Journal Square Towers gets one step closer...

[Brooklyn]

Cool Fang, thanks for the explanation.

[TheFang]

BTW - Why is it called Downtown?  Is it bcuz of its location (being on lower ground)?

Very few metropolitan areas are like NYC where Downtown is physically located south in the city. Everywhere else Downtown just means the center of town where there are places to hang out and things to do and where people gather. Mainly the cultural center of the town. Also, depending where you are in the city it is south or "down" from other areas.

[Brooklyn]

definitely true jcpeace.

However, I find JSQ housing stock is a lot more varied, many different styles if your into that.


BTW - Why is it called Downtown?  Is it bcuz of its location (being on lower ground)?

[jcpeace]

JSQ is coming along.  I have no doubt that soon it will be the spot and sorry Downtowners but JSQ just might take the lead in a few years as being the true center of Hudson county.

Just my gut feeling.

sure it's coming along....but its housing stock doesn''t match downtown's.

[Brooklyn]

JSQ is coming along.  I have no doubt that soon it will be the spot and sorry Downtowners but JSQ just might take the lead in a few years as being the true center of Hudson county.

Just my gut feeling.

[MCA™]

JJ:


IT'S ALL UP FROM HERE
Wednesday, April 08, 2009
By CHARLES HACK
JOURNAL STAFF WRITER

The structures that have stood vacant for several years on the block next to the Journal Square Transportation Center in Jersey City are now gone, making room for a highly anticipated twin-tower project.

Dozens of union workers joined developers and politicians next to rubble and bulldozers yesterday to trumpet the latest step toward the future $500 million One Journal Square development.

Construction of the mixed-use complex will begin this year and take three years to complete, officials said.

(more)

[MCA™]

Let's recap:

May 21, 2007
Harwood Properties LLC has closed on its $28 million acquisition of a 1.5-acre parcel in the Journal Square Redevelopment Area of Jersey City, NJ, for the development of two residential towers containing 1,000 units.

August 08, 2007
The twin-tower development proposed for Jersey City's Journal Square is changing shape. Originally proposed as two towers of more-or-less equal size, the latest design for of the mixed-use development to be built on the block adjacent to the Journal Square Transportation Center calls for a south tower between 35 and 40 stories and a north tower stretching 55 to 65 stories, according to the developer. ... Even though there is no change in the 1.2 million gross square footage of the development, Planning Director Bob Cotter said the design change would likely add more units to the projects, a number originally pegged at 1,034. ... Jersey City Redevelopment Agency Executive Director Robert Antonicello predicted existing structures on the entire block would be leveled by the end of the year so construction can begin.

September 14, 2007
Demolition and site work for the two-tower development slated for the heart of Journal Square will begin in January, the project's builder told a roomful of Jersey City department heads yesterday. ... Actual construction on the foundation and the seven-story base is scheduled to begin next spring.

February 11, 2008
A Jersey City developer who has already received a 30-year tax abatement to help build an ambitious twin tower project in Journal Square - and has recruited a deep pockets partner to the deal - is now asking the city for a multi-million low-interest loan, city officials said. ... Downtown Councilman Steven Fulop blasted the request for additional assistance, especially since the developer received a 30-year tax break calling for annual "payment in lieu of taxes" of 10 percent, the lowest PILOT rate handed out in recent years.

03-27-2008
Fences have been erected in the Square around the old buildings that are on the site.  It looks like they're prepping for demo.

October 06, 2008
The Jersey City Planning Board will consider tomorrow night an amended site plan for the two-tower, mixed-used development proposed for the old Hotel on the Square block in Journal Square. The revised plan adds height and residential units to the development, while it cuts retail space; particularly the retail space that was planned to go underground. ... Lowell Harwood said plans to build a below-ground retail level were scratched due to a "problem with hard rock." "It would be too expensive to remove," Harwood said. "It would have added a lot (of cost)." ... [H]e predicted breaking ground within six months.

