1.

SPONSORED BY:
SECONDED BY:

CITY OF HOBOKEN
ORDINANCE NO.:

ORDINANCE OF THE CITY OF HOBOKEN, IN THE COUNTY OF

HUDSON, NEW JERSEY ESTABLISHING PILOT EDUCATION TRUST
ACCOUNTS AND APPROVING THE CONTRIBUTION OF A PORTION
OF THE ANNUAL SERVICE CHARGE PROVIDED TO THE CITY OF
HOBOKEN PURSUANT TO THE FINANCIAL AGREEMENTS BY AND
BETWEEN THE CITY OF HOBOKEN AND MONROE CENTER
HOBOKEN URBAN RENEWAL, LLC AND BY AND BETWEEN THE
CITY OF HOBOKEN AND OBSERVER HIGHWAY URBAN RENEWAL,
LLC INTO THE CITY'S PILOT EDUCATION TRUST ACCOUNTS

WHEREAS, the City of Hoboken (the “City”) is a public body corporate and politic of
the State of New Jersey; and,

WHEREAS, the Local Redevelopment and Housing Law, N.J.S.A. 40A:12A-1 et seq.
(the “Redevelopment Law”) authorizes municipalities to determine whether certain parcels of
land in the municipality constitute “areas in need of redevelopment,” as such term is defined in
the Redevelopment Law; and,

WHEREAS, pursuant to the Redevelopment Law, the City designated Monroe Center
Hoboken Urban Renewal, LLC (the “Monroe Entity”) as the exclusive redeveloper of the
Monroe Center Redevelopment Area within the City; and,

WHEREAS, the City and the Monroe Entity entered a redevelopment agreement for the
development of a mixed use residential and commercial project containing approximately four
hundred and twenty-four (424) residential units, including forty-two (42) affordable housing
units, and other improvements; and,

WHEREAS, in accordance with the Long Term Tax Exemption Law, N.J.S.A. 40A:20-1
et seq. (the “Exemption Law”), the Monroe Entity and the City entered into a financial
agreement (the “Monroe Financial Agreement”) providing for the payment of an annual
service charge (the “Monroe Annual Service Charge”); and,

WHEREAS, pursuant to the Redevelopment Law, the City designated LCOR Hoboken
Rail Station Development LLC (the “LCOR”) as the exclusive redeveloper of a portion of Block
229, Lots 1 and 2 and Block 139, Lot 1.02 within the City; and,

WHEREAS, the City and LCOR entered into a redevelopment agreement for the
development of a mixed-use residential building with no more than three hundred eighty-nine
(389) residential units, including seventy-eight (78) affordable housing units and other
improvements; and,

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WHEREAS, in accordance with the Exemption Law, the City and Observer Highway
Urban Renewal, LLC, an affiliate of LCOR (the “Observer Entity” and together with the
Monroe Entity, the “Entities”) executed a financial agreement (the “Observer Financial
Agreement” and together with the Monroe Financial Agreement, the “Financial Agreements”)
providing for the payment of an annual service charge (the “Observer Annual Service Charge”
and together with the Monroe Annual Service Charge, the “Annual Service Charges”); and,

WHEREAS, pursuant to N.J.S.A. 40A:12A-22(m) of the Redevelopment Law,

municipalities are permitted to exercise all those public and essential governmental functions
necessary or convenient to effectuate the purposes of the Redevelopment Law, including the
power to arrange or contract with a public agency, to the extent that it is within the scope of that
agency's functions, to cause the services customarily provided by such other agency to be
rendered for the benefit of the occupants of any redevelopment area or housing project for school
purposes; and,

WHEREAS, the Hoboken Board of Education (the “Board”) and the three public charter
schools authorized by the NJ Commissioner of Education located within the City (Hoboken
Charter School (“HCS”), Hoboken Dual Language Charter School (“HoLa”), and Elysian
Charter School of Hoboken (“Elysian”), collectively, the “Public Charter Schools,” and
together with the Board, the “Public Schools”) constitute “public agencies” within the context of
N.J.S.A. 40A:12A-22(m) and constitute public local education agencies; and,

WHEREAS, pursuant hereto the City Council authorizes the establishment of four (4)
PILOT education trust accounts (the “PILOT Education Trust Accounts”), one for each of the
Public Schools; and,

WHEREAS, as described herein, the City has determined to allocate a portion of the
Annual Service Charges provided by the Entities pursuant to the Financial Agreements into the
PILOT Education Trust Accounts and provide for the disbursement of such funds directly to
each of the Public Schools in order to enable the Public Schools to continue to provide a
thorough and efficient education to the children of the City; and,

WHEREAS, disbursement of monies from the PILOT Education Trust Accounts shall be
used for any school purpose not contrary to law (the “School Improvements”) consistent with
the fiduciary obligations owed with payments made pursuant to N.J. Stat. § 54:4-75.

