Hoboken Board of Education holds public hearing on 38 Jackson Street preschool lease; no vote scheduled

The Hoboken Board of Education held a public hearing Sept. 30 on a proposed 20‑year lease of 38 Jackson St. to house preschool classrooms, Superintendent Dr. Carmen Johnson said. The board heard a presentation from its attorney on the lease terms and a handful of board members offered impressions of the space; the board did not vote on the lease and plans to consider it at its Oct. 14 meeting.

The lease would convert space at 38 Jackson into a preschool center intended to serve the Southwest neighborhood and to free classroom space at the district’s elementary schools, Dr. Carmen Johnson said. The district has already moved most preschool classrooms out of Connors and Brant elementary schools and plans to retain four preschool classrooms at Wallace Elementary while relocating nine to the new site, she said. "We will post the lease on our website, and we welcome any and all comments regarding this lease prior to the vote at our October 14 Board of Education meeting," Dr. Johnson said.

Why it matters: District officials said the lease is intended to relieve pressure on K–5 classroom space created by rising enrollment. The district plans to finance annual lease payments with preschool aid rather than local tax dollars, officials said, and the landlord will complete a turnkey build‑out before occupancy.

Attorney presentation and key terms The board’s counsel summarized the proposed lease as a 20‑year term with two five‑year renewal options. The leased area is 25,550 square feet, and the district’s average rent over the initial 20‑year term is $70.51 per square foot, counsel said. The attorney provided the detailed per‑square‑foot schedule: $100 in years 1–6; $55 in years 7–10; $60.50 in years 11–15; and $66.55 in years 16–20. Counsel said the rent in the first six years is “front loaded” to address landlord risk because the landlord is paying for a substantial portion of the construction.

The lease carries a security deposit of $652,500 to be paid in installments over three years and a rent commencement set for six months after the landlord delivers the premises (the district would receive six months of free rent following delivery). The attorney said the landlord will perform the build‑out at its cost and obtain financing to pay for construction.

Termination and approvals The attorney described a district termination right subject to a termination fee: a maximum amount equivalent to five years’ rent plus unamortized brokerage commissions, with nuances if the lease is terminated later in the term. The lease, if approved by the board, must still be submitted to the New Jersey Department of Education for facilities approval, the attorney said.

Environmental cleanup Board members asked about site remediation referenced in the lease. Counsel confirmed remediation tied to the Industrial Site Recovery Act will be completed before the district takes occupancy of the property.

Board impressions and partners Several board members who toured the space described it as bright, quiet and well suited for preschool. "I was impressed with the space. It's very bright, and welcoming," said Miss Norwood, a board member, adding that double‑paned windows and soundproofing made the interior noticeably quieter than the street outside. Another board member, Mr. Grama, said he had watched the project for about 18 months and called the space "a brand new, modern, well built facility." The board acknowledged developers Gary Mezzatesta and Nick Petrucelli and the city for partnering with the district on the project.

Public comment and next steps No members of the public signed up to speak during the hearing; board staff recorded "We have no speakers." The board’s stated next steps are to post the full lease on the district website, accept public comments through Oct. 14, and then consider a formal approval at the Oct. 14 board meeting. Counsel also reiterated that Department of Education facilities approval is required before the district can occupy the space.

Meeting close The hearing concluded with a motion to adjourn that was seconded and approved by voice vote. No formal vote on the lease occurred during the Sept. 30 meeting.