Coalco 'shake down' gets the job done

Two weeks ago, developers of the old American Can factory on Dey Street in Jersey City came to the City Council, hat in hand, asking for a better tax abatement deal than the one they signed two years ago to help spur condo sales at the renovated building.

Council members were open to giving the project - in the shadow of the Pulaski Skyway and next to the roadway leading to the Holland Tunnel - a better tax break.

But in return for the help, Heights Councilman Bill Gaughan asked the developer, New York-based Coalco, to donate $150,000 to help run a recently started construction apprentice program in the city.

In the midst of a back and forth at a council caucus, Downtown Councilman Steve Fulop branded Gaughan's suggestion a "shake down."

"That's a bad word to use," Gaughan exploded, as he wagged his finger at Fulop. "Don't use 'shake down.' I resent his comment."

Whatever you want to call it, it worked.

On Monday night, Coalco representatives offered to donate $100,000 to the city's apprentice program.

"I think it's a victory for Jersey City residents who are going to be in the program and it's a victory for Coalco, because we certainly want them to sell their 500-plus units," Gaughan said. "I was upset at my colleague Steve Fulop for calling me a 'shake down' artist," he added.

Fulop didn't back away from the characterization yesterday.

"City tax abatements, granted or not granted, should stand on their own merit, not who you pay off," Fulop said. "It is just bad business policy to shake down developers, no matter how good the cause."

According to the terms of the new abatement deal, rather than paying 16 percent of revenue in lieu of conventional property taxes over the next 30 years, owners would pay 10 percent for the first 10 years, 12 percent for the next 10 and 14 percent for the final 10 years.

The new agreement is up for final adoption at tonight's council meeting at 6 at Middle School 4, 107 Bright St.