EMERSON — Emerson Redevelopers Urban Renewal (ERUR), the firm behind the long-stalled Emerson Station redevelopment, has filed a new lawsuit against the borough and Mayor Danielle DiPaola, alleging that municipal interference and permit delays have rendered the 147-unit mixed-use project “no longer economically viable” and blocked the construction of 29 affordable housing units.
The complaint, filed Nov. 7 in Superior Court, accuses the mayor and borough officials of imposing new conditions on routine permits, creating delays, and driving up project costs in an effort to stop the development. The suit 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.
DiPaola told Pascack Press the borough was served with the lawsuit on Nov. 12. “We have not had a meeting since before that date. Therefore the governing body has not considered the suit,” she said. The next mayor and council meeting is Dec. 2.
ERUR’s attorneys did not respond to a request for comment before press time.
Allegations in the suit
The 21-page filing claims borough officials, at the direction of the mayor, obstructed the project by:
- refusing to issue demolition and fence permits;
- seeking “inappropriate” documentation from the asbestos contractor;
- delaying utility disconnection permits;
- holding up resolution compliance;
- declining to execute a required municipal consent for sewer and water approvals;
- and failing to take action on related litigation and notices.
The lawsuit asserts that these steps were intended to halt the development and prevent affordable housing from advancing. It further argues that the delays have made the project financially unworkable.
The complaint also references comments DiPaola allegedly made during public meetings in 2018, linking the redevelopment and its affordable housing component to the loss of local businesses. The suit argues those statements signaled her intent to stop the project and discouraged diversity in the borough — claims DiPaola has previously rejected in public statements unrelated to this case.
Court oversight
The redevelopment has been under court supervision since 2021, when Superior Court Judge Gregg A. Padovano appointed a special monitor 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 requirement.
Borough actions to remove ERUR
Separately, the borough has taken steps to remove ERUR as its designated redeveloper. On Sept. 2, 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 that the borough intends to “protect the taxpayers” and select a builder that will comply with the affordable housing agreements already in place.
Borough attorney John McCann said ERUR ignored a July 31 Notice of Default that required a response within 30 days, citing “many” contract deficiencies. He said the firm 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.
Court records
The public may view related filings on the New Jersey Judiciary’s eCourts system. Civil docket number: BER-L-007489-25.