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Re: Outside housing developers put 'old' Jersey City at a loss
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Posted on: 2014/1/27 20:25
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Re: Outside housing developers put 'old' Jersey City at a loss
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What, if any, is the pubic process for reviewing/commenting on CBA's in Jersey City? Is there a difference between 'as-of'right' projects, and projects that require waivers, thus necessitating public review? In NYC, where I work for a city regulatory agency, the NYC Council has a very strong voice in making recommendations for or against projects which require zoning waivers, for instance.

Posted on: 2014/1/27 20:17
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Outside housing developers put 'old' Jersey City at a loss
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Jersey Journal Guest Columnist

Jersey City has just undergone another contentious debate over redevelopment. This time it was over the plan to redevelop Journal Square. Residents, workers, and local officials engaged in another round of arguments over the efficacy and fairness of this plan.

Tax breaks for the developer, along with residents? fears of tax hikes, overcrowding and displacement, fueled these debates which were played out in City Council meetings and in the local media as these stakeholders made their cases. And this debate over redevelopment will not end simply because the City Council has given its approval for this plan to go forward. Ongoing, bruising battles over redevelopment have become part of the city?s political culture dividing people and communities. Is there another way to redevelop the city that would be less divisive, benefit more residents and lead to more sustainable economic growth?

With a new administration and City Council dedicated to a new and more equitable way of doing business in Jersey City, now is the time to search for answers to that question. That search should be part of a public discussion that I would like to contribute to with some ideas drawn from neighborhoods in Jersey City as well other communities.

NEEDS MORE VOICES

All the stakeholders in the city should be involved in the planning process for redevelopment. Residents as well as community-based organizations, block associations, religious institutions, nonprofits, business owners and other stakeholders should be part of this process. Private developers should not determine how the city is redeveloped, that is the right and responsibility of residents and other stakeholders, along with their elected representatives. As one urban planner put it: ?The problem is not development but the lack of democratic control over development.? **

Jersey City has some great examples of democratic planning at the neighborhood level that could serve as models for citywide planning. Bergen Hill and Greenville residents worked with nonprofits and other stakeholders to devise their plans which focus on affordable housing, workforce development and attracting businesses that are a good match for the local workforce and resident needs. However, as with many neighborhood-based projects, they have limited resources to achieve their goals.

A Community Benefits Agreement (CBA) is one way to ensure that the community is included in the planning process. A (CBA) is a signed contract between a developer and community groups that specifies the benefits a community will receive from development. It may include such things as, a living wage agreement, local hiring and training programs, affordable housing and the allocation of space for parks, child care centers and after school programs. CBA?s that are strictly enforced provide more jobs, housing and services for residents leading to more stable families and neighborhoods as well as more balanced and sustainable growth. Good CBA?s include ?clawbacks,? or penalties for investors who fail to live up to their agreements. Many cities across the country have enacted these agreements resulting in economic development that provides more jobs and affordable housing resulting in more equitable and sustainable growth.

AFFORDABLE HOUSING?

Establishing a process for Community Benefits Agreements would also create more pressure for affordable and mixed income housing in new development. While Jersey City has experienced a glut of luxury housing over the years, affordable housing is becoming harder to find. According to the Census, in 2012, half of Jersey City?s renters and homeowners spent over 30 percent of their income on housing compared to about one-third in 2000. By federal government standards, these families are ?cost burdened? ? less able to afford other basic monthly expenses. It is possible and necessary to build affordable housing on the same scale as luxury housing in Jersey City. The millions of tax dollars spent on subsidies for luxury housing should be redirected toward the creation of affordable housing. It is inefficient and unjust to subsidize luxury housing to raise funds for affordable housing to be built elsewhere. The City?s Affordable Housing Trust Fund should be used to finance housing in the same prime areas and on the same scale, as luxury housing

Community-based planning includes preserving city-owned property for public needs like affordable housing. For years the city has sold its property to developers for one-time revenue gains at the expense of long-term community needs. These properties have often been converted to luxury housing removing valuable space in prime areas for affordable and mixed income housing. Instead, the city should set aside these properties as ?community land trusts? which takes land out of the market to preserve it for affordable housing and other community needs. Over 200 communities are doing this today.

Community-based development requires more direct public investment. Aside from the millions in tax subsidies and a bond for $10 million the developer of Journal Square is receiving from the city, the state is also contributing over $33 million for the project. These tax dollars could have been invested in economic development that would have been more beneficial to the city?s economy and its residents.

For three decades, top-down, developer-driven redevelopment, subsidized with taxpayer dollars, has resulted in few jobs for residents, a surplus of luxury housing, a shrinking tax base, declining public services and an overburdened infrastructure. It is time to search for alternatives.

Sources:

*Agnotti, Tom. New York for Sale: Community Planning Confronts Global Real Estate. MIT Press. 2008. (p.233)

**Boxer, A. Matthew. 2010. A Programmatic Examination of Municipal Tax Abatements - Office of the State Comptroller, State of New Jersey, A. Matthew Boxer, Comptroller (p.14)

U.S. Census

EDITOR'S NOTE: Donal Malone is an associate professor in the Sociology and Urban Studies Department at St. Peter's University in Jersey City.

Posted on: 2014/1/27 19:07
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