Jersey City Rising

[Tectonic]

What's the name of the building rising just north of Plaza 10?

[New Guy]

Things are slowing down a little from the frenzied building that was going on before. I even see it in this blog. There were multiple entries a day, now I go away for a few weeks, come back, and only a few new entries. Not to despair friends. JC is still an affordable alternative to the city. Its coming. Two more years my friends, the economy sucks I know, banks are not lending I know, but two more years and we're back at it again. Hang in there. I know these things.

Good comment Tbal, as far a the homeless in the Grove. But beleive me, we still have plenty in the Square. And as far as the police, I dont know where they are. They may have a stong presence in the Grove, but I dont see them in the Square, outside of the path itself. The only presence I have seen "away" from the path was on one occasion where there was some gang thing going on that the Jersey Journal had reported so heavily that they could not ignor it. They had two officers walking down Baldwin. The only time I ever saw a food patrole south of SIP. Then there was the wolf pack thing where the woman got her head bashed in by some punks, and the Chief denied it was a wolf pack. That anoys the hell out of me. I have no problem with the police, they are our friends, but I really wish they would show some more presence in the Square, and not just the 'pretty' part. I just had my second break in a week ago and its getting old.

On a more positive note, the governmental center is coming along well near Baldwin and Mill Rd. The new park is moving along well.

Hang in there all.

[JCMAN320]

I beg to differ with the cops in the Square. I see cops there all the time and police cars there alot with cops walking around, also the JCPD turned the kiosk at McGinley Sq into a police kiosk. I have lived here my whole life, never had a break in or been jumped or threatened. Just dumb luck I guess. Just be safe, I honestly don't think JC is any less safe than Brooklyn or Queens or the BX for that matter. Also the smaller projects are going on and building, the larger projects have stalled, but I agree with New Guy 2 years it will swing up. Also more and more people I have noticed are renovating their properties very nicely, it is even being mentioned on JCconstruction: http://jcconstruction.blogspot.com/

[JCMAN320]

On second thought. Beacon to go rental
Developer: Luxury condos a hard sell these days

Wednesday,September 10, 2008
By KEN THORBOURNE
JOURNAL STAFF WRITER



Saying banks won't finance condo projects in these rugged financial times, the developer rehabbing the old Jersey City Medical Center now wants to switch six abatement deals with the city from condos to rentals.

The length of each abatement would remain 30 years, George Filopoulos, president of New York-based Metrovest Equities and developer of the Beacon, told council members at their caucus on Monday.

But the percent of annual gross revenue paid to the city would change - probably amounting to a "couple hundred of dollars a year" less for the city, said Business Administrator Brian O'Reilly.

The $400 million Beacon - the nation's largest restoration project - is currently slated for 1,200 residential units in nine buildings.

The existing deals for the six buildings where renovations haven't started yet call for 12 percent gross annual payments to the city for 30 years. The proposed agreements call for 12 percent for the first 15 years and 14 percent for the next 15 years for three of the six buildings.

The other three buildings would pay 10 percent gross annual revenue for the first 10 years, 12 percent for the next 10, and 14 percent for the final 10 years, officials said.

Filopoulos insisted he's had no trouble selling 315 condo units at the more than 90 percent occupied Rialto-Capital buildings and said he intends to market and sell 103 units due to come on line next year at the Mercury as condos.

So once the six buildings are finished, Filopoulos said he intends to return to the city and redo the tax abatement deals as condos. "That's our profit center," he said.

Around the nation, single-family homes and condos are taking 11 months on average to sell, while the "absorption rate" for rentals is much quicker, said E. Robert Levy of the Mortgage Bankers Association of New Jersey.

In the meantime, Filopoulos acknowledged his architects are looking into ways to add rental units to the six buildings expected to receive the new abatements.

The six tax abatements are scheduled to be introduced at tonight's council meeting, at 6 p.m. at Middle School 4, 107 Bright St.

