Bayonne council conditionally designates New York Waterway to negotiate ferry terminal agreement, authorizes escrow to cover professional fees
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Summary
The council granted authority to negotiate an exclusive interim redevelopment and ferry‑operator agreement with New York Waterway for the former military ocean terminal peninsula and authorized the firm to fund an escrow to pay city professional fees during negotiations; the council said a definitive agreement would return for final council vote.
The Municipal Council of the City of Bayonne on June 18 conditionally designated New York Waterway as a prospective redeveloper and ferry operator for the former military ocean terminal peninsula and authorized interim exclusive negotiations and an interim cost agreement that would require New York Waterway to fund an escrow to cover the city's professional fees during negotiations.
City attorney or staff presenter Gary Baumann (identified on the record as the presenter of the redevelopment/ferry recommendation) told the council the city solicited multiple proposals, conducted interviews and recommended New York Waterway as the appropriate partner to negotiate a long‑term definitive agreement. Baumann described the current council action as an authority to negotiate exclusively and to accept funding from the proposer to cover legal, planning and financial consultants while negotiations proceed. "All we're asking from the council tonight is the authority to negotiate with them for a definitive agreement," Baumann said; he added the proposer would fund an escrow so the city would no longer carry the consultant bills alone during the negotiation phase.
The council voted to adopt the conditional‑redeveloper resolution and to authorize the mayor to execute an interim cost and conditional redevelopment agreement that permits exclusive negotiations. The transcript shows recorded aye votes from the council on that resolution.
Next steps and scope If negotiations succeed, the council will receive a definitive long‑term agreement for its approval; the conditionally designated status does not itself transfer property or finalize operating terms. The presenter said there remain details to negotiate and that negotiations could fail — in which case the council could withdraw the conditional designation and consider other proposers.
Why this matters A long‑term ferry operator and terminal agreement would change transportation options for Bayonne residents and could trigger landside and waterside improvements. City staff said landside improvements already have funding set aside; the conditional designation is intended to move the project to negotiated terms and, ultimately, to a council vote on a definitive agreement.
Ending Council members expressed support for moving negotiations forward without disclosing detailed proposal comparisons in public at this stage. The council approved the conditional designation and interim cost agreement; staff will return with negotiation updates and a final agreement for council approval if negotiations succeed.
