The 93-year-old Art Deco landmark is at the center of a high-stakes lawsuit involving property rights, broken deals, and canceled tax breaks
the staff of the Ridgewood blog
HACKENSACK, NJ – The future of Main Street’s most recognizable landmark is once again in limbo. The owners of the historic Sears building have filed a lawsuit against the City of Hackensack and its Planning Board, alleging that the site was “improperly designated” as an area in need of redevelopment.
The suit seeks to declare the city’s redevelopment designation invalid, claiming the move was a violation of constitutional property rights and lacked credible evidence.
A Landmark Caught in “Redevelopment Limbo”
The Sears property, famous for its 105-foot Art Deco tower, has been the subject of legal tug-of-wars since the retailer went bankrupt in 2018. While residents want to see the derelict building restored, the relationship between the city and the owners has soured over several key issues:
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The “Downzoning” Dispute: Owners previously accused the city of limiting the property’s potential by imposing strict preservation rules on the facade.
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The Condemnation Vote: In early 2024, city officials voted to move toward condemnation, citing the building as a “derelict” site used for illegal dumping and parking since it was vacated in 2020.
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The Disputed Vacancy: A central point of the new lawsuit is the claim that the building was vacant for over two years—a metric used to justify redevelopment. Arcolo Hackensack LLC, the owner, asserts this claim is factually false.
Political Shifts and Canceled Tax Breaks
The legal drama intensified following the recent Hackensack City Council election. The previous administration had granted a 30-year tax abatement (PILOT) for a 300-unit residential project at the site, led by Russo Development.
However, the newly elected “Hackensack Unites” slate, led by Mayor Caseen Gaines, campaigned on a promise to scrutinize these long-term tax deals. In August, the new council officially rescinded the financial agreement for the Sears site.
Following the loss of the tax abatement, Russo Development terminated its contract to buy the property in October, triggering Arcolo’s decision to sue the city.
“The city deprived Arcolo of its property rights without due process of law,” the lawsuit states, arguing that the redevelopment designation was not supported by “substantial credible evidence.”
What’s Next for Main Street?
Mayor Caseen Gaines stated that the city is currently investigating the claims and the actions of the previous administration. “The city will respond to the lawsuit after our investigation… is complete,” Gaines said.
As the lawsuit moves forward, the Art Deco tower remains boarded up—a silent witness to a complex battle over who gets to decide the future of Hackensack’s urban landscape.
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