EMERSON—The borough has taken two important legal steps against the redeveloper of the long-stalled downtown mixed-use project known as Emerson Station.
It filed a Notice of Default and a Notice of Termination against Emerson Redevelopers Urban Renewal (ERUR), citing the company’s failure to pay property taxes over the past year and its inability to complete the project in a timely manner. The steps are seen as possible moves toward condemnation.
“From a legal perspective they have been put on notice. There is no ability to ‘cure’ the termination because they were terminated for two purposes,” borough attorney John McCann said Aug. 19. “We are well past the time period they had to construct” the project.
McCann said a new attorney for ERUR responded to the notices, claiming they were “not proper” and that the borough had “acted in bad faith” by not approving a new site for seven affordable units. He called those claims “preposterous,” noting that he had made a counterproposal for siting the off-site units that went unanswered.
The project—which dominates Emerson’s downtown—has seen no construction activity for months, officials said. Approved in late December 2018, the development has been plagued by lawsuits over property condemnations, delays, unpaid obligations, and disputes over where to build affordable housing.
A legal battle over ERUR’s failure to pay $500,000 for the deed to ambulance property has been ongoing in Superior Court since June 2020. ERUR claims the borough missed a Dec. 31, 2019 deadline to submit design plans, permits, and a site for a new ambulance building, thereby forfeiting the payment.
Earlier this year, Mayor Danielle DiPaola suggested a possible “global resolution” of the $500,000 dispute and related litigation might be in the works. The latest filings, however, leave the long-running case unresolved.
At the Aug. 19 Borough Council meeting, McCann confirmed the borough had served ERUR with the notices of default and termination, citing unpaid taxes and project delays.
Pascack Press requested copies of the notices and ERUR’s response but did not receive them by press time. Efforts to reach McCann were also unsuccessful.
In late 2024 and earlier this year, the council authorized McCann to take all necessary steps—including possible condemnation—to expedite the project.
The plan called for 147 apartments and 14,000 square feet of retail and restaurants near the downtown train station. The site remains partly built, with exposed sides and weather-beaten building wrap.
McCann said he recently heard from an investor making a “last-ditch effort” to move the project forward, but the proposal offered nothing new. While the investor agreed to build affordable units off-site, he sought “guarantees” that McCann said he could not provide. McCann described the effort as “bad faith.”
Asked in May about the project’s status, McCann said, “We are going to defend the taxpayers’ interests, and everything is on the table—including condemnation.”
On Nov. 12, 2024, the council authorized McCann to file a breach-of-contract lawsuit. He said any future action could include condemnation, pending council approval. He did not raise condemnation at the Aug. 19 meeting.
Although a condemnation lawsuit remains possible, McCann has acknowledged it would be a costly process. The council has not formally discussed the option.
For background, see “Judge throws ERUR out on Block 419: DiPaola ‘took slings and arrows’ on federal suit, a win for taxpayers,” by Michael Olohan, May 4, 2025, thepressgroup.net