How $1B Will Transform Hackensack's Downtown
Over the next few weeks, the City of Hackensack will choose the winning bid to redevelop the former Masonic Hall at Atlantic and State streets, which will be turned into the 224-seat Hackensack Performing Arts Center with a theater and stage, marquee and gallery space.
It’s the latest project moving the rejuvenation of Downtown Hackensack forward—a culmination of 12 years, $1B in investment, 2,200 apartment units planned or under development, and hundreds of thousands of retail square feet in the pipeline.
Hackensack's Main Street Business Alliance—a special improvement district—has had the wheels spinning for a new downtown since 2004. “We saw places like Hoboken, Red Bank and Morristown and asked, ‘Why we can’t be one of those?’” says MSBA executive officer Jerome Lombardo, chairman of the MSBA and president of his own real estate brokerage, C.J. Lombardo Co. (He's pictured above, third from right, with Hackensack Mayor John Labrosse; City Manager David Troast; Deputy Mayor Kathleen Canestrino; MSBA executive director Patrice Foresman; and MSBA director Albert Dib.)
The MSBA is funded by special assessment—there's no city tax dollars at work—and tapped Downtown experts Street-Works nine years ago to examine the viability of redeveloping Hackensack's downtown.
“What they told us was, ‘Guys, you are sitting on the most developable piece of real estate left in New Jersey,’ and it’s no wonder,” Jerry says, pointing to Hackensack’s proximity to New York, a significant highway system, a major New Jersey Transit bus terminal and two train stations. “And why couldn’t we?” he asks. “We're the county seat, have an existing Main Street, have the presence of Hackensack University Medical Center and the county court system, and the needed affluence.”
Above, Jerry (center) joins David Troast and John LaBrosse at the groundbreaking for the renovation of the former Bank of America building into Heritage Capital Group's 210-214 Main St, 127 residential units and 4k SF of retail underway.
But before developments like 210-214 Main could go through, there was a problem: zoning was restrictive and made it nearly impossible to build residential over retail, “which is what you need for a great downtown,” Jerry says. “But we were convinced at what we needed to do and went back to our governing body. It was a five-year story of zoning changes, and now we have some of the best downtown zoning available.”
The average developer takes three to five years to get approval for such a project, he says, but now Hackensack is teed up so that if you comply with the new redevelopment zoning (which allows for a total of five stories over retail), you can get your project started simply by getting site plan approval. There's even a pre-construction process that allows developers to pitch a project for preliminary feedback from city officials. Developers love this aspect, Jerry notes, since it saves resources.
Among the projects: Metro Meridian Hackensack at 94 State St (222 units; now renting); 50 Main St & 18-20 Bridge St (40 units and 8k SF of retail, planned); 149 Main St (72 units above retail, planned); 161 Main St (mixed residential and retail, planned); 320-324 Main St and 326 & 328 Main St (commercial expansion of the Giant Farmers Market); 480 & 492 Main St (redevelopment into an Aldi’s Supermarket); Alkova Cos’ 150-170 Main St (328 units and 7,500 SF of retail, underway); 133 River St (140 units and expansion of the NJT regional bus station, conceptual); 240 Main St (110 units and 3k SF, planned); 150 River St (up to 700 units with 70k SF of retail and hotel, planned); Lot C (zoned for up to 300 units and 18k SF of retail and parking, zoned); and Atlantic Street Park, which surrounds the new PAC.
Now with the residential portion well underway, the city is using a $1.5M appropriation to renovate the former Masonic Hall into the Performing Arts Center, which will be delivered by next year. The MSBA is a big believer in the arts and open spaces, Jerry says, and when it came time to raise an additional $500k for the project, the community was quick to step up with donations.
The next component we'll likely see grow is education. While Bergen Community College already has a satellite location downtown, the MSBA is hoping it will someday consider an expanded footprint. Eastwick College has already expanded, Jerry says, and he’d also someday like to see a museum and art galleries.
While the MSBA has made significant strides in the rejuvenation of Downtown Hackensack, not all communities can do this, Jerry notes.
“Street-Works told us that in addition to a great location, communities need two more critical things: density and diversity, and we have both,” he say. “There’s been tremendous progress and now we’re right on the cusp. This isn’t something that just develops overnight; building a great downtown takes time.”
Plus, you need the support of a great governing body as they have in Hackensack, he says. “All of Hackensack's community will benefit from this,” he adds. “The average homeowner, even if not close to Downtown, should see solid increases in their property values. And we’re building more tax ratables to stabilize the tax base, and they'll generate tens of millions in new taxes over the course of time, which will also relieve the homeowner.”
