A New Era Seen for the Square Stores, residences and parking approved for 40-story towers next to PATH Center
Monday, June 19, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
The highly-anticipated 40-story, two-tower development planned for Jersey City's Journal Square has taken another step forward, as City Council members voted to permit residential housing on the block next to the PATH Transportation Center.
"Progress has been made on the waterfront. Now it's reaching Journal Square," City Council President Mariano Vega said Wednesday night, capping off the unanimous vote.
Lowell Harwood, managing partner of Harwood Properties, the builder, praised city officials for taking action, noting he's 90 percent pleased with the pace of the project.
"I never give anything I'm doing a perfect grade," joked Harwood, who signed a deal in February to purchase 80 percent of the properties on the block, including the old Hotel on the Square building, which is now demolished.
Besides the properties he's under contract to buy, Harwood has to purchase three other buildings on the block before he can build: 15-16 Journal Square, which houses McDonald's and Songs Hallmark, and 12 and 14 Journal Square, home to a Kentucky Fried Chicken and formerly a Wendy's.
Harwood has been negotiating with the owners but has not reached an agreement. If he can't strike a deal, his contract with the Jersey City Redevelopment Agency calls for the city to step in and take the properties through eminent domain. The owners - who couldn't be reached to comment - would have to be paid fair market value and Harwood would be on the hook to reimburse the city for all expenses.
Six weeks ago, Harwood inked a 65-page agreement with the JCRA which calls for him to build two residential towers, ground floor retail, a hotel and three sub-surface parking levels.
But test borings are showing rock near the surface, so the underground parking has been scrapped, Harwood said.
The latest plan calls for a loading dock and one level of retail shops underground, with the street level and second floor dedicated to retail, and floors 3 through 7 devoted to parking, Harwood said.
The eighth level would be the "amenity floor" for the residents living in the 1,000 rental units. The two towers - one 40 stories tall and the other "slightly taller" - would be built on top of the eighth floor, Harwood said.
Two business are still operating at properties Harwood is under contract to buy - Three Brothers Pizza and Daily Tortillas.
The current owner, Ralph Tawil Jr., is negotiating with these businesses to leave, Harwood said. Tawil left the Square in disgrace earlier this year, paying the city $1.1 million in fines for building and fire code violations he accumulated over 20 years.
Harwood is also seeking a partner to share the risk in this massive venture.
"We're talking to some very strong people to be a joint venture," he said. "In this economy, you're trying hedging your bet."
Members of the Jersey City City Council are set to pass an ordinance tonight that would require builders of newly constructed residential buildings with more than 25 units, and commercial and industrial structures of more than 10,000 square feet, to install security cameras to keep watch on the public streets around them.
The ordinance, sponsored by Ward E Councilman Steve Fulop, would require building owners to maintain the recordings from the cameras for at least a week and turn them over to police if needed for an investigation.
Also at tonight's meeting, the council is expected to introduce on first reading an ordinance to keep itinerant food vendors, such as hot dog stands, out of the Journal Square Special Improvement District.
The meeting is scheduled for 6 p.m. at City Hall, 280 Grove St.
SQUARE ZEAL! Plan calls for towers to rise from the rubble HIGH HOPES FOR SQUARE EYESORE
March 8, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
Two glassy high-rise towers with apartments, retail stores, three levels of underground parking, and possibly a hotel.
It's all coming to Journal Square and Harwood Properties, a company with deep roots in Jersey City, is going to make it happen, city officials announced last week.
Last month, Harwood Properties signed a contract to purchase almost every property on the block next to the Journal Square Transportation Center, including the defunct Hotel-on-the-Square building, the hopeful developer and city officials said.
The third-generation family-run firm - which already owns the Ramp Garage behind the Loew's Jersey Theater, another parking lot on Sip Avenue and is part-owner of the recently opened State Theater apartment complex - is buying out Ralph Tawil Jr., a New York City investor who has racked up nearly $4 million in fines on his Journal Square holdings. All of Tawil's buildings are slated for demolition.
City officials hailed the purchase contract and the proposed plans as the biggest step forward to date toward the rebirth of the once storied square.
"This comes after two decades of eyesore and waste," Jersey City Mayor Jerramiah Healy said. "Obviously the Harwoods have a long history in the city and in Journal Square in particular."
Lowell Harwood - a Lincoln High graduate and managing partner of the company - declined to say how much his firm is paying for the properties, citing a confidentiality agreement with Tawil.
However, he said he's already spent a hefty sum on the first phase of an environmental study, drillings to find out how much rock is on site, and renderings of the finished product.
Chris Fiore, interim director of the Jersey City Redevelopment Agency, said the limited partnership entity formed by the Harwoods to develop the site, Journal Square Development LLC, is likely to be named "designated developer" for the site at the agency's meeting on March 21.
Once that is accomplished, city officials and Harwood would negotiate the details of the plan, including the height of the towers, and how many apartments they will contain, Fiore said. A market study would help determine the feasibility of a hotel, Harwood said.
Harwood wouldn't say when a closing was scheduled, but pointed out that in order to be named "designated developer" for the site, Harwood Properties has to demonstrate that it owns or is about to own the land.
If all goes according to plan, Harwood said, construction will begin in January.
Harwood said he's in negotiations to purchase the three buildings on the block not owned by the Tawils - 15-16 Journal Square, which houses the McDonald's and Songs Hallmark; 14 Journal Square, which formerly housed a Wendy's; and 12 Journal Square, which houses Kentucky Fried Chicken.
Harwood family under contract to acquire Tawil JSQ properties; new construction could start as early as January 2007
Ricardo Kaulessar Reporter staff writer
After facing millions in fines for building violations on their dilapidated Journal Square structures, the Tawil family has entered into an agreement with Harwood Properties to sell them all.
The properties include 8-11 Journal Square, which is the now-defunct Hotel on the Square, 17-23 Journal Square, and the parking lot behind the buildings.
Harwood Properties is a firm owned by the Harwood family, who have maintained their business in Journal Square for the last 70 years.
Last week a contract was signed with the Tawils, said Lowell Harwood, the CEO of Harwood Properties. Harwood's firm was one of the developers of the State Square apartment complex on Kennedy Boulevard, which is a block away from the Tawils' Journal Square properties, and the owners of two parking lots in the Square.
Harwood already has presented plans to the Jersey City Redevelopment Agency of what he would build if named the designated developer. The plans are for two mixed-use high-rise towers, which would include apartments, retail stores and parking. The plans also include a hotel.
Harwood said if his firm received "full cooperation" from the city, then construction could start as early as January 2007.
Meanwhile, Ralph Tawil Jr. was in Jersey City Municipal Court on Thursday to answer for the violation fines his family owes the city.
Judge Wanda Molina ordered him to pay $1.1 million to the city, with the money being deposited in an escrow account handled by his attorney's law firm, on the condition that the Hotel on the Square is demolished within three months of receiving a demolition permit, or the family must pay the full $3.7 million in fines.
A new vision for an old square
The Harwood family harks back to the Journal Square of yesteryear, when the same strip set to be demolished was once the thriving center of the city.
Places such as the Five Corners Bakery, Bickford's Cafeteria, the Hotel Holland, and Bettinger's Liquor Store once called home the Journal Square where now stand McDonald's, Kentucky Fried Chicken, a check-cashing store and a Mexican restaurant.
The Harwoods are looking to bring back the dynamism that once existed in Journal Square.
"I'm looking forward to starting this project as soon as possible. It's time to bring back the excitement to the Square," said Harwood.
Since 1936, the Harwood family operated a business empire in Jersey City that includes part ownership of the State Square apartment complex and numerous New York City properties.
Harwood, the son of Wolfe and Sarah Harwood who started the family's parking business, runs the business along with his son and daughter Craig and Leslie Harwood and his nephews Brett and Scott Harwood.
Last week at their Journal Square office, Lowell and Scott Harwood discussed their pending acquisition and plans to rejuvenate this long-neglected part of Jersey City.
The Harwood-owned company that is purchasing the property is called Journal Square Development LLC. They will be solely responsible for construction, unlike in their previous State Square project, in which other partners such as local developer Joseph Panepinto and Hoboken developer David Barry participated.
Lowell Harwood then spoke about the negotiations with the Tawils, which started about a year ago.
"They are tough but fair, and I commend them for carrying out cordial negotiations," Harwood said.
When asked about the cost of purchasing all the Tawil properties, he declined to give an amount since the Harwoods are still in the process of acquiring them.
Lowell Harwood did not give a date for acquiring the properties other than saying, "Wait and see."
The Harwoods are also planning to meet with owners of the remaining Journal Square properties that the Tawils have no ownership in.
Lowell and Scott Harwood said the building plans they showed to the JCRA would be subject to change but would not include the same kinds of retail that exist there now, such as fast food chains and 99-cent stores, and there would be no office space.
Currently, Doyle Dentistry at 15 Journal Square is the only business that occupies any office space on the strip.
"There is a glut of office space in Journal Square, with a good deal of space available at the old Trust Company building," Scott Harwood said. "And there are so many 99-cent stores in Journal Square. We're looking to bring some upscale retail and restaurants to not only attract people from Jersey City to shop in Journal Square but people from New York and other points to take the PATH train and come here."
They would not specify if chain stores like Old Navy or Starbucks would have a future home in the new shopping area they plan to build.
"Of course hearing about Journal Square getting beat up in the newspapers is disheartening but we hope to bring some good news by rebuilding Journal Square," Scott Harwood said.
Both Harwoods praised Mayor Jerramiah Healy and other city officials for approving their project and lending support.
They, in turn, received praise from Healy, who has pushed for the demolition of the Hotel on the Square since he ran for mayor during the special mayoral election in November 2004.
"I know the Harwoods will do an outstanding job. They are a well-respected family in Journal Square, and I really like what they have planned for a new Journal Square," Healy said.
Throwing in the Tawil
Much has been written about whether the city would ever get the Tawils to demolish their buildings and pay the steep fines they owed.
Tawil and his representative Samuel Stark would not comment on the matter.
City Corporation Counsel Bill Matsikoudis said last week that he commended Healy and other city officials for fining the Tawils, and making them demolish the buildings and sell them for redevelopment.
"[I commend] this administration's aggressiveness to cause the Tawils to begin tearing down their dangerous buildings, to convey their building to a responsible businessperson who has an excellent vision for the future, and to agree to pay the largest fine ever collected by the Jersey City Municipal Court," Matsikoudis said.
Demolition is currently taking place on property at 17-23 Journal Square, which also encompasses a part of Sip Avenue.
Healy said last week that the demolition, which is being done by M&A Demolition of Secaucus, should be completed by March 17.
two decades of decay and delay, the effort to redevelop a key block in Journal Square in Jersey City now appears to be on the fast track.
The Jersey City Redevelopment Agency will meet tonight to name Journal Square Development LLC the designated developer for the block next to the PATH Transportation Center, officials said.
The limited partnership company is a creation of Harwood Properties, a Jersey City family-run business that plans to build two high-rise towers on the site with apartments, retail stores and underground parking.
The designation was supposed to take place at the agency's next scheduled meeting, on March 21, but a special meeting was called for tonight.
After two decades of decay and delay, the effort to redevelop a key block in Journal Square in Jersey City now appears to be on the fast track.
The Jersey City Redevelopment Agency will meet tonight to name Journal Square Development LLC the designated developer for the block next to the PATH Transportation Center, officials said.
The limited partnership company is a creation of Harwood Properties, a Jersey City family-run business that plans to build two high-rise towers on the site with apartments, retail stores and underground parking.
The designation was supposed to take place at the agency's next scheduled meeting, on March 21, but a special meeting was called for tonight.
"This is the first effort someone is making in at least 20 years to clean up that area," said James Morley, the chairman of the agency's board, explaining the reason for the special meeting. "We are trying to expedite this on the board."