October 07, 2008
The Jersey City Planning Board approved a revised site plan for the Journal Square development tonight that slashes its retail space by more than half and boosts the height of its two residential towers by a few stories. The Planning Board voted unanimously at a special meeting to approve the modifications to plans it approved in January. The revised plan slashes retail space planned for below ground from 156,196 square feet to 70,385, according to the approved plans. It also cuts the number of parking spaces from 783 to 687, and places them above ground, squeezing out some more retail space. The revised plan also boosts the number of rental units from 1,503 to 1,615. The north tower will now rise 667 feet and 68 stories. The shorter south tower will have 50 stories.

November 26, 2008
The Jersey City City Council last night, before a chamber packed with hundreds of union workers, unanimously approved the most generous tax abatement deal in the city's history for a giant two-tower development in Journal Square. The 30-year abatements call for annual payments in lieu of taxes to the city of 10 percent of gross annual revenues for the mixed-use 68-and 50-story towers. ... The $400 million development on 1.5 acres next to the PATH Transportation Center is planned to have 1,615 rental units, 70,000 square feet of retail space and 700 parking spaces. The 68-story north tower will be built first, with construction expected to begin within months, officials said.

03-20-2009
There is supposed to be a celebration at Journal Square on April 7th, 2009 for completion of the demolition and the beginning of the new construction. ... I live in the area and the demolition has not even started.

[MCA™]

SOON TO BE GONE
Wednesday, March 25, 2009
By AMY SARA CLARK
JOURNAL STAFF WRITER

Jersey City residents can finally say good-bye to the dilapidated buildings still standing next to the Journal Square PATH station.

By April 7, the remaining structures on the 1.5-acre site will be gone, a spokeswoman for one of the partners developing the site said yesterday. Work begins Monday, she said.

The buildings - most vacant for more than three years - will be demolished to make way for a $500 million, two-tower development containing 1,615 rental units, 70,000 square feet of retail space and 700 parking spaces.

Construction will start before the end of the year, said Liz Opacity, a spokeswoman for Jersey City-based Harwood Properties, one of the development partners.

Mayor Jerramiah T. Healy - who has made the rejuvenation of Journal Square a priority of his administration and part of his campaign for re-election - applauded the movement.

"My administration has been the first in decades to take the necessary steps to restore Journal Square as the central business district of Jersey City, and we are pleased to see this project move forward," Healy said.

Part of an adjacent parking lot will be fenced off during the demolition, but no other Journal Square facilities will be affected, Opacity said.

The walkway in front of Hudson County Community College at 25 Pathside is blocked, but that is unrelated to the demolition work, Opacity said. Officials at the college couldn't be reached for comment.

[Soshin]

It won't take long to knock down the old "3 Guys" and McDonalds however I seem to remember this was supposed to have started months ago and they were arguing over extended tax abatements or something like that.

The photo-shopped invitation is scary as hell tho....

[vsega72]

There is supposed to be a celebration at Journal Square on April 7th, 2009 for completion of the demolition and the beginning of the new construction. You may RSVP here:

http://thenewjournalsquare.com/pdf/square-renaissance-invite.pdf

I live in the area and the demolition has not even started.

[MCA™]

JJ editorial:


Development, yes. This tax deal, no.
Tuesday, December 02, 2008

Last week, the Jersey City administration of Mayor Jerramiah Healy did all but give away the first-born of every family in the city to make certain that the designated developers of the Journal Square Towers will realize an immense profit.

Two nights before Thanksgiving, the City Council set the table for MEPT Journal Square Urban Renewal LLC by approving the most generous tax abatement deal in the city's history.

What does one make of the fact that most of the City Council members voiced the opinion that the abatement is a bad deal for the city, and then voted to approve it? It is not a good deal for the city.

The 30-year abatements calls for annual payments instead of taxes to the city of 10 percent of gross annual revenues for the mixed-use 68- and 50-story towers. The city will receive $500,000 in the first year, with payments increasing in stages to $3 million a year - about $74 million over the life of the deal averaging nearly $2.5 million per year.

This is a result of original developer Lowell Harwood having to partner with a bigger player with deeper pockets. Maryland-based Multi-Employer Trust, an equity fund that is immune to the credit crunch, did not like Harwood's original tax abatement deal enough to justify it to shareholders - thus the renegotiation.

