Dear Editor:
As an economic development professional for the City of Jersey City, please let me correct many of the errors on economic development policy presented by Lou Manzo in both his comments to your paper and his political advertisements.
1) Mr. Manzo indicates that he will audit tax abatements and use the extra money to fund his new programs for the City. The City already audits tax abatements EVERY YEAR. It is a requirement of our financial agreements (Section VII). As rents have been going up in these developments, the City gets 15 percent of those increases. Those funds are already included in the revenue projections in our budget. So he has no extra funds to provide for his proposed increase in services.
2) Tax abated properties pay taxes and lots of them! The City receives over $53 million a year from abated properties. Tax abatements were established by the State legislature to encourage development in areas in need of redevelopment. The high tax burden of urban areas was discouraging private investment in the city. Tax rates in the suburbs are a lot lower, so developers would relocate to an area where taxes were lower. They could not afford to develop in Jersey City. While Jersey City definitely benefits from the location across from New York City and public transportation, it is not enough when taxes are double or triple what is paid in Union or Bergen County. So while a conventionally taxed building owned by Hartz in Cranford pays $2/square foot in taxes, in Jersey City it pays $2.80 with an abatement. Tax abatements are still needed to stay competitive in attracting new buildings to Jersey City. The project feasibility is one item considered when reviewing abatements. The City also conducts a fiscal impact analysis of each development to determine the impact the project will have on the city’s budget, whether it will take more services than it pays for. All of the office and waterfront housing developments provide excess revenue to the city, which means that extra money can be used to stabilize and lower taxes for everyone else- that is the goal of economic development.
3) Just about every development project in Jersey City was a brownfield. The City redeveloped “brownfields” before someone came up with a name for it. To us, it is just part of redevelopment. Newport, Colgate, Greenville Yards, Society Hill and most affordable housing sites all required remediation prior to construction. In most cases, developers have used their own funds for this cleanup. These sites are now developed and contributing revenue to the City. The City has also used federal, state and local funds, as well as worked with the state requiring responsible parties to clean up the sites. Jersey City has received more Brownfield Economic Development Initiative funds from HUD than any city in the New Jersey. The $20 million in grant and loan funds will be used to remediate and develop an industrial park in Morris Canal and a hotel on Marin Blvd. Mr. Manzo doesn’t need to go to Boston to find a successful brownfield program, he could visit any neighborhood in Jersey City.
4) Mr. Manzo states that the City has ignored neighborhood development, focusing only on the waterfront. That statement couldn’t be further from the truth. The redevelopment of existing neighborhoods is a lot harder than proposing development for large tracts of vacant land, and hard work takes time. It takes meeting with area residents, businesses, religious and civic organizations to find out there concerns and needs and developing a responsive plan that can be implemented. This process has worked successfully at Martin Luther King Drive and we are starting to see results with the Morris Canal Redevelopment Plan. While the process at Palisades Avenue did not produce a redevelopment plan, it has resulted in the Palisade Preservation Overlay District, which will restrict development of the Palisades slope. We have also worked with neighborhood groups in areas of affordable housing projects or social service centers to be sure that those projects are incorporated into the neighborhood. Members of the Historic Districts and the Urban Coordinating Council/SNAP area meet regularly with City staff to comment and direct development projects in their neighborhood..
After three years of working with community groups and stakeholders, the Planning Board has adopted a new Master Plan and the City Council has adopted a new Land Development Ordinance (zoning). These community driven plans will be used by the City and area residents to encourage redevelopment in all of our neighborhoods. It is too bad Mr. Manzo did not attend any of these community meetings over the years to participate in the planning process. He could have joined with his neighbors, the Mayor and City Council to help develop a positive vision for the City.
Sound economic development policy must be based on promoting your assets and minimizing your negatives. Jersey City has been successful in both areas. However, to remain competitive in attracting development of all sizes to this City and preserving our neighborhoods , the policies of Mayor Schundler and Council President Tom DeGise must be continued. I trust that your readers will consider the correct information on economic and community development when making their decisions about the future of Jersey City.
Annemarie C. Uebbing, PP, AICP
Director, Department of Housing, Economic Development and Commerce