Thursday, December 18, 2014

Jersey City City Council votes on two controversial issues; terminates a tax abatement



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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