Two 47-story towers closer to re

Two 47-story towers closer to reality (Washington Boulevard near the Doubletree Hotel)
Two 47-story towers closer to reality Developers ask City Council for more advantageous tax deal Ricardo Kaulessar Reporter staff writer 05/24/2008 Two 47-story buildings on Washington Boulevard near the Doubletree Hotel are closer to reality now that the city has approved a sweeter tax deal for the developers, who were unsatisfied with the city's previous deal. At the council's meeting on May 14, the council voted 7-1 to amend the existing tax abatements for the pair of towers, to be built in a joint venture by two development companies. Developers in Jersey City often seek to avoid regular fluctuating property taxes by making a separate tax deal with the city. The city benefits by getting that money straight into its coffers rather than sharing it with the county and schools. The city also uses these agreements as an incentive for developers to build. However, some residents say that these deals force other taxpayers to contribute more to school and county taxes. Rejected once, approved on second try The developers of the Monaco North and Monaco South buildings epitomize the old adage, "If you don't succeed, try, try again." Representatives for Roseland Property Company and Garden State Development (whose principal investors include longtime developer Peter Mangin and former U.S. Congressman Frank Guarini), the joint developers of the project, first came to the City Council in January looking to change their existing abatement deal with the city, citing the increasing cost of construction. The developers would save $6 million in taxes from the deal. The new abatements would be for 15 years rather than 20 years, and the annual service charge (a charge levied by the city against residential property exempted from conventional taxation) would be lessened from 14 to 12 percent of the annual gross revenue for the rentals. The developers also wanted to slightly change the number of rental units in the buildings, to save construction costs. The number of rentals in Monaco North would decrease from 264 to 243, and the number of parking spaces would decrease from 203 to 187. Changes for Monaco South include a slight increase from 277 to 281 units and an increase in the number of parking spaces from 213 to 223. In January, the council rejected the deal by a 6-3 vote because the city would lose $6 million in taxes.

Two 47-story towers closer to reality (Washington Boulevard near the Doubletree Hotel)

Two 47-story towers closer to reality

Developers ask City Council for more advantageous tax deal

Ricardo Kaulessar
Reporter staff writer 05/24/2008

Two 47-story buildings on Washington Boulevard near the Doubletree Hotel are closer to reality now that the city has approved a sweeter tax deal for the developers, who were unsatisfied with the city's previous deal.

At the council's meeting on May 14, the council voted 7-1 to amend the existing tax abatements for the pair of towers, to be built in a joint venture by two development companies.

Developers in Jersey City often seek to avoid regular fluctuating property taxes by making a separate tax deal with the city. The city benefits by getting that money straight into its coffers rather than sharing it with the county and schools. The city also uses these agreements as an incentive for developers to build.

However, some residents say that these deals force other taxpayers to contribute more to school and county taxes.

Rejected once, approved on second try

The developers of the Monaco North and Monaco South buildings epitomize the old adage, "If you don't succeed, try, try again."

Representatives for Roseland Property Company and Garden State Development (whose principal investors include longtime developer Peter Mangin and former U.S. Congressman Frank Guarini), the joint developers of the project, first came to the City Council in January looking to change their existing abatement deal with the city, citing the increasing cost of construction.

The developers would save $6 million in taxes from the deal.

The new abatements would be for 15 years rather than 20 years, and the annual service charge (a charge levied by the city against residential property exempted from conventional taxation) would be lessened from 14 to 12 percent of the annual gross revenue for the rentals.

The developers also wanted to slightly change the number of rental units in the buildings, to save construction costs. The number of rentals in Monaco North would decrease from 264 to 243, and the number of parking spaces would decrease from 203 to 187. Changes for Monaco South include a slight increase from 277 to 281 units and an increase in the number of parking spaces from 213 to 223.

In January, the council rejected the deal by a 6-3 vote because the city would lose $6 million in taxes.