Sep 26, 2024
A City Council majority sided Wednesday night with the public minority who spoke in favor of granting a 30-year $150 million tax abatement in exchange for Journal Square property that supporters hope will be the future home of the Pompidou art museum.The 6 p.m. meeting adjourned at 11:59 p.m. after the council got through all its agenda business — including a 6-3 vote in favor of the controversial abatement — and some 50 people addressed the Pompidou issue. Fewer than 25% of those 50 individuals were in favor while most of the rest decried the move.The City Council met Wednesday inside City Hall. (Credit: Andy Milone)Some of the protestors went as far as to say they wouldn’t vote in future elections for councilmembers who said “aye” to the abatement for the Kushner Real Estate Group – what Mayor Steve Fulop previously said was the only real estate opportunity available to save the Pompidou project previously abandoned because of the state having pulled funding.    “There are too many unknowns here. If the city was sincere about doing this project, they should have focused on getting the information out to the people,” said Councilman Rich Boggiano.“Tonight the people were vocal, and I’m going to tell you, people aren’t going to forget it,” he added.Boggiano, Frank Gilmore and James Solomon opposed the ordinance, on its second and final reading.The meeting got so intense that police who monitor live meeting recording, according to Business Administrator John Metro, made the decision to deploy about a half dozen officers to the back of the chambers late into the debate, a decision denounced by Council President Joyce Watterman.The 30-year abatement is for the already approved mixed-use project at 808 Pavonia Ave., lending the city ownership of 100,000 square feet – referred to often as the “white box.” Fulop and administration have been discussing the possible location with Pompidou leadership as the site for one of the Paris museum’s future satellite locations in the world.Officials have said that the tax “discount” of a little more than $4 million annually would result in a savings of approximately $150 million in revenue for the developer over 30 years.“We’re excited to try and build something world class for this city,” said Jonathan Kushner, president of KRE, as he left City Hall. “We’ve been excited about building in this city, and we’re excited to continue to build.”The City Council meeting attracted a crowd because of the controversial Pompidou issue. (Credit: Andy Milone)There will be future discussions and measures on Pompidou.Among them is a future resolution further outlining the breakdown of the payments in lieu of taxes, said Metro. The developer’s attorney, Jim McCann, also said the site plan will need to be amended in front of the Planning Board. A licensing agreement has to be discussed with Pompidou, as well.Supporters say the property will be a real estate boon whether or not the Pompidou ends up taking over the space.“Real estate has great value and for us to have value in Journal Square is really important,” said Watterman, who was successful adding a clause to ensure the 100,000 square feet could be used as a indoor recreational center for youth if Pompidou fell through.She also noted how the New Jersey Performing Arts Center and Prudential Center have brought tourism and benefited Newark.“Jersey City needs tourism. We’re concerned about taxes. We’re trying to figure out other ways tourism can come in to help taxes,” Watterman added.In the chambers, many argued that the benefits didn’t outweigh the burden of an abatement, the future museum build-out and operating expenses.They took issue with the idea that other aspects of the city were being ignored, including affordable housing, and wanted them to be prioritized over what many called a “vanity project.”“What good is a world class museum to residents who can’t afford to live in their own city,” said Daniel Feldman, one of the residents.Esther Wintner, another resident, rallied the crowd in driving home how she felt no one asked for a museum with “no connection to Jersey City’s roots.” She pointed out the “long term negative impact of abatements.”“We are reminded that the city has no money to fund longstanding programs that have served the residents, such as repairing ice skating rink or the public pools,” said Wintner. “It now costs money for poor children to use the pools.”There were fears too of the Pompidou stealing from the local art scene, as well as its contributions toward gentrification. “The Pompidou project before you today is not nearly a cultural center. It’s a gentrification accelerator, disguised as progress,” said Jessica Brann, another resident.She explained how affordable housing is at risk when such a project is allowed into the community and how the museum “caters to a specific socioeconomic strata, one that can afford both rising rents and museum entre fees.“This is not cultural enrichment for all. It’s cultural displacement of the many for the benefit of the few,” Brann added.  Several referenced reporting by ARTnews about how the an audit report conducted by France’s Court of Auditors revealed that the Centre Pompidou‘s economic model is unsustainable.The fireworks Wednesday night included a spat between Gilmore and Yousef Saleh over how Gilmore dominated some of the conversation and framed some of his questions to Metro as “yes or no.”Saleh believed answers were more complex than simply one word.