Hackensack City Council on first reading introduced ordinances to rescind three previously adopted long-term tax-exemption (pilot) agreements tied to redevelopment projects and set public hearings for Aug. 11, 2025.

Mayor (unnamed) told residents the council is taking the "first step towards rescinding" two 30-year and one 15-year tax-exemption agreements for the former Sears site at 1 Essex Street, the Essex 1 development, and the Sapphire project at 148 Main Street. He said those agreements were "rushed through by the previous administration" and that the current council would "do our due diligence and put the will of our residents first."

During public comment, Kate Coffey, representing RHR Hackensack Urban Renewal LLC, the redeveloper and contract purchaser for Block 405, Lot 3, said the company objects to the ordinance and "intend[s] to vigorously enforce our vested contractual rights." The council proceeded to adopt the ordinances on first reading; the city clerk was directed to publish notice and the ordinances were scheduled for final consideration at the council meeting on Aug. 11, 2025 at 8 p.m.

Why it matters: Rescinding long-term tax-exemption agreements would alter the financial terms of development projects that can affect municipal tax revenues, redevelopment timelines and developer obligations. Developers have signaled they may pursue legal remedies.

Discussion versus decision: The council introduced and passed the ordinances on first reading (procedural action). The substantive change would occur only after final passage following the public hearing on Aug. 11. Developer counsel recorded an objection and indicated potential legal enforcement of contractual rights; the council noted those objections but moved forward with the first-reading actions.

What’s next: Public hearings on the rescission ordinances will occur Aug. 11, 2025. Developers may pursue legal action relating to contractual vesting; the transcript records an objection from RHR’s counsel.