Lowell Harwood, managing partner of Harwood Properties, said he wants to begin construction no later than January.
Harwood signed a contract this past January to buy out Ralph Tawil Jr., a New York real estate investor who owns roughly 80 percent of the properties on the block, including the defunct Hotel on the Square building.
Tawil reached a settlement with city officials last week to pay $1.1 million of the nearly $4 million he owed in building and fire code fines.
Tonight's meeting will be at 6 p.m. at 30 Montgomery St., in the 14th-floor rear conference room. \
For over a year, mum's been the word from Ralph Tawil Jr., a Journal Square landlord who signed an agreement yesterday to pay the city roughly a quarter of the nearly $4 million in fines he owed.
But yesterday, the third-generation manager of his family's New York City-based real estate operation broke his silence. Having inked a deal to sell the family's Journal Square holdings - properties in such disrepair they must be demolished - Tawil said he wished Jersey City "good luck."
"We're happy matters are resolved," said Tawil, who answered indirectly when asked about his family's nearly two-decade legacy on the Square.
"I think the (departed commercial) tenants' reactions speak for themselves," Tawil said. "They were all very saddened to leave."
Most of these tenants are suing Tawil, claiming his neglect cost them their businesses.
Friday, March 3, 2006
By KEN THORBOURNE JOURNAL STAFF WRITER
The landlord who racked up nearly $4 million in fines on his Journal Square properties since 2004 pleaded guilty yesterday to the violations and cut a deal to pay Jersey City $1.1 million, potentially the biggest fine ever collected in municipal court.
The majority of the fire traps owned by Ralph Tawil Jr. must be torn down within three months of him receiving a permit to demolish the old Hotel on the Square building or he will have to pay the full $3.7 million he owes, according to the agreement. City officials say they expect that permit to be granted within two weeks.
The fines, which ran the gamut from billboards in danger of falling to barricaded fire exits, involves roughly 80 percent of the properties on the block next to the PATH Transportation Center.
Hanging his head like a chastised schoolboy, a dour-faced Tawil signed the agreement yesterday morning before Municipal Court Chief Judge Wanda Molina, who issued her own warning.
"If I find this plea agreement is not being abided by there could be potential jail time," Molina told Tawil.
Other than indicating he understood the terms of the plea deal, Tawil - whose family began scooping up properties on the Square in the late 1980s - played almost no role in the proceedings.
His attorney, George Campion, said Tawil would deposit the $1.1 million penalty into an escrow account by a week from today. The money will be transferred to the city when the demolition work is finished, officials said.
In January, Tawil signed a contract to sell his crumbling holdings to Harwood Properties, a Jersey City company that plans to build two high-rise towers with apartments, retail stores, parking, and possibly a hotel. Neither party has divulged the sales price.
Tawil has already demolished 17-23 Journal Square, a commercial property at the corner of Sip Avenue. His next demolition task is the vacant Hotel on the Square, at 8-11 Journal Square.
Responsibility for demolishing Tawil's other property on the block, 1-7 Journal Square, falls on the shoulders of the new developers, city officials said.
"It's a great leap forward," said Mayor Jerramiah Healy, speaking of the agreement. "We have taken some big steps down the right road and we've done it within 16 months of taking office."
Thursday, March 2, 2006
By KEN THORBOURNE JOURNAL STAFF WRITER
Jersey City has reportedly reached a settlement with Ralph Tawil Jr. over the nearly $4 million in fines the New York investor owes the city for building, fire and sanitation fines on his Journal Square properties.
Details of the agreement are likely to be revealed today during a scheduled 9 a.m. hearing before Chief Municipal Judge Wanda Molina.
City officials and Tawil had hoped to wrap up the deal yesterday, but Molina, who had been handling the case, was out due a personal emergency.
Municipal Court Judge Nesle Rodriguez told Tawil and city officials the matter would be heard by Molina today.
During their appearance before Rodriguez, the parties revealed a deal had been struck, but neither Tawil, his attorneys, nor city officials would divulge the settlement figure.
In January, Tawil signed a contract to sell all his Journal Square properties to Jersey City-based Harwood Properties.
High hopes for Square eyesore
Wednesday, March 1, 2006
By KEN THORBOURNE JOURNAL STAFF WRITER
Two glassy high-rise towers with apartments, retail stores, three levels of underground parking, and possibly a hotel.
It's all coming to Journal Square and Harwood Properties, a company with deep roots in Jersey City, is going to make it happen, city officials announced last week.
Last month, Harwood Properties signed a contract to purchase almost every property on the block next to the Journal Square Transportation Center, including the defunct Hotel-on-the-Square building, the hopeful developer and city officials said.
The third-generation family-run firm - which already owns the Ramp Garage behind the Loew's Jersey Theater, another parking lot on Sip Avenue and is part-owner of the recently opened State Theater apartment complex - is buying out Ralph Tawil Jr., a New York City investor who has racked up nearly $4 million in fines on his Journal Square holdings. All of Tawil's buildings are slated for demolition.
City officials hailed the purchase contract and the proposed plans as the biggest step forward to date toward the rebirth of the once storied square.
"This comes after two decades of eyesore and waste," Jersey City Mayor Jerramiah Healy said. "Obviously the Harwoods have a long history in the city and in Journal Square in particular."
Lowell Harwood - a Lincoln High graduate and managing partner of the company - declined to say how much his firm is paying for the properties, citing a confidentiality agreement with Tawil.
However, he said he's already spent a hefty sum on the first phase of an environmental study, drillings to find out how much rock is on site, and renderings of the finished product.
Chris Fiore, interim director of the Jersey City Redevelopment Agency, said the limited partnership entity formed by the Harwoods to develop the site, Journal Square Development LLC, is likely to be named "designated developer" for the site at the agency's meeting on March 21.
Once that is accomplished, city officials and Harwood would negotiate the details of the plan, including the height of the towers, and how many apartments they will contain, Fiore said. A market study would help determine the feasibility of a hotel, Harwood said.
Harwood wouldn't say when a closing was scheduled, but pointed out that in order to be named "designated developer" for the site, Harwood Properties has to demonstrate that it owns or is about to own the land. If all goes according to plan, Harwood said, construction will begin in January.
Harwood said he's in negotiations to purchase the three buildings on the block not owned by the Tawils - 15-16 Journal Square, which houses the McDonald's and Songs Hallmark; 14 Journal Square, which formerly housed a Wendy's; and 12 Journal Square, which houses Kentucky Fried Chicken.
It began with single lot in NYC
Wednesday, March 1, 2006
Harwood Properties, the privately owned company set to develop Journal Square, has its roots in a New York City parking lot.
Wolfe Harwood and his wife, Sarah, started a hat-selling business sometime in the 1920s. But their real estate empire began soon afterward with an investment aimed at cashing in on a new-fangled technology: they purchased a parking lot at the corner of Bowery and Bayard streets in Lower Manhattan.
Seventy-five years later, the family's parking empire included 55 garages in New York City, and nearly 200 lots in the Northeast U.S. and Canada.
Samuel Harwood, Lowell's father, purchased the family's first Jersey City property in 1936 - a parking lot at the corner of Cottage Street and what is now Kennedy Boulevard.
Today, the family still owns the Square Ramp garage behind the Loew's Jersey Theater and a second parking lot on Sip Avenue.
They also have numerous real estate investments up and down the Eastern Seaboard, including being part-owners of the recently opened State Square 130-unit apartment complex and a half-block in Manhattan's theater district.
Day in court, finally, over $4M in fines
Wednesday, March 01, 2006
Ralph Tawil Jr., the New York City real estate investor who owns roughly 80 percent of the Journal Square block next to the Journal Square Transportation Center, is due in Jersey City Municipal Court today to answer for nearly $4 million in fines his Journal Square investments have been socked with since 2004.
Tawil, or a representative, is supposed to appear at 2 p.m. before Chief Municipal Court Judge Wanda Molina.
The fines run the gamut from billboards in danger of falling to blocked fire exits, and have been accumulating against the properties since 2004.
City officials have agreed to postpone this court case three times given the progress Tawil has made in demolishing these eyesore structures: The old bargain store building he owned closest to the PATH station has already been leveled, and his properties at the corner of Sip Avenue are in the process of being torn down
A sale at Square with benefit for all
Tuesday, February 28, 2006
T here is an almost unbelievable piece of good news coming from Jersey City's Journal Square. A developer has come forward with plans to rebuild the Square's eyesore block, changing it from a group of ramshackle, deteriorating edifices to a pair of towers that would house either rental or condo units and a possible hotel.
Lowell Harwood, and his nephew Scott, of Harwood Properties, Mayor Jerramiah Healy, County Executive Tom DeGise, and Councilmen Bill Gaughan and Steve Lipski were yesterday inspecting the infamous block that is home to the former Hotel on the Square.
mmmmm
One reason it is of interest is that the Tawil real estate concerns owe about $4 million in building code violation fines - will the city be paid? The entire issue of the Journal Square block and it being an impediment to restoring the "heart of the city" has become a very public concern for more than a decade.
The important thing is that someone has stepped in and bought the property and they have a plan. Artist renderings that have been available show promise. Besides the possible housing, it calls for three levels of underground parking and shops accessible from the street.
The new owners are hoping to get something started on the Square by January. A completed project could herald more and better development in an area that is blessed by mass transportation and its proximity to New York City and the state's major roadways. The Harwood purchase could also trigger more speculative development.
Hudson County Community College is expanding its Square campus with new construction and renovation of existing office buildings. There are plans for new condo development between the area of the Hudson County Administration building at Newark Avenue and the depressed highway. Finally, there may be a mini-boom in a location other than Downtown, and the city would benefit from this "heart" transplant.
A family with deep roots in Jersey City has signed a contract to purchase most of the properties on a key block in Journal Square, and is likely to be named the site's designated developer, city officials said yesterday.
The family-owned firm, led by Scott Harwood, is purchasing all Journal Square properties owned by Ralph Tawil Jr., an investor who owns roughly 80 percent of the block next to the PATH Transportation Center, including the defunct Hotel on the Square.
Having racked up nearly $4 million in building and fire code fines - and in the process of demolishing several of these properties - the New York City-based Tawil is apparently ready to leave town.
Harwood, whose roots in Jersey City stretch back three generations, signed a contract to purchase the Tawil properties in January, the developer and city officials said yesterday.
Harwood's vision for the site: Two mixed-use high-rise towers, which would include apartments, retail stores, parking and, possibly, a hotel.
"There is no reason that Journal Square, which arrived much earlier (in economic importance to the city) than the waterfront, cannot be renewed," said Harwood, who with his son, Scott, and nephew, Brett, owns two Journal Square parking lots, is part-owner of the recently opened State Theater apartment complex.
Jersey City Mayor Jerramiah Healy is pleased a hometown developer is taking on the job.
In the past few weeks, Harwood, who wants to start construction next January, has presented his plans for the Square to Healy and commissioners at the city's redevelopment agency.
Chris Fiore, acting interim director of the redevelopment agency, said the Harwoods would likely be named the "designated developer" for the site at the agency's next meeting on March 21.
Thursday, February 23, 2006
By KEN THORBOURNE JOURNAL STAFF WRITER
The owner of the biggest eyesores in Journal Square has a new court date - again.
Ralph Tawil Jr., who has racked up nearly $4 million in fines from building and fire code violations at his defunct Hotel-on-the-Square and other Journal Square properties, has a court date set for Wednesday in Jersey City Municipal Court, City Corporation Counsel Bill Matsikoudis said.
The trial is to determine if the fines are valid, and if - or how much - Tawil actually has to pay.
But it's no sure bet the court appearance will happen.
Jersey City officials agreed to postpone three prior court dates with Tawil in return for the landlord making steady progress demolishing dilapidated properties he owns on the block next to the Journal Square Transportation Center so the area can be redeveloped.
