfront from development, it also adds almost 1.5 acres of public, open space in west Hoboken that would have otherwise been developed as a residential building,” said Bhalla. “This deal is a win-win-win for Hoboken: preserving our waterfront, adding open space and adding commercial retail space while revitalizing an area of downtown Hoboken.”

“This revised deal is one of the biggest wins for the 3rd Ward during my time as on the council,” said Mike Russo, the 3rd Ward City Councilman who had spoken before on municipal garage issues. “Instead of a 10-story building blocking views and ruining one of the best remaining pieces of real estate, west Hoboken now has another important piece of planned open space for our residents and families to enjoy. To say I’m overjoyed at this deal is an understatement. I am confident my council colleagues will unanimously adopt this plan.”

“The Shipyard’s proposal to build the Monarch Towers would have privatized a portion of Hoboken’s waterfront that is otherwise public,” said Ron Hine, Executive Director of Fund for a Better Waterfront. “This settlement brings to an end a contentious, decade-long battle that has pitted a developer against the city, the Fund for a Better Waterfront and neighborhood residents. Instead of residential towers on a pier jutting into the Weehawken Cove, we now can look forward to a small park but more importantly an opportunity to complete a continuous, public park for the entire length of Hoboken’s riverfront.”

If the proposed agreement is approved, Hoboken and Ironstate would move forward with the negotiation of a Redevelopment Agreement to include all the project details for a mixed-use project with residential and commercial development at the site of the current Observer Highway garage.

The Redevelopment Agreement would also replace the previous requirement of Ironstate to build the city a new municipal garage at 256 Observer Highway. This revision was mutually agreed to by both parties, revising an aspect of the plan that prevented both sides from moving forward, the city said.

The city and Ironstate will conduct an environmental review of the land at Eighth and Monroe in partnership with Ironstate prior to the adoption of a Redevelopment Agreement.

The revised parameters of an anticipated Redevelopment Agreement at 256 Observer Highway would include a building with ground floor retail, in scale with neighboring buildings and without a municipal garage. It would have no increase in density above what is permitted for in the current Municipal Garage Redevelopment Plan.

One councilman had praise and some concerns.

“I have long believed that the litigation at the privately owned Monarch site was a drain on city resources and delayed connecting our waterfront, so this settlement is long overdue," said 1st Ward Councilman Michael DeFusco. " I am proud to have successfully advocated to move the DPW garage to a new location out of my neighborhood. This will be a great improvement to the quality of life downtown — reducing noise, pollution and carbon emissions, and ultimately paving the way for a more positive gateway to our transit hub. However, it is not to say this agreement is without flaws. Currently, the garage is planned to be temporarily housed next to the new northwest park with no plans yet in place for a new, permanent garage. Further, the affordable housing component is woefully inadequate at a mere 11 percent and if the mayor and his allies are serious about affordability, this is our opportunity to make a meaningful difference. This has been a decade long community conversation and while I support the agreement, I think it is fair to ask for more time to receive community feedback before a vote."

Give your comments

For a copy of the proposed settlement agreement, please click here.

Residents who would like to provide feedback about the settlement agreement are invited to speak at the virtual City Council meeting, scheduled to begin at 7 p.m. on Wednesday. For instructions on speaking, please click here: http://hobokennj.iqm2.com/Citizens/FileOpen.aspx?Type=14&ID=1565&Inline=True.

“I am thrilled with the outcome of this settlement with Ironstate as it brings more open space to West Hoboken in a heavily residential area,” said Emily Jabbour, at-large councilwoman. “This area was transformed by the addition of park spaces at Seventh and Jackson — seeing how heavily utilized these spaces have already been, particularly during COVID, demonstrates that residents are seeking more open space. This is a big win for the neighborhood and all of Hoboken.”

“Adding over an acre of public park space at Eighth and Monroe in addition to permanently securing the public right of access to our waterfront park on the 15th Street piers — replacing two planned 11-story residential towers on those piers — is great news for the residents of the 5th Ward, who will have easy access to spectacular, new green spaces in our city,” said Phil Cohen, 5th Ward City Councilman.

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