After facing millions in fines for building violations on their dilapidated Journal Square structures, the Tawil family has entered into an agreement with Harwood Properties to sell them all.
The properties include 8-11 Journal Square, which is the now-defunct Hotel on the Square, 17-23 Journal Square, and the parking lot behind the buildings.
Harwood Properties is a firm owned by the Harwood family, who have maintained their business in Journal Square for the last 70 years.
Last week a contract was signed with the Tawils, said Lowell Harwood, the CEO of Harwood Properties. Harwood’s firm was one of the developers of the State Square apartment complex on Kennedy Boulevard, which is a block away from the Tawils’ Journal Square properties, and the owners of two parking lots in the Square.
Harwood already has presented plans to the Jersey City Redevelopment Agency of what he would build if named the designated developer. The plans are for two mixed-use high-rise towers, which would include apartments, retail stores and parking. The plans also include a hotel.
Harwood said if his firm received “full cooperation” from the city, then construction could start as early as January 2007.
Meanwhile, Ralph Tawil Jr. was in Jersey City Municipal Court on Thursday to answer for the violation fines his family owes the city.
Judge Wanda Molina ordered him to pay $1.1 million to the city, with the money being deposited in an escrow account handled by his attorney’s law firm, on the condition that the Hotel on the Square is demolished within three months of receiving a demolition permit, or the family must pay the full $3.7 million in fines.A new vision for an old square
The Harwood family harks back to the Journal Square of yesteryear, when the same strip set to be demolished was once the thriving center of the city.
Places such as the Five Corners Bakery, Bickford’s Cafeteria, the Hotel Holland, and Bettinger’s Liquor Store once called home the Journal Square where now stand McDonald’s, Kentucky Fried Chicken, a check-cashing store and a Mexican restaurant.
The Harwoods are looking to bring back the dynamism that once existed in Journal Square.
“I’m looking forward to starting this project as soon as possible. It’s time to bring back the excitement to the Square,” said Harwood.
Since 1936, the Harwood family operated a business empire in Jersey City that includes part ownership of the State Square apartment complex and numerous New York City properties.
Harwood, the son of Wolfe and Sarah Harwood who started the family’s parking business, runs the business along with his son and daughter Craig and Leslie Harwood and his nephews Brett and Scott Harwood.
Last week at their Journal Square office, Lowell and Scott Harwood discussed their pending acquisition and plans to rejuvenate this long-neglected part of Jersey City.
The Harwood-owned company that is purchasing the property is called Journal Square Development LLC. They will be solely responsible for construction, unlike in their previous State Square project, in which other partners such as local developer Joseph Panepinto and Hoboken developer David Barry participated.
Lowell Harwood then spoke about the negotiations with the Tawils, which started about a year ago.
“They are tough but fair, and I commend them for carrying out cordial negotiations,” Harwood said.
When asked about the cost of purchasing all the Tawil properties, he declined to give an amount since the Harwoods are still in the process of acquiring them.
Lowell Harwood did not give a date for acquiring the properties other than saying, “Wait and see.”
The Harwoods are also planning to meet with owners of the remaining Journal Square properties that the Tawils have no ownership in.
Lowell and Scott Harwood said the building plans they showed to the JCRA would be subject to change but would not include the same kinds of retail that exist there now, such as fast food chains and 99-cent stores, and there would be no office space.
Currently, Doyle Dentistry at 15 Journal Square is the only business that occupies any office space on the strip.
“There is a glut of office space in Journal Square, with a good deal of space available at the old Trust Company building,” Scott Harwood said. “And there are so many 99-cent stores in Journal Square. We’re looking to bring some upscale retail and restaurants to not only attract people from Jersey City to shop in Journal Square but people from New York and other points to take the PATH train and come here.”
They would not specify if chain stores like Old Navy or Starbucks would have a future home in the new shopping area they plan to build.
“Of course hearing about Journal Square getting beat up in the newspapers is disheartening but we hope to bring some good news by rebuilding Journal Square,” Scott Harwood said.
Both Harwoods praised Mayor Jerramiah Healy and other city officials for approving their project and lending support.
They, in turn, received praise from Healy, who has pushed for the demolition of the Hotel on the Square since he ran for mayor during the special mayoral election in November 2004.
“I know the Harwoods will do an outstanding job. They are a well-respected family in Journal Square, and I really like what they have planned for a new Journal Square,” Healy said. Throwing in the Tawil
Much has been written about whether the city would ever get the Tawils to demolish their buildings and pay the steep fines they owed.
Tawil and his representative Samuel Stark would not comment on the matter.
City Corporation Counsel Bill Matsikoudis said last week that he commended Healy and other city officials for fining the Tawils, and making them demolish the buildings and sell them for redevelopment.
“[I commend] this administration’s aggressiveness to cause the Tawils to begin tearing down their dangerous buildings, to convey their building to a responsible businessperson who has an excellent vision for the future, and to agree to pay the largest fine ever collected by the Jersey City Municipal Court,” Matsikoudis said.
Demolition is currently taking place on property at 17-23 Journal Square, which also encompasses a part of Sip Avenue.
Healy said last week that the demolition, which is being done by M&A Demolition of Secaucus, should be completed by March 17. Ricardo Kaulessar can be reached at rkaulessar@hudsonreporter.com