Historic Hackensack Landmark at Center of Legal Dispute Over Future Redevelopment

A longstanding Hackensack, New Jersey, commercial landmark is in a legal battle that might shape Main Street. A large 1940s store is being turned into a luxury residential complex by local officials. The property owners dispute the move and have sued the city for unfair and illegal treatment.

For decades, the 400 block of Main Street has been home to Sears Roebuck and Co. While the retail giant left years ago, the building remains vital to Hackensack’s downtown and economy. Municipal managers included the land in a larger rehabilitation plan to enhance housing, foot circulation, and improve Main Street empty spaces in recent years.

This year, Hackensack City Council approved a plan to redevelop the Sears site. The city aims to replace or significantly modify the building to build luxury apartments to meet housing demand and increase downtown economic activity. Hackensack needs remodeling to compete and retain Main Street a residential and commercial magnet, say city leaders.

Arcolo Hackensack LLC and allied groups own the assets and view things differently. Their lawsuit alleges that the city is stealing unblighted private land. They say the building and property are in good shape and shouldn’t be seized or redeveloped. They say eminent domain is being exploited by placing the site in a redevelopment area.

Many New Jersey cities face a dilemma: how much can they adjust historic economic corridors? When they feel overstepped, property owners complain to redevelopment regulations that rehabilitate dilapidated or unsafe homes. Courts typically must weigh public planning aims against private property rights, as in this instance.

Legal experts think the ruling may impact more than Hackensack. Local governments may be able to advance redevelopment plans despite property owner objections if the city wins. Supporting the owners may limit how towns designate rehabilitation areas and apply redevelopment regulations, slowing state-wide measures.

The former Sears building stays unaltered during judicial proceedings. Residents, business owners, and developers are watching because the final decision might affect Main Street for years. Whether the land becomes a luxury housing development or stays in its current ownership highlights how redevelopment in booming New Jersey cities can spark legal and community disputes.