The companies plan to build apartments and retail.
HACKENSACK -- The city has picked a pair of developers to turn a municipal parking lot into an $86 million residential and retail center.
A joint venture between Hornrock Properties, of Park Ridge, and Russo Development, of Carlstadt, plans to construct two buildings with 338 residences, 4,000 square feet of retail, 200 public parking spaces and a public park, Hackensack announced.
The development will go on a triangular parking lot covering 4.3 acres known as "Lot C." The lot is bordered to the north by Foschini Park and to the south by a bowling alley and ice skating rink.
It is part of a downtown redevelopment push bringing hundreds of new apartments and thousands of square feet of retail to Hackensack.
The city council approved an agreement in which the developers will pay Hackensack $8 million for the lot and share parking revenue. The city and developers plan to negotiate a financial agreement for payments in lieu of taxes. The developers expect work to start in spring 2018.
"This project will generate substantial new city revenue and continue growing Hackensack in a responsible, sustainable way that will benefit all residents and taxpayers," Mayor John Labrosse said.
Business advocates and city officials have pushed Hackensack to redevelop for more than a decade, but projects have finally begun braking ground in recent years. Another four projects are expected to start work this year.
Myles Ma may be reached at mma@njadvancemedia.com. Follow him on Twitter @MylesMaNJ. Find NJ.com on Facebook.