Construction workers have dismantled the top half of one Tawil property - 22 Journal Square, at the corner of Sip Avenue.
The second floor of the building, which formerly housed a dentist's office, has been dismantled brick-by-brick so as not to disturb the adjacent building, which is owned by someone else.
Meanwhile, two eateries occupying Tawil-owned buildings are open again after a water pipe was repaired over the weekend.
The two eateries - Daily Tortilla and Three Guys Pizza - were closed Feb. 16 by city inspectors because the broken pipe meant neither had running water.
The pipe was repaired Saturday morning and the businesses have re-opened, the restaurant owners said.
Leaky pipe forces 2 Tawil tenants to close businesses at Square
Saturday, February 18, 2006
By KEN THORBOURNE JOURNAL STAFF WRITER
Two Journal Square eateries have been forced to close because of a leaky water pipe that their landlord never bothered to fix, city officials said yesterday.
This is the same landlord - Ralph Tawil Jr. - who has racked up nearly $4 million in fines for building and fire code violations at other properties on the block, near the Journal Square Transportation Center in Jersey City. The buildings are being demolished.
Tawil received three written notices over a one-month period to repair the leaky pipe, which caused flooding and ice around the fountain in Journal Square, said Rich Henning, a spokesman for United Water, which runs the city's water system.
But Tawil never took action, Henning said. So on Thursday night, water company workers closed a valve leading from a water main to the pipe located in front the old Hotel on the Square building, which Tawil also owns.
City health officials immediately closed down Three Guys Pizza and Daily Tortillas, at 1-7 Journal Square, since they lacked running water, but allowed a check cashing establishment, also affected by the water stoppage, to remain open.
Furious about the closure of his business, Andrea Greco, owner of Three Guys Pizza, had to be physically restrained when a representative of the Tawil family showed up yesterday morning.
"Everybody is worried about what Journal Square is going to look like - what about the small business?" Greco screamed.
Sam Stark, Tawil's property manager, said he was "working on" getting a plumber to the scene, but couldn't say when the leak would be fixed. Stark insisted no written notices had been sent to Tawil's offices in Manhattan.
For more than a year, city officials have been pressing Tawil to empty and demolish several of his properties on the block so the area can be redeveloped. Tawil has evicted more than a dozen tenants over the past several months - tenants he did not have to compensate.
But the three remaining tenants - the ones affected by the water stoppage - have clauses in their leases that call for payments from Tawil if they have to leave before their leases are up, according to their attorney, David Lipari.
The manager of the Daily Tortillas, who would only identify himself as Mr. Chin, declined to comment.
Gilbert Ramos, manager of the check cashing store, said the business is moving across the street to 80 Journal Square on April 1.
Wednesday, February 01, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
The two biggest eyesores in Journal Square will be gone in two months, under the latest demolition plan promised by city officials.
The two properties - the Hotel on the Square building, at 8-11 Journal Square, and a three-story commercial property at 17-23 Journal Square - will be demolished by April 1, city Corporation Counsel Bill Matsikoudis says.
The demolition is part of a massive rehabilitation plan for the block adjacent to the Journal Square Transportation Center.
Most of the block, including the two largest properties slated for demolition, is owned by New York real estate investor Ralph Tawil Jr. and his family. Their buildings have racked up nearly $4 million in building, sanitation and fire code fines, city officials said.
Neither Ralph Tawil nor his attorney returned phone calls for comment.
The Tawils haven't met city-imposed deadlines in the past, and Matsikoudis said they haven't agreed to the April 1 deadline in writing.
But with a Feb. 22 court date on the fines looming, he said he's confident they will abide by it this time.
"It's clear they (the Tawils) are supposed to have certain work done by that date (Feb. 22), and work afterwards," Matsikoudis said.
The city, Matsikoudis indicated, is willing to collect less than the full $4 million in fines in return for steady progress on the demolition.
Forcing the Tawils to pay the fines, Matsikoudis said, "may serve as a disincentive for the Tawils to take the action that is most important, which is to have these hazardous buildings demolished so the city can move forward on redeveloping Journal Square."
Asbestos removal at 17-23 Journal Square is ongoing and will start at the hotel building tomorrow, he said.
The timetable for demolishing a row of one-story commercial buildings between the PATH station and the hotel - also owned by the Tawils - hasn't been established, Matsikoudis said.
Daily Tortillas, Three Brothers Pizza, and a check cashing establishment are still operating along the strip.
Tawils' court date again put off; city pushes teardown
Tuesday, November 29, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
For the third time in six months, Jersey City officials have agreed to postpone a court hearing with the Tawil family - New York City landlords who owe the city millions of dollars in building and fire code violations for dilapidated properties they own on Journal Square.
The hearing had been scheduled for Nov. 16.
"We are trying to work with the Tawils to resolve this overall situation - the speedy demolition of the buildings, and the asbestos remediation, and the settlement of the fines," said Corporation Counsel Bill Matsikoudis, explaining why the city agreed to delay the court showdown.
"Our most important goal is the demolition of the properties," he added.
City officials are essentially holding out the carrot of reducing the fines owed by the Tawils - currently nearly $4 million - in return for them continuing to remove tenants from the affected buildings and preparing the hulking monstrosities for large-scale demolition.
"To the extent that these pending fines can be utilized by Jersey City as an incentive to the Tawils to undertake the remediation and the demolition of the buildings, we will do so," Matsikoudis said.
Asked why the city couldn't both collect the fines and press the Tawils to continue the demolition work, Matsikoudis declined to elaborate on the city's strategy.
A new court date on the fines has been scheduled for Feb. 2, he said.
Through several limited partnerships the Tawils own 80 percent of buildings on the block adjacent to the PATH Transportation Center, including the vacant Hotel on the Square at 8 Journal Square.
The properties are in such disrepair the Tawils have now vowed to tear them all down - the first step toward redeveloping the block.
But the demolition process, begun in the spring, is moving haltingly.
Neither the Tawils, nor their attorneys, returned telephone calls to comment.
Yesterday, sign handlers working for Viacom could be seen dismantling billboards atop 1-7 Journal Square, a strip that includes the now-closed Mr. Gusto Express, Twin Donut, and the 99 cents and Up store.
Square demolitions behind schedule, but city not worried yet
Saturday, October 29, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
Jersey City officials met Thursday with an attorney for the landlord who owns several dilapidated buildings slated to be demolished in Journal Square and established that the project is four to six weeks behind schedule, a city official said yesterday.
"But if it goes four to six months behind schedule then that would indicate their (the landlords) lack of desire to properly demolish and redevelop the area around Hotel on the Square," said City Councilman Steve Lipski, who represents the area and related what happened in the meeting.
The properties in questions are located on the block next to the PATH Transportation Center and are owned by partnerships controlled by the Tawil family, New York City real estate investors who have racked up millions of dollars in fines for building and fire code violations.
The city is using the fines as leverage to try to force the Tawils to move forward with demolition, Lipski said.
A court hearing to deal with these fines was scheduled for Sept. 16, but that was postponed after the Tawils hired the politically connected law firm Weiner, Lesniak to represent them.
One of the firms partners, state Sen. Raymond Lesniak, D-Elizabeth - chairman of First Bank Americano in Union City - is a Union County political powerbroker.
Joseph Ranieri, an associate in the firm, represented the Tawils at Thursdays meeting.
The new court date is Nov. 16, but the city might agree to another postponement if there is acceptable progress on the demolition, Lipski said.
A determination would be made by Nov. 9 if the Tawils are making sufficient progress in demolishing these buildings, Lipski said. The Tawils have accumulated at least $3.7 million in fines, he said.
Yesterday was the deadline for several commercial tenants in buildings owned by the Tawils to close up shop.
Only a handful of tenants remain: Daily Tortillas Grill and Three Guys From Italy Pizza and HT Wireless. The buildings that house McDonalds, Songs Hallmark, Kentucky Fried Chicken and the former Wendys have different owners.
HT Wireless is on the first floor of the mostly vacant Hotel on the Square building. This building has been deemed an unsafe structure. Yet, HT Wireless can operate since employees could scurry out their front doors in the event of a fire, Lipski said.
Wednesday, October 26, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
By tomorrow, most of the stores next to the Journal Square Transportation Center in Jersey City will be out of business - the result of eviction notices these commercial tenants received from their landlord several months ago.
The landlord - Ralph Tawil Jr. of New York City - told city officials he intends to demolish most of the buildings on the block, since it would be too expensive to repair them.
Even though most of the tenants have to be out tomorrow, it remains hazy when the landlord's proposed massive demolition of the block will be carried out.
One building next to the Transportation Center has been torn down. Interior work began on two others owned by Tawil - 17-23 Journal Square, at the corner of Sip Avenue, and 8 Journal Square, the mostly-vacant Hotel on the Square building - but was halted in May after state officials found asbestos.
Journal Square Councilman Steve Lipski said he didn't know when demolition of the properties owned by Tawil - comprising about 80 percent of the block at the heart of Journal Square - would begin in earnest, noting city officials are meeting about the matter this week.
Further complicating the start time for the demolition project is the fact that at least three commercial tenants - HT Wireless at 12 Journal Square and Daily Tortillas Grill at 17 Journal Square, and Three Guys From Italy Pizza at 8 Concourse East - have not been asked to leave by Tawil, according to David Lipari, a Jersey City attorney who is representing several of the evicted tenants in a lawsuit against Tawil.
Neither Lipari, nor an attorney for Tawil - David Panitz of Hackensack - would say why these businesses weren't asked to leave by tomorrow, along with the other businesses in Tawil-owned properties.
The buildings housing McDonald's, Kentucky Fried Chicken and Song's Hallmark and the former Wendy's aren't owned by the Tawils and aren't scheduled to be demolished.
Gou Kim, owner of Twin Donut, said she'll be moving out tomorrow. She has no plans to reopen her store elsewhere.
"I dreamed I would make everything nice (in my store) for people," she said. "But now, nothing."
Wednesday, September 21, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
Five months after the first brick was poked out, 10 Tube Concourse - a one-story building next to the PATH Transportation Center in Journal Square - has been reduced to rubble.
The next wall to fall will be a free-standing one next to the restaurant Mr. Gusto Express, acting Construction Code Official Ray Meyer said yesterday.
After that, asbestos will be removed from 17-23 Journal Square, followed by the parapets - the part of the brick facade that extends beyond the roof line - and the billboards on top of the Hotel on the Square building and 17-23 Journal Square, Meyer said.
This work is part of a massive demolition - and redevelopment - plan for this key block of Journal Square.
Roughly 80 percent of the properties on the block are owned by the Tawil family, New York City real estate investors who have allowed their buildings to deteriorate to the point they are now, according to city officials, beyond repair.
But the planned demolition is moving at a snail's pace.
In May, contractors began to dismantle 10 Tube Concourse and 17-23 Journal Square, a three-story commercial property at the south end of the block. But work had to be stopped after state inspectors found asbestos.
Fearing that ripping down one building could affect adjacent properties, the Tawils have decided not to proceed with further demolition until the commercial tenants in their buildings are all gone.
Most of these tenants have been given a deadline of Oct. 28 to move, said David Lipari, an attorney representing the small business suing the Tawils.
Wednesday, September 14, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
The owners of Three Bros. Pizza, Twin Donuts, and several other businesses on Journal Square businesses will have an opportunity to confront the landlord who's trying to evict them, their attorney said yesterday.
"We were ordered by the court to attempt to mediate," said Jersey City-based attorney David P. Lipari. "Hopefully we can have some construction conversations with the Tawil family in regard to this matter."
The Tawil family, New York City-based investors, own 80 percent of the block neighboring the PATH Transportation Center. Their properties have fallen into such disrepair that they must be torn down, city officials said.
But in order to proceed with those plans, several businesses that have made Journal Square their homes must be tossed out.
