The Jersey City Council voted to introduce a special improvement district (SID) that will help fund the Centre Pompidou project on first reading at last night’s meeting.
By Daniel Ulloa/Hudson County View
“I consider it a slap in the face to all the residents in Ward C focusing on all things Pompidou. Businesses have gone out of business due to the property tax increases,” Ward C Councilman Rich Boggiano declared to start the debate.
“Family-owned businesses can’t take it anymore. You all needed to explain it to them. It is double taxation.”
Boggiano said a citywide tourism district would be a better compromise after making his dissatisfaction with the current proposal known at caucus.
“The homeowners of Journal Square are truly upset. They’re going to have to raise taxes to pay for this. Enough is enough. I have a letter from the Journal Square SID that wants this postponed. Most of them are quite upset about this. I’m asking for a motion to withdraw this tonight,” he argued.
Jersey City Redevelopment Agency Counsel Joe Baumann said the ordinance had been “tweaked significantly” to address concerns.
For example, he said rent-controlled properties, multi-family homes of four or less, and properties of $4 million or less would be exempt from the SID tax.
“This is just the introduction. All the property owners impacted by this tax will get a notification. We heard what you said. We think we have a list that’s much more manageable,” Baumann explained, reiterating the point that second reading won’t be any earlier than December 11th.
“The PILOT’ed (payment in lieu Of taxes) properties in this district are not exempt. You will still have to pay this special improvement district. We feel like we’ve addressed some of the concerns.”
Evidently, Boggiano did not agree in the slightest.
“I met with the businesspeople this morning. Nothing has been explained to me, and I find it an insult! The city owes me an apology! I want this delayed!” Boggiano exclaimed.
“I prefer to engage the community on the front end and then come up with a comprehensive plan,” Ward F Councilman Frank “Educational” Gilmore added, indicating that he agreed this vote should be delayed.
“Respect homeowners in the area,” Gilmore said to applause.
Baumann said impacted property owners will get a specific written notice and some community outreach will be done prior to second reading.. He added the tax can’t be collected until the SID is set up.
“You mentioned the notification. That’s part of the requirement. Usually, there’s stakeholder meetings in advance of a public comment period,” Ward B Councilwoman Mira Prinz-Arey said.
“Automatically set a time for a stakeholder meeting, I have received a lot of concerns about people getting double assessed.”
Business Administrator John Metro said they can’t send notice until the ordinance is introduced and they won’t have a final vote until that requirement is met.
“This should be pulled. It’s not a usual SID. It’s a municipal SID. This has to be explained. This is another form of taxation on the businesses,” Boggiano declared.
He made a motion to withdraw, which was seconded by Gilmore.
“Are there gonna be meetings once this is withdrawn? Ward A Councilwoman Denise Ridley asked.
“When is this conversation going to happen? For that reason, I’m going to vote no to withdraw.”
She added that meetings with Boggiano and the affected businesses should still happen prior to second reading.
“This is a slightly different model than what set up for West Side Partnership. If the introduction is the trigger to get the process started, that’s fine,” Prinz-Arey noted.
She said it should not come back until the details on the tax are calculated and made clear, adding that a tourism zone should be discussed more since it will benefit the whole city.
“There needs to be a very thorough and robust conversation with the councilman and the SID. I vote no to withdraw,” she said.
“There’s going to reprecussions because it’s ticking off a lot of people,” Boggiano argued.
“I am prepared to start discussions. I’m going to vote no on the withdrawal. I think a substantive conversation needs to be had. I vote no one the withdrawal,” stated Ward D Councilman Yousef Saleh.
Prior to his vote, Gilmore asked why this couldn’t be a part of the existing Journal Square SID.
“More properties. A different mix of uses. You can have overlapping or more than one SID,” Baumann answered, to which Gilmore votes yes to withdraw.
“We should introduce this but it should be a while before this comes back. Any meetings should be co-hosted by the councilman,” noted Councilwoman-at-Large Amy DeGise before voting no to withdraw.
“We need to kick start the conversation. If all parties are not satisfied, don’t bring it back,” said Councilman-at-Large Daniel Rivera.
Council President Joyce Watterman voted not to withdraw, noting it is not the final vote, meaning the motion to withdraw failed 6-3, with Boggiano, Gilmore, and Ward E Councilman James Solomon voting yes.
“People are sick and tired of taxes in the city! You’ve done nothing but encourage buildings that destroy neighborhoods! People are not going to forget this!” Boggiano exclaimed to applause.
“This is a disgrace!” Boggiano exclaimed when voting no on it passed on first reading.
“I agree!” a woman shouted.
“No shouting,” City Clerk Gallagher said.
The first reading of the ordinance clear 6-3 along the same lines as the motion to withdraw.