Philadelphia-based KMS Development Partners have released plans for a state-of-the-art Hilton Hotel in downtown Hoboken that would also help revitalize the city’s main Post Office, but a few hurdles remain before the project actually becomes a reality.

The proposed hotel would be located behind the Frank Sinatra Post Office on the site of a parking lot and loading bay. The property lies just outside of Hoboken’s South Waterfront Redevelopment Area, so the City Council adopted an ordinance in 2012 that declared the site an “Area in Need of Rehabilitation.”

After a long planning process, KMS shared details of the proposal last week. It calls for a 20-story, 238 room Hilton Hotel to be constructed flush against the rear of the existing Post Office building. The hotel, designed by New York-based Cooper Carry Associates, would feature a restaurant and bar plus a 6,000 square foot rooftop event space that would be utilized for banquets and weddings.

KMS says the hotel will have “iconic architecture,” which appears quite modern and glass-heavy from the released renderings. The property would also have a fitness center and 6,000 square feet of conference rooms. An aerial site plan additionally shows a retail space included on the corner of 1st Street and Sinatra Drive.

The project will be built in conjunction with the United States Post Office, the owner of the property that will also see some improvements. As part of the agreement, KMS will build a larger, enclosed loading dock on 1st Street and add an underground parking garage for the Post Office’s vehicles, which are currently being stored in the parking lot.

The Post Office itself will also see upgraded systems and renovated work spaces under the deal. Outside the property, landscaped and lighted waterfront access along Sinatra Drive will be added and traffic patterns on Newark and 1st Streets will be redesigned for improved traffic flow under the plan.

KMS says that in addition to enhancing economic activity in the area, the proposed Hilton will generate about $1.6 million a year in taxes paid to both the city and their schools. The property currently generates no income as it is owned by the Federal government and exempt from paying tax. Hilton will also provide 24/7 valet parking service to guests at nearby private parking garages, which shouldn’t create any additional burden on Hoboken’s existing parking crunch.

Fund for a Better Waterfront likes what they see in the plan. “The hotel proposed by KMS will be a great addition to the south waterfront, replacing a bleak view of the rear of the Post Office with a new building and greatly improved streetscape,” Executive Director Ron Hine said in a statement. “This is an opportunity the City cannot afford to miss.”

Hoboken has increasingly become a destination for tourists in recent years, but the city currently has just a single hotel, the 223-room W Hoboken. But there has recently been a hotel component proposed as part of a bowling alley redevelopment project in Hoboken’s northwest neighborhood.

For the potential Hilton, KMS launched a website last week where residents can sign a petition in support of the project, which still needs approval from local officials.

[gmap height=”250px”]112 Sinatra Dr, Hoboken, NJ 07030[/gmap]

112 Sinatra Dr, Hoboken, NJ 07030