Jersey City Council considers tax exemption for proposed building

by Amy Sara Clark / The Jersey Journal
Monday February 09, 2009, 9:47 PM

Nancy Skidmore, an attorney representing the project's developer, right, talks with Jersey City Business Administrator Brian O'Reilly about the tax exemption at tonight's City Council caucus meeting at Jersey City Hall.

The first major item at tonight's City Council caucus was a tax exemption for a moderate income and market rate housing project at the intersections of Monticello, Fairmount and Fairview avenues.

Nancy Skidmore, an attorney representing The Whiton Street Associates, the proposed building's developer, went over the specifics.

Whiton is requesting two separate tax abatements, one for the residential portion of the building, which will consist of 120 apartments, and one for the commercial portion, which they are hoping to fill with an upscale supermarket and a few other stores. It will also have a rooftop recreational space for the building's tenant's to use.

The building will include 24 units of moderate income rental apartments that will rent for $616 for the two-bedroom units and $515 for the one bedroom units. The remaining 96 units will rent for $1,300 for one-bedroom units and $1,700 for two-bedroom units.

Whiton is asking for a 30-year tax exemption. On the residential portion, Whiton would pay 4 percent of the annual gross revenue, estimated at about $83,783 for the first 15 years and 6.5 percent of the annual gross revenue, estimated at $136,147 for the next 15.

For the commercial portion, Whiton is asking to pay either the minimum annual service charge or 10 percent of the annual gross revenue, which is estimated at $61,940, whichever is greater, and pay 2 percent of each prior year's annual service charge. It would also give Hudson County 5 percent of its annual service charge.

In addition, they would agree to provide jobs to Jersey City residents.

Jersey City Business Administrator Brian O'Reilly said this project is one of only a handful of proposals the city has received since it issued a request for proposals.

"You're the first ones to put shovels in the ground," said City Council President Mariano Vega.

Councilwoman Viola Richardson said, "It will stimulate the area and maybe we're get some other businesses there."

The proposal will be voted on at Wednesday's City Council meeting.