Sources: City To Move Back To Observer Highway Garage

According to sources with knowledge of the matter, the city will be moving its municipal vehicles back to the old garage on Observer Highway, which it vacated on Friday, Aug. 13. The city left the garage as part of a $25.5 million deal to sell the property to development firm S. Hekemian Group. But that deal fell through and is facing possible litigation.

According to one source, the city will move back to the old garage by Sept. 24. 

Mayor Dawn Zimmer said there was no news on the garage and would not comment on the reports that the city will be moving its vehicles back to Observer Highway. 

"We're in settlement negotiations," said Zimmer in a brief phone conversation on Thursday night. She would not comment further. 

The city moved into 1714 Willow, its current but temporary location, in July. The city signed a 60-day agreement, for $15,000 a month. Although the 60 days are not over yet, sources close to the matter said the city will move out of 1714 Willow before the end of this month. 

In August, City Council voted to terminate the contract with Hekemian, saying that the firm had obstructed the city from getting its "No Further Action" letter from the State Department of Environmental Protection, the requirement it needed to close the deal. 

On Friday morning Aug. 13, Hekemian sent the city a letter, stating that it was in fact the city which was in breach and that they were ready to close the $25.5 million deal at 11 a.m. on that day. Hekemian is suing the city. 

In the meantime the city moved its vehicles to 1714 Willow Ave., which has brought with it another lawsuit. Mike Stigliano, owner of doggy day care Hoboken Unleashed already held a lease to that property and made monthly payments to make sure no other tenant would be able to move in. The city and Stigliano have been trying to resolve that dispute.