"My tenants want to be compensated for their loss of business, loss of their livelihood, loss of investments, and loss of their ability to provide for them for them and their families," said Lipari, who represents 13 businesses.
An attorney representing the Tawils didn't return phone calls yesterday.
No date has been set for the mediation hearing, Lipari said. Many tenants have already left. Those who remain have been given an Oct. 28 deadline to vacate their premises, Lipari said.
Wednesday, September 14, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
Wendy's on Journal Square closed last week due to poor sales and limited opportunity to expand, according to a spokeswoman for the Ohio-based company.
"This has been in the works for two years," said Pat Yonchek, field marketing manager for Wendy's International, referring to Thursday's closure of the fast-food establishment.
"The store was under-performing and sales potential was limited," she said. "There was no drive-through and no room for expansion."
Plus the store's five-year lease had expired, Yonchek said.
The store - one of 6,000 around the world and at least five in Hudson County - even removed a bathroom to add seating, Yonchek said.
But although the store was "jammed" during peak hours, off-peak hours remained "very slow," Yonchek said.
City: Contractor told us work could begin;
Asbestos halts 2 demolitions
Wednesday, July 27, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
Jersey City officials are blaming a demolition contractor for telling them that
two Journal Square buildings were free of asbestos and thus could be demolished.
But last month the demolition work had to be halted, and steps taken to ensure public safety, after it turned out the buildings—10 Tube Concourse and 17-23 Journal Square—did indeed contain the carcinogen, officials said.
The buildings in question are owned Ralph Tawil Jr. and his family—New York City-based landlords who own roughly 80 percent of the block adjacent to the PATH Transportation Center, including the dilapidated Hotel on the Square.
Prior to the start of demolition work, city officials received a letter on May 4 from Marie Grasso, owner of MMG Design Inc. of Staten Island—the demolition contractor hired by the Tawils—stating "all asbestos has been cleared" at the two properties, said Maria Pignataro, a spokeswoman for Mayor Jerramiah Healy.
But Grasso—who hired a subcontractor to work at the site—said she never told city officials the buildings didn't contain asbestos.
"There is a back wall behind the parking lot that has asbestos that has to be removed and has been exposed to the public for more than 30 years," she said.
However, Pignataro said the letter left city officials with the mistaken belief that the properties were asbestos-free and demolition could begin immediately.
But on June 7, inspectors with the state's Department of Health and Senior Services—working in conjunction with the federal Environmental Protection Agency—collected samples from debris at the site.
City officials said they don't know what prompted state inspectors to show up at the site, since city officials had no reason to doubt the information Grasso had given them, Pignataro said.
As it turns out, it's a good thing state inspectors stepped into the picture. By June 23, the samples had proven positive for asbestos and city officials closed the worksite, Pignataro said.
Interim measures have since been taken to insure the public's safety, said Nathan Rudy, public information officer for the state Department of Health and Senior Services.
A tarp has been draped over a dumpster in the rear of 10 Tube Concourse identified as containing asbestos. There is also a tarp over the front of that property, although the building is completely exposed from every other direction.
City officials await an asbestos removal plan from the Tawils that must be approved by EPA officials, they said.
Monday, July 25, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
With millions of dollars in fire and building code violations hanging over their
heads, Ralph Tawil Jr. and his family—owners of several dilapidated properties
on a key block of Journal Square—have hired a high-powered law firm to
represent them in their dealings with Jersey City.
According to city officials, the Tawils have hired the Parsippany-based law firm Weiner Lesniak. One of the firm's principals, state Sen. Raymond Lesniak, D-Elizabeth—chairman of First Bank Americano in Union City—is a powerful Union County political boss and a close mentor of former Gov. James McGreevey.
Key fund-raisers for many Democrats across the state, the law firm specializes in municipal law, land use and zoning, labor and employment, and insurance work, according to its Web site.
The firm has assigned attorney Joseph Ranieri to work with the Tawils, city officials said—and he certainly has his work cut out for him.
Properties owned by the Tawils through various limited partnerships have amassed millions of dollars worth of fire and building code fines. And in response to a planned demolition of these properties, the Tawils are being sued by at least 14 commercial tenants who claim they are being evicted from their stores through no fault of their own.
The demolition work that began roughly a month ago has ground to a halt with the discovery of asbestos in two buildings slated to be taken down and a fear that adjacent buildings are so unstable that taking down one could cause others to collapse.
The Tawils own roughly 80 percent of the properties on the block adjacent to the PATH Transportation Center.
Square sandwich shop closing as demolition countdown starts
Friday, July 22, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
The Subway sandwich shop at 8-11 Journal Square is among the first of a stream
of commercial tenants that will vacate a key block in Journal Square over the
next several months.
"This is tremendous loss for us," said Chetan Pandya, the owner of the sandwich shop which is slated to close Sunday at the end of the business day. "To move out, look for another location, move back in. It's too much."
The store's landlord—a limited liability company owned by New York City real estate investor Ralph Tawil Jr. and his family—plans to demolish several dilapidated buildings he owns on the block next to the PATH Transportation Center, presumably to make room for a new development.
Pandya, who owns a second Subway store at Newark and Summit avenues, opened his Journal Square shop three years ago and has been paying roughly $4,000 per month rent, he said.
And even though his business has not been cited for any violations, it is housed in a property that has racked up several million dollars in fire code and building violations and is part of a massive demolition plan agreed to by city officials and his landlord.
Aside from losing half of his business, Pandya said six employees will be out of work.
As per a clause in his lease, Pandya received a three-month notice that his building was slated for demolition, which gives him until July 27 to move out. But since he has to remove equipment and store it, Pandya said he must close on Sunday to have enough time to be out by Tuesday.
Several other commercial tenants on the block have been notified they have until November to leave.
Through different corporate entities, the Tawils own roughly 80 percent of the properties on this block and plan to tear all of them down. The only properties not owned by the Tawils are the buildings that house the Kentucky Fried Chicken, Wendy's, Song's Hallmark and McDonald's, 12, 14, and 15-16 Journal Square respectively.
Thursday, July 21, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
Demolition work on two eyesore properties on Journal Square will likely not
resume until November, an elected official said yesterday.
The two properties in question—10 Tube Concourse and 17-23 Journal Square—bookend the block next to the PATH Transportation Center.
The takedown of these buildings, owned by New York City real estate developer Ralph Tawil Jr. and his family, was begun roughly a month ago, but is now on hold for two reasons, said Ward C Councilman Steve Lipski, who represents the area.
Lipski said there's a concern that some of the structures are sounstable that taking one down could damage its neighbors.
Those properties were slated to be included in a more widespread demolition effort later this year, and the tenants in those properties were told they had to be out by November.
Therefore, Lipski said, it makes more sense to wait until they are out of harm's way before proceeding.
Secondly, asbestos—a known carcinogen—has been discovered at both 10 Tube Concourse and 17-23 Journal Square, Lipski said. However, he said, there's no immediate danger to the public—asbestos is a problem only if it becomes airborne—and the Tawils have until mid-September to come up with a asbestos removal plan.
By November, the Tawils must present a detailed demolition plan to city officials, Lipski said.
These three properties—10 Tube Concourse, 17-23 Journal Square, and the Hotel on the Square at 8 Journal Square—have racked up at least $3.1 million in fire code violations and $40,000 in building code fines, city officials said.
The properties are so deteriorated, the Tawils have decided to rip them down rather than repair them.
And they've extended their demolition plans to all their holdings on the block, which includes 1-7 Journal Square - home to several small businesses including 3 Brothers Pizza, Twin Donuts, and a 99 cents store.
Most of these tenants had clauses in their leases that called for a six-month notice if their building became slated for demolition, an attorney representing the tenants said.
Also, a court hearing on building and fire code fines attached to Tawil properties scheduled for yesterday was postponed until September, said Alan Pearlman, the acting chief municipal prosecutor.
The attorney representing the Tawils had a scheduling conflict, city officials said.
One question remains:
Will Tawils rebuild on Square properties they've allowed to crumble?
Thursday, July 07, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
The redevelopment of the heart of Journal Square hinges on an unlikely savior: a landlord who has run up millions of dollars in fines over the Hotel on the Square and other dilapidated properties.
But Ralph Tawil Jr. and his family—New York City real estate investors who control about 80 percent of the block adjacent to the Journal Square Transportation Center—say they believe they can breathe new life into the center of the city.
The Tawils didn't return phone calls seeking comment for this article, but Jersey City Mayor Jerramiah Healy said he met several weeks ago with Ralph Tawil Jr., who runs the family business, to discuss redevelopment plans for the site.
Reluctant to seize the property through eminent domain, Healy said he is taking the Tawils at their word—that they want to build a mixed-used development that's primarily residential, with retail stores and parking.
But this plan sounds eerily familiar to anyone who has monitored redevelopment proposals for the Square. In fact, the Tawils have been party to most of them.
In partnership with local developer Joseph Panepinto Sr., Ralph Tawil Sr. and his brother Saul Tawil began to amass properties on the Square in the late 1980s. Their stated goal: to build a $100 million office and retail complex.
But by 1990, the partnership was in shambles, with the Tawils suing Panepinto, charging him with reneging on a deal to include them as owners of a parking lot behind the Square.
The court squabble ended with the Tawils buying out Panepinto—who has since played a role in converting the old State Theater site into a mostly market-rate apartment building. But in the process, the effort to redevelop the Hotel on the Square block fell by the wayside.
Then in 1997, the office tower plan was resurrected—slightly revised to accommodate a gymnasium, conference center and library that Hudson County Community College hoped to build.
"We are looking at financing the entire project privately, ourselves," Ralph Tawil Sr. said at the time. "We're going to do this and help change the face of Journal Square."
An artist's rendering depicted a 15-story metal and glass office building with a series of smaller retail buildings fronting the Square, with the highest of the shops reaching four stories.
But the Tawils never came up with the financing, and the deal—once again— fell through.
By June 1999, the Tawils were back—this time with a big-money partner: Charles Kushner of Florham Park.
An $80 million Kushner/Tawil proposal included an office tower, with high-quality ground-floor retail, and a building for the college.
"This is going to happen," declared former Hudson County Executive Robert Janiszewski, now in jail on unrelated corruption charges. "It will be a 'Great Leap Forward,' if you will, in urban development."
Not satisfied the plan provided enough parking, commissioners of the Jersey City Redevelopment Agency voted 3 to 2 against it in October 1999.
But Kushner and the Tawils kept pushing for it.
Two years later, city officials killed the plan, concluding the Tawils and Kushner couldn't finance their proposal.
Kushner, a major Democratic fund-raiser, is now serving time for making illegal campaign contributions to the Bill Bradley presidential campaign.
Mayor Healy said he will give the Tawils a chance to redevelop the site.
"But if we continue to see the kind of foot-dragging we've seen for the last two decades, we'll have to move on," he said.
Tawil family has racked up millions in fines for properties
Thursday, June 30, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
It's perhaps one of the most incongruous scenes in Jersey City.
Surrounded by globe lights and a kiosk, the fountain in the middle of Journal Square spews water 12 feet into the air, pumping feverishly to effectuate a gurgling calm.
But hovering right behind the fountain is the five-story, mostly vacant Hotel on the Square building, looking like a defeated boxer with his teeth knocked out.
Charles Sciangula, a Journal Square resident since 1969, feels "downhearted" when he walks past the eyesore.
"You invest 30 years in an area and you expect it to change for the better, but this looks worse," he said.
And the view doesn't improve as one moves to the outer extremes of this block.
Next to the PATH transportation center stands what's left of an old bargain store. Earlier this year, its roof collapsed and the owner decided to rip the building down rather than repair it.
At the other end of the block, at Sip Avenue, a three-story commercial building that had to be hastily evacuated in November due to numerous building and fire code violations is perhaps one of the biggest fine collectors in the history of Jersey City.
