BAYONNE, NJ, July 8, 2008— The Bayonne Local Redevelopment Authority (BLRA) won an important victory this week, when a judge ruled that the authority has the right to void a land purchase contract with the Port Authority of New York and New Jersey. Hudson County Superior Court Judge Thomas Olivieri upheld the BLRA’s position that the contract could be voided because it was awarded at a meeting last September that violated the Open Public Meetings Act.

“This is an important win for the citizens of Bayonne,” said Mayor Terrence Malloy. “The courts have upheld our right to do what’s best for our city and its residents. We are hopeful that the Port Authority, having had its day in Court, will resist the impulse to file an appeal which would only serve to delay the process and seek instead to accept the judge’s ruling and return to its previous cooperative relationship with the City of Bayonne.”

The Port Authority of New York and New Jersey sought to buy 153 acres at The Peninsula at Bayonne Harbor. The BLRA awarded the contract, but later rescinded the pact when it was discovered that the meeting violated the Open Public Meetings Act. The Port Authority contended that the BLRA should have requested that the courts decide if the contract could be voided.

“The judge found that ample authority existed for the BLRA to correct its procedural error by taking remedial action itself, without having to either file suit or wait for someone else to file suit to void the contract,” explained William W. Northgrave, special counsel to the BLRA.

The BLRA later opened negotiations for the site with several other entities and ultimately approved an agreement for PortsAmerica, Inc. to purchase the property for $90 million. The firm plans to operate a “roll-on/roll-off” auto marine terminal, which will open in late summer, at the property located within The Peninsula’s Maritime District.

Lauding the BLRA for taking action in the best interest of Bayonne residents, Olivieri said, “This court believes it was appropriate, if not mandatory, for the BLRA to take such matters into account.”

“The judge’s decision expedites the economic reuse of this important parcel and allows for the retention and creation of permanent jobs in the City of Bayonne,” said BLRA Executive Director Joseph G. Nichols, Esq. “The City and it’s taxpayers will also benefit from placing this property on the tax rolls and from the momentum created for the overall Peninsula project as a result of the development of this district.”

The Maritime District is one of six designated redevelopment zones on The Peninsula. The Peninsula’s redevelopment plan limits uses within the district to port operations.






 

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