City officials in Hackensack and the owner of the former Sears department store at the intersection of Main and Anderson streets are inching closer to breathing new life into one of the largest, partially developed lots in the city’s downtown. During the city council meeting held on Tuesday, March 25, members voted to approve an ordinance adopting a redevelopment plan for the 3.4-acre site, which could see the empty storefront finally repurposed after years of litigation and delays.
City council approval is critical for the site’s future, as it will enable the developer to seek tax incentives to repurpose the property. According to the ordinance passed by the planning board this month, officials voted to condemn the site during the Feb. 12 city council meeting. The approval of a redevelopment plan also allows the site’s owner to begin working on a site plan eligible for tax incentives.
The redevelopment plan, made public by the planning board, states that the site’s owner, Sugensteve LLC Etals, will be permitted to add commercial space—including live entertainment venues and a hotel—as well as residential units and public amenities such as a recreation center, museums, libraries, and even police and fire stations.
The plan allows for new structures up to six stories tall, 325 apartments, and a minimum of 12,000 square feet of commercial space. It also permits up to 20,000 square feet of office and medical office space.
The limited liability firm, which is affiliated with Miami-based real estate investment firm Kin Properties, declined to comment on its plans for the site.
Although the recent approval of the redevelopment plan means construction may still be several years away, the city council’s decision marks a significant milestone for the building’s ownership after years of legal challenges following Sears’ bankruptcy in 2019 and the store’s closure in 2020.
A January 2023 report from NorthJersey.com found that city officials and Transform Holdco LLC—the firm that acquired Sears Holdings’ assets during the department store’s restructuring—agreed to settle over an amended redevelopment plan that Transform alleged would significantly limit what it could do with the existing building. According to the report, Transform filed a lawsuit in January 2022, around the same time several other limited partnerships connected to the site filed similar suits.
City officials argued that the Art Deco building, which was the largest department store in the county and one of the tallest buildings in the region when it opened in 1932, is a vital part of the city’s heritage. The redevelopment plan would require the building’s façade and iconic tower to be preserved.
At the time, the former limited liability company was also embroiled in legal challenges with the city over a parking lot it owned across the street, immediately adjacent to Johnson Park. Ultimately, however, the city voted to condemn that site and purchased it for $1.68 million.