Current fines on this property—which is in the process of being dismantled—total more than $3.5 million and the tab is still running, city officials say.
In 2002, this building was slapped with a nearly $11 million fine because bricks on the facade showed the potential to fall and strike pedestrians, according to city records. City officials said two weeks ago they couldn't locate this file, so therefore couldn't say when or if these violations were addressed.
All three properties are owned by limited liability companies controlled by the Tawil family, New York City-based real estate investors who began scooping up properties on the Square with an ex-partner in the late 1980s.
The Tawils also own 1-7 Journal Square, which includes Twin Donuts and a 99-cent store. On the other side of the block, they are in the process of buying 88 Sip Ave. (Square News) and the parking lot in front of the Hudson County Community College entrance; they are currently leasing those properties from NJ Transit.
In short, they own every parcel on this critical block of Journal Square except the buildings that house McDonald's, Song's Hallmark, Wendy's and Kentucky Fried Chicken.
For nearly two decades—and over the course of several mayoral administrations—the Tawils have presided over the deterioration of this prime real estate, while at the same time collecting top dollar for their commercial rentals.
The decay of 8-11 Journal Square (the hotel), 17-23 Journal Square at Sip Avenue, and 10 Tube Concourse next to the PATH station is to the point that both the Tawils and city officials now agree they are beyond repair and must be torn down.
The Tawils have since notified all their Journal Square tenants they must abandon their premises no later than Oct. 28 so the buildings can be razed.
Several times in the past the Tawils floated plans to develop this block. Each time, for various reasons, their plans fell through.
And even as their attorney prepares to go to court to address the staggering amount of fines his client has been assessed, the Tawils - because they own 80 percent of the block - are being considered as potential developers for the site, city officials said.
The logic eludes Louis Jurado, a lifelong Jersey City resident.
"They just drained these properties dry," Jurado said. The city "should put a lien and take away their properties. You get a ticket, they suspend your license. They should take their licenses too."
Ralph Tawil Jr. and Hal Sutton, principals in various Tawil-run partnerships, didn't return several phone calls for comment. Ralph Tawil Sr., Tawil Jr.'s grandfather, started the business.
Why city officials have allowed such a key block in the city to fall into such disrepair seems to boil down to a couple of reasons. The first, according to City Council president and former acting Mayor L. Harvey Smith, is the city's fear of extended litigation.
"They (the Tawils) have a lot of money," Smith observed when asked why the city hasn't seized their holdings through eminent domain. "We'll be hung up in condemnation court for years. With them, it either ends up in court or there's been the threat of going to court."
In a pre-election debate in April, Jersey City Mayor Jerramiah Healy said he was philosophically opposed to taking the Tawil Journal Square property by eminent domain to turn it over to another private owner.
Two weeks ago Healy said he's not ruling anything out.
"The buildings have been an eyesore for 20 years," Healy said. "They are now a roadblock for any development of Journal Square.
"These buildings must be razed, and they (the Tawils) are going to have to do that," he added. "Either they (the Tawils) will develop something or they will transfer that property to developers who will do just that."
Therefore, it's a Catch-22: Because the city can't afford to take them over, they're going to remain in their dilapidated state until the Tawils do something about it; but because they're in such bad shape, they're apparently not hurrying to do so.
"That parcel is extremely valuable," said Glen Gabert, president of Hudson County Community College, which has poured millions into Journal Square, renovating existing buildings as well as putting up the new Culinary Arts Institute on Sip Avenue.
"The cost of buying it, tearing it down, cleaning it up is tremendously expensive. And what's going to go there has to generate profits."
Thursday, June 23, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
The two sides of a contract dispute that brought a demolition job on Journal
Square to a halt two weeks ago say they've patched up their differences and work
should be completed this week.
The job entails the interior demolition of 17-23 Journal Square at the corner of Sip Avenue and a complete takedown of 10 Tube Concourse, located next door to the PATH Transportation Center.
Getting paid is no longer an issue, said Michael Ambrosio, owner of M&A Demolition in Secaucus, who yanked his crew off the job two weeks ago, claiming he was owed more than $50,000 from MMG Design Inc., the primary demolition contractor on the job.
Steve Martino, an attorney representing Ambrosio, said the owner of MMG Design made a scheduled $35,000 payment recently and will pay the $35,000 balance when the job is finished. The subcontract agreement is worth $210,000, he said.
Marie Grasso, owner of MMG Design, maintains she was never in arrears with the subcontractor.
Paperwork to complete the job has been submitted to the city's Buildings Department, Martino said.
Unlike Square properties, DKNY building across the river sparkles
Wednesday, June 22, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
In Jersey City, the Tawil family is best known for its violation-riddled properties on Journal Square, including the crumbling Hotel on the Square and a three-story commercial property at the corner of Sip Avenue that had to be hastily evacuated in November because of numerous fire and building code violations.
But what a difference a river makes.
Just across the Hudson, at 240 W. 40th St. in Manhattan, it's hard to believe it's the same landlord.
The 13-floor commercial property, sitting in the heart of New York's garment district, serves as the corporate headquarters for DKNY International, the women's wear conglomerate founded by designer Donna Karan.
A security guard greets visitors in the lobby. "DKNY" is emblazoned on a huge golden door at the rear of the ground floor. The floors are polished to a high buff.
The Tawils keep their offices on the third floor. A receptionist sits behind a counter. A modernistic glass and wood partition is behind her. The chairs are practical, but comfortable.
Last year, the owners began work to modify the alarm system on the second and ninth floors, according to city records. In 1990, they upgraded the sprinkler system on four floors.
And earlier this year, a Tawil company filed a permit with the New York City Department of Buildings to erect a heavy-duty sidewalk shed in front of the building to upgrade the facade of the building.
In contrast, three Tawil properties on Journal Square are emblazoned with big orange "Xs," signaling they're too dangerous even for firefighters to enter.
The Tawils refused to comment for this and other stories and asked a reporter who visited their Manhattan office to leave.
UP TO THE TAWILS, FOR NOW
Mayor quotes family as promising housing, retail stores, parking
Wednesday, June 22, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
The redevelopment of the heart of Journal Square hinges on an unlikely savior: a
landlord who has run up millions in dollars in fines over the Hotel on the
Square and other dilapidated properties.
But Ralph Tawil Jr. and his family - New York City real estate investors who control about 80 percent of the block adjacent to the Journal Square Transportation Center - say they believe they can breathe new life into the center of the city.
The Tawils didn't return phone calls seeking comment for this article, but Jersey City Mayor Jerramiah Healy said he met several weeks ago with Ralph Tawil Jr., who runs the family business, to discuss redevelopment plans for the site.
Reluctant to seize the property through eminent domain, Healy said he is taking the Tawils at their word - that they want to build a mixed-used development that's primarily residential, with retail stores and parking.
But this plan sounds eerily familiar to anyone who has monitored redevelopment proposals for the Square. In fact, the Tawils have been party to most of them.
In partnership with local developer Joseph Panepinto Sr., Ralph Tawil Sr. and his brother Saul Tawil began to amass properties on the Square in the late 1980s. Their stated goal: to build a $100 million office and retail complex.
But by 1990, the partnership was in shambles, with the Tawils suing Panepinto, charging him with reneging on a deal to include them as owners of a parking lot behind the Square.
The court squabble ended with the Tawils buying out Panepinto - who has since played a role in converting the old State Theater site into a mostly market-rate apartment building. But in the process, the effort to redevelop the Hotel on the Square block fell by the wayside.
Then in 1997, the office tower plan was resurrected - slightly revised to accommodate a gymnasium, conference center and library that Hudson County Community College hoped to build.
"We are looking at financing the entire project privately, ourselves," Ralph Tawil Sr. said at the time. "We're going to do this and help change the face of Journal Square."
It's the decaying heart at the center of the city.
Journal Square, once great and still full of potential, has been left to rot. Much of the block between the PATH Transportation Center and Sip Avenue is either fenced off, being torn down or just plain decrepit.
The savior for this black eye? The very people who have let it fall into its current state. City officials say the Tawil family, which controls 80 percent of the decaying block, may be tapped to redevelop the area, which has long been the subject of grand plans and then broken promises.
Why has the city not collected the millions of dollars in fines the Tawil companies already owe? Why has the city, so eager to use its power of eminent domain elsewhere, been so reluctant to get involved? Why allow the Tawils to potentially profit from a set of buildings that, under their stewardship, have had such a negative impact on the surrounding area.
The pedestrian plaza that includes the fountain, the never-used kiosk and the Columbus statue has become a distinctly unpleasant place - especially at night.
City Council President L. Harvey Smith said that the Tawil family is so wealthy the city is reluctant to get into a court battle with them but that doesn't really stand up - the city has had many legal battles with many wealthy people.
The power of eminent domain should be used sparingly - more sparingly than it is used, in fact. But after all the fines, all the dashed plans, all years of its slow slide into disrepair, this block on Journal Square seems a perfect candidate.
The city should move to condemn the properties that have all the outstanding fines. After that, it should hold a design competition - a genuine design competition, not a give-away to the most politically connected developer - to determine what the best use of this area should be.
There have been various proposals over the years, including an office tower. It is premature to make pronouncements about what the block should look like exactly. Any number of possibilities could work.
With the PATH and buses, the Loew's Jersey Theater, Hudson County Community College and a brand-new market rate residential building all nearby, there should be no shortage of developers willing to invest in this block.
DEMOLISHING AMERICAN DREAM
Shop owners stand to lose everything when Square buildings come down
Tuesday, June 21, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
Many are recent immigrants, having come to the United States with an
entrepreneurial spirit and a faith that hard work and sacrifice would be
rewarded.
Like so many generations of previous Jersey City immigrants, they staked everything on a family business, investing their life savings to open small shops selling sandwiches or household necessities.
They said they expected to struggle through some hard times, but they never imagined this: Landlords who would allow the properties to sink into such poor condition that it now makes more sense to knock them down rather than make repairs.
And, due to a clause in their leases they say they never focused on until now, their landlords can evict them without compensation.
With most facing an October deadline to vacate their stores, many of these tenants say they are staring at financial devastation.
"I'm totally ruined," said Gou Kim, owner of the Twin Donut near the PATH transportation center. "I've been in shock. I went to the hospital. I felt paralyzed."
But Kim - who raised nearly $250,000 to put herself in the donut business - and 10 other commercial tenants on her block are fighting back.
They've hired an attorney to seek compensation for their businesses and relocation assistance from their landlords - in each case, a separate corporate entity controlled by the Tawil family, New York City-based real estate investors who own 80 percent of the properties of that block.
The tenants' attorney, David Lipari of Jersey City, alleges the Tawils acted in bad faith by signing leases even as they presumably knew they intended to demolish the buildings.
For example, Kim signed a one-year, $5,000-per-month lease in December; just one month later, a follow-up city inspection report ordered the Tawils to either rehabilitate or demolish three other properties on the same block.
Phone calls to the Tawils seeking comment for this article were not returned.
Three properties on the Square owned by the Tawils - the nearly demolished 10 Tube Concourse next to the PATH station; the mostly vacant Hotel on the Square, at 8-11 Journal Square; and 17-23 Journal Square at the corner of Sip Avenue - have racked up millions of dollars in fines from city building and fire inspectors, city records show.
Given the choice to rehabilitate or fix these properties, the Tawils elected to knock them down.
But they intend to demolish not just these eyesores, but all their holdings on this block, which include 1-7 Journal Square near the transportation center and two properties - a commercial building at 88 Sip Ave. and the parking lot in front of the Hudson County Community College entrance - which they lease from NJ Transit but are in the process of buying.
The plan uproots every commercial tenant on the block except Kentucky Fried Chicken, Wendy's, McDonald's and Song's Hallmark - which occupy the only buildings on the block not owned or leased by the Tawils.
