CC - Resolution

Resolution of the City of Hoboken Authorizing the Execution of an Interim Cost and Conditional Designation Agreement with Shipyard Associates, L.P., Including Provisions for an Escrow Deposit to Defray the City’s Costs Incurred in the Negotiation of a Redevelopment Agreement


Department:Community DevelopmentSponsors:


WHEREAS, Shipyard and the City are parties to the civil action Shipyard Associates, L.P. v. City of Hoboken, Law Division Docket No. HUD L-1308-16, Appellate Division Docket No. A-001085-17T3 and Supreme Court Docket No. 082446 (“Litigation”); and,


            WHEREAS, the Litigation involves the issue of whether the City may apply its flood hazard prevention ordinances to prevent Shipyard from constructing a proposed high-rise residential building (known as the “Monarch at Shipyard”) on real property designated as Block 264.2, Lot 1 on the Hoboken Tax Assessment Map (commonly known as the “North Pier” or “North Platform”); and,


WHEREAS, Shipyard is interested in becoming the designated redeveloper and owner of certain real property which is designated as Block 1, Lot 1 on the Hoboken Tax Assessment Map and commonly known as 256 Observer Highway (“Municipal Garage Site”) on which the City’s municipal garage and public works facility (“Existing Municipal Garage”) currently operates, and which is subject to the Redevelopment Plan for the Public Works Garage Site, adopted April 19, 2006 and amended June 18, 2008 (“Redevelopment Plan”); and,


            WHEREAS, the City owns the Municipal Garage Site and the City wishes to demolish the Existing Municipal Garage and construct a new municipal garage and public works facility on the Municipal Garage Site that will be located within a mixed use development, which mixed use portion is proposed to be developed and owned by Shipyard (“New Municipal Garage”); and,


            WHEREAS, the Parties have entered into a Settlement Agreement and Release, dated August 5, 2019 (“Settlement Agreement”), in connection with the Litigation; and,


            WHEREAS, the Settlement Agreement generally is contingent upon, among other things, Shipyard refraining from developing the Monarch at Shipyard, and Shipyard obtaining necessary governmental approvals, including City approvals and any necessary amendment of the Redevelopment Plan, to redevelop the Municipal Garage Site in accordance with the project description set forth in Exhibit A of the Settlement Agreement (“Proposal”); and,


            WHEREAS, the “Effective Date” of the Settlement Agreement is contingent upon the occurrence of several actions or events, including the execution of an Interim Cost and Conditional Designation Agreement between the Parties with respect to the potential redevelopment of the Municipal Garage Site; and,  


           WHEREAS, accordingly, the City has prepared a form of Interim Cost and Conditional Designation Agreement, a copy of which is attached hereto as Attachment A, whereby Shipyard would pay up to, but not more than, $500,000.00 of the reasonable costs which are incurred by the City and associated with the review of the Proposal, the drafting and negotiation of a Redevelopment Agreement, and all other costs and expenses related to this matter prior to the execution of any Redevelopment Agreement, should such an Agreement ultimately be executed, or the determination by the City that such a Redevelopment Agreement cannot be executed, should that result occur; and,


WHEREAS, the funding of such costs would be phased in accordance with the terms of the Interim Cost and Conditional Designation Agreement; and,


WHEREAS, the phases of tasks set forth in the Interim Cost and Conditional Designation Agreement include, but are not limited to, identification of appraised values and certain costs associated with the Proposal and the Monarch at Shipyard pursuant to paragraph 8 of the Settlement Agreement; and,


WHEREAS, the City would, during the Interim Period, as that term is defined in the Interim Cost and Conditional Designation Agreement, negotiate exclusively with Shipyard with regard to the Proposal for the redevelopment of the Project Site; and,


WHEREAS, the City Council seeks to authorize the execution of the Interim Cost and Conditional Designation Agreement as detailed herein.


NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hoboken as follows:


1.              The Mayor is hereby authorized to execute an Interim Cost and Conditional Designation Agreement between the City of Hoboken and Shipyard Associates, L.P., in a form substantially as that attached hereto as Attachment A.


2.              Staff and consultants to the City are hereby authorized and directed to take all other administrative actions to implement this Resolution as are necessary and appropriate to accomplish its goals and intent.


3.              This Resolution shall be effective immediately.


Meeting History

Oct 16, 2019 7:00 PM Video City Council Regular Meeting
draft Draft
RESULT:CARRIEDNext: 11/6/2019 7:00 PM