A 42-story residential tower may be headed to Journal Square thanks to an agreement between Jersey City and the proposed tower's developer.

The agreement comes after Robinhood Plaza, the developer, sued the city, claiming the 2010 redevelopment plan for Journal Square left Robinhood with "no development potential" for its property near Sanai's Restaurant (the former Summit House restaurant) on Summit Avenue, according to a July 11 memo from city Planner Bob Cotter to the City Council.

In the settlement, the city agrees to allow the Robinhood tower to rise up to 42 stories, giving the developer an additional 17 stories from current height restrictions.

In exchange for the city allowing Robinhood to build a 440-foot tower, the developer will give the city a roughly one-acre parcel between Summit and Baldwin avenues for use as a park. The settlement also calls for a public plaza adjacent to Sanai's Restaurant and a walkway from Summit Avenue to the proposed park.

The tower, which still must gain approval from the city Planning Board, would be the tallest building in Journal Square, but city Planner Jeff Wenger said he doesn't think the height is "unreasonable."

"If you want to develop the city without making traffic congestion worse and without making air quality worse ... put people near mass transit so there can be fewer cars or so they can have cars and use them less," Wenger said.

He added: "Everybody who lives in this 42-story tower, all they have to do is cross the street and walk into the PATH station."

Wenger noted that the proposed zoning changes include graduated height requirements, with the tower being the tallest building in the neighborhood and surrounding buildings getting smaller and smaller.

"It's not going to be 42 stories right up against somebody's house," he said.

The zoning changes detailed in the settlement agreement must be approved by the Planning Board. There will be an opportunity for the public to comment, Wenger said.