FAQ on the Proposed New Hoboken Board of Education Lease
Public Hearing: September 30, 2025
Vote Scheduled: October 14, 2025
Why is the district considering leasing 38 Jackson Street?
Our elementary schools are experiencing growing enrollment. To make room, we need to move preschool classes out of elementary buildings. Leasing 38 Jackson allows us to relocate nine preschool classrooms from Wallace School while restoring science labs and world language rooms that were converted into homerooms. This is the last major step we can take before considering larger measures such as new construction or a public referendum.
Why a lease and not a new building?
Building new schools in Hoboken is extremely costly and requires land that is very limited. Leasing provides a quicker and more flexible way to create needed classroom space. The landlord will deliver a turnkey preschool facility, built to state standards, without the district having to finance construction up front.
What are the financial terms?
Lease length: 20 years, with two optional 5-year renewals.
Rent: Average of $70.51 per square foot over 20 years.
Years 1–6: $100 per sq. ft. (front-loaded)
Years 7–10: $55 per sq. ft.
Years 11–15: $60.50 per sq. ft.
Years 16–20: $66.55 per sq. ft.
Security deposit: $652,500, payable over 3 years.
Rent start date: Six months after the space is delivered.
The higher rent in the first six years helps cover the landlord’s risk and upfront construction costs.
Isn’t this too expensive?
Compared with other commercial leases in Hoboken, this agreement is unusual and relatively favorable because:
The landlord is building a customized preschool facility at their expense.
The district negotiated flexibility, including a termination option (with a fee).
Financing, approvals, and construction risks are being carried by the developer.
While leasing does represent a significant commitment, it is a faster and less costly alternative to new construction.
Can the district get out of the lease if needed?
Yes. The district has a termination clause. If exercised early, the district must pay up to five years’ rent plus some costs. This protects the district if circumstances change, but also acknowledges the landlord’s investment.
Is the site safe for children?
Yes. The property is subject to state environmental remediation requirements under the Industrial Site Recovery Act (ISRA). Remediation must be completed before the district can occupy the space.
What about traffic and parking in that area?
The district worked with city officials to review traffic and parking. The facility will have direct access from the parking garage through an elevator and stairwell. Soundproofing and design choices also make the classrooms quiet and suitable for learning despite the busy neighborhood.
Why isn’t the building a grocery store, as originally planned?
The developer determined that a grocery tenant was not feasible and offered the space for educational use. Given the district’s urgent need for classrooms, this became an opportunity to meet community needs in a different way.
Will this solve overcrowding for good?
No. This lease buys the district time and space, but enrollment is projected to keep growing. Long-term solutions may include additional partnerships, referenda, or new construction. The lease provides breathing room before those decisions must be made.
How can the public share feedback?
The full lease will be posted on the district website.
Community members may email questions and comments to the Board of Education before the October 14 vote.
All Board meetings include opportunities for public comment.
Key Message: Leasing 38 Jackson Street is being promoted as a practical step to give Hoboken’s youngest learners safe, modern classrooms while creating space for older students. It’s not the final answer to the claims of enrollment growth according to the Board of Education.