In the case of Subway owners Praful and Chetan Pandya, a father and son, their lease only calls for a three-month notification, which means they must be out of their 8-11 Journal Square location by July 27.
The Pandyas raised $150,000 three years ago to start the business. They pay $4,311 monthly rent, they said. Now these Jersey City residents face the prospect of losing their investment and their source of income.
"I feel we have been cheated," said Praful Pandya. "Everybody's savings have gone down the drain."
Mike Patel, a Jersey City resident, owns the 99-cents and fruit and vegetable stores at 1-7 Journal Square, paying $13,000 to rent the space from the Tawils. He and his wife log 15-hour days at the stores to support themselves and pay college tuition for their two daughters.
In November, the Fire Department ordered his business closed until he paid $4,000 to install a fire exit door, Patel said. The Tawils refused to pay for it, he said, so his only choice was to pay for it himself in order to reopen his business.
The store's ceiling leaks like a sieve, he said, echoing a complaint of several fellow Tawil tenants.
But it was better than nothing, which is what he'll have after he's evicted.
"I put my whole life savings into this business," Patel said. "I put in $350,000 cash, plus I borrowed money for the 99-cents store. I don't have anything else."
Limited partnerships: Safety net for large companies
Monday, June 20, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
Madison Acquisitions. Oxford Acquisitions. Adams Acquisition.
For every lot the Tawil family owns on Journal Square there is a different limited partnership - a mini-company representing the conglomerate behind it.
Such partnerships, though, are not unusual, according to Robert Ross, a Livingston certified public accountant who graduated from Snyder High School and St. Peter's College.
The leaders of a partnership may have different partners for each project.
"If something goes wrong and they have to declare bankruptcy," he said, "it's just that limited partnership that declares bankruptcy, and the rest of the empire is safe."
In addition, limited partners are allowed various tax breaks, he said. For example, they can write off as a tax loss the total investment of the group during the fundraising stage for the project and when a building is sold, the partnership allows them to limit the capital gains taxes they pay.
TAWIL THE SQUARE'S ROOT OF DISREPAIR?
Family has racked up millions in fine for decaying structures,
but may hold key to revitalization of neighborhood
Monday, June 20, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
It's perhaps one of the most incongruous scenes in Jersey City.
Surrounded by globe lights and a kiosk, the fountain in the middle of Journal Square spews water 12 feet into the air, pumping feverishly to effectuate a gurgling calm.
But hovering right behind the fountain is the five-story, mostly vacant Hotel on the Square building, looking like a defeated boxer with his teeth knocked out.
Charles Sciangula, a Journal Square resident since 1969, feels "downhearted" when he walks past the eyesore.
"You invest 30 years in an area and you expect it to change for the better, but this looks worse," he said.
And the view doesn't improve as one moves to the outer extremes of this block.
Next to the PATH transportation center stands what's left of an old bargain store. Earlier this year, its roof collapsed and the owner decided to rip the building down rather than repair it.
At the other end of the block, at Sip Avenue, a three-story commercial building that had to be hastily evacuated in November due to numerous building and fire code violations is perhaps one of the biggest fine collectors in the history of Jersey City.
Current fines on this property - which is in the process of being dismantled - total more than $3.5 million and the tab is still running, city officials say.
In 2002, this building was slapped with a nearly $11 million fine because bricks on the facade showed the potential to fall and strike pedestrians, according to city records. City officials said last week they couldn't locate this file, so couldn't say when or if these violations were addressed.
All three properties are owned by limited liability companies controlled by the Tawil family, New York City-based real estate investors who began scooping up properties on the Square with an ex-partner in the late 1980s.
The Tawils also own 1-7 Journal Square, which includes Twin Donuts and a 99- cent store. On the other side of the block, they are in the process of buying 88 Sip Ave. (Square News) and the parking lot in front of the Hudson County Community College entrance; they are currently leasing those properties from NJ Transit.
In short, they own every parcel on this critical block of Journal Square except the buildings that house McDonald's, Song's Hallmark, Wendy's and Kentucky Fried Chicken.
For nearly two decades - and over the course several mayoral administrations - the Tawils have presided over the deterioration of this prime real estate, while at the same time collecting top dollar for their commercial rentals.
The decay of 8-11 Journal Square (the hotel), 17-23 Journal Square at Sip Avenue and officials now agree they are beyond repair and must be torn down.
The Tawils have since notified all their Journal Square tenants they must abandon their premises no later than Oct. 28 so the buildings can be razed.
Several times in the past the Tawils floated plans to develop this block. Each time, for various reasons, their plans fell through.
And even as their attorney prepares to go to court to address the staggering amount of fines his client has been assessed, the Tawils - because they own 80 percent of the block - are being considered as potential developers for the site, city officials said.
The logic eludes Louis Jurado, a lifelong Jersey City resident.
"They just drained these properties dry," Jurado said. The city "should put a lien and take away their properties. You get a ticket, they suspend your license. They should take their licenses too."
Ralph Tawil Jr. and Hal Sutton, principals in various Tawil-run partnerships, didn't return several phone calls for comment. Ralph Tawil Sr., Tawil Jr.'s grandfather, started the business.
Why city officials have allowed such a key block in the city to fall into such disrepair seems to boil down to a couple reasons. The first, according to City Council president and former acting Mayor L. Harvey Smith, is the city's fear of extended litigation.
"They (the Tawils) have a lot of money," Smith observed when asked why the city hasn't seized their holdings through eminent domain. "We'll be hung up in condemnation court for years. With them, it either ends up in court or there's been the threat of going to court."
Glen Gabert, president of Hudson County Community College, sees market economics as the main barrier to the development of this block.
"That parcel is extremely valuable," Gabert said. "The cost of buying it, tearing it down, cleaning it up is tremendously expensive. And what's going to go there has to generate profits."
In a debate in April, prior to his election in May, Jersey City Mayor Jerramiah Healy said he was philosophically opposed to taking the Tawil Journal Square property by eminent domain to turn it over to another private owner.
Last week Healy said he's not ruling anything out.
"The buildings have been an eyesore for 20 years," Healy said. "They are now a roadblock for any development of Journal Square.
"These buildings must be razed, and they (the Tawils) are going to have to do that," he added. "Either they (the Tawils) will develop something or they will transfer that property to developers who will do just that."
2 Square demolitions halted by contractors' money dispute
Thursday, June 16, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
A dispute between a contractor and a subcontractor threatens to halt demolition
work on two of several dilapidated Journal Square properties slated to be taken
down.
Michael Ambrosio, the owner of M&A Demolition in Secaucus, said last week he's yanking his crew from 17-23 Journal Square, at the corner of Sip Avenue, and 10 Tube Concourse, a one-story building next to the PATH Transportation Center, because the prime contractor owes him more than $50,000.
In addition, an engineering firm working for the buildings' owners hasn't filed the necessary plans with the city's Buildings Department to proceed with the job, he said.
The buildings are mostly gutted. But Ambrosio claims he cannot pull steel beams, take down the parapets (part of the facade the extends beyond the roof line), or remove the billboards at 17-23 Journal Square until the city's Building's Department approves written plans.
Marie Grasso, owner of MMG Designs of Staten Island - the prime demolition contractor - said Michael Ambrosio has no standing in the matter and doesn't know what he's talking about.
Grasso said that her agreement is with Anthony Ambrosio - Michael's brother - who runs Backhoe Services Inc. in Bayonne. Grasso said she's paid Anthony Ambrosio all the money he's owed.
Anthony Ambrosio couldn't be reached for comment; Michael Ambrosio said Grasso's contract is with both his firm and his brother's firm.
In regard to the unfiled paperwork, Grasso said "I don't know what they want me to do for them. Anthony has to help out and fill out his paperwork," Grasso said. "He (Anthony Ambrosio) will be completely terminated from the job site if he can't do what he's contracted to do."
Wednesday, June 11, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
The two sides of a contract dispute that brought a demolition job on Journal
Square to a halt three days ago say they've patched up their differences and
work should be completed next week.
The job entails the interior demolition of 17-23 Journal Square at the corner of Sip Avenue and a complete takedown of 10 Tube Concourse, located next door to the PATH Transportation Center.
Getting paid is no longer an issue, said Michael Ambrosio, owner of M&A Demolition in Secaucus, who yanked his crew off the job on Wednesday, claiming he was owed more than $50,000 from MMG Design Inc., the primary demolition contractor on the job.
Steve Martino, an attorney representing Ambrosio, said the owner of MMG Design made a scheduled $35,000 payment Thursday and will pay the $35,000 balance when the job is finished. The subcontract agreement is worth $210,000, he said.
Marie Grasso, owner of MMG Design, maintains she was never in arrears with the subcontractor.
Paperwork to complete the job has been submitted to the city's Buildings Department, Martino said.
2 Square demolitions halted by contractors' money dispute
Wednesday, June 8, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
A dispute between a contractor and a subcontractor threatens to halt demolition work on two of several dilapidated Journal Square properties slated to be taken down.
Michael Ambrosio, the owner of M&A Demolition in Secaucus, said yesterday he's yanking his crew from 17-23 Journal Square, at the corner of Sip Avenue, and 10 Tube Concourse, a one-story building next to the PATH Transportation Center, because the prime contractor owes him more than $50,000.
In addition, an engineering firm working for the buildings' owners hasn't filed the necessary plans with the city's Buildings Department to proceed with the job, he said.
"As of today we're stopping because we can't afford to run a business like this," he said.
The buildings are mostly gutted. But Ambrosio claims he cannot pull steel beams, take down the parapets (part of the facade the extends beyond the roof line), or remove the billboards at 17-23 Journal Square until the city's Building's Department approves written plans.
Marie Grasso, owner of MMG Designs of Staten Island—the prime demolition contractor—said Michael Ambrosio has no standing in the matter and doesn't know what he's talking about.
Grasso said that her agreement is with Anthony Ambrosio—Michael's brother—who runs Backhoe Services Inc. in Bayonne. Grasso said she's paid Anthony Ambrosio all the money he's owed.
Anthony Ambrosio couldn't be reached for comment; Michael Ambrosio said Grasso's contract is with both his firm and his brother's firm.
In regard to the unfiled paperwork, Grasso said Anthony Ambrosio is trying to get out of work she's paying him to do.
"I don't know what they want me to do for them. Anthony has to help out and fill out his paperwork," Grasso said. "He (Anthony Ambrosio) will be completely terminated from the job site if he can't do what he's contracted to do."
THE BEGINNING OF THE END
Demolition project under way with gutting of two buildings
Tuesday, May 24, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
Ceiling tiles. Old files. Even a plastic plant could be seen being tossed from a
window at 17-23 Journal Square as interior demolition work continued yesterday
on two eyesore properties that bookend a main block in Journal Square.
Both buildings - 10 Tube Concourse, next to the Transportation Center, and 17-23 Journal Square, at the corner of Sip Avenue - will be a reduced to rubble in the next several weeks, said Anthony Ambrosio, the contractor in the charge of the demolition.
"We're doing the interior demolition right now," said Ambrosio, owner of Backhoe Services, based in Bayonne. "Then we will take off the parapets and billboards (at 17-23 Journal Square)."
These two buildings, along with the mostly vacant Hotel on the Square at 8-11 Journal Square, are owned by limited partnership companies run by the Tawil family, New York City-based real estate investors who own 80 percent of this block.
These three properties have racked up building and fire code fines totaling at least $11 million, according to city records.
Confronted with bringing their properties up to code or knocking them down, the Tawils elected to demolish them, city officials and an attorney representing the Tawils have said.
The massive demolition job will ultimately encompass all of the Tawil holdings, which includes every building on the block adjacent to the Journal Square Transportation Center except the properties that house Kentucky Fried Chicken, Wendy's, Song's Hallmark and McDonald's.
