PERTH AMBOY – A vote by the City Council to approve plans by Kushner Companies for 602 apartments in three, five-story buildings has been postponed, after questions were raised about the impact on traffic, schools and whether union labor would be hired by the developer who faced lawsuits related to poor construction on projects in the past.
The $200 million project also calls for about 900 parking spaces, which means additional parking will likely be needed on the city's already congested streets, and includes a Payment in Lieu of Taxes (PILOT) agreement for up for 35 years from the developer.
"I believe the city has never given a PILOT for this length. Since I've been on the council no PILOT of this length has come before us," said Councilman Bienvenido "BJ" Torres, who believes the last residential PILOT was negotiated down to 20 years.
The project includes property along High and Fayette streets where the former police station, which dates back to the early 1900s, and fire department were located.
Torres made a motion at last week's City Council meeting to table the discussion to the Aug. 14 meeting to address those issues and so more people can learn about the project, following the Perth Amboy Redevelopment Agency's presentation. The motion to table was unanimously approved by the City Council.
"The City Council's decision to table the vote reflects commitment to thorough consideration," Lisett Lebron, chief of staff to the mayor's office, said in an email.
Kushner Companies has not yet responded to requests for comment.
"I would like more input from the council and the public. I would like to see more transparency with this large project that is going to impact the livelihoods of all the residents of Perth Amboy to see what is best for our city going forward and what is best economically for the city as a whole," Torres said.
Torres said he's especially concerned about whether union labor was considered or contacted for the project, especially since there were construction problems with prior projects built by Kushner. Torres felt one way to safeguard from shoddy workmanship is to have the union trades involved.
In 2017 a confidential settlement was reached between Kushner Companies and the last of 32 condo owners at the planned $600 million Landings at Harborside upscale development along the Perth Amboy waterfront, after the residents filed a consumer fraud lawsuit against the developer due to construction issues such as water infiltration and insufficient parking. Kushner Companies suspended all construction of the Landings, a project touted by former Mayor Joseph Vas, in 2007.
"We had such a bad experience with the Kushner company with the Landings and that led to years of litigation, and during the four years I was on the council people kept coming to the council complaining about that construction. Why are we so desperately eager to jump back in bed with the Kushner organization?" said former Councilman Kenneth Gonzalez who attended the meeting. "If this project is going to somehow save Perth Amboy, why can't we have another developer build the same project. Does it need to be Kushner when we had such a poor experience the first time around."
Earlier:Kushner trial ends in settlement with Perth Amboy condo owners
Gonzalez said a presentation of the project at the meeting showed the apartment units, some common areas, and there was a promise of waterfront restaurants that he thinks would be wonderful for Perth Amboy.
"But I've known over the years you rarely get exactly what is promised in an architectural rendering that you're using to try and market what you want to get approved," said Gonzalez, who is also concerned about the impact on the schools.
Torres said only 18 additional students were projected from the development, which includes some two- and three-bedroom units.
Gonzalez said he doesn't believe for a second there will be that few students from the development.
Former Councilman Ken Balut expressed concern that the project includes no funding for the school district.
"We just laid off 57 employees and not a penny for the schools," said Balut, adding the layoffs included nine employees who worked in information technology. "You are telling me these kids won't need computer training."
"This is a sham again," Balut said. "We turned it down twice. I turned it down once when I was on the council and the last council years ago turned it down."
Torres said all the apartment units are priced outside anything that a local Perth Amboy resident could afford. He believes the monthly rent for a studio apartment would start at $1,750.
Gonzalez said the city already has issues with substandard housing and people living in basements and attics because of the lack of funds. He envisions if those residents have an opportunity to live in an actual apartment, even if it's a studio, they will take it and create their own partitions.
The city should consider another developer or build owner-occupied housing such as townhouses, duplexes or single-family homes to reduce the density and create a neighborhood feeling, said Gonzalez, who works as a real estate attorney and is aware of the lack of housing on the market.
Prior to this proposal Torres said the governing body revised the amount of parking needed for developments, which makes projects responsible for less parking.
Gonzalez said he doesn't believe 900 parking spaces are remotely adequate for the number of anticipated apartment residents. He's also concerned about the impact on traffic not only for residents, but emergency services as well.
Torres said the redevelopment agency has apparently been working on the project for several years but yet only a couple of slides of a blueprint and rendering were shown at the meeting, no detailed presentation of amenities planned, or how they will look.
Gonzalez said Kushner's organization said they can build the complex, but they won't make money if the city charges the developer taxes on the property right away which is why they've asked for a PILOT.
"He's asked that no taxes be assessed against this property for 35 years or that it run 30 years from the date of the certificate of occupancy is issued by the city of Perth Amboy," said Gonzalez, adding a certificate of occupancy probably wouldn't come for several years, so he thinks it would be at least 35 years or longer that the developer would pay no taxes.
Gonzalez said he asked what the city would be getting in lieu of taxes, but he didn't get a clear response about the dollar amount. He said that was one of the reason the discussion needed to be tabled.
Balut said Kushner doesn't need a PILOT because the family is wealthy. In 2016 Forbes estimated the Kushner family's net worth as at least $1.8 billion, mostly in real estate.
Torres said the city would be getting a direct payment, which would be less than the city would receive in taxes, which was expected to begin after about four or five years, and $1 million would be set aside to rehabilitate the current housing stock for affordable housing.
"I believe in development, but responsible development," said Torres, adding since he first joined the council, he's been calling for the city's more than 20-year-old master plan to be revised, which is being worked on.
Email: srussell@gannettnj.com
Suzanne Russell is a breaking news reporter for MyCentralJersey.com covering crime, courts and other mayhem. To get unlimited access, please subscribe or activate your digital account today.
Most Popular
Comments / 0