'Major Data Center' May Be Coming To ON3 Site In Nutley, Other Updates Announced

NUTLEY, NJ — A proposed warehouse is off the table at the former Hoffmann-La Roche site on Route 3, with a “major data center” possibly set to replace it, developers say.

Earlier this month, Prism Capital Partners announced that it has secured three redevelopment plan approvals from the Township of Nutley and the City of Clifton for its ON3 campus, which straddles the two towns.

The company's latest plans include an update at 275 Kingsland Street in Nutley, where a previous application to construct a warehouse – or what critics called a “truck depot” – has been withdrawn.

Located across from the ON3 main campus near Cathedral Avenue, the site was embroiled in a controversial land use dispute that ended up in court.

>> Read More: Developer Abandons ‘Truck Depot’ Proposal In Nutley After Pushback

Now, developers are back with another proposal for the site, spokespeople announced on July 9.

According to Prism, Nutley has approved Prism’s plan to redevelop 11 acres at 275 Kingsland Street. The site can accommodate a “major data center and other permitted uses,” the company said.

• See Related: Debate Over Data Centers Intensifies In NJ, Bill Sits On Murphy’s Desk

OTHER ADDITIONS TO ON3

The firm also announced another new plan for Kingsland Street:

“In Nutley, ON3’s Innovation Center tract fronting on Kingsland Street is earmarked for the development of a state-of-the-art R&D operation. With a deal in place involving an international consumer products company, Prism anticipates a near-term site plan approval filing and could be ready to launch construction as soon as late summer.”

Meanwhile, in neighboring Clifton, the company’s newly approved Phase IV redevelopment plan includes multi-family and retail elements sited on acreage along Route 3 East. The blueprint includes new housing, restaurants, small shops and a neighborhood market, among other uses.

Together, the three new additions in Nutley and Clifton will include 1,074 multi-family units, nearly 90,000 square feet of extra retail space, a 150,000-square-foot R&D facility and the above-mentioned data center.

“This major step forward to complete the vision plan for ON3 has been years in the making, and we are thrilled to move past some major hurdles and toward the creation of a true live/work/play ecosystem,” Prism principal partner Eugene Diaz said.

“These approvals are wins all around – for our campus’ evolution, ON3’s in-place tenants, future tenants, future residents and both municipalities,” Diaz said.

LIFE AFTER HOFFMANN- LA ROCHE

The ON3 complex – which was once former home of Hoffmann-La Roche – has gained a new life since the pharmaceutical company left its former headquarters, which is located on the border of Nutley and Clifton.

Over the past several years, Prism Capital Partners has been redeveloping the sprawling complex, which now hosts tenants that include Ralph Lauren and the Hackensack Meridian School of Medicine. It also recently became home to a new Starbucks location.

A 10Mw co-hybrid power plant provides electricity, heating and cooling throughout the campus properties with redundancy and a reduced carbon footprint, Prism says.

The company released an update about its Phase IV plans for the campus last summer, which can be seen here. More than $500 million has already been invested into creating and tenanting the ON3 campus, and the firm estimates an additional $500 million will be spent to complete its full build-out.

The site has seen accolades; it was named as 2023 “Redevelopment of the Year” for northern New Jersey by CoStar as part of its Impact Awards, and earned a Silver Award for “Best Development: Mixed-Use” in Commercial Property Executive’s annual Influence Awards. Read More: Life After Hoffmann-La Roche: ON3 Gets More Awards

The development hasn’t been without its critics, however, including officials in the town of Nutley.

Earlier this year, Mayor John Kelly III and the Nutley Board of Commissioners issued a joint statement that accused Prism of making “misleading and disingenuous comments” about the warehouse plan.

Diaz pushed back, claiming that the town’s statement was “fraught with falsehoods.”

• See Related: Nutley, Developer Butt Heads Over Future Of Ex-Roche Property
• See Related: Nutley, Developer Continue Shoving Match Over 'ON3' Complex

In the past, Nutley officials have had high hopes for Prism's redevelopment plan, approving multiple payment in lieu of tax (PILOT) agreements for ON3. But after years of waiting for the campus to build out, officials began to run out of patience, accusing the company of making "piecemeal" progress and failing to address traffic and infrastructure concerns.

In 2021, Nutley officials announced that they were looking into seizing unused portions of the property through eminent domain, as the project is located in an area in need of redevelopment.

They have faced an uphill battle against Prism, however. Later that year, Diaz, a principal partner at the firm, fired back at the town's accusations, calling them “lies and falsehoods.”

The face-off continued through the year, with both sides claiming the other was coming to the table in bad faith. Read More: Nutley, Prism Trade 'Facts And Fictions' As ON3 Battle Heats Up

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