Beyond the interior demolition work, Ambrosio said his next priority is taking down the parapets and billboards at 17-23 Journal Square. The parapets are the part of the brick facade that extend above the roof line, he said. City inspectors have said the parapets and billboards at 17-23 Journal Square and at the hotel are in danger of falling.
Ambrosio confirmed the presence of asbestos at both 17-23 Journal Square and the hotel. His company will contract out the removal of this known carcinogen, he said.
Tuesday, May 17, 2005
By MOLLY BLOOM
JOURNAL STAFF WRITER
The long-awaited demolition of two buildings in Journal Square - 10 Tube
Concourse and 17-23 Journal Square - moved forward yesterday as workers
dismantled the interiors of the buildings by hand.
Demolition of 10 Tube Concourse, the former site of the Jersey Bargain Center, began last week. By yesterday afternoon, the building's front first-floor walls had been torn down and sunlight streamed into the building. The merchandise bins and counters that once crowded the floor had been removed and the wall the building shares with the adjoining building was stripped down to the brick.
Daily Tortillas Grill, which abuts 10 Tube Concourse, was shuttered yesterday, though the businesses on the other side of the restaurant remained open.
Workers also began demolishing the interior of 17-23 Journal Square, at the corner of Sip Avenue, by hand yesterday, said Ward C Councilman Steve Lipski, who represents the area.
The dismantling of the billboards and parapets atop the Hotel on the Square building and 17-23 Journal Square is also proceeding, Lipski said. Yesterday, the billboards were stripped to their iron frames, but no visible progress had been made on the rickety brick parapets.
City officials had planned to begin demolition of the two buildings last week, but halted work on 17-23 Journal Square and slowed work on 10 Tube Concourse because of concerns for the safety of pedestrians and adjacent businesses.
Three eyesore properties on the block - 10 Tube Concourse, 17-23 Journal Square, and 1-7 Journal Square - are all owned by limited partnerships controlled by the Tawil family, New York City-based real estate investors who own 80 percent of the block off the PATH transportation center.
Having racked up millions of dollars in fines for building and fire code violations, the city gave the owners the option of either repairing the buildings or ripping them down. The Tawils elected to tear them down, plus other properties they own on the block, city officials said.
Ultimately, the massive demolition is to include every property on the block except the three buildings housing Kentucky Fried Chicken, Wendy's, Song's Hallmark and McDonald's - the only properties not owned by the Tawils.
Lipski, who has in the past predicted the buildings' imminent demise, declined to give an exact date for their razing. But he declared himself "very optimistic" that it will happen "in the very near future."
"Let's put it this way," he said yesterday. "It's in progress."
And it's not only because demolition work started last week on a building near the Journal Square PATH station.
The Square was once the main shopping and entertainment center of the city, with venues such as the Canton Chinese Restaurant, the State Theatre, the Five Corners Bakery, Liss Drugstore, and the still-existing Loew's Theater.
Most are now gone from this area that, according to the old-timers, starts from Academy Street and runs to Newark Avenue.
But new buildings are going up and being restored, as others are knocked down. Projects include:
* The recent completion of the State Square building on Kennedy Blvd., which will welcome 130 tenants in June.
* Thanks to new funding, the restoration on the historic Apple Tree House.
* Demolition of old buildings, to be replaced with new ones near the Journal Square Transportation Center.
Pat O' Melia, host of the radio show Hudson County's Talking who grew up in the Journal Square area, sees these actions as a sign of changes for the better.
"They could only be good. They'll bring new people to the Square, a first step in the ongoing renaissance," said O'Melia last week.
Knock down to build up
Last week, demolition crews hired by the New York-based Tawil family, which has owned several properties in Journal Square near the transportation center since the mid-1980s, started tearing down the building with the address of 10 Tube Concourse, formerly the site of the Jersey Bargain Center discount store.
The address refers to the alleyway that commuters walk down when they are coming from the buses in the terminals or the trains in the subway below that comprise most of the center.
The Tawils own not only the 10 Tube Concourse building, but also the Hotel on the Square at 8-11 Journal Square and 17-23 Journal Square located near Sip Avenue, both of which will also be demolished in the next five to six weeks. The only buildings there not owned by the Tawils are 13-16 Journal Square.
Marie Grasso, the owner of MMG Demolition in Staten Island, one of three companies retained by the Tawils for the pending demolition, said on Monday that first there will be a cleanup of the empty store, followed by interior demolition. Grasso said that they have to proceed cautiously since businesses located next to the 10 Tube Concourse, such as a Mexican restaurant and a donut shop with the addresses of 1-7 Journal Square, will continue to operate.
There is also a parking lot behind the building that will continue to do business.
"We have to be sensitive to the people who are still working in the area. They need to still earn a paycheck." said Grasso. "Working from the inside out prevents more damage from occurring."
There is a fear expressed by the city's acting construction official, Ray Meyer, that if demolition is not done properly, there is the strong possibility of other buildings collapsing in a domino effect. Grasso said that after the exterior demolition work on 10 Tube Concourse is completed, the parapet walls of 8-11 Journal Square and 17-23 Journal Square that have shown damage will be taken down, eventually followed by demolition of 17-23 Journal Square.
For now, there is an orange steel barrier put up about 100 feet from the 10 Tube Concourse building to limit the amount of traffic that traverses the concourse area as a shortcut to the bus terminals and the PATH station.
This work being done will be the culmination of six months of negotiating with the Tawil family to get them to start remedying the poor structural conditions of the buildings. It was in November that the Journal Square properties in question were found to have building violations including falling concrete, cracks in the facade of one of the buildings, electrical problems, and even homeless people residing on floors of another building.
Since then, the city has fined the Tawil family $11 million as an attempt to prompt them to start demolishing their buildings.
As for the future of the demolished sites, there is speculation that the Tawils will be allowed to build new structures. But a source who has been in on private talks with the mayor and Tawils believes that another developer will be brought in to start developing on the sites.
A State of things to come
On May 4, local officials and developers gathered for the opening of the new State Square building.
The 12-story building located on Kennedy Boulevard at the site of the old State Theater in Journal Square contains 130 rental residences, including 100 market-rate apartments and 30 affordable housing apartments; 15,000 square feet of retail space, and an eight-story parking garage for 395 cars.
At a cost of $31 million, the building is the product of a collaboration of Jersey City-based Panepinto Properties, the Alpert Group of Fort Lee, Hoboken-based Applied Housing, Harwood Properties of Jersey City, and former U.S. Congressman Frank Guarini that started 19 months of construction in August 2003. The principals of the project were at the ceremony.
One of those principals, David Barry of Applied Housing, gushed about State Square and its impact on Journal Square.
"Journal Square has a ton of potential and it just really needed a shot in the arm, and I think this building will give it that shot," said Barry. "There's been very little new development on Journal Square in the past 20 to 30 years. But it's got a great retail presence, great transportation links. We feel great about the building; we think it's a beautiful building, we think this is what Journal Square needs, and it will spur further revitalization of the Square."
Joseph Panepinto, president of Panepinto Properties, told of how he was approached by Lowell Harwood of Harwood Properties in 1998 with a contract to purchase the old State Theatre property. Panepinto also talked about the difficulties of getting this project started.
"This is a true public-private partnership. This project is a very, very busy project, very difficult to finance and very difficult to get investors," said Panepinto.
Ward C Councilman Steve Lipski, who represents the Journal Square area, also spoke about State Square presence at a time when the 10 Tube Concourse building in Journal Square near the PATH Station will soon be undergoing a transformation.
"You see a property that's been abandoned for over 20 years. This morning, I was just out with the contractors who represent the owners to draw up permits to demolish one of the buildings," said Lipski, "and part of the reason they are doing that is because of the risk that this group is willing to take and get this project started."
George Cahn, spokesman for the project, said that the apartments will start being occupied by June 1 and leases will be signed for the retail space in next two months.
Tuesday, May 10, 2005
By KEN THORBOURNE JOURNAL STAFF WRITER
It ain't rubble yet.
Last week, Ward C City Councilman Steve Lipski confidently predicted that by last night a dilapidated building next to the Journal Square Transportation Center would be a pile of bricks.
Yesterday, city building officials halted the planned demolition of 10 Tube Concourse, as well as the removal of parapets and billboards from the Hotel on the Square building (8-11 Journal Square) and a corner property at Sip Avenue (17-23 Journal Square) because of safety concerns for pedestrians and adjacent businesses.
"There are tenants right next to it," Lipski said, explaining the delayed demolition at 10 Tube Concourse. "An engineer deemed the building could buckle out and create a domino effect. Rather than be hasty we erred on the side of caution."
A Port Authority tunnel under the building will likely further slow the pace of demolition, said Marie Grasso, owner of MMG Demolition in Staten Island, the demolition contractor. Because of the tunnel, the crew won't be able to use heavy equipment, like a crane, on the site, she said.
Yesterday, the former site of the Jersey Bargain Center stood empty, the front door's glass shattered by firefighters. Drifts of rat feces lay on the floors and a neon orange sign advised visitors of the store's "no refunds, no exchanges" policy.
The three eyesore properties are all owned by limited partnerships controlled by the Tawil family, New York City-based real estate investors who own 80 percent of the Journal Square block next to the transportation center.
Having racked up millions of dollars in fines for building and fire code violations, the city gave the owners the option to either repair their buildings or rip them down. The Tawils elected to tear them down, plus their other properties on the block, city officials said.
Ultimately, the massive takedown would include every property on the block except the three buildings housing the Kentucky Fried Chicken, Wendy's, Song's Hallmark and the McDonald's - the only properties not owned by the Tawils.
Several weeks ago, the roof caved in at 10 Tube Concourse and building officials fear that bricks from the parapet and the billboards atop the hotel and the Sip Avenue building could fall. The parapet is the part of the facade that extends beyond the roof.
There is a concern that when 10 Concourse Tube is taken down, it could affect the building next to it, said Ray Meyer, the city's acting construction official.
An engineer working for the Tawils has to present a plan in the next day or two for pulling down 10 Tube Concourse without affecting the Daily Tortillas Grill, Mr. Gusto Express and other businesses located at 1-7 Journal Square, Meyer said. An interior demolition of the property started yesterday.
Also, the engineer has to present plans to protect pedestrians and erect scaffolding regarding the work at the hotel and the Sip Avenue building, he said. The billboard frames have to be cut with a welding iron, he said.
"We are trying to do a surgical demolition," Meyer said. "The preparation work for the demo of 10 Tube Concourse (and the removal of billboards and parapets) should happen this week."
To minimize disruption on the Square the work will be done off-hours, said Jersey City Police Lt. Robert Curry.
Journal staff writer Molly Bloom contributed to this report. Ken Thorbourne can be reached at kthorbou@jjournal.com.
A building from that infamous eyesore block in Jersey City's Journal Square is expected to be torn down today. The only question is whether it will really happen? True, it is only a small edifice at 10 Tube Concourse, a shuttered one-story structure near the PATH transportation center, but should it fall, it could be the start of a trend.
On this day, workmen are expected to take down billboards and parapets on top of the five-story Hotel on the Square property (8-11 Journal Square) and 17-23 Journal Square, a three-story building at the corner of Sip Avenue. The anticipation by neighboring merchants and residents can be cut with a knife. After more than a decade of dealing with the wretched block, it is hard to believe that a part of its destruction is near.
City officials say more buildings are expected to come down and by the time it is over, just three properties on the block - the ones housing Kentucky Fried Chicken, Wendy's and McDonald's restaurants and a card store - will be left standing. Officials said the demolition would represent the most tangible step toward redevelopment of the Square.
Most of the block is owned by the Tawil family. They have managed to get hit with nearly $11 million in fines for doing little about their blighted structures. Given the option of renovating them or tearing the buildings down, they appear to have decided to demolish them - at least one building for now.
The property owners also face a trio of lawsuits from tenants forced from buildings because of unsafe conditions. It is possible that they will face additional lawsuits in the future. It has not dissuaded the Tawils from wanting to be part of the area's resurrection.