[New Guy]

On the Beacon, thats not a JC issue. Thats just a liquidity issue systemic of the entire nation. Banks are in retrenchment, on the ropes covering up, getting pounded, and not lending. They will not be lending until the write downs stop. They are still dealing with these massive billion dollar bundles of worthless debt (Lehman is the latest 'victim'). I qualify the word 'victim' as my heart does not bleed for these banks. They made billions on these agressively insane instruments we all knew were stupid when the boom was on, and now they are wondering why they have debt that is worthless, and a note that was divided up 3 different ways and sold on the secondary market for a guy who makes $50,000 a year can support a property worth...$700,000 a year. Thats just the banks and mortgage brokers being stupid.

That being said, we are all have to deal with it...there is no letting them go under, as pissed off as you may be. Unfortunately that would cause greater problems. Good news is the Treasury appears to be bolsteing them up. I know this may seem a little off point for the topic of Jersey City. But is is really extremely ON POINT for Jersey City. If anyone asks how the sub prime effects us. Well this is it. Right in JCMan's article. The Beacon is a good example. And technically I always tell folks "it aint the sub-prime that gets ya, its the 'prime' that gets ya." The sub pime was 5%, these debts are hitting the prime markets. That is bad. But we will get thru it.

The banks dont want to lend until they get more capital. They will not get capital until the blood-letting stops. The BEACON cant get customers to 'buy' not because there is anything wrong with the Beacon, but becasue the Real estate bust happened in part because the banks stiffened up lending. But this too shall pass. Does anyone remember the S&L crisis of the early 90. Here we are again.

Like I said. Hang in there friends. Two years and we are out of this thing and JC is still a great alternative to the overly priced Manhattan market that has still not gone down that much in this crysis.

[JCMAN320]

Jersey City Site to Become Hilton Hotel, Condos
Liberty Harbor North to be Redeveloped in 564,000-SF Property

A private investor purchased Liberty Harbor North, a 2.7-acre site at 333 Grand St. in Jersey City, for the purpose of constructing a 564,000-square-foot hotel and residential condominium building. The property sold for an undisclosed amount.

The 2.7-acre waterfront brownfield site is just off of the Hudson River was once home to Flintkote Co.'s manufacturing plant. The lot will be cleaned up and redeveloped into a Hilton hotel (313 units) and condominium building (470 units).

The buyer is recorded to have restored over 25 historic buildings and will add this project to its repertoire.

Please see CoStar COMPS #1567006 for more information on this transaction.

Early rendering and article here:http://www.costar.com/News/Article.a...7DDF9D380566AF

[JCMAN320]

Newark Ave. retail plan is stalled

Friday, September 12, 2008

A plan to spark retail and commercial development at the eastern end of Newark Avenue stalled this week, when property owners objected to the proposed use of their burned-out lot as an alleyway and the Jersey City City Council tabled the matter.

Larry Perlaki and Paul Del Forno, owners of 141 Newark Ave., told council members they had been in constant touch with city planners about their intentions to redevelop their property when a fire in October reduced their building to rubble.

City officials stopped returning their calls, the owners said.

And, Perlaki said, it was only 15 minutes before a meeting with merchants to describe the plan, which takes in two square blocks along Newark and Christopher Columbus Drive between Grove Street and Jersey Avenue, that he learned the finished plans incorporate his property as a public walkway between Newark Avenue and Christopher Columbus. His building is located between Grove and Barrow streets.

"We're ready to build," said Del Forno. "First and foremost, before the council votes, you should see what we are proposing."

City Planner Maryann Bucci-Carter told council members the redevelopment plans had been in the works for more than a year.

Heights Councilman Bill Gaughan and several members of the public endorsed the paseo concept, saying it would have a positive aesthetic impact. Business Administrator Brian O'Reilly suggested a community meeting.

If the city does pursue the idea, Del Forno and Perlaki would have to be paid market value for their property.

KEN THORBOURNE

[JCMAN320]

Council goes with Beacon

Friday, September 12, 2008

The Jersey City City Council on Wednesday introduced six revised tax abatement ordinances involving the Beacon project at the old Jersey City Medical Center that switch the status of more than 700 planned units from condos to rentals.

George Filopoulos, president of New York-based Metrovest Equities, the developer, requested the changes, asserting that in the current financial climate, banks won't lend him money to build condos.

