I'm a resident of the JC heights and I use this station every day.
As to the development of the area, right now almost every square inch of the Northwest Development Zone is spoken for, and will be built in the next 3 to 5 years. This has caused a debate in Hoboken about the lack of planning for open space in this soon-to-be densely settled area. As many as 20,000 new residents may be added to Hoboken in the next 5 years
The lot next to the train station was recently approved by the city council for a 12 story residential/retail development that would wall in the platforms of the train stop and shadow the cliffside for most of the day.
The original proposal from the developer was for 14 stories and the plans showed that parking lots would face the station for the first 3 stories, creating a dangerous and unappealing environment for the station. NJT even wrote a letter to Hoboken expressing concern over the plan.
The plan the city council approved was said to have moved the parking underground, and reshaped the building to have more open space on the lot near the elevator tower. The developer also said 80 percent of the street level units would be commercial, adding to the vitality of the station area.
The lot in question is really tiny, barely the length of the station and 20 yards at its widest, so the proposals for making this lot into a "park" have been misunderstood on both sides of the debate. What it should be called is a 'plaza', and public use of a public square should be considered. Farmers markets and art shows, and many other events could be held there.
If the cost of the property to the city and/or county is too much for its small benefit, then we have to consider what should be built here. The current owner has the right to build a 12 story building, and has applied for multiple variances that the city offers for adding greenspace and low income units. On two adjacent lots the Monroe Center will build 3 towers 12 to 14 stories high, and to the north 900 Monroe has applied for multiple variances for a 14 story high rise as well.
So it seems that Hoboken wants a highrise 'transit village' for the 9th St station. I think that it makes sense to build density near public transit, but that the scale and impact to the existing neighborhood has to be considered. There should also be requirements for estimating impact on local infrastructure, especially transit. Light rail is not a subway, and Manhattan level densities cannot be supported. All of the area to the east and south is 4 to 6 story residential, with narrow streets and no wide avenues. The Monroe Center when finished will have over 1,000 parking spaces, and much of the planned development to the north will also offer similar ratio of parking spaces. Unfortunately Hudson Co. has not reformulated its parking requirements, which work for 1 and 2 family homes, but are insane when applied to high rise buildings in an urban transit environment.
On this site, I think a better compromise is reducing the height to 4-6 stories to give the cliffside a buffer next to the Monroe Center, and commercial office/retail zoning would make a smaller building more profitable.
I'm disappointed to see the developers ignore the brand new master plan Hoboken adopted last year, and instead railroad their own scheme through a city hall that seems to roll from crisis to crisis.