The Jersey City Council received word at the Wednesday night meeting of an increase in the Hudson County budget of approximately $15 million, which means Jersey City residents might have to pony up $6 million more in their county taxes.
Before the announced $15 million shortfall, the 2003 Hudson County budget was $346 million covering Jan. 1 to Dec. 31, with a reported tax levy of $204 million from Hudson County taxpayers. The additional $15 million in the county budget was confirmed by County Administrator Abe Antun. Antun stated at the Wednesday meeting that the county has experienced a decline in revenue. Councilman William Gaughan, who is also chief of staff for County Executive Tom DeGise, said that all municipalities in Hudson County, with the exception of East Newark, had experienced an increase in ratable properties and therefore had to pay more into the county budget.
In the case of Jersey City, a number of properties, such as the Newport developments, are coming off of their tax abatements and therefore will have to pay their fully assessed worth in taxes. Tax abatements are an arrangement between developers and the city in which developers make reduced “payments in lieu of taxes” (PILOTs) directly to the city. The abatements were designed to last a certain length of time and to encourage development in the city. According to Gaughan, when the abatement expires, the property is taxed at what he called “conventional taxation” levels and the money goes not only to the city, but also to the municipal board of education and the county.
“When the number of ratables goes up, you have to pay more into the county budget,” said Gaughan.
Gaughan said that because of the increase, the county real estate tax rate will be increased by a dollar, which would bring the rate to $7.72 per $1,000 assessed on a property.
Mayoral Chief of Staff Bill Ayala said Friday that the increase would appear on the county portion of tax bills in Jersey City, noting that the city had already finished its budget and there would be no increase in municipal taxes.
Other news
The council also voted to transfer the old Jersey City Medical Center building on Baldwin Avenue from city ownership to the Jersey City Redevelopment Agency. The vote was 7-1-1, with Councilperson Viola Richardson voting against the transfer and Councilman Jerramiah Healy abstaining.
In a memo dated June 11, 2003, Mark Munley, director of the Jersey City Housing, Economic Development and Commerce Department, objected to the transfer on a number of points. In the memo, Munley noted that his department held a number of meetings with neighborhood associations in the vicinity of the Medical Center, but that the transfer ordinance was written without input from the neighborhood groups.
Councilman E. Junior Maldonado, who is the chair of the JCRA, replied that the city transfers a great deal of property to agencies without any public input. However, the council instructed Corporate Counsel Alex Booth to add to the transfer ordinance a provision requiring neighborhood association involvement with all facets of the redevelopment of the old Jersey City Medical Center.
The Medical Center was built in phases starting in 1930 with an addition to the Old City Hospital. When the Depression halted construction, federal funding came from Washington out of appreciation by Franklin Roosevelt for Mayor Frank Hague’s support during national elections. A new Medical Center is currently being constructed on Grand Street, which will replace the old Medical Center when it closes in 2004.
Munley also states in the memo that a public auction of the property “may well be the quickest, most transparent and fairest process available” to get a responsible bidder for the redevelopment project.
Maldonado replied on Thursday that the JCRA would be able to secure a responsible bidder, which would keep the medical center from falling into disuse while the purchaser did nothing with the property.
“Look what happened the Majestic Theater across the street from Town Hall,” said Maldonado. “That was auctioned off and the owner did nothing with it.”
Maldonado said the former movie and live performance location had been auctioned off the late 1980s and was only in the last few years being transformed into a mixed use residential project.
Maldonado said the Redevelopment Agency would hear the first presentation on the redevelopment of the old Medical Center on June 17 at the meeting of the JCRA. The meeting will be at 7 p.m. at JCRA offices at 30 Montgomery St.