Mack-Cali and Upper Saddle River reached a settlement over the development of the 47-acre site.
Mack-Cali can develop luxury townhouses at the former Pearson Education site under a settlement with Upper Saddle River. (Google Maps) UPPER SADDLE RIVER -- Michael DeMarco, president of Mack-Cali, hopes the developer can work with Upper Saddle River after the two sides settled lawsuits over the former Pearson Education site on Lake Street.
Mack-Cali sued the borough after the town initially refused to allow the company to convert the office building into multifamily housing.
The borough announced the settlement on its website. It allows Mack-Cali to build 208 luxury townhouses on the property, which should sell for about $800,000 each.
Officials expect the fully developed property to generate $3.2 million in tax revenue each year, compared to the $973,000 generated today.
Mack-Cali will also be able to develop 22 affordable housing units on the property and an additional 25 on borough-owned property. The borough is acquiring 9 acres of the 47-acre site as part of the settlement.
DeMarco said the borough planned to use the land for a new town hall and sports complex.
"We were happy it worked out," DeMarco said. "We think this will be an important element of the town."
Borough officials did not immediately respond to a request for comment.
Developer to build luxury homes
The two sides negotiated the settlement for six months. Mack-Cali must present plans to the planning board and council before any development is approved.
Mack-Cali may redevelop the site or sell it to a developer once that happens, DeMarco said.
The Pearson building, constructed in 1980, had become obsolete, DeMarco said. It needed upgrades and there was little tenant demand after Pearson moved to Hoboken in early 2015.
In its lawsuit, Mack-Cali had accused Upper Saddle River of preventing poor black and Latino people from moving to the borough by refusing to allow multi-family housing to be developed.
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