The head of the New Jersey Economic Development Authority (NJEDA) told the executive director of the Jersey City Redevelopment Agency the Pompidou project must address a $19 million shortfall in the next month or risk losing $34 million in funding.
By John Heinis/Hudson County View
“Thank you for sharing the updated operating model outlining the revenue and expense projections on March 28, 2024. We have taken time to review the plan in depth, and it is evident that strides have been made in identifying funding sources, including substantial State appropriations and potential tax credits under the recently-enacted Cultural Arts Incentives Program,” NJEDA CEO Tim Sullivan wrote in a letter to JCRA ED Diana Jeffrey.
“However, it is also apparent that the persistent operating gap continues to pose a substantial challenge. Based on the information you provided us, JCRA has identified annual revenue of slightly less than $4m annually, and recurring expenses of more than $23m – for an annual operation shortfall of approximately $19m. While we are eager to continue working with you on the CPxNJ project, the annual operating gap remains too significant to release any funding at this time.”
He continued that the $34 million in NJEDA funds allocated to the project has been withheld to date “due to the lack of balanced sources and uses and operating plan,” and without doing so, the state will consider distributing the money for other endeavors.
Sullivan added that the JCRA’s deadline for submitting an updated revenue and expense model for the Pompidou is May 26th.
“We are more than willing to continue collaborating closely with JCRA to provide any necessary insights and support as the NJEDA firmly believes this project would be tremendously beneficial for Jersey City and the entire state of New Jersey,” his letter concluded.
“We remain hopeful that JCRA can identify sustainable solutions that would allow the CPxNJ project to move forward.”
Jersey City Mayor Steven Fulop and Gov. Phil Murphy (D) announced the project in June 2021, and while initially slated to open in 2024, that was delayed until late 2025 or early 2026, Fulop said in a February 2023 interview.
Last month, former Gov. Jim McGreevey, now a candidate for Jersey City mayor with Fulop running for governor instead of seeking a fourth term, said that “Jersey City cannot afford the prospect of the Pompidou satellite location.”
After ROI-NJ first reported the story, Fulop targeted McGreevey in a social media post.
“I watched last night the CNN special called American Scandal on former Governor Mcgreevey. Not good,” he wrote on X.
“Ppl ask me often how the race for mayor of Jersey City will go + I often tell two things I’m certain about 1) I will not be on the ballot for mayor 2) Mcgreevey’s path to win mayor is very narrow/unlikely as it stands today due to his campaign being controlled by non Jersey City – more on this soon – could change but that is the situation.”
McGreevey eventually responded, choosing to take the high road.
“Although disappointed in the mayor’s comments, I don’t disagree with his assessment of the CNN profile. Rather than focus upon my mistakes from 20 years ago, I am more concerned with fixing the finances, education, & quality of life for the people of Jersey City,” he wrote in his own X post.
In a brief phone interview, McGreevey applauded the NJEDA’s decision to pump the brakes on the project, reiterating points he made in March.
“With the ever increasing property tax burden on families and the legitimate needs – including refurbishing of our schools, streets, investments in a more responsive 911 system, quality of life, cleanliness, and public safety – the Pompidou may have been a laudable goal, but the fiscal reality of the cities demand greater accountability and prudence to ensure that we eliminate unnecessary discretionary spending,” he told HCV.
“The state EDA also recognized that the Pompiodu would place an ever increasing tax burden on Jersey City residents that would only increase over time and exacerbate the property tax crisis. My focus is on those bread and butter issues, those nuts and bolts issues that impact our families and our residents – the politics will take care of itself.”
Jeffrey declined to comment, however, in a lengthy post on X, Fulop said this was Murphy targeting Jersey City after he rescinded his endorsement of First Lady Tammy Murphy, the governor’s wife, in favor of U.S. Rep. Andy Kim (D-3) in the U.S. Senate race (she dropped out a week later).
“Fact #1 – we heard zero from the state for months other than all is good except for the exact week I said I was endorsing Andy Kim (timeline details below). That EXACT week we all of a sudden got multiple letters from Trenton after months of silence. What changed?” he questioned.
“Fact #2 – the state has been involved every step of the way including a $50m tax credit in support of this project approved Fall of 2023. Also Including adoption of specific legislation for this project. What changed now vs the last 4 years if they had concerns.”
The mayor continued that the Murphys and EDA leadership attended a dinner with Pompidou donors and did not express any concerns then, as well as that the letter from Sullivan was given to the press before the city.
He also provided a timeline of the project dating back to January 31st, 2023 through April 10th, 2024.
On Wednesday, France’s Court of Auditors released an audit report that said the Pompidou’s current economic model is unsustainable, as Art News reported.
This is ridiculous! Jersey City taxes are already sky high and the city’s credit rating has been downgraded. We have no money for snob related projects.