May 2000

Planning Board to Decide Millennium Tower Height Increase from 110 to 475 Feet

The proposed towers would rise 365 feet above the Palisades.

The Millennium Towers project, consisting of two 43-story towers proposed for the Jersey Avenue Redevelopment Area, will go before the Jersey City Planning Board this Tuesday evening, May 9 at 6:00 p.m. Community organizations from Jersey City Heights to Hoboken have vowed to fight this 475-foot project that exceeds current height restrictions by 365 feet. The groups contend that traffic generated by such an oversized project would overwhelm the local street system and that the excessive heights and densities would set a precedent, prompting other developers to propose similar projects throughout the redevelopment area up to the base of the Palisades cliffs. The Planning Board will be reviewing two amendments to the redevelopment plan, one to increase the height limit from 110 feet to 475 and the other that would increase the permitted density.

This project, proposed by United Diversified of Bayonne, is being vigorously advocated by Mayor Bret Schundler and his staff despite the fact that the developers owe $1.1 million in back taxes. United Diversified purchased this 3.1 acre site along the Hudson Bergen Light Rail Transit route in August, 1999 at a Sheriff's sale. The former owner, Lifschultz Fast Freight Co., had not paid taxes since 1991. An 18% interest rate has caused the $977,000 tax lien that existed at the time of the Sheriff's sale to swell to $1.1 million.

In spite of the outstanding tax bill, the principals of United Diversified have stated that they are applying for a tax abatement. The City of Jersey City has been regularly granting tax abatements for major waterfront projects for the past 20 years. In the past month, the City granted two major abatements at the Colgate Corporate Center near Exchange Place, one for the $450 million, 875-foot Goldman Sachs tower and the other for the $143 million Hartz Mountain office building. As part of the agreement to make a payment in lieu of taxes, the developers will also contribute nearly $2 million to a "recreation fund" to be divided equally among the nine City Council members, to be used at their discretion. Thus, each Council member has an additional $220,333 at their disposal as a result of the abatements that they approved at the April City Council meeting. This means that the same Council members who will be deciding the fate of the amendments requested by United Diversified can anticipate addition funds directed to the "recreation fund." Similar developer contributions in other municipalities have been ruled illegal by the courts.

On March 24, Maureen Dolce, Jersey City Tax Collector, granted United Diversified a 30-day extension on their deadline to pay the tax liens. Since that deadline has now expired, the City of Jersey City could now begin foreclosure proceedings against these owners. City officials claim that the owners' tax problems will not affect the City's consideration of this development proposal.