Jersey City Ends Tax Abatement After Urban Renewal Project Stalls

JERSEY CITY, NJ — City officials have terminated the tax abatement of a Jersey City construction project after inactivity and unsafe conditions were found at the site, authorities said.

Two default notices were sent to the developer, 305 West Side Urban Renewal LLC, on July 1 and Sept. 27, because they failed to correct the deficiencies found at the site of 305 West Side Ave.

Officials granted the project a 20-year tax abatement. Ground for the five-story, mixed-use rental building was broken in August 2017. Construction "unexpectedly came to a halt" a short time later. The 39-unit building was part of the West Side Avenue Redevelopment Plan.

"After noticing the project went stagnant for several months midway through construction, I reached out to the developer and tried to work with them on the reasons for the delay," said Mira Prinz-Arey, who represents Ward B on the City Council, which is where the site is located. "After multiple attempts to work with the developer, they're not made good on their contractual obligations, and have been completely unresponsive."

It is the third tax abatement repeal city officials have acted on this year, said Mayor Steven Fulop.

Fulop's administration has been phasing out tax abatements. It has been three years since a residential tax abatement has been granted.

"We will continue to crackdown on delinquent developers and hold them accountable for their obligations to the neighborhoods they're affecting," Fulop said.

City officials said last month they ended the tax abatement for the developer of the Caprice Hotel for operating an illegal hotel there through the Airbnb platform.

Related: Developer Ran Illegal Airbnb Hotel In Jersey City: Officials

Email: daniel.hubbard@patch.com