This newspaper has been clamoring for Journal Square development for years. It is potentially the most important first step in defining the above-the-Palisades-city for the 21st century. It is so significant that it was this opinion that the city is trying to ram a "vision" of Journal Square area redevelopment down the throats of its taxpayers solely to improve financing for certain projects that are on the drawing board, including the Journal Square towers.

One other item: The invasion of trade union members at the City Council meeting was a crass display. This was pulled in Bayonne to intimidate government decision making on use of the former Military Ocean Terminal. In Jersey City, these decisions are so momentous to a large neglected part of the city that unless more than 50 percent of these construction workers live here, they should have stayed home.

[MCA™]

Council approves Square abatement
Wednesday, November 26, 2008
By PAUL KOEPP
JOURNAL STAFF WRITER

The Jersey City City Council last night, before a chamber packed with hundreds of union workers, unanimously approved the most generous tax abatement deal in the city's history for a giant two-tower development in Journal Square.

The 30-year abatements call for annual payments in lieu of taxes to the city of 10 percent of gross annual revenues for the mixed-use 68-and 50-story towers.

Under the terms of the three agreements - two for the towers and one for a seven-story pedestal of retail space and parking - the city will take in $500,000 in the first year, with payments eventually increasing in stages to $3 million a year.

The city is expected to take in $74 million over the life of the deal, which officials and the developer, MEPT Journal Square Urban Renewal LLC, have said is crucial to getting the project underway.

Union worker after union worker spoke in favor of the abatement, delaying the vote.

"Right now we're hurting," said Hudson County Building Trades president Mike McCade. "We can use the work."

Lowell Harwood, one of the project's principal developers, promised the towers would bring a "new era" to the Jersey City neighborhood.

"Journal Square can revive if we get together and do it," he said.

The $400 million development on 1.5 acres next to the PATH Transportation Center is planned to have 1,615 rental units, 70,000 square feet of retail space and 700 parking spaces.

The 68-story north tower will be built first, with construction expected to begin within months, officials said.

[OneJC]

The Hotel on the Square site remains a hole in the heart of the city, with development once again stalled. The failure to seek proposals from developers with nationwide experienced in mixed-use projects of this scale has left us with a no-bid redevelopment contract. Its latest version proposes two 10-story parking garages with 50- to 70-story residential towers above and limited and reduced retail space, which will minimize this project as a destination. Prior to the financial meltdown in October, the developer sought tax abatement terms that would cost the city $500,000 per year.

We will never know if the current plans are the best use of one of the regions premier redevelopment sites, adjacent to a PATH station and the county transportation hub with 8 million annual commuters passing through. When will the city rein in no-bid development contracts of this scale and clean up the redevelopment process banning pay to play campaign contributions to city officials responsible for approving redevelopment plans and tax abatements?

Please join us at City Hall on Tuesday, November 25th when the largest tax abatement ever in JC is up for approval by the City Council.

For more information please visit:
OneJerseyCity.org

<a href="http://vimeo.com/moogaloop.swf?clip_id=2152622&amp;amp;server=vimeo.com&amp;amp;show_title=0&amp;amp;show_byline=0&amp;amp;show_portrait=0&amp;amp;color=00ADEF&amp;amp;fullscreen=1" target="_blank" class="new_win">http://vimeo.com/moogaloop.swf?clip_id=2152622&amp;amp;server=vimeo.com&amp;amp;show_title=0&amp;amp;show_byline=0&amp;amp;show_portrait=0&amp;amp;color=00ADEF&amp;amp;fullscreen=1</a>
 

[alb]

Does Journal Square have a merchants' association that really represents the interests of the businesses there?

There are really a lot of great, unique businesses there, and I think it would be good if someone could make sure that the redevelopment efforts don't trample them.

[Case]

Just make sure someone tells Lipski where the bathroom is. 

It's right where he likes it.

[Ski Palisade]

Just make sure someone tells Lipski where the bathroom is. 

