Hoboken Mayor, Developer Reach Tentative Deal On Monarch Project

HOBOKEN, NJ — The City of Hoboken and Applied Development Company have reached a tentative settlement agreement over the long-running “Monarch Project,” Mayor Ravi Bhalla announced Monday.

Bhalla said that the settlement – which still needs City Council approval – would temporarily prevent any development by Applied on two, 11-story high-rise residential buildings along Hoboken’s uptown waterfront.

Bhalla also said the tentative settlement would provide an opportunity for the city and Applied to hammer out a redevelopment agreement to officially transfer the Monarch site to the city over “the next several months.” If the council approves that agreement, the Monarch site will be transferred to the city to be used for “open space.”

The proposed settlement will be presented to the Hoboken City Council at a meeting in August, he said.

The main terms of the proposed settlement agreed to by Bhalla and Applied include:

• Applied Development Company gives up the right to develop on the Monarch site, a parcel of land along the Hoboken waterfront directly in front of the Hudson Tea Buildings. In exchange, the City of Hoboken will grant Applied Development Company an opportunity to redevelop the Public Works Garage site located at 256 Observer Highway, pending the passage of a Redevelopment Agreement.
• Upon execution of a Redevelopment Agreement with Applied for the development of the Municipal Garage site, the City of Hoboken may take ownership of the Monarch site for the purpose of creating open space.

• Applied Development Company will pay the City of Hoboken up to $1 million for the removal of debris or other public improvements related to this settlement.

In addition, redevelopment of the Public Works Garage site, pending a redevelopment agreement, would include:

• A state-of-the-art facility for the Department of Public Works, paid for and built by Applied Development Company
• 4,000 square feet of retail along Observer Highway
• 264,000 square feet of a transit-oriented rental building, in scale with the neighboring buildings with zero density above what is provided for in the Municipal Garage Redevelopment Plan
• At least 11% of all housing units mandated as affordable housing

“This settlement is a win for the City of Hoboken,” Bhalla said. “Not only does it protect our precious waterfront from development and preserve the site for open space, but it also presents an opportunity to revitalize an area in downtown Hoboken. And, a new, state-of-the-art municipal garage will facilitate improved public works services. While we have work to do over the next several months to finalize this proposed deal with a redevelopment agreement, this settlement is a critical step forward.”

ARTS CENTER PROPOSAL

On Tuesday, council member Mike DeFusco said he plans to push for a live music and performing arts center as part of the deal.

“Preserving our waterfront as open public space and reinvesting in the arts have always been and still remain top priorities for me,” DeFusco said. “The city’s new tentative agreement with the Monarch developer is an opportunity to activate a grossly neglected neighborhood in the First Ward, make critical infrastructure investments without any cost to taxpayers and bring new public arts programs to our city."

DeFusco said Hoboken has already spent years entrenched in legal battles with the Monarch developer, accomplishing little more than accumulating costly legal bills.

"I believe relocating this project can put an end to an issue that has plagued our city for nearly a decade," DeFusco said. "We achieve the best possible outcome when the ward council member and administration work collaboratively to identify the best possible solutions and I’m proud that is exactly what we plan to accomplish."

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