I hope Steve Fulop responds to this thread -- I would like the abatement issue to be more clear -- because it is not yet clear to me!

But maybe I'm just slow.

Waterfront abatements pay the city 300-400% what the city would have received in ordinary taxes over the life of the abatement. In a condo developers pay the city approximately 120% what they would have paid under ordinary taxes. In a rental, they pay closer to 200%.

Before you jump DanL, I have been working on an explanation to you about why $1 sent directly to the city benefits you the taxpayer A LOT more than $1 sent to the county and shared with the other cities. Yes, I confess to being an utter nerd on this subject, but I've been actually putting together an excel spreadsheet on this (for the benefit of explaining to some New York City based clients as to why the PILOT program isn't worth the application) and eventually I will have time to redact the confidential information and also put this part on there. Paid work comes first, arguing on a website later.

In the meanwhile, trust me, the city NEEDS the PILOT $, which is why they always grant the PILOT deal.

Incidentally, the NY based developers who have been carpetbagging in JC lately all apply for the abatement program because the NYC abatement is very generous and is granted as-of-right. There, you just file the paperwork and get the abatement - no council approval, no politics, no donations to charities, no BS. The typical NYC abatement consists of 10 years of NO taxes followed by 10 years scaling gradually up to full taxes. When I show my NYC clients the math on the JC abatements, they are usually shocked that people even call it an abatement here.

I've heard the taxes are about 50% less over the life of the abatement contract, although I have no proof of that.

I for one would appreciate if Councilman Steve Fulop could outline how much the city will "lose" because of each of these abatements -- in this article he blasted these abatements as "gifts."

It is never very clear to me -- I know the schools and the county get "less" money but overall what does the city really get with these abatements.

==================================
Council hands out more tax abatements
Friday, November 24, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER

The Jersey City City Council continued to crank out tax abatements this week.

Six tax abatements were introduced for The Beacon, the $350 million project by Manhattan-based Metrovest Equities to transform the old Jersey City Medical Center complex into a swanky condo development. The council adopted four other abatements, three of them for waterfront projects.

Following the pattern set more than a year ago, the six abatements introduced Tuesday for the Beacon run 30 years. The normal duration for tax abatements in the city is 20 years.

The Beacon received an added break when it came to the gross annual revenue that has to be paid to the city. The normal payments-in-lieu-of-taxes are 16 percent of gross annual revenue. The six abatements introduced Tuesday call for PILOT payments of 12 percent - up from the 10 percent the project received a little more than a year ago for its first four properties.

George Filopolous, principal of Metrovest Equities, told council members Monday that 250 of the 315 units in the first two buildings under construction have been sold. Those two buildings, the Rialto and the Capital, will open next spring, he said.

The council also adopted 20-year tax breaks for Monaco North and South, a rental complex rising at the site of the old Doubletree Hotel at Washington and Sixth streets and a condominium complex at the foot of Second Street.

Downtown Councilman Steve Fulop blasted these abatements as "gifts" and noted that Mayor Jerramiah Healy campaigned on the premise that waterfront abatements were no longer necessary.

The waterfront abatements passed 6-2, with Ward F Councilwoman Viola Richardson joining Fulop in opposing them. At-Large Councilwoman Willie Flood was absent.

A 20-year abatement for a market-rate condo project at 100 Water Street on the west side of the city was approved.

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The waterfront properties, (excluding the actual powerhouse if perserved and restored) needs abatements like I need a bigger dog.

Who is currently tugging on my sweater to go for a run and when a 125 pd dog needs to go out she gets her way!gtg......night all!

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And why is my reply quoted in DanL's reply???? Last time I checked I worked for the Ward E councilman, but DanL needs to take his anger out on someone so go ahead Danl, Biatch slap away, like I said before, your silly remarks and anger towards me is like a hole in water.

And BTW DanL Happy Thanksgiving to you too!.

Best regards
Robin Pinkowitz
Former aide to former Councilman E. Junior Maldonado whose office was down the hall from Councilman Gaughan and between the caucus room and Councilwoman Richardson's office. So yup, once again DanL you hit it right on the head.

When the Redevelopment Authority selected Metrovest over national developers who offered more money for the buildings, Councilman Gaughan was quoted as saying he supported Metrovest because they promised to do the project without tax abatements......


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But the other three are near the waterfront and are not the Beacon. This is mentioned at the end of the article.

It is agreed that the Beacon needs an abatement.
But waterfront properties???

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This is the old Jersey City Medical Center Site, and if I'm not mistaken is the largest historic preservation project in the Country.

From today's JJ:
Tax abatements on agenda
Tuesday, November 21, 2006
The Jersey City City Council is set to introduce five 30-year tax abatements for the Beacon project condominium development.

The complex, being developed by Manhattan-based Metrovest Equities at the old Jersey City Medical Center campus off Montgomery Street, will house 1,200 market-rate units

The council is also scheduled to consider four 20-year abatements for final adoption. Three of these abatements are for projects either on or a stone's throw from the waterfront.

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

KEN THORBOURNE
*************
What are the three properties on or near the waterfront?
Something tell's me there will be no moderate housing in any of these.