According to city officials, the Tawils have proposed a mixed-use development for the site. It is proposed that the deteriorating buildings be replaced with primarily residential, parking, and retail. The propertyowners want to be designated as the developer.
There were similar proposals made by the Tawils to past administrations. They even considered partnerships with other developers. All this fell apart and the administrations have changed.
Mayor Jerramiah Healy faces the task of deciding whether to reward the Tawils for accumulating a huge amount of fines. It will be interesting to see who gets the upper hand in these negotiations. One would think the city is the catbird seat and should be able pick its developer.
Perhaps it would be best to wait and see just how many, if any, buildings do get razed.
Friday, May 06, 2005
By KEN THORBOURNE JOURNAL STAFF WRITER
In the next few days, one dilapidated structure on a key block in Journal Square will be demolished and hazards will be removed from two other buildings, a city official said.
These are first steps in a plan to demolish most of the structures on the block next to the PATH Transportation Center, city officials said.
Ward C Councilman Steve Lipski, who represents the Journal Square area, said 10 Tube Concourse - a shuttered one-story building next to the transportation center - will be reduced to rubble no later than Monday.
In addition, billboards and parapets atop the five-story Hotel on the Square property (8-11 Journal Square) and 17-23 Journal Square, a three-story building at the corner of Sip Avenue, will be taken down by Monday night, he said.
The parapet is the portion of the facade that extends beyond the roof line.
All three buildings are owned by limited partnerships controlled by the Tawil family, New York City real estate investors who started scooping up Journal Square properties in the late 1980s.
The Tawils will pay for and carry out the demolition, Lipski said. The Tawils own every property on this block of Journal Square except the buildings that house Kentucky Fried Chicken, Wendy's, Song's Hallmark, and McDonald's.
These three Tawil properties - the hotel, 17-23 Journal Square and 10 Tube Concourse - have been classified as "blights" by city building inspectors and have racked up more than $11 million in fines, city officials said. Given the option to fix them or knock them down, the Tawils have chosen to demolish them, city officials said.
Jersey City officials aren't the only ones trying to haul into court the owners of several eyesore properties on Journal Square.
Three commercial tenants who were hastily evacuated from 17-23 Journal Square in November are suing the landlord for not maintaining the building according to the terms of their lease agreements.
The building is owned by Adams Acquisition L.P., one of several limited partnership companies run by the Tawil family, New York City-based real estate investors who own 80 percent of the properties on the Square, including the mostly vacant Hotel on the Square.
On Tuesday, a bench warrant was issued for the Tawils' building manager - Samuel Stark - because he didn't appear in court to answer for building and fire code violations related to 17-23 Journal Square.
The three tenants - Usha Parekh, a convenience store owner, and Ibrahim Geyad and Adel Shenouda, owners of Souvlaki Inc. - filed their lawsuit against the Tawil-run company in Hudson County Superior Court on Feb. 22, according to court papers.
The tenants charge they lost their businesses as a direct result of the "defendant's failure to inspect, maintain, and repair" 17-23 Journal Square, but the court filing stopped short of putting a price tag on the damages the tenants are seeking.
David P. Lipari, the attorney representing the commercial tenants, characterized the lawsuit as "David vs. Goliath . three small working business owners of Jersey City against an out-of-state real estate magnate."
David J. Panitz, the attorney for the Tawils, said his clients "are reviewing all the facts set forth in the complaint and will be defending the matter." Previously he's said the Tawils plan to raze the building.
Last November, 10 commercial tenants were hastily rushed out of 17-23 Journal Square in light of several building and fire code violations. The city gave the owners a deadline of Feb. 25 to either make the repairs or demolish the building.
When the owners requested an extension on Feb. 15, city officials said they would consider it if the owners met several demands. The owners were asked to put in writing their intention to demolish the building, provide a demolition plan, and take immediate action to take down rear walls and loose material adjacent to another Tawil Journal Square property, 10 Concourse East.
The owners never responded and were then called to court on Tuesday, city spokesman Stan Eason said. A representative of the company failed to show, but Panitz claims neither property manager Sam Stark, nor the Tawils, knew about Tuesday's court date.
The owners of several dilapidated properties on Journal Square are now officially scofflaws.
Owners of 17-23 Journal Square - a long-standing eyesore at the corner of Sip Avenue - failed to show up Tuesday for a Jersey City Municipal Court hearing, and the judge issued a bench warrant for the arrest of the building's manager, according to Stan Eason, a spokesman for Mayor Jerramiah Healy.
"This is indicative of their unresponsiveness to meet their agreed-to remediation of the unsafe conditions of that building," Eason said of the building's owners, Ralph Tawil and his family.
"In lieu of the sheriff's acting on this bench warrant," Eason added, "the city . is developing a means of forcing their compliance to remediate this unsafe condition which will include further and more stringent judicial intervention."
Dave Panitz, an attorney representing the Tawils and building manager Samuel Stark, said yesterday that his clients "were not aware of any proceedings that was scheduled for Tuesday.
"Had Mr. Stark or his company known of any proceeding they would have participated and attended," Panitz said.
Stark is "not a decision-maker," Panitz added, expressing surprise a bench warrant could have been issued for his arrest.
"He is an assistant property manager . so I'm not sure how he got caught up in these proceedings," he said.
But Stark signed several documents related to violations at the building, including a request for an extension beyond the Feb. 25, 2005 deadline for making repairs, said Eason, the mayor's spokesman. On that document, Stark signed as the owner, Eason said.
This property - as well as several other faltering properties on the Square, including the mostly vacant Hotel on the Square - are owned by limited liability companies controlled by the Tawil family, New York City-real estate investors who have owned 80 percent of the Square itself for nearly 20 years.
Three of their buildings - the hotel, 17-23 Journal Square, and 10 Concourse East, a one-story building close to the Transportation Center - are now emblazoned with orange "Xs," indicating they are too dangerous even for firefighters to enter.
Given the choice to demolish or repair them, the Tawils indicated several months ago they intend to rip them down, according to city officials.
And the Tawils have sent letters to at least 14 commercial tenants on the Square telling them they have to move because the buildings are about to come down. But officials are losing patience.
"That is their obligation to bring it (17-23 Journal Square) up to code," Healy said yesterday. "That building cannot be brought up to code, so it must be razed. We're going to make sure they live up to their obligations."
Panitz confirmed the Tawils' intention to raze 17-23 Journal Square, but said it was City Hall holding things up: "The city hasn't issued permits," he said.
Fines haven't appeared to deter the Tawils.
Three years ago, Adams Acquisition L.P. - the Tawil company that owns 17-23 Journal Square - was socked with a $10,897,857 fine, plus $500 per week penalties, for code violations.
The Tawil company never paid the fine, according to city officials.
The long-awaited transformation of Journal Square is about to begin.
A massive demolition job is planned for Journal Square, city officials revealed yesterday. When it's over, just three properties on the block just south of the Journal Square Transportation Center - the ones housing Kentucky Fried Chicken, Wendy's and McDonald's restaurants - will be left standing.
A start date for the demolition work has yet to be scheduled, city officials said yesterday, but Ray Meyer, the city's acting construction official, said the work was "imminent" due to the deteriorated conditions of the hotel and the corner building.
By the end of this week, affected commercial tenants will receive a letter from the city ordering them to evacuate the properties, he said.
Demolition plans include ripping down the mostly vacant Hotel on the Square - a crumbling symbol of the city's many failed attempts to redevelop the Square - and all the properties between the hotel and the PATH station, Meyer said.
That would wipe out 14 businesses, including Twin Donuts and 3 Guys from Italy pizzeria.
Also slated to be knocked down is 17-23 Journal Square, at the corner of Sip Avenue, and an adjacent building, 88 Sip Ave.
All the properties slated for demolition are owned by limited liability companies run by the New York-based Tawil family, who began to amass properties on the Square in the late 1980s.
During a tour of the properties yesterday with the owner's demolition contractor, Meyer pointed out cracks in the exterior walls of both properties.
The cracks could give, causing the parapets and the billboards perched on top of both properties to plummet to the ground, he said. "That's five stories," Meyer noted.
The demolition would represent the most tangible step the city has taken to redevelop the Square, and that has at least one city official hopeful about the future.
"I am extremely proud of the efforts of the officials in the city," said City Councilman Steve Lipski, whose ward includes Journal Square. "I believe the owners of these properties also look forward to taking these properties down.
"We look forward to the demolition and the redevelopment of the property in the not too distant future," Lipski said, noting city officials now await a development plan from the Tawils.
But if current conditions of the Tawils' Journal Square properties are any indication, redevelopment could take a while.
Pointing to the Hotel on the Square (8-11 Journal Square), Meyer said the walls are cracked, roof damaged, and the chimney is moving in different directions. The courtyard behind the hotel has "several structural deficiencies," he said.
Most of the buildings slated for demolition share an adjoining wall. Knocking down one building will affect the other.
"It's dominoes," said Michael Ambrosio, the demolition subcontractor for the Tawils.
Yet, the demolition contractors plan to leave untouched three buildings not owned by the Tawils. Marie Grasso, owner of MMG Demolition in Staten Island, the prime demolition contractor, said those buildings will only have to close one day during the demolition work.
For the other properties slated to be ripped down, Grasso said a fence extending roughly 10 feet onto the sidewalk would have to be erected.
Commercial tenants fuming over the plans near Hotel on the Square
Thursday, April 21, 2005
By Ken Thorbourne
Journal staff writer
Commercial tenants in the properties surrounding the Hotel on the Square were left fuming by the news that city officials plan to level that building and several others.
"It is very hard to find a new location," said Mike Patel, owner of the 99 cents store at 1-7 Journal Square, who was told by city officials he has to go. "I need like four months. They (city officials) are talking about two weeks."
Chetan Pandya, owner of the Subway sandwich shop at 8-10 Journal Square, couldn't believe what was happening.
"It's horrible," said Pandya, whose business employs five people. "We've been complaining to the landlord so many times. Nothing got better. Every day it got worse."
Pandya and Patel blamed the Tawil family, the buildings' owners, for their woes. If the Tawils had maintained their properties, they wouldn't have to leave their prime locations, they said.
And the commercial tenants said they've been paying a pretty penny to stay there. Patel, for example, signed a 10-year lease a year ago, and has been paying a limited liability company owned by the Tawils $8,000 a month in rent - not including utilities.
Pandya signed a 20-year lease two years ago and pays $5,000 a month in rent, he said.
City officials said they are taking the Tawils to court on Tuesday for not fixing building violations identified last November. The court could release the Tawils from their lease agreement, said David Donnelly, a spokesman for Jersey City Mayor Jerramiah Healy.
"He (the Tawils) has collected millions of dollars in rent from all these people," said V. Rao, owner of Square News at 88 Sip Ave., adding that he pays a Tawil company $3,450 in rent every month. "If he (the Tawils) had maintained things, it would not come to this."
Commercial tenants affected by the planned demolition include: Daily Tortillas Grill, Mr. Gusto Express, 3 Guys from Italy, Twin Donuts, 99 cents & Up, Checks Cashed, Hunan Garden, Subway, Buy-to-Buy (a hair and wig supply store), Bibi's Fashion, HT Wireless and Square News.
The owners of two other stores - a supermarket and a jewelry store - said their businesses have no names.
Walk along the Sip Avenue side of 17-23 Journal Square, part of the block known as the eyesore block, and you will see entranceways each marked with an orange "X." These are warnings to Jersey City firefighters that it is too dangerous to enter.
The rest of the block is probably not much safer. City inspectors use the words "hazard" and "blight" when reporting on the numerous fire and building violations at 10 Concourse Plaza, a one-story structure next to the PATH station and 8-11 Journal Square, site of the infamous former hotel.
On Tuesday, there