Jersey City officials have introduced an ordinance to
terminate a five-year tax exemption for a Downtown construction project and
gave final passage on the use of the Municipal Utilities Authority surplus, as
well as clearing the way to sell a city parking lot for development.
"The city conclusively determined that the entity
commenced construction prior to receiving final approval from the municipal
council and execution of the tax agreement, contrary to the requirement of the
five year tax exemption,” says the ordinance related to the Downtown project.
The project at 129 Brunswick St. was to include a
four-story residential building with seven apartments, the ordinance says. A
city official said the building department learned that significant
construction had been completed prior to final passage of the tax exemption
ordinance.
Also tonight, the city council gave final passage to an
ordinance which increases the annual franchise fees that the autonomous MUA
pays the city to manage its water and sewer systems. The measure would use a
huge MUA surplus to give the city a $4 million gift for next year's budget, and
$27.5 million more over the following 12 years.
The MUA ordinance was strongly opposed by Councilman
Richard Boggiano, who said the money should be given back to residents directly
and Councilman Michael Yun, who said it should be used to improve the city’s
aging infrastructure and said the surplus exists because residents were
overcharged. Several residents spoke against the ordinance with one calling it
“a backdoor tax increase.”
The ordinance passed with only Bogggiano and Yun voting
“No.”
Councilman Frank Gajewski said, “The money is coming back
to the people…We own the system, it’s our money and it is going to benefit
everyone who is a resident in Jersey City.”
Councilwoman Candice Osborne noted that taking the money
makes it part of the city’s budget but giving the money back would inordinately
benefit big businesses.
Finally, the council gave final passage to a resolution
clearing the way to sell a parking lot used by Jersey City Municipal Court
employees, police and city inspectors at 362 Summit Ave. Yun said the parking
lot will be replaced by a building with 55 to 65 residential units which
provides no onsite parking.
Edward C. J. Meehan, the outgoing sergeant at arms for
the Municipal Court, gave the city clerk a petition he said was signed by 76
municipal court employees against the sale of the lot. He said people coming to
court will be in “a mad search for parking.”
Attorney Jude-Anthony Tiscornia spoke against the sale,
noting that the city is contractually obligated to provide parking for
employees and it will have to pay for parking somewhere else. He suggested
using a part of the proceeds from the sale to build a parking deck at the
courthouse.
Another resident lauded the project, saying it would
create tax income for the city, boost business on the square and increase
property values. A second resident said development is being focused Downtown
but Journal Square needs it as well. A union construction worker supported the
project saying, “We need jobs.”
Donald Pepe, attorney for the developer, said the project
will be designed with all parking required by law. He noted there are dozens of
parking lots in the area which would love more business. Finally, he said the
building will enhance the neighborhood and generate some $150,000 per year in
taxes. He said he has a petition signed by 300 residents in favor of the
project.
The ordinance passed by a vote of 7 aye votes, Yun voting
no and Boggiano abstaining.
Council President Rolando Lavarro said he understood the
concerns about parking in the neighborhood and for the city workers who use the
lot but said, “I’m very confident that a solution will be made to alleviate
those concerns.”
Source: NJ.com
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