Perth Amboy rethinks $200M waterfront housing development plan: 'Seemed too one-sided'

PERTH AMBOY – An ordinance that would allow plans by Kushner Companies to build 602 apartments in five buildings along the city's waterfront to move forward will remain tabled while the city works to renegotiate the terms, which also included a long-term tax exemption.

And any new negotiations also are expected to address preserving and possibly reusing the historic former Perth Amboy Police Headquarters and the First Aid Squad building , along High and Fayette streets, rather than demolishing the structures.

In addition, a resolution was approved removing a Washington Street laundry business from inclusion in the area slated for redevelopment in the project.

During Wednesday's City Council meeting, the governing body tabled an ordinance related to Kushner Companies’ $200 million project to build 602 apartments and about 900 parking spaces in the waterfront area.

"The next step is it goes back to the (Perth Amboy) Redevelopment Agency for renegotiation," said Councilman BJ Torres.

"The City Council tabled the ordinance regarding the Payment in Lieu of Taxes (PILOT) agreement with Perth A Urban Renewal, LLC. This decision comes as negotiations between the city and the developer continue," added Lisett Lebron, Perth Amboy chief of staff to the mayor's office.

Perth A Urban Renewal LLC is an affiliate of Landings, which in 2000 reached a redevelopment agreement with the Perth Amboy Redevelopment Agency and Charles Kushner of Kushner Companies, as the redeveloper for the Landings at Harborside project in Perth Amboy, the city's ordinance states.

Kushner Companies has two condominium buildings in the city, Bayview and the Admiral, part of the planned Landings at Harborside housing complex.

In 2017 a confidential settlement was reached between Kushner Companies and 32 condo owners in the $600 million Landings at Harborside community along the waterfront, after the residents filed a consumer fraud lawsuit due to construction issues such as water infiltration and insufficient parking. Kushner Companies suspended all construction of the Landings.

The Perth A Urban Renewal LLC project included a Payment in Lieu of Taxes (PILOT) agreement between the developer and the city.

The property generates about $190,000 a year in property taxes, yielding about $113,234 in net revenue for the city. Under the PILOT agreement, the developer would pay the city about $66 million during the term of the tax exemption.

Former Councilman Ken Balut, who attended the meeting, questions why the city was willing to give the developer a PILOT, and no money was allocated for the school system, which recently laid off 57 employees.

Torres said the developer owns most of the land parcels and they do have proprietary rights. He wants to see a plan that benefits the city.

"This seemed too one-sided. It didn't seem like it benefitted the city at all," he said, adding that's why he couldn't support it. He'd like to see some townhouses, condominium and small level buildings developed.

Torres said several residents who attended the meeting thought the parcels involved in the Kushner project included the Med-Apparel Services health care laundry business at 95 Washington St. which employs 150 union workers, including 100 who are city residents. The project is adjacent to the Kushner project property and has operated in Perth Amboy for decades.

He said union members turned out at the meeting held at the Raritan Bay Area YMCA theater in large numbers, along with the company's owner and attorneys. Torres said many council members were unaware that previously the City Council had approved including the laundry business land for study by the Planning Board as a possible area in need of redevelopment.

In response Torres said he presented a resolution to rescind the original resolution including the laundry business property as a possible area in need of redevelopment. His resolution was approved by the City Council.

"So it’s no longer being considered for redevelopment, which protected those union workers and that business," Torres said.

Torres said there was also a lot of discussion about the historic significance of the former police headquarters property. He said members of the Historic Preservation Commission made a presentation, residents and council members including Councilman Kenneth Puccio, a retired city police officer, also expressed concerns about the former police department building which dates to the early 1900s.

Torres anticipates the preservation of that building to be part of the renegotiations with the developer.

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.

This article originally appeared on MyCentralJersey.com: Perth Amboy rethinks $200M waterfront housing development plan: 'Seemed too one-sided'