[MCA™]

2 TALL TOWERS, 1 MASSIVE BREAK
Push for 'biggest discount' on developer's taxes
Thursday, November 13, 2008
By PAUL KOEPP
JOURNAL STAFF WRITER

The Jersey City City Council gave the redevelopment of Journal Square a boost forward last night when it introduced the most generous tax abatement package in the city's history for a landmark two-tower development.

The abatements call for payment in lieu of taxes to the city of 10 percent of gross annual revenues for the mixed-use 68-and 50-story towers over the next 30 years.

Under the terms of the three agreements - two for the towers and one for a seven-story pedestal of retail space and parking - the city would see revenue of $500,000 in the first year, $1 million in the second and $1.5 million in the third year, said Business Administrator Brian O'Reilly.

The payments would then increase to $2 million annually in years four to seven, $2.5 million in years eight to 19, and be $3 million in each of the remaining years, he said. The developer would lease the buildings to an intermediate entity. The city's 10 percent share would be based on that lease agreement, not the higher amounts collected in rents.

O'Reilly said he did not know how much of a break that would mean for the developer, MEPT Journal Square Urban Renewal, LLC.

"There's no doubt this is a big tax concession," he said. "This is the biggest discount on property taxes the city has ever given to any developer."

But city officials and the developer say the long-term payoff will be huge, bringing in more than $50 million in Urban Enterprise Zone revenue, parking taxes and permit fees and adding $2.8 million to the city's affordable housing trust fund.

The $400 million project on 1.5 acres next to the PATH Transportation Center is planned to have 1,615 rental units, 70,000 square feet of retail space and 700 parking spaces.

The developer and city officials have insisted the project would be financially impossible without the tax abatement.

O'Reilly said the project is unique because it is being self-financed by its majority partner, the Maryland-based Multi-Employer Property Trust, and is therefore insulated from the credit crunch. MEPT is a national real estate equity fund that invests union pension funds.

The abatement could be finalized after a public hearing at the next City Council meeting, Nov. 25.

The 68-story north tower will be built first, officials said. Construction is expected to begin within the next few months.

The City Council also adopted a resolution designating the surrounding area as "an area in need of rehabilitation," allowing the city to advance its plans to redevelop Journal Square.

[MCA™]

Amended Journal Square mega project is approved
by Charles Hack
Tuesday October 07, 2008, 10:34 PM


Rendering of the development planned for Journal Square.


The Jersey City Planning Board approved a revised site plan for the Journal Square development tonight that slashes its retail space by more than half and boosts the height of its two residential towers by a few stories.

The Planning Board voted unanimously at a special meeting to approve the modifications to plans it approved in January.

Not all went smoothly, as an attorney for the Port Authority of New York and New Jersey, which owns the neighboring transportation terminal, said the agency is concerned about the safety of its passengers.

The attorney, Harry Barr, asked the city to transfer authority for approval of the building plans to the P.A.'s chief engineer and wanted assurances that PATH would be indemnified against injury during the construction.

After a sometimes heated discussion, the developer's attorney, Eugene Paolino, agreed to show the plans to PATH engineers.

Many of the plan's approved changes are landscaping improvements to the plaza in front of entrances to the towers facing Kennedy Boulevard and to a rooftop terrace, but to keep costs to the approximately $400 million budgeted for the project.

The revised plan slashes retail space planned for below ground from 156,196 square feet to 70,385, according to the approved plans. It also cuts the number of parking spaces from 783 to 687, and places them above ground, squeezing out some more retail space.

The revised plan also boosts the number of rental units from 1,503 to 1,615. The north tower will now rise 667 feet and 68 stories. The shorter south tower will have 50 stories.

Lowell Harwood, the principal of Harwood Properties, which is involved in the project with Multi-Employer Property Trust and Becker and Becker, said demolition may start by the end of the year.

[MCA™]

Jersey City's Journal Square mega project could get taller
by Ken Thorbourne
Monday October 06, 2008, 4:48 PM

The Jersey City Planning Board will consider tomorrow night an amended site plan for the two-tower, mixed-used development proposed for the old Hotel on the Square block in Journal Square.

The revised plan -- which modifies a proposal the board approved in January -- adds height and residential units to the development, while it cuts retail space; particularly the retail space that was planned to go underground.

