BAYONNE, NJ, July 20, 2008 – The Board of Commissioners of the Bayonne Local Redevelopment Authority (BLRA) at its regular meeting last night approved a resolution authorizing a 90-day extension of its Memorandum of Agreement with the US Army, which was set to expire on July 20.

The MOTBY property was transferred to the BLRA under a Memorandum of Agreement dated July 20, 2001which provided, among other things, that all proceeds from the lease, sale or equivalent use of MOTBY must be reinvested in the property by the end of the seven-year development period.

As the initial seven-year period draws to a close, the BLRA has been working with the Army on a mutually agreeable method to assure continued investment in the property “in the manner most beneficial to the community,” according to BLRA Executive Director Joseph Nichols.

While a final agreement has not been reached there has been “a high level of understanding and cooperation on both sides” with the common goal of building a successful project that provides long term economic benefit to the City of Bayonne, said Nichols.

While negotiations continue, the Army has agreed to an interim 90-day extension of the “development period” which will maintain the status quo while continued progress is made toward a final agreement.

BLRA Chairman Howard Fitch said, “We have worked side-by-side as partners with the U.S. Army for many years on developing the MOTBY project and we have accomplished a great deal. The development is now poised to move on to the next stage and we are hopeful that we can build on these past accomplishments to reach a long-term solution acceptable to all involved.”

BLRA Commissioner and State Assemblyman Anthony Chiappone said, “I am heartened by the progress made here, and thank the Army for its prompt response to the BLRA’s request for an extension. This continued cooperation with the Army should keep us moving forward toward mutual success.”

Nichols said he wrote recently to the Assistant Secretary of the Army to ask if the Army would consider a 90-day extension of the development period to allow time “to further negotiate the issues involved in a long-term solution” and promised to bring it to the BLRA Board if they did.

“I was told last week that the Army would agree to this,” said Nichols, “and very much appreciate this positive response.”





 

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