Journal Square is in the midst of a rebirth, but it’s taking so long that some people are getting frustrated, especially Ward C Councilman Richard Boggiano.
While Namdar Group broke ground in May on 15-story building at 87 Newkirk St. just off Journal Square, and KRE has started laying foundation for the second tower of its three-building complex in the area, the key project for revitalizing the historic center of Jersey City – One Journal Square, to be developed by Kushner Companies — is still in limbo.
“The property for One Journal Square has been vacant for more than a decade,” Boggiano said. “It’s an important project we need to start to rebuild Journal Square.”
One Journal Square, the KRE complex, and another project slated for the former Jersey Journal building make up some of the most ambitious projects slated for the area, and would become the building blocks for renovating and redeveloping many of the other buildings that currently line the shopping district.
“We need to get One Journal Square started, and I’m sick of the politics that has gotten in the way of getting that done,” Boggiano said.
Plans for One Journal Square include a 79-story building with about 750 residential rental units and about 120,000 square feet of retail space, 118,000 square feet of office space, and almost 400 parking spaces.
Boggiano said this and the other large projects could become the foundation for a new restaurant district, something he has been pushing for.
“We’re trying to get a Trader Joe’s or a Whole Foods for the lower floors of the second KRE building,” Boggiano said. “But we want to bring in quality restaurants to the other buildings, places that would create nightlife for residents and bring in other people to Journal Square.”
Boggiano, who represents the district, is critical of Mayor Steven Fulop’s decision not to provide a subsidy or abatement for One Journal Square. The project is being proposed by Kushner Companies, formerly headed by Jared Kushner and his father, Charles Kushner.
The administration has cited several problems, including with the developer’s application for a permit to proceed.
Meanwhile the city has been very supportive of the KRE complex nearby, being developed by Charles’ brother, Murray. Kushner Real Estate (KRE) Group, owned by Murray Kushner, received $40 million as part of a 30-year tax abatement to develop the three towers of nearby Journal Squared. The first tower opened in 2016 and work has started on the foundation for the second tower after several buildings were demolished earlier this year.
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“We want to bring in quality restaurants to the other buildings, places that would create night life for residents and bring in other people to Journal Square.” – Richard Boggiano
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A political football?
Kushner Companies and One Journal Square came under local and national criticism in 2017 over several issues, including Jared Kushner’s relationship with his father-in-law, President Donald Trump. Jared’s family members tried to raise funds for the project from investors in China. Although Jared withdrew from operating the company when he took up a post with Trump, some felt family members had tried to trade on his relationship with Trump to get the Chinese funding.
But for Boggiano, the lack of movement on Jared’s company’s project is hampering the development of Journal Square.
“We have things lined up,” he said. “We need to develop that property and the former Jersey Journal building, and that isn’t happening.”
Boggiano said City Hall had originally encouraged Jared Kushner to develop One Journal Square, promising to give the $900 million project similar subsidies as the city has given to KRE. But last year, the Jersey City Redevelopment Authority notified members of Jared’s company that they were in default in its application for the project.
Fulop, running for reelection at the time, said the project did not appear to be moving ahead, and because of this, the project failed to meet the conditions the city has set for developing the project.
In 2013, the One Journal Square site became a symbol of neglect in the municipal election in which Fulop beat Mayor Jerramiah Healy. At a debate held at the Loew’s Theater across the street from the site, Fulop had pointed to the vacant lot as a sign of the Healy Administration’s failure to develop Journal Square.
“The site is still vacant,” Boggiano said. “And it shouldn’t be.”
Charles Kushner, quoted in a story in the New York Times earlier this year, said the project is “shovel ready” to break ground in this fall, but that the company wants a city subsidy. Charles Kushner is looking for a 30-year abatement and about $9 million in city-issued bonds which would have to be approved by the City Council.
Fulop says there was never an agreement with Charles Kushner. Fulop said Boggiano has done little to “push” the project along. Representatives from the JCRA said the project failed to move ahead with the time lines that were required as part of the permit process.
“They never completed their application,” Fulop said.
87 Newkirk breaks ground
Despite Boggiano’s pessimistic appraisal of the administration’s support for Journal Square development, Fulop has been active in promoting new development there.
On May 3, Mayor Fulop joined representatives of Namdar Group to break ground on the new 15-story tower at 87 Newkirk St. Owned and developed by Namdar, the building will comprise 132 residential units, 25,000 square feet of shared office space, and 1,500 square feet of retail space.
The project represents the first Jersey City development for the Namdar Group, a privately held real estate investment firm based out of Great Neck, N.Y.
“Namdar Group strategically invests in markets that have significant growth potential, and Jersey City – particularly the Journal Square neighborhood – certainly fits those criteria,” said Effy Namdar of Namdar Group. “We’re extremely excited to embark on our first project here, and we would like to thank Jersey City leadership for supporting our vision.”
The project was approved last year to fill another vacant lot in Journal Square.
The residential rentals are to be furnished by Resource Furniture to optimize the living space. Beds can turn into sofas, while desks can be converted into tables as part of new “co-living” that allows people to make use of smaller spaces. The project is also expected to deliver what developers are calling “a hotel-like” experience, meaning all inclusive features such as housekeeping services, cable TV and access to wifi.
Al Sullivan may be reached at asullivan@hudsonreporter.com.
