It became a non-issue after all. While the council huffed and puffed at its preparatory caucus session Monday night over parking at Newport Centre Mall, in the end, the members agreed to introduce an ordinance to provide a tax break to Macy’s, the shopping giant that’s coming to Jersey City.
It doesn’t necessarily mean it will pass the second time around.
If the tax break is approved, then rather than paying regular property taxes, Macy’s will pay two percent of the project’s cost for 15 years. The cost will increase at certain intervals. In its first year, the project, which takes up 180,000 square feet of space, will pay $344,786.
The City Council, believing developer Sam LeFrak and mall management Simon Properties is taking advantage of a city that bends over backwards for the mall, mulled not passing the tax break in hopes of getting a better parking deal for customers.
But after running the numbers, according to Brian Doherty, who represents LeFrak, the mall could provide only one half hour of free parking to its customers.
“We’re not in the position to give a free hour,” he said. “That represents a significant amount of revenue that’s generated.”
The council didn’t like what it heard.
“If I want to go for a darn movie,” said Councilman-at-Large L. Harvey Smith, “I have to pay $8 or $9. Then I have to pay another $5 to park there.”
There’s your answer
“Do you know of any urban mall that doesn’t charge for parking?” asked Brian Doherty, who represents LeFrak. “Hudson Mall,” said a chorus of council members.
A customer pays $1.25 for the first two hours of parking at the Newport Mall. But under the new arrangement, a customer can get a half hour free, provided he gets his ticket at the entrance, goes in, does his business, gets out, and gets to the toll window before the clock strikes 31.
Housing and Economic Development head Annemarie Uebbing admitted that Macy’s was getting a pretty sweet deal.
“The deal is very advantageous to bring Macy’s here,” she said. But, she added, “Macy’s not only brings additional traffic in the mall, et cetera. In a lot of the stores, Macy’s is a main draw.”
Higher-end
The discussion then veered into the quality of stores at the mall. For someone like Councilwoman Melissa Holloway, who is partial to Ferragamo shoes, she doesn’t see a lot that appeals to her.
But, responded Uebbing, “[Macy’s] will bring that higher end of stores which, well, right now we don’t have.” Council President Tom DeGise wants to continue to negotiate with the mall over providing parking breaks for seniors who frequent the mall, but feel disinclined to stay due to the fees.
Three hundred and fifty jobs are anticipated from the opening of the store.
“I’m going to take my $1.25 and got to New York,” said Holloway.
“That’s fine,” said Doherty.