Lackawanna Plaza Redevelopment Clears Final Hurdle After Court Victory

MONTCLAIR, NJ – April 10, 2026 – The long-stalled and fiercely debated redevelopment of Lackawanna Plaza is finally set to move forward after a New Jersey Superior Court decision cleared a major legal obstacle, paving the way for a project that promises to reshape a vital corridor of Montclair. The ruling, coupled with the recent approval of key financial and redevelopment agreements, marks a pivotal moment for a site that has been at the center of community aspirations and controversy for over a decade.

A Landmark Ruling for a Long-Stalled Project

In a decision issued on March 30, 2026, the Superior Court of New Jersey's Law Division in Essex County dismissed a lawsuit filed by a local property owner group, One Greenwood, against the Township of Montclair and developer BDP Holdings. The lawsuit had challenged the township's 2024 redevelopment plan, alleging it was unlawful, procedurally flawed, and unreasonable.

The court's judgment in favor of the township and BDP Holdings affirms the validity of the redevelopment plan, removing what the developer's legal team described as a "potentially substantial impediment to the redevelopment of the site." The ruling represents a significant victory for both the township and BDP, which have been navigating a complex approval process since the developer acquired the property in 2021.

The legal challenge had been a significant factor in the project's timeline, prompting the Montclair Town Council to reintroduce and pass a new ordinance for the plan in 2024 to solidify its legal standing. With the court's dismissal of the claims, the project now stands on firm legal ground. The successful litigation for BDP was handled by Wilentz, Goldman & Spitzer, P.A., a prominent New Jersey law firm.

From Historic Hub to Contentious Crossroads

The Lackawanna Plaza site holds a deep and layered history within Montclair. Its centerpiece, the Lackawanna Terminal, was a grand train station built in 1912 that served commuters until 1981. In the 1980s, it was converted into a shopping plaza anchored by a Pathmark supermarket, a vital community resource for decades. The store's closure in 2015 left a void, creating what the New Jersey Economic Development Authority later identified as a food desert and turning the 7.6-acre property into a symbol of stagnation. That same year, the Township Council officially designated the site as an "area in need of redevelopment."

A previous attempt to redevelop the plaza by a different developer stalled around 2019 following significant community backlash and a lawsuit over concerns about the proposed scale and the demolition of historic structures.

In 2021, BDP Holdings, a real estate investment company led by Montclair resident David Placek, acquired the property. The firm's local ties were seen by many as a hopeful sign of a more community-attuned approach. BDP's team has consistently stated a vision that aims to bring a "fresh vision to the property, while still paying homage to the history of Lackawanna Terminal."

The Vision: Balancing Revitalization and Community Concerns

The approved redevelopment plan is a comprehensive, mixed-use design intended to create a vibrant new neighborhood hub. It includes over 300 residential apartments, with a significant affordability component of 20% designated for affordable housing and 10% for workforce housing. The plan also features retail spaces, offices, and, most critically for many residents, a full-service supermarket.

Throughout the planning process, public discourse has been intense. Supporters have championed the project's potential to finally bring a grocery store back to the area, create much-needed affordable housing, and inject economic vitality into a dormant property. The Montclair Environmental Commission has also expressed support, contingent on the project meeting sustainability goals.

However, a vocal contingent of residents has consistently raised concerns about the project's size and scope. Worries about increased traffic congestion, the height and density of the new buildings, potential strain on local infrastructure, and flooding have been recurring themes at public meetings. Some fear the development could alter the town's character and impact affordability beyond the designated units.

To bridge the gap between planning and construction, BDP launched an interim activation of the plaza in June 2025. This temporary setup, featuring small businesses, food stalls, and a coworking space, has been widely praised for bringing "life back" to the property and serving as an energetic preview of the site's potential.

The Financial Blueprint: A 30-Year PILOT

Underpinning the entire project is a complex financial structure anchored by a 30-year Payment in Lieu of Taxes (PILOT) agreement, which the Township Council approved in late March. This long-term financial tool is designed to provide the developer with predictable payments and make a uniquely challenging project financially viable. In turn, the township secures a stable revenue stream from a property that has been underperforming for years.

PILOT agreements are common in large-scale redevelopment but can be controversial. Proponents argue they are essential for attracting the massive investment required for sites with extraordinary costs, such as those involving environmental remediation or extensive infrastructure work. The Montclair council acknowledged these factors when approving the agreement, citing the project's high costs and complexities. The agreement was deemed a necessary incentive to ensure the redevelopment could proceed and deliver its promised public benefits, including the new supermarket and affordable housing.

With the legal challenges dismissed and the financial framework in place, the years of debate, planning, and legal maneuvering over Lackawanna Plaza are drawing to a close. The focus now shifts from blueprints and courtrooms to the tangible work of construction, as Montclair prepares for the next chapter of this historic and vital site.