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| Picture by Gary Hershorn |
Purpose of the Meeting
The meeting was a public hearing on a lease agreement for 38 Jackson Street.
The space is intended to serve as a new preschool center in the southwest neighborhood of Hoboken.
No action was taken at this meeting; the vote is scheduled for October 14, 2025.
Superintendent’s Report (Ms. Johnson)
The lease will allow the district to move nine preschool classrooms out of Wallace Elementary, freeing space for growing K–5 enrollment.
Brandt and Connors schools have already shifted most preschool classes to free up classrooms.
Wallace currently has 13 preschool classrooms (4 modular, 9 in the building). After the move, Wallace will retain 4 classrooms, matching Brandt.
Relocation will also restore science labs and world language rooms at Wallace that had been repurposed.
This is seen as the district’s “last effort” to manage growth without resorting to modular expansions, a referendum, or other costly options.
Board Member Impressions of 38 Jackson
Positive feedback: bright, quiet despite outside noise, high ceilings, modern facilities.
Safety and access: direct elevator and stairwell access from parking garage.
Members noted the developer’s effort with soundproofing and quality buildout.
Several emphasized the importance of securing modern facilities to meet future demand.
Lease Terms (Presented by Board Counsel)
Term: 20 years, with two 5-year renewal options.
Size: 25,550 sq. ft. (first floor, plus portions of 2nd and 3rd for elevator access).
Rent: Average $70.51/sq. ft. over 20 years.
Years 1–6: $100/sq. ft.
Years 7–10: $55/sq. ft.
Years 11–15: $60.50/sq. ft.
Years 16–20: $66.55/sq. ft.
Security Deposit: $652,500, payable in installments over 3 years.
Rent Commencement: 6 months after delivery of the completed turnkey facility.
Termination Clause: District may terminate, but a fee of up to 5 years’ rent (plus certain costs) applies.
Counsel explained that terms were favorable given the unusual risks landlords take in building out educational space under DOE approval requirements.
Additional Discussion
Environmental Remediation: Board confirmed any industrial site remediation will be completed before occupancy.
Process Background: Negotiations took over a year, including discussions with City Hall and community forums. Developers (Gary Mesatesta and Nick Petraelli) originally planned a grocery store but pivoted to educational space after public input.
Board members highlighted the partnership with developers and the city and commended the superintendent’s team for persistence.
Public Comment
No members of the public signed up to speak.
Financial Concerns
High rent structure: The lease averages $70.51 per square foot, but rent in the first six years is set at $100 per square foot—much higher than later years. Residents may see this as an unnecessary burden on taxpayers.
Long-term commitment: A 20-year lease with two 5-year renewal options locks the district in for decades. Families may question whether the district should pursue property ownership instead of paying rent indefinitely.
Termination penalty: If the district needs to end the lease early, it could cost up to five years’ worth of rent plus other fees. This reduces flexibility in responding to enrollment changes.
Security deposit: A $652,500 deposit, even spread out over three years, is a large upfront cost.
Educational and Space Concerns
Limited classroom expansion: Despite demand, the space will only accommodate nine classrooms. Parents may worry this is a temporary fix that doesn’t solve long-term overcrowding.
Loss of promised community amenities: Some residents may still be disappointed that the building will not house a grocery store as originally planned.
Environmental and Safety Concerns
Industrial site history: The property has an ISRA (Industrial Site Recovery Act) remediation process. Community members may worry about whether the site is fully safe for preschool children before occupancy.
Traffic and parking: While the board mentioned discussions with city officials, residents in southwest Hoboken may worry about congestion and drop-off/pick-up logistics in an already dense area.
Governance and Transparency Concerns
Limited public input: At this hearing, no public members spoke, but that could reflect limited awareness. Some may feel the decision is being rushed or made without enough community engagement.
Future costs: Once this option is exhausted, the district may still need a referendum or new construction. Residents might see the lease as delaying, not solving, bigger facilities issues.
Partnership with developers: Some may question whether the lease terms primarily benefit the developers rather than the district.
Broader Strategic Concerns
Reliance on leased space: Critics might argue the district is too dependent on developers instead of pursuing district-owned solutions.
Equity of access: Families may worry about whether the new site will be equitably accessible across Hoboken, especially since it’s concentrated in the southwest.
