Condos get better tax deal

The Jersey City City Council voted Wednesday to give the Canco Lofts, a condo complex at the old American Can factory on Dey Street, a better tax abatement deal, responding to claims by the developer that sales had stalled.

James McCann, the attorney representing New York-based Coalco, the developer, said the change would save condo owners a total of $6.7 million during the first 10 years of the abatement.

In a 7-0 vote, the council voted to stick with a 30-year term for the abatement, but reduced the payments in lieu of taxes due the city from 16 percent of gross annual revenue to 10 percent for the first 10 years, 12 percent for the next 10 years and 14 percent for the final 10 years.

Coalco had agreed to the original terms of the abatement two years ago.

Out of 202 condos on the market since November, 57 have signed contracts, Coalco spokeswoman Christa Segalini said. More than 500 units are planned for the site.

Two members of the public - Yvonne Balcer and Catherine Grimm - urged council members not to give Coalco a new deal.

"The public is being asked to subsidize them," Balcer said. "Who subsidizes me? If someone wants a guaranteed profit, that is not my job as the taxpayer (to give it to them)."

Coalco representatives have offered varying accounts as to whether they reduced the price of units to spur sales.

Segalini insists prices have never budged from between $300,000 and $800,000. Asked about this Wednesday, Coalco president Mikhail Kurnev responded, "It's not a simple question."

"I think the project should succeed at this point," Kurnev added, in light of the new abatement deal.