The Timing is Primed
There are a series of historic expansions that are transforming Jersey City. The scale and depth of redevelopment and related projects happening is awe inspiring. There is an especially strong convergence of creative entrepreneurs, boutique, luxury, fashion and makers that have made the food & retail scene in Jersey City extraordinarily diverse.

Tremendous Momentum
The City and it?s partners have deployed an award winning branding campaign that?s been quite successfully at making the case for Jersey City to employers, developers and business selection specialists. With hotel occupancy rates north of 90%, the city is welcomed as a retail, restaurant and cultural destination.

Whether it?s competitive construction costs, impressive cap rates or the growing affection millennials have, it?s also clear that Jersey City?s development, marketing and outreach efforts are firing on all cylinders. Jersey City has cementing itself as national contender for TAMI, FIRE & creative firms. It?s Class A Office, Multifamily & Mixed-Use properties are the rival of many Tier 1 markets with north of $5 billion dollars of projects in construction or in the pipeline. No wonder Jersey City is considered by many the ?Most Exciting & Energetic Domestic Emerging Market?.

Developers constructing a 14-story, 152-room Marriott
over the Grove Street PATH station in Jersey City are seeking a
20-year tax break.

The $21 million hotel, which will be part of a residential and
commercial complex at Columbus Drive and Marin Boulevard that
includes two 50-story residential towers already under
construction, is set to open in June 2016.

The City Council is scheduled to give the deal its initial OK on
Wednesday.

Mayor Steve Fulop generally opposed Downtown tax abatements
when he was on the council, but since becoming mayor his
administration has approved at least one 20-year tax break for a
proposed hotel at Exchange Place.

Fulop has argued that hotels, unlike residential towers, create
jobs and do not put as much of a strain on city services. City
spokeswoman Jennifer Morrill made that argument today about
the Columbus Drive Marriott, a Residence Inn.

Morrill said in an email that the hotel will bring in $400,000
annually in city hotel taxes, while creating 100 construction jobs
and 40 permanent jobs.

"This is another hotel which speaks to the tremendous growth in
Jersey City," she said.

The hotel is a joint venture of four developers, some with political
ties: former Hudson County Democratic bigwig Joe Panepinto;
Ironstate Holdings, owned by David Barry and Michael Barry; FJG
Columbus, controlled by former U.S. Rep. Frank Guarini; and
KimmelLipson.

The developers have already received $28.3 million in state tax
credits for the residential portion of the Columbus Drive complex.
Last year, the City Council, under different leadership, awarded a
10-year tax break to one of the 50-story towers. Fulop, then a
councilman, voted against it.

The staggered financial plan for the new Marriott would see
developers paying 2 percent of the project's total cost ? estimated
to be $421,040 ? instead of traditional property taxes for the first
six years. For the next three years, 20 percent of the normal tax
bill would be due, with the percentage increasing until traditional
taxes kick in after 20 years.

The end result will be $10.8 million in payments in lieu of taxes
over two decades. Morrill said the city would otherwise collect
only $7.6 million in conventional taxes during that time period.

The developers' tax abatement application estimates the hotel will
see over $1 million in annual cash flow starting in the sixth year.

The council meets on Wednesday at 6 p.m. at City Hall, 280
Grove St.