NJEDA yanks Jersey City’s Pompidou funding, city says Murphy played politics

The New Jersey Economic Development Authority has yanked millions of dollars they have allocated to Centre Pompidou x Jersey City project, claiming it is “no longer viable,” though the city says Gov. Phil Murphy played politics.

By John Heinis/Hudson County View

“While we are honored that Jersey City was selected as the first North American location for a Centre Pompidou facility, we have decided to pause this project indefinitely,” NJEDA CEO Tim Sullivan wrote in a letter to Centre Pompidou President Laurent Le Bon yesterday.

“Due to the ongoing impact of COVID and multiple global conflicts on the supply chain, rising costs, an irreconcilable operating gap, and the corresponding financial burdens it will create for New Jersey’s taxpayers, the Legislature has rescinded financial support, leaving us to determine that this project is unfortunately no longer feasible.”

He continued that he was disappointed in the outcome and expressed gratitude for the professionalism extended by the Centre Pompidou team, also leaving the door open to working with them on future endeavors.

In a separate Saturday letter from Department of State Deputy Executive Director Michael Greco to Jersey City Redevelopment Agency (JCRA) Executive Director Diana Jeffrey, he indicates that they must return the $6 million his agency gave them by August 1st.

He explains that the project won’t be moving forward due to a lack of support from the legislature.

“As part of this year’s budget process, the Legislature moved previously allocated funding for the Centre Pompidou x Jersey City project back into the State General Fund. The enacted Fiscal Year 2024 ‘omnibus’ supplemental appropriations act de-appropriates the prior $24 million appropriation to the Economic Development Authority for the project,” Greco wrote.

“Therefore, the Department of State has cancelled the remaining $18 million encumbrance of the appropriation from Fiscal Year 2022 for this project, which has been returned to the State General Fund … Based on the Legislature’s actions, there is no longer any State support available for this project.”

The New Jersey Monitor first reported on the letters yesterday.

The state legislature’s approved a budget last week that did not include any additional fund for the Pompidou, with the bill passing 52-21(1) in the Assembly and 38-1 in the Senate.

The move isn’t much of a shock considering that Sullivan wrote to Jeffrey in April indicating that they must address a $19 million budgeting shortfall or risk losing $34 million in state funding.

In a lengthy post on X at the time, Jersey City Mayor Steven Fulop said this was Gov. Phil Murphy (D) targeting him for rescinding 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).

City spokeswoman Kimberly Wallace-Scalcione echoed that sentiment in a statement, claiming that if this was really about fiscal responsibility, the governor wouldn’t have signed the $56.6 billion state budget.

“It is really unfortunate. As we said earlier this year, absolutely nothing changed in this project from what the Governor and First Lady knew initially and what they reference now, and there is plenty of documentation to support our point. The only thing that changed is the politics in New Jersey and the First Lady’s failed candidacy,” she said.

“Furthermore, his most recent comments on financial concerns are obviously not sincere as the governor signed off on more than $500 million in legislative Christmas tree items in the last day of the budget, so clearly financial responsibility of a budget is not a real concern. Over the next week we need to discuss with our partners abroad and see if there is a path forward.”

Fulop and Gov. Murphy 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.”

Currently, Fulop is in a field of four Democratic gubernatorial candidates along with New Jersey Education Association President Sean Spiller, Newark Mayor Ras Baraka, and former state Senate President Steve Sweeney.

Additionally, U.S. Reps. Josh Gottheimer (D-5) and Mikie Sherrill (D-11) are both seeking re-election in November, but are widely expected to enter the June 3rd, 2025 gubernatorial contest shortly thereafter.