The proposed facility on Jackson Street is intended to serve as a preschool center in the southwest neighborhood of Hoboken. This move is strategically planned to accommodate the growing number of families in the area and alleviate overcrowding in elementary schools. Currently, Wallace Elementary School houses 13 preschool classrooms, but the plan involves moving nine of these to the new facility while retaining four at Wallace. This transition will allow Wallace to restore important educational spaces such as science labs and a world language classroom.

The lease spans an initial term of 20 years, with options for two additional five-year renewals. The total space of 25,550 square feet is set at an average rent of $70.51 per square foot. The first floor will primarily host the preschool, with elevator access extending to parts of the second and third floors. The negotiation process, which took over a year, involved discussions about the rental structure and terms. The rent begins six months after the lease is signed and includes a six-month period of free rent post-handover. The rent structure is front-loaded: $100 per square foot for the first six years, decreasing to $55 in years seven through ten, then adjusting to $60.50 in years eleven through fifteen, and finally settling at $66.55 for the last five years.

A key aspect of the lease allows the school district the right to terminate the lease, which is not typical in standard commercial agreements. The termination fee is capped at five years of rent plus unadvertised brokerage costs, varying based on the remaining lease duration if termination occurs early. This provision reflects the unique nature of leasing to a public school district and the associated risks, including construction costs borne by the landlord.

Board members and city officials have collaborated closely with developers Gary Mesata and Nick Petraelli to ensure the facility meets New Jersey Department of Education standards. An emphasis was placed on community engagement throughout the process, acknowledging initial hesitance from some residents regarding the necessity of additional preschool space. However, the commitment to the project persisted, recognizing the importance of suitable facilities for a growing student population.

Environmental concerns related to the property were addressed, particularly under the Industrial Site Recovery Act (ISRA). Assurance was given that remediation plans are in place and will be completed prior to the school taking occupancy.

During the meeting, board members shared positive impressions of the facility. One member noted the space’s bright and welcoming nature, with effective soundproofing minimizing exterior noise from traffic and trains. Attention was given to the construction quality, including high ceilings and accessibility features like elevators and stairwells.

Public comment was invited, with attendees reminded of policies concerning remarks about school personnel. Despite the opportunity, no public speakers were present, leading to a swift meeting conclusion. The board plans to continue discussions and seek community feedback before a final vote on October 14.