EMERSON—The Borough Council voted, 3-0, on Nov. 12 to authorize Borough Attorney John McCann to draft and file a breach of contract lawsuit against Emerson Redevelopers Urban Renewal (ERUR).
This marks the second lawsuit between the borough and the redeveloper, stemming from delays and alleged violations of the 2016 redevelopment agreement for the Emerson Station project.
McCann said the new complaint would address ERUR’s failure to meet contractual obligations, including submitting monthly progress reports and providing required documentation.
“This is the final straw,” McCann told council members. “They have repeatedly made promises and repeatedly broken promises. We have tried everything we can to work with these people, and they just don’t cooperate.”
The council’s resolution caps legal drafting costs at $3,500. Voting in favor were Nicole Argenzia, Jill McGuire, and Ashley Sayers. Members Michael Timmerman, Ashley Rice, and Brian Gordon were absent. McCann said he expects to file the lawsuit within weeks.
The lawsuit also comes as Emerson prepares for a separate trial, set to begin Dec. 2, over $500,000 the borough claims ERUR owes for construction services related to a new ambulance building.
The $500,000 lawsuit, filed in 2020, alleges that ERUR reneged on compensating the borough for deeding over the former ambulance property. The trial will commence at 9 a.m. on Dec. 2 in Superior Court, Hackensack, before Judge John O’Dwyer.
Representing Emerson is Brian Giblin of Giblin & Gannaio, Oradell, while Joseph Fierenzo of Sills Cummis & Gross, Newark, represents ERUR.
The dispute centers on a 2018 amendment to the original redevelopment agreement, which required Emerson to procure permits, designs, and land for a new ambulance building within one year to receive $500,000 in construction services. ERUR claims the borough failed to meet the deadline, forfeiting the funds, while Emerson alleges the timeline was established in bad faith.
The Emerson Station redevelopment project remains incomplete nearly six years after construction began. The downtown complex, tied to 29 affordable housing units, is still unfinished. McCann said ERUR’s attorneys recently told the borough that work was ongoing, but little progress is visible at the site.
McCann also noted concerns over ERUR’s lack of response to requests for documentation and compliance with redevelopment agreement terms. He said he had notified ERUR by email of their breaches but that no replies were received.
The project’s delays and disputes have frustrated local officials, with McCann saying of ERUR, “They have treated it as though the redevelopment agreement does not exist. To protect the taxpayers, we plan to file this complaint.”