Appellate court tosses out memo

Monday, June 02, 2008 Jersey Journal

The state Superior Court Appellate Division upheld a trial court's decision to nullify a 2005 "memorandum of understanding" between the City of Hoboken and Tarragon/URSA.

The appellate court agreed that the memorandum "effectively appointed Tarragon as the redeveloper" of a 10.75-acre site adjacent to the Northwest Redevelopment Area without following the proper steps under the Local Redevelopment and Housing Law.

"Read together, the memorandum of understanding and Resolution No. 8 (passed by City Council for approval) clearly attempt to circumvent the procedures of the LRHL" by designating a redeveloper before designating the area in need of development or approving a redevelopment plan.

"We're very pleased, but I'm not surprised - this was illegal conduct," said Leah Healey of Hoboken Parks. "I hope the city (now) realizes that they can't operate in the redevelopment world without following the procedures."

Hoboken Corporation Counsel Steve Kleinman said, "It appears that the appellate division found a procedural flaw in the redevelopment process. We respectfully disagree with that decision and we'll consider further avenues of appeal."