The revised plan hikes the number of rental units from 1,503 to 1,615 and slashes retail space from 156,196 square feet to 70,385.

It also bumps up the height of the north tower from 65 stories to 68 stories and the height of the south tower from 45 stories to 50, according to documents submitted to the city. The higher tower will now stretch 667 feet, about 8 feet lower than the maximum height allowed for the project, city officials said.

Tomorrow's planning board meeting is scheduled for 5:30 p.m., 30 Montgomery St., 14th floor.

Lowell Harwood, one of the development partners, yesterday said plans to build a below-ground retail level were scratched due to a "problem with hard rock."

"It would be too expensive to remove," Harwood said. "It would have added a lot (of cost)." Harwood is the principal of Harwood Properties based in Jersey City and he predicted breaking ground within six months.

The previous design called for relocating and reconstructing the Journal Square fountain. According to the new plan, the fountain will remain in place and receive upgraded filtration and mechanical equipment.

This $400 million venture is being self-financed by its majority partner: The Multi-Employer Property Trust based in Bethesda, Md., a national real estate equity fund that invests union pension funds.

During the summer, administration officials rejected the terms of a 30-year tax abatement sought by the developer. Eugene Paolino, the developer's attorney, said yesterday he plans to submit an amended tax abatement "shortly."

[MCA™]

Another JJ editorial. Anyone see demolition/construction crews at work there lately?


What's up with Square project?
Thursday, September 04, 2008

Whenever the subject of development at Jersey City's Journal Square comes up, city officials always make very positive comments. The only questions this newspaper has are what will go up on the eyesore block adjacent to the PATH Transportation Center, and when will construction begin?

There appears to be an idea of what is planned. Last thing heard is that it is a $500 million project that will include twin residential towers, offices, shops, and some parking. History has shown that there are often changes, particularly when development is delayed.

This brings us to the "when" question.

In November, officials suggested that the much needed change on the Square would begin in the summer of 2008 with construction of the towers' foundation. It would be a two-year project.

Unfortunately, summer is over and the buildings that once housed McDonald's, KFC, and other businesses are still there.

The last thing the public heard was that there were negotiations for a proposed 30-year tax break for the development that would provide payments in lieu of taxes to the city of 10 percent of gross annual revenue.

Several months ago, both sides said it is too early to say what negotiations may yield. Is it still? Why has the project stalled?

After decades of the city having to endure a rotting, dilapidated group of buildings in the heart of the city's transportation hub and what was once a major shopping district, it seemed miraculous that buyers for the property were found in February 2006. There were even artist's renderings of what could be constructed on the site.

Now that the Democratic National Convention is over, it is time for City Hall to tell the public where this project is going.

How about it, mayor? How about it, City Council?

[MCA™]

JJ opines on the towers:

Towers deal can't shortchange city
Thursday, June 12, 2008

The good news is that Jersey City may finally see new residential towers with some commercial space start to go up on what is the eyesore block of Journal Square. The bad news is that at least one proposed tax abatement would be a bit of a sweetheart deal for the developers.

A proposed 30-year tax break for the development would provide payments in lieu of taxes to the city of 10 percent of gross annual revenue.

Negotiations indicate the majority investor - the Bethesda, Md.-based Multi-Employer Property Trust, a national real estate equity fund - prefers that the city's 10 percent be based on the lease agreement, not the possibly greater amount collected from the building's residential and commercial tenants.

The reason is that the Multi-Employer Property Trust and partners plan to create a company that would lease the building and then sublease to tenants. While the payments to the city would be based on the master lease, the new leasing company would theoretically be reaping greater revenues.

In essence, the developers are creating another layer of ownership by leasing the building to itself to realize bigger profits while the city is shortchanged. This begs the question of whether similar tax abatement deals exist in the city.

A Journal article by Ken Thorbourne reveals the existence of a May 20 memo by Stephen J. Skrocki, the city's division director of abatement management, that explains there would be $323,000 in tax abatement payments and fees to the city in the first year of this kind of deal. He adds that in that year the city would have to provide $793,000 in government services.