“Stop cutting me off,” Gilmore said repeatedly during one exchange.“We have no comprehensive financial statement for us to make a confident decision. Again, this very well may be worth it, but just show us the numbers,” said Gilmore about his gripes. They publicly apologized and made up. Saleh noted how tax abatements were “abused” in the past, and in the past how the schools were not “fully funded” while he was growing up because of them not receiving a “fair share.”But this one, said Saleh, is different, with the schools not losing out on taxes, and the abatement serving a greater purpose.“All I know is after today, we’re going to have a white box and we can do with it what we please,” he added.Many of the supporters from the public advocated for the project, recognizing it was a calculated risk, but one that could pay dividends for generations.The Pompidou is a world class institution with economic and cultural benefits, and the backers hope the “renaissance” of Journal Square can “catapulted by the presence of a world class museum working the community.”“Museums essentially serve a two-fold mission,” said Melida Rodas, one of the resident supporting the project.“Beyond their cultural significance, the museum sector plays a crucial role in the economy by creating jobs and generating tax revenue. I believe that collective efforts of the art community, the museum, the local government, and state government can result in a very special moment for our city’s youth and our city’s growth.”  A lot of the discussion amongst the council, Metro and Joseph Baumann, Jersey City Redevelopment Agency attorney, was on the New Jersey Economic Development Agency tax credits, the Jersey City Times reported had not been approved for operating expenses.  “I sit behind the curtain and I’m trying to give you guys the transparency that you’re asking for,” said Saleh. “This grant itself was done with the Pompidou in mind and this and one other project in New Jersey. The reason they have not been approved because they have not filed for it.”Baumann also disputed the argument that the lack of certainty is uncommon. “There is no way a project like this, shows up on day 1, in a box all tied up in a bow like you would like it to happen,” said Baumann, referencing past success stories like the New Jersey Performing Arts Center.“The state of New Jersey appropriated $22 million to start buying land in Newark. That’s all they knew at that point. They didn’t know how much it was going to cost. They didn’t know whether it would succeed. There was a lot of skepticism,” he added.The night also included remarks from a Pompidou representative, who talked about how Pompidou’s mission is to “transform the museum experience by creating a cultural center connected to contemporary society, community and the young.”“Education and community engagement are at the heart of what we do and this spirit will guide us in Jersey City,” said Anna Hiddleston, co-director of Jersey City’s Pompidou project for about three years. “Our goal is not to simply replicate the Paris experience, but to create something unique for Jersey City, shaped by its history, its communities and its concerns.”The last few years, the museum’s team has met with about 200 local stakeholders in Jersey City, from local artists and cultural organizations to the libraries and Hudson County Community College. She said the center would hire locally.In other business Wednesday, the council unanimously voted to dissolve the Construction Board of Appeals and transfer its business to Hudson County in part because of unspecified allegations related to conflict of interest against its former chair Kuldeep Sunny Kumar.Many union members came out Wednesday to talk about their workplace concerns while working for Kumar’s company Euro Concrete. Kumar supported the decision publicly to eliminate the board. He said immediately afterwards: “It should have been done a long time ago.”Billy Santomauro, owner of Santomauro General Contracting, replaced Kumar as chair of the panel responsible for hearing appeals of building code violations. Other board members, at its last meeting this month, said they were not told why the board was being dissolved — what was the second time the attempt was being made.Over email, Kumar said the decision “fosters greater transparency and fairness.”“I supported the administration in the previous decision to dissolve the board, and I stood for it again today, advocating for this change,” he said as part of his statement. “I believe our constituents will be better served at the county board, and I am committed to ensuring that their needs are prioritized.”Other measures were approved by the council: An ordinance, on first reading, to establish a local preference for affordable housing, and another adjusting fees for tree replacement and in response to a New Jersey Department of Environmental Protection mandate.An ordinance further regulating cannabis establishments was tabled on second reading.The post City Council Majority Approves Pompidou-Inspired Tax Abatement appeared first on Jersey City Times.
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