The Jersey City Council tabled a the second reading of an ordinance that could have granted a 30-year tax abatement for the Birchwood at Fairmount Hotel at last night’s meeting.
By Daniel Ulloa/Hudson County View
“Has the person requesting or the entity requesting it provided all the requisite paperwork to the city?” questioned Ward B Councilwoman Mira Prinz-Arey asked.
“No, the Tax Assessor’s Office is still waiting on documentation,” replied Acting Corporation Counsel Brittany Murray.
“With the HMFA (Housing and Mortgage Finance Agency) Affordability Controls, will they still have an opportunity to get the paperwork to the board moving forward to make sure we maintain affordability controls?” Prinz-Arey continued.
“Yes,” Murray replied.
From there, Prinz-Arey said she would make a motion to table rather than the governing body voting on Wednesday.
During the public comment period, Joseph Harkins said he has been a resident of the building for 30 years and he said the abatement ordinance should be tabled.
“I question the justification of the 30-year PILOT (payment in lieu Of taxes). It has done nothing in the way of capital improvements to the property using that benefit. Even maintenance has been neglected! There are apartments that have not been painted or re-carpeted in 30 years,” he explained, also claiming that the building’s elevators and toilets are often broken.
“It’s a gift! The ordinance … makes it clear that the landlord intends to exercise the right to remove senior residents from their apartments without compensation for the disruption or loss of whatever property or whatever expense must be incurred. This entire scheme is in blatant violation of the letter and the intent of New Jersey law regarding eviction: Carry this motion,” he said to applause.
Gina Davison was another resident who spoke out against the tax break.
“We especially want to ensure that this project is not providing Fairmount Birchwood LLC with an avenue to rid the building of low-income housing or increase rent prices following renovation,” she began.
“The purpose of the renovations are to quote-unquote attract tenants. Why do they need to attract tenants when there are plenty of seniors in our city in need of low-income housing? … Open a dialogue with the current residents of Fairmount Birchwood. Hold these real estate businesses accountable,” Davison declared to applause.
LaVern Webb Washington called the proposal “a disgrace,” while Mia Scanga provided some background, noting she was in Jersey City tried to renovate the building under then-Mayor Brett Schundler.
She claimed it cost an average of $170,000 per unit in 1993 to renovate the building when it first received a long-term tax abatement.
“We put in a lot of Jersey City taxpayer money into that building,” Scanga said, further stating that Brad Ingerman, who owns the building, was a supporter of Schundler and received preferential treatment.
Scanga added rent-controlled buildings pay double in property taxes compared to what they pay.
“Here we are using Jersey City taxpayer’s money so Brad Ingerman can make tens of millions of dollars on this building … You can’t continue this philosophy of making the developers rich and the middle-class poor,” she argued.
Tina Nalls said that the council shouldn’t even be considering another 30-year tax break in light of granting one to the Centre Pompidou project in October.
“We definitely need housing … This should not be approved. We still need help in our community. They’re asking for an apartment. Do the right job … Let’s change our community. Let’s do something different,” Nalls declared to applause.
Portside Towers East Tenant Association President Kevin Weller said the building is likely subject to rent control and therefore the city must investigate further.
“This important on the back of the city council allowing the Kushners a massive tax abatement for Pompidou. Give the public more time to understand this. Let’s table this to discuss it more,” exclaimed Ward D council candidate Jake Ephros.
From there, Prinz-Arey made a motion to table, which was seconded by Ward C Councilman Rich Boggiano.
The motion to table was approved unanimously (8-0), with Councilman-at-Large Daniel Rivera absent.
The crowd cheered when Gallagher announced the motion to table passed.