Skrocki also does not have high hopes for fiscal improvements over the remaining years of such an agreement.

Both sides say it is too early to say what negotiations may yield. City officials point out that the effort is to meant to realize a $500 million project next to the PATH Transportation Center.

The city has desired redevelopment on the Journal Square site for more than several decades, but it should not be done at any cost.

[MCA™]

In talks on tax break for Square towers
Tuesday, June 10, 2008
By KEN THORBOURNE
JOURNAL STAFF WRITER

A proposed 30-year tax break for a landmark development in Jersey City's Journal Square would be a huge money loser, costing the city nearly $500,000 in the first year alone, according to a memo by a city official.

While the deal would bring in $323,000 to the city in the form of payments in lieu of taxes and other fees during the first year of the abatement, the city would have to shell out $793,000 for various government services, according to the May 20 memo by Stephen J. Skrocki, the city's division director of abatement management.

And the years following Year 1 don't look too hot either, according to a copy of the memo obtained by The Jersey Journal.

Although "it is not possible to project past the first year, negative results can be expected over the life of the tax exemption unless the revenues from the Master Lease are improved," Skrocki wrote.

The proposed abatement calls for payment in lieu of taxes to the city of 10 percent of gross annual revenue.

But to maximize profits for the project's majority investor - the Bethesda, Md.-based Multi-Employer Property Trust, a national real estate equity fund that invests union pension funds - the development partners plan to create a company to lease the building.

The city's 10 percent would be based on the lease agreement, not the far greater amount collected from the building's residential and commercial tenants.

City officials and a representative of the developer - MEPT Journal Square Urban Renewal, LLC - were quick to emphasize last week that the tax abatement is still being negotiated.

"My hope is those discussions will conclude shortly," said Alan Marcus, a spokesman for MEPT. "It would not be appropriate to describe something that is at best ethereal right now."

Business Administrator Brian O'Reilly said the city might have to stomach a property tax loss to get the signature, $500 million project, next to the PATH Transportation Center, built.

"The renaissance of Journal Square is a priority of my administration," Mayor Jerramiah Healy said. "The benefits (of this project) for the entire city will be increased tax revenue, the creation of hundreds of construction and permanent jobs, and the jump-starting of the revitalization of Journal Square."

Lowell Harwood, one of the development partners, had predicted completing demolition of the 1.5-acre site by May and starting construction this summer.

"We all want this to happen. But it has to be favorable to us," said City Council President Mariano Vega, a member of the committee negotiating with MEPT. "We are not just surrendering."

[Ski Palisade]

Fences have been erected in the Square around the old buildings that are on the site.  It looks like they're prepping for demo. 

[MCA™]

2 towers promise to jump-start rebirth
Thursday, February 21, 2008
By KEN THORBOURNE
JOURNAL STAFF WRITER

When he was 8 years old, Lowell Harwood got his first taste of the family business. His job was parking cars on the family's lot on Cottage Street in Jersey City. His feet couldn't even reach the pedals.

"I used to put the car into neutral, and there was a little hill. So I used to roll the cars down and pull the brake up," Harwood recalled. "That's how I learned the parking business."

In many ways, Harwood, now 78, hasn't applied the brakes much since.

Together with brother Sanford, Harwood parlayed a four parking lot inheritance into a garage giant. By 1996, they owned 135 lots in the United States and Canada.

Then in 1997 they flipped it, selling the operation to Central Parking, the nation's biggest fish in the parking-business pond, for close to $100 million.

Since then, Harwood, a Lincoln High alum, has been making a second fortune assembling and selling real estate, mostly in Manhattan. With Sanford now retired, Sanford's sons - Brett and Scott - are now his top lieutenants.

The third-generation family operation, with headquarters at 26 Journal Square, is also investing in their own backyard.

Three years ago, as part of a quartet of partners, the Harwoods opened the 130-unit State Square apartments at the site of the old State Theater on Kennedy Boulevard in the Square.

But that effort pales in comparison with their newest venture: a massive $500 million, mixed-used development that holds the promise to make Journal Square the bustling, magnetic center of the city it used to be.

