Hoboken Will Use Eminent Domain To Seize Bus Company’s Property

HOBOKEN, NJ — Hoboken has officially made a move to seize a parcel of land from a private bus company using eminent domain.

On Wednesday, Mayor Ravi Bhalla announced the city has filed an eminent domain action to acquire an additional acre of land known as “Block 10” for the price of $5.3 million. The purchase would double the size of Southwest Resiliency Park, which will address local needs for open space and flood resilience.

Currently, the property is owned by Academy Bus, which is trying to develop the land. The Hoboken City Council authorized the use of eminent domain in 2017, which allows a government body to force the sale of privately held property at a “fair price” in the name of the public good.

Since that time, the city has attempted to engage in good faith negotiations with Academy Bus, but hasn’t made headway, Bhalla’s office stated Wednesday.

According to Bhalla:

“Unfortunately, Academy has demanded a development deal inconsistent with the city's Master Plan and the Southwest Redevelopment Plan unanimously passed by the City Council in 2017. The overdevelopment demanded by Academy would massively increase residential density and badly exacerbate the already unacceptable traffic problems in the area.”

Bhalla’s office said the $5.3 million deposit will be fully paid for utilizing a $1 million grant from Hudson County’s Open Space Trust Fund, the city’s Open Space Trust Fund and $900,000 from State Green Acres funding. No tax increase will be required to fund the $5.3 million deposit needed to acquire title to the property.

The final purchase price, reflecting fair market value, will be determined through a legal process provided for by state law.

Former Mayor Dawn Zimmer, whose administration kicked off the drive for eminent domain at the property, said the move was a big win for Hoboken.

Zimmer accused Academy Bus of trying to leverage the city's desire to expand the park into an “out-of-scale, traffic-generating development deal.”

“Back in 2011… we promised the residents of Southwest Hoboken that this was only the beginning of a larger neighborhood park, and that we would never pay for that expansion with overdevelopment,” Zimmer said. “I am thrilled that Mayor Bhalla is moving forward to fulfill that promise.”

Bhalla said that purchasing the land, which currently sits as a vacant lot, will provide much needed open space for our residents without any compromise of added residential density.

“Not only will the expanded park provide important quality of life upgrades for our community, it will also include infrastructure to further address flooding in the region,” Bhalla stated.

On Thursday, Hoboken City Council members Emily Jabbour and Jim Doyle released a joint statement about the decision:

“We are thrilled that Mayor Bhalla is moving forward to realize former Mayor Zimmer's vision to acquire Block 10 in order to expand the existing SW Park. The expansion of this park is critical in the overall plan to provide additional recreation options, play spaces, and other open space equitably throughout the city for the benefit of all our residents, in this instance especially those in the Southwest neighborhood of Hoboken. We look forward to supporting this expansion of true public space without adding residential density and bulk concessions to the area.”

Hoboken officials recently made headlines with another eminent domain-related case.

Earlier this month, the Hoboken City Council unanimously voted to authorize Mayor Ravi Bhalla the use of eminent domain to acquire the Union Dry Dock on Sinatra Drive for the purpose of a public park.

The site is owned by NY Waterway, a private ferry company that wants to turn it into a repair and maintenance facility. The company claims that it would enhance transportation, public security and property values on the Hudson River waterfront. But a large group of local community members have dug in their heels against the proposed location of the new facility, demanding that the area be used for open space instead.

• See related article: Hoboken Council Gives Go-Ahead On Eminent Domain For Dry Dock

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