NOW, THEREFORE, BE IT ORDAINED AND ENACTED, by the City Council of

the City of Hoboken in the County of Hudson, State of New Jersey as follows:

I. GENERAL

The aforementioned recitals are incorporated herein as though fully set forth at length.

II. ESTABLISHMENT OF PILOT EDUCATION TRUST ACCOUNTS

The City hereby establishes four (4) “PILOT Education Trust Accounts,” one for each
Public School, to be funded on a quarterly basis with a portion of Annual Service Charges
received by the City under and pursuant to the Financial Agreements.

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III. AUTHORIZATION FOR THE DEPOSIT OF A PORTION OF THE ANNUAL

SERVICE CHARGES INTO THE PILOT EDUCATION TRUST ACCOUNTS
AND FOR THE DISTRIBUTION OF SUCH FUNDS THEREFROM

A. Portions of the Annual Service Charge provided by the Entities pursuant to the
Financial Agreements shall be apportioned into the PILOT Education Trust Accounts to fund
School Improvements as follows:

1. For the Monroe Entity, beginning in 2024 and for each year thereafter, the
City shall apportion two hundred and fifty thousand dollars ($250,000.00) per year,
increasing by two percent (2%) as of January 1, 2025, and each January 1st thereafter up
to and including the Termination Date (as defined in the Monroe Financial Agreement)
from the Monroe Annual Service Charge to be apportioned into each of the PILOT
Education Trust Accounts in accordance with Section A. 5 below.

2. For the Observer Entity, for the year beginning on January 1st immediately
after the Annual Service Charge Start Date (as defined in the Observer Financial
Agreement) and each year thereafter, the City shall apportion two hundred and fifty
thousand dollars ($250,000.00) per year, increasing by two percent (2%) as of the
January 1st immediately following the initial payment into the PILOT Education Trust
Account and each January 1st thereafter up to and including the Termination Date (as
defined in the Observer Financial Agreement) from the Observer Annual Service Charge
to be apportioned into each of the PILOT Education Trust Accounts in accordance with
Section A. 5 below.

3. Allocations of Annual Service Charges shall be pro rata in any year in

which the applicable Financial Agreement is not in effect for a full year.

4. The City may determine to allocate a portion of additional annual service

charges pursuant to financial agreements by and between the City and an urban renewal
entity into the PILOT Education Trust Accounts in the future. The City may incorporate
those additional annual service charges into the PILOT Education Trust Accounts
pursuant to an amendment to this Ordinance.

5. Portions of the Annual Service Charges received from the Entities

pursuant to III. A. 1 through 4 shall be deposited into the PILOT Education Trust
Accounts within two (2) weeks of receipt thereof by the applicable Entity and allocated to
each Public School’s PILOT Education Trust Account. Such funds shall be for the
exclusive use of each applicable Public School as follows:

a. Deposits into the PILOT Education Trust Accounts shall be

allocated to each Public School’s PILOT Education Trust Account annually using
the percentage of Hoboken-resident K-12 students that attended such Public
School as of October 15th of the immediately preceding calendar year as

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compared to the total Hoboken-resident K-12 students, at all Public Schools. By

way of example, if there are one hundred (100) Hoboken-resident K-12 students
at all Public Schools on October 15th and fifteen (15) attend a particular Public
School, such Public School shall receive fifteen percent (15%) of the following
years apportionment of any monies due collectively to the PILOT Education Trust
Accounts to the respective PILOT Education Trust Account of such Public
School.

b. The percentages of Hoboken-resident K-12 students in each Public

School as of October 15th of each year shall be based on the enrollment counts set
forth in the certified application for state student aid (ASSA) and state aid notices
issued by the Commissioner of Education by December 31st of each year.

B. The City shall disburse directly to the applicable Public School, upon written
request, some or all amounts in its PILOT Education Trust Account, which funds may be used by
the Public School for any school purpose not contrary to law.

IV. SEVERABILITY

If any part of this Ordinance shall be deemed invalid, such parts shall be severed and the
invalidity thereby shall not affect the remaining parts of this Ordinance.

V. AVAILABILITY OF THE ORDINANCE

A copy of the Ordinance shall be available for public inspection at the offices of the
City..

VI. EFFECTIVE DATE

This Ordinance shall take effect according to applicable law.

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Meeting Date: September 4, 2024

Approved as to Legal Form: Vetoed by the Mayor for the

following reasons:

Brian Aloia, Esq. Corporation Counsel

Adopted by the Hoboken City Council -or-

By a Vote of Yeas to Nays Approved by the Mayor
On the day of , 2023 On the day of , 2023

James Farina, City Clerk Ravinder S. Bhalla, Mayor

 Vote Record - CC - Ordinance

Yes/Aye No/Nay Abstain/Alternate Absent
Phil Cohen    
James Doyle    

 1st Reading Tiffanie Fisher    

 2nd Reading Emily Jabbour    
 Tabled
 Adopted Paul Presinzano    
 Failed Joe Quintero    
Ruben Ramos    
Michael Russo    
Jennifer Giattino    

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