Earlier this week, Filopoulos told council members he's had no problem selling nearly 315 condo units at the Rialto-Capital, the first two of the nine-building renovation project to come on line.

The duration of the new abatements would remain 30 years. But the percent of annual gross revenue paid the city would change - amounting to "a couple hundred of dollars" less for the city each year, according to Business Administrator Brian O'Reilly.

The $400 million Beacon development is slated to have 1,200 apartments.

The new abatements come up for a final vote on Sept. 24.

KEN THORBOURNE

[Malcontent]

A lot of activity on the corner of Grand and Marin today. The luxury rental may be breaking ground soon.

[citybooster]

What is it that's supposed to go on the corner of Grand and Marin?Hopefully it's not just one of those things like just checking soil samples that lead nowhere,only to be quiet again for months afterward.

Anyone have any idea with the folding of Merrill Lynch into Bank of America,what the hell is going to happen with their lot on 99 Hudson?Bank of America going to try to junk it off on someone?

And with the Monaco supposed to be obligated to be completed by the end of October,2011 acccording to the abatement revision agreed to by the City Council(failure of which incurs financial penalties from the developer,Roseland Properties)shall we expect it to go forward as a luxury rental anytime soon,otr has Roseland shafted the city again making promises it cannot keep?

[JCMAN320]

Workers, mayor worry city's giants may lay off thousands

Tuesday, September 16, 2008
By CHARLES HACK
JOURNAL STAFF WRITER

With the grim financial news from AIG, Lehman Bros. and Merrill Lynch, much of the speculation in the Downtown Jersey City financial district has concerned how many employees will keep their jobs.

The Dow Jones Industrial Average plummeted 504 points yesterday after being slammed with the double-barrel news that Lehman Bros. was declaring bankruptcy and Bank of America would be buying investment banker Merrill Lynch for $50 billion - half the price it would have cost a year ago.

News also came through that insurers American International Group reportedly asked the Federal Reserve for a $40 billion bailout.

All three companies have offices at 101 Hudson St., while Lehman Bros. has an office on Hudson Street and Merrill Lynch has one on Greene Street.

Lehman Bros. employs 1,700 in Jersey City while Merrill Lynch has 1,500 jobs in the city.

AIG refused to say how many employees it has in Jersey City, but one estimate puts it at around 200.

Jersey City Mayor Jerramiah T. Healy fears that between Lehman Bros. and Merrill Lynch, thousands of jobs could be lost in the city with a deep effect on Downtown restaurants, bars and stores.

"It is bad enough that 2,000 people may lose their jobs," Healy said. "But it's made even worse by all those satellite businesses that rely on the foot traffic."

Gov. Jon Corzine said yesterday that between one-quarter and one-third of New Jersey's economy depends on Wall Street, either directly or indirectly.

Healy ruled out increasing incentives to companies to locate here, saying that they are already in place - but said the city would do more promote its competitiveness.

"We intend to market our city even more so that we have in the past," Healy said.

The mood was gloomy in the plaza in front of 101 Hudson St. yesterday afternoon.

The news that Lehman Brothers had declared bankruptcy came as a shock. Employees had been optimistic that a deal would be struck for some kind of takeover.

Some at AIG and Lehman Brothers said they expected to lose their jobs but still had not received official word. Work had pretty much stopped, with some employees even clearing their desks while anticipating the worst.

One IT technician said he did not know whether he should show up today. Another said he was waiting to find out what kind of severance package would be offered and did not know whether he would be able to pay his mortgage next month. None of those interviewed wanted to be identified.

Many others rely on an employment visa to stay in the United States and now fear they will be kicked out of the country.

The mood at Merrill Lynch was more optimistic, where employees were told it's business as usual. One employee even described the takeover by Bank of America as the "right fit." No announcement had be made about layoffs yesterday afternoon, they said.

James Hughes, dean of the Edward J. Bloustein School of Planning and Public Policy at Rutgers University, said takeovers by the Bank of America in the past led to "significant job reductions."

"It is usually the acquired company which bears the brunt of the pain," Hughes said.

Hughes said that during the last correction, Hudson County fared much better than New York.

The 2004-2007 boom where investors ignored risk is over, he said. This is just the beginning of the restructuring and worse should be expected, he said.

