A dispute involving the iconic Sears building in Hackensack has been resolved, clearing the way for its redevelopment.
The city reached a settlement with Transformco, the company that acquired Sears Holdings’ assets, NorthJersey.com reported. The deal comes a year after Transformco filed a lawsuit alleging the city curbed the redevelopment potential of the site, 436 Main Street.
In December 2021, the City Council approved its own concept, calling for mixed-use residential and commercial use, but no medical use. It required the facade and tower to be maintained and limited the height of any project.
Transformco claimed the zoning change came after the company was approached by Holy Name Medical Center about a potential 90,000-square-foot development to replace the store, which closed in 2020 after 88 years. It is not clear what became of those discussions.
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Under the settlement between Transformco and the city, the main three-story building and tower will be preserved, and a multifamily building can be constructed around it. The deal calls for 258 apartments, 18,000 square feet of retail, two interior courtyards and a pool.
It also includes 30 years of PILOTs, or payments in lieu of taxes, by the developer. Transformco will also pay the city $80,000 as a “community benefit.”
Nearby, Transformco plans to redevelop the former Sears auto center into a Safelife AutoGlass store.
“We’re happy we got everything settled and we’ll move on from there,” deputy mayor Kathleen Canestrino told the publication.
There are still barriers to overcome. For starters, a developer hasn’t been chosen. The city planning board would also need to approve any plan for the former department store. And a lawsuit filed by Arcolo Limited Partnership — which owns the building — remains ongoing. Transformco has a long-term lease and has an option to buy the structure. It owns the surrounding property.
— Holden Walter-Warner