Mediation on LG Lawsuit Fails, Court Battle Looms

Mediation between LG and a group of conservationists has failed to reach an agreement, setting in motion a court battle over the proposed construction of an eight-story office tower on the Palisades.

In a statement released Friday, the electronics giant said the months-long mediation with conservationists over its proposed 143-foot North American headquarters couldn't yield an agreement. 

State Superior Court Judge Alexander H. Carver III ordered both sides in the suit into mediation in February. Two Englewood Cliffs residents filed suit claiming the borough's Board of Adjustment gave LG an improper variance and accused the borough of "spot zoning." That suit was merged with litigation brought by conservationists who claimed the LG building's proposed height would damage years of efforts to preserve the Palisades.

LG did not specify as to why negotiations broke down, but said the opposition groups had not negotiated in "good faith."

"The parties agreed not to discuss the matter in the media while the process was underway, yet at several points during the sensitive negotiations, groups aligned with the intervenors undertook activities that broke the spirit of the court’s instructions and repeated many inaccurate statements about the project," the company wrote in a statement.

The company had previously received approvals to proceed from the Englewood Cliffs, Bergen County, and state to construct the only office tower visible along the Palisades north of Fort Lee. But groups from both sides of the river – including influential New York cultural institutions like The Cloisters – opposed LG's plan, claiming the design was "too intensive" and would "despoil" the pristine Palisades.

"Despite having obtained all necessary state, county and town approvals throughout months of public hearings, LG nonetheless was willing to compromise its legal position in the spirit of good community relations," the company stated, adding that "at several points during the sensitive negotiations, groups aligned with the intervenors undertook activities that broke the spirit of the court’s instructions and repeated many inaccurate statements about the project."

For its part, LG also took out advertisements in area media outlets and helped promote a union rally backing the project. 

Edward Goodell, executive director of the New York/New Jersey Trial Conference which was involved in the suit, said he was surprised the mediation had failed and said his group had acted in good faith. At issue was the proposed building's height, he said. 

"They were not willing to consider the building at or below the tree line," he said, adding alternative renderings for the project had been shared with LG. 

Four former New Jersey governors released a statement last week panning the proposed project, calling on LG to construct a building with a "less intensive" design. 

“We are concerned that this tower would not only interrupt the historic, natural vista enjoyed by millions, but would also set a precedent for greater building heights stretching northward along these iconic cliffs, eroding the unique American landmark of the Palisades,” the letter said. “Given your generously sized 27-acre site, it is our hope that a beneficial resolution can be reached through a low-rise design that fully accommodates the company’s needs for new office space while ensuring the integrity of the Palisades ridgeline and park.”

LG spokesman John Taylor would not discuss what led mediation to end, but said the way the letter was released and public statements made by the project's opponents "didn't help" the process. 

"We entered the process in good faith," Taylor said. "There wasn't that same sense of cooperation in the other side"

LG said it remains confident it will prevail in the upcoming legal battle, stating the $300 million project would create jobs and be a boost the region's economy. 

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