Council OKs leasing Beacon space for police motorcycles

Thursday, March 22, 2007
By KEN THORBOURNE
JOURNAL STAFF WRITER

The deal to lease space at the old Jersey City Medical Center for the Police Department's Motorcycle Unit for $1 a year is done.

But it may not be as good a deal as it appears on paper, as the city will have to pay the taxes on the 4.5 percent of the building space it occupies during the 15-year lease.

The Jersey City City Council adopted an ordinance last week finalizing the agreement with Manhattan-based Metrovest Equities - the company building the condo complex dubbed "The Beacon."

Earlier this month, the council introduced the measure, but Ward A Michael Sottolano raised questions when he learned the city would be on the hook to pay taxes. The city's current tax burden at the building, known as the Rialto-Capital, is roughly $2,000, but it could rise to as much as $40,000 a year once the building is developed.

Under the final arrangement, the city's portion of the tax bill will be capped at $12,000 a year.

Sottolano praised the final arrangement, observing, "the fact we have the motorcycle unit there is like having a mini-precinct right in the neighborhood."

Separately, the City Council also voted to lease for $1 a year 460 square feet of space inside the Rialto-Capital and a portion of the building's roof to install radio communication equipment.

The Beacon has a 30-year tax abatement, and will pay the city between 10 and 12 percent of its annual gross revenues.