Developer's Dream

The Statue of Liberty faces New York Harbor with her back to Jersey City. I think this is appropriate because it is shameful the way regular taxpayers are treated.  A regular homeowner can have a lien place on his/her property if he/she is three weeks late paying taxes.  But a developer who contributes to Schundler's campaign is treated like royalty.  Their wishes are this administration command.

An example of this is the Mack-Cali building in Jersey City.  In the 1980's it received an abatement for 15 years. The original abatement was based on the $60 million figure (building cost).  When the building sold for $152.5 million the abatement was transferred to the new owners. This happened while Mayor Bret Schundler complained he needed more money from the state of New Jersey.

Mayor Schundler is giving out tax abatements to waterfront development during the height of a boom market.  According to studies done for the Year 2000, the average rent for commercial space is $32.84 per square foot on Jersey City's waterfront.  However, the average rent for commercial property in the state of New Jersey is $24.30. Jersey City realtor Allen Bardack said, "With all these buildings that have been built in the area in the last few years, there is no space for rent."

In addition to abatements, the state of New Jersey is returning 80 percent of the estimated income tax that will be generated in the next 10 years.  That will be $165 million for Goldman Sach and $41 for Merrill Lynch.  With these incentives, there is no need for abatements.

Even when abatements are granted, this administration insists on giving a better deal while begging the state for more money.  The original abatement deal for Goldman Sach was $8.7 million based on 15% of gross revenue.  Instead, Jersey City lowered to 10%, a saving of $4.3 million.