"This is certainly the start of a major restructuring," Hughes said. "Lower costs in Jersey City may mitigate it, but will not erase the pain as the industry restructures."

The Associated Press contributed to this report.

[JCMAN320]

Downturn strikes at Hudson's heart

Wednesday, September 17, 2008

On Monday, Wall Street tilted.

The Dow Jones industrials dropped 500 points, the worst slide since right after Sept. 11, 2001. It was estimated that around the world shareholders' wealth dropped by about $700 billion.

On the surface, it was all triggered by Lehman Brothers' bankruptcy filing and what was basically a forced sale of Merrill Lynch to Bank of America for $50 billion in stock. The real fear of investors is that it is not over and that the credit crisis will devour other banks and financial institutions. The last banks standing will be able to pick up some bargains, but the impact on the average investor will be painful.

Here is how it could hurt in Jersey City - and other Hudson County municipalities better take heed.

Wall Street is the engine that drives Jersey City. First, developers will not be able to unload those tony housing units because many of the people buying them, and this goes for Hoboken as well, are from the financial world. There will be no big bonuses this year.

The Jersey City Financial District is made up mostly of commercial back offices. If more of those financial firms and banks start to collapse, expect those back offices to fold and for there to be much office space available on this side of the river.

Developers of housing projects who cannot unload condos will probably look to Jersey City to help bail them out. They will line up to rework their tax abatement deals similar to that given by the city to Canco Lofts, the development at the old American Can Company property on Dey Street, which now makes lower in-lieu-of-taxes payments than originally agreed.

As the dominos fall, area shops and small businesses will hurt. There does not seem to be much hope for a bright holiday shopping season if things do not get better quickly.

Is any more proof required to show that there is a serious need to review federal banking and investment deregulation? Remember the deregulation in the Ronald Reagan years that ended many restrictions on savings and loan associations. This led to the biggest financial bailout in history. Today, this country could not find enough taxpayers' money to bail out investment firms and large banks.

[JCMAN320]

Dog run to open at Washington Park

by The Jersey Journal
Wednesday September 17, 2008, 2:13 PM

A dog run will open Friday at Washington Park, at the Jersey City/Union City border near Central Avenue.

County officials say the 120-by-80-foot dog run will also have a "high-tech canine water fountain."

The dog run will officially open at noon on Friday.

"As a proud dog owner who lives close to Washington Park, I am particularly happy about the completion of this project, County Executive Tom DeGise said in a written statement

The total cost of the project was $160,000.

[ItstheBeat]

What a waste.

[JCMAN320]

Scene in WWII? No, the Square

Thursday, September 18, 2008

R emember when Jersey City officials said that work on the Journal Square eyesore block that once housed KFC and the Hotel on the Square would begin this summer? Monday will be the first day of autumn.

There is a chain-link fence around this derelict property next to the PATH Transportation Center. It contains the shells of several buildings still standing and a brick-and debris-lined pit where some structures were razed. It could pass for a movie set depicting a devastated block after the London or Dresden bombings of World War II.

Usually, there is filthy water - or some other liquid - leaking from the broken bricks, running under the fence and staining the sidewalks of the pedestrian area near the Christopher Columbus statue and the often broken fountain. When the temperature dips, this runoff will turn to ice that will require placement of barriers.

Deep into the fall season, there will be the usual attempt to hang festive holiday lights on the trees near the dark pile of rubble that was once shops and offices. Trying to brighten the area is truly putting lipstick on a pig.

Supposedly there are plans for a $500 million project that will include twin residential towers, offices, shops, and some parking. It would be a two-year project.

The last thing the public heard was that there were ongoing negotiations for a proposed 30-year tax break for the development that would provide payments in lieu of taxes to the city of 10 percent of gross annual revenue.

With this week's Wall Street maelstrom, seeded by the subprime mortgage industry collapse, and the improbability of moving condo units or high-priced rentals, there are new questions. Chief among these is how will all this affect the Journal Square project? How much longer do city residents live with the ugliness?

This newspaper made this request earlier this month, and now repeats it: It is time for City Hall to tell the public where this project is going. How about it, mayor? How about it, City Council?