Jersey City Council mulls new PILOT deal for waterfront developer (Crystal Point)

[real estate wrangler]

It looks like Fischer development associates is looking to have an elongated tax abatement approved for Crystal Point.

The current tax abatement is at 20 years, they are looking for a 30 yeartax abatement.

Here's a piece of the full article by Amy Sara Clark / The Jersey Journal....

"Fisher is asking to extend the length of the PILOT, or Payments in Lieu of Taxes, agreement from 20 to 30 years and reduce the percentage of annual gross revenue paid from 16 percent to 10 percent for the first five years and to 12 percent for the next five years. The developer will pay the full 16 percent in the final two decades of the agreement."

This decision could have major ramifications. If the elongated abatement is approved it could set precedent for all Jersey developers. That means many of the current developers in the area who are struggling, which is most, will claim slow sales and financial burdens in an effort to receive greater tax breaks.

This would in all likelihood hurt city revenues….greatly.

Al Cameron, deputy director of the city's Department of Housing, Economic Development and Commerce is fighting this along with long time Ward E Councilman Steven Fulop….

“Cameron estimated that the deal could cost the city almost $20 million over the next 30 years, but McCann disputes those calculations, arguing that the city will get more from abatements in the final decade of the extended contract than it would from conventional taxes. (Neither side can be proven right, since it is not possible to know for sure what the building would bring in conventional taxes 20 years from now.)”

“Ward E Councilman Steven Fulop argued vehemently against allowing the change, saying that if the break is granted to this building, every other developer in the city would soon be asking for a revised deal.
"This is a dangerous slippery slope we're going down," he said.”

This one could get ugly!

Look for updates here, I will post any new info as I receive it.

Click Here for the entire story.

[real estate wrangler]

Here is the latest....

by The Jersey Journal Wednesday June 17, 2009


"The Jersey City Council is set to vote tonight on whether the developer of a luxury condo tower on the Jersey City waterfront can revise its PILOT agreement with the city due to slow sales.....

http://www.nj.com/hudson/index.ssf/2...o_vote_on.html

I will have the results for you of the vote here tomorrow.

[Unregistered]

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[real estate wrangler]

I can't believe I have been out done on the reporting here, Nice pull unregistered.

Well.... let the debate begin.

Will this set a precedent that will affect all struggeling developers?

I see many a hand out coming.

I'm actually a little surprised(not really this is hudson county after all) that this got passed given the possible reprecussions of the decision and the buildings location.

I also wonder how much this will affect sales at Crystal Point, will it work? I doubt it will be the end all be all for Crystal Points success, but can't hurt that's for sure.