Claremont Avenue-The Board of Education Building

Brian Donohue, formerly of the Jersey Journal wrote an article on this subject on January 7, 1997.  The title below is from that title:

Q: When does a $2M building sell for $9M?

A: When Jersey City's schools go shopping

Under the terms of the state takeover of the school district, the district had to bond money before the city council.  One of the people on the school capital board, is Mayor Schundler supporter Tom DeGise.  DeGise is a teacher is the system, he holds a real estate license, and he is president of the city council.

Following a similar pattern, there was no information attached to this ordinance.  Eventually, some information did surface.  The owner, 346 Claremont Associates contributed $1,000 to Schundler's re-election campaign.  The owner used the tax courts to appeal its value.   Before March 1995, the building was valued at $5.8 million, after March 1995, it was valued at $2.1 million.  A total of three successful tax appeals reduced the building's tax value.

In order to lower its assessed value, the Claremont Associates used the Cooney Valuation Group, Inc to prepare a 55 page report on its "unworthiness".   Page 19 describes the building as "Below average to poor."

So what did the city council do, under the direction of Mayor Schundler.   They said the building had a value of $12 million, but they are willing to pay $9 million for the building.

With this move, the city lost a building that formerly paid property taxes.  The owner also received a refund in taxes, and we the public paid that bill.  Now the city must spend millions to make the building functional.

The purchase of this building is a typical Schundler scam.