The two-tower development planned for the old Hotel on the Square block next to the Journal Square PATH Transportation Center is to consist of 1,500 market-rate units, 150,000 square feet of retail, and, not surprisingly, five levels of parking.

"Journal Square was the historic hub and center of Jersey City," Mayor Jerramiah T. Healy said. "We have removed a couple of unproductive eyesores from Journal Square and we look forward with great anticipation to the development of two spectacular towers that will bring retail, commercial and residential units to Journal Square and restore it to its former place as the heart and hub of our city."

Having agreed to buy out a slumlord who slinked out of town after paying a record-setting $1.1 million in building and fire code fines, Harwood Properties signed a redevelopment deal with the city in May 2006. Then came a couple of minor details: How to finance and build a $500 million development?

Through a family friend, Harwood generated a list of 25 potential partners. One choice topped the list: The Multi-Employer Property Trust based in Bethesda, Md., a national real estate equity fund that invests union pension funds. With $6.2 billion in assets, MEPT's presence on the development ticket meant the project could be essentially self-financed.

Last September, the newly formed MEPT Journal Square LLC - a partnership that includes MEPT, Harwood Properties and Becker + Becker, MEPT's builder - signed a new redevelopment agreement with the city.

MEPT has a 66 percent stake in the project, Harwood Properties 21 percent, and Becker + Becker 13 percent. The plan now calls for a 65-story north tower and a 45-story south tower. A terrace level on the seventh floor is to feature a swimming pool, fitness center and courtyard terrace.

Harwood hopes to start construction in the spring.

Asked about his motivation to get the project done, Harwood harkened back to a meeting he had with the partners in the State Square project.

"We felt sitting around the table that Jersey City has been very good to us," Harwood said. "We felt very strongly we have to do something to show Jersey City is going to rise up and be the old Jersey City it used to be back in the '20s when everyone was coming to Jersey City."

© 2008  The Jersey Journal

[MCA™]

From the JJ:


City may not see revenue for decades
Monday, February 11, 2008
By KEN THORBOURNE
JOURNAL STAFF WRITER

A Jersey City developer who has already received a 30-year tax abatement to help build an ambitious twin tower project in Journal Square - and has recruited a deep pockets partner to the deal - is now asking the city for a multi-million low-interest loan, city officials said.

Lowell Harwood, managing partner of Jersey City-based Harwood Properties, is asking the city to lend the project $20 million to $40 million by floating "revenue allocation bonds," city officials said.

In keeping with state guidelines, the developer would repay the loan, plus interest.

But with revenue allocation bonds, the developer deducts the costs to cover the loan from whatever taxes are owed the city. This means it could be years, even decades, before the city sees any revenue from this $500 million, mixed-use development planned for the block adjacent to the PATH Transportation Center, officials said.

Mayor Jerramiah T. Healy said his administration is hearing the developer out, but the public need not worry.

"I know they are looking for some kind of assistance having to do with infrastructure," Healy said. "Just because someone may be looking for assistance, the city is not obliged to tender that assistance. Before any agreement is struck, the city council and I will be most vigilant with the taxpayers' money."

Harwood, who has joined forces with the Multi-Employer Property Trust based in Bethesda, Md. - a union pension fund investment company with $6.2 billion in assets - to build the project, didn't return phone calls seeking comment.

But Elizabeth Opacity, his spokeswoman, said: "We have been working in partnership with the city on an ongoing basis to discuss the best way to move this overall program forward and revitalize the entire area. There have been no final determinations. Only discussions. There are no conclusions."

Journal Square Councilman Steve Lipski believes the city should give Harwood the money. "I support this one billion percent," Lipski said. "Helping the jewel of Jersey City and the only central business district of Jersey City is the right thing to do at this time."

Downtown Councilman Steven Fulop blasted the request for additional assistance, especially since the developer received a 30-year tax break calling for annual "payment in lieu of taxes" of 10 percent, the lowest PILOT rate handed out in recent years.

"The city is obviously broke and this is a dangerous door to open," Fulop said. "The next thing Lowell is going to ask for in a couple of months is for the city to build the building for him."

© 2008  The Jersey Journal