EMERSON—A court brief filed March 12 by attorney for Emerson and Mayor Danielle DiPaola denies every accusation made by developer Emerson Redevelopers Urban Renewal (ERUR) in a Nov. 2025 lawsuit alleging project interference, delays and breaches of contract and fair dealing.
We reached out to attorney Mary McDonnell, counsel for the borough and DiPaola. We also contacted the mayor and borough attorney John McCann.
The filing came about a month after the original response deadline; however, both parties had agreed to a one-month delay to allow Emerson and DiPaola to submit a combined response.
Over the past several years, ERUR — redeveloper of a long-stalled 147-unit mixed-use residential project known as Emerson Station — and the borough have been at odds both in and out of court.
In late 2024 and early 2025, the borough council authorized McCann to take all necessary steps, including possible condemnation, to expedite the project, which is now approaching eight years since it was first proposed. The site remains partially built, with exposed siding and weather-beaten building wrap often seen flapping in the wind.
ERUR v. Emerson, DiPaola
In its Nov. 7, 2025 complaint, ERUR alleged municipal interference and permitting delays have rendered the under-construction project “no longer economically viable,” effectively blocking construction of 29 affordable housing units planned as part of the development.
The complaint accuses the mayor and borough officials of imposing new conditions on routine permits, creating delays and increasing project costs in an effort to stop the development.
The lawsuit alleges breach of contract, breach of the redevelopment agreement’s cooperation clause, breach of good faith and fair dealing, and violations of the New Jersey Civil Rights Act.
In a 10-page response brief, McDonnell of Pfund McDonnell PC in Ridgewood addresses 73 separate points raised in ERUR’s complaint. Most responses consist of single-sentence denials of the redeveloper’s allegations.
Following those denials, the response outlines six separate defenses to ERUR’s original 21-page complaint. These include:
- The complaint fails to state a claim upon which relief can be granted;
- Defendants breached no duty owed to plaintiffs;
- The complaint is barred in whole or in part by plaintiffs’ failure to properly litigate damages;
- The complaint is barred in whole or in part by the statute of frauds;
- The complaint is barred in whole or in part by the doctrine of laches;
- Defendants reserve the right to assert additional defenses following discovery.
The response also requests written statements specifying the amount of damages sought within five days and demands a jury trial on issues found to be triable.
McDonnell is designated as trial counsel for the borough and DiPaola should the case proceed to trial.
Allegations of obstruction
ERUR’s complaint alleges borough officials, acting at the direction of the mayor, obstructed the project by:
- refusing to issue demolition and fence permits;
- requesting additional documentation from the asbestos contractor;
- delaying utility disconnection statements;
- holding up resolution compliance approvals;
- declining to execute municipal consent for sewer and water permits;
- and failing to take action on related litigation and notices.
The lawsuit asserts these actions were intended to halt the development and prevent affordable housing from advancing. It further argues the delays have made the project financially unworkable.
The complaint also references comments DiPaola allegedly made during public meetings in 2018 linking the redevelopment project and its affordable housing component to the loss of local businesses.
ERUR claims those remarks signaled an intent to stop the project and discouraged diversity in the borough — claims DiPaola has previously rejected in public statements and court filings.
Court oversight
The redevelopment has been under court supervision since 2021, when Superior Court Judge Gregg A. Padovano appointed a special master to oversee Emerson’s compliance with its state-mandated affordable housing obligations.
The 29 affordable units planned as part of Emerson Station represent the majority of the borough’s third-round affordable housing requirements.
Separately, the borough has taken steps to remove ERUR as the project’s designated redeveloper.
On Sept. 2, 2025, the Borough Council voted 5-0 to revoke the company’s designation, stating it would pursue condemnation of the property and eventually name a new developer.
DiPaola said in September the borough intends to “protect the taxpayers” while selecting a builder that will comply with the affordable housing agreements already in place.
McCann said ERUR ignored a July 31, 2025 Notice of Default requiring a response within 30 days, citing multiple contract deficiencies. He said the company did not provide required documentation or communicate in good faith.
The borough has also issued a Notice of Termination, alleging the redeveloper failed to pay property taxes for the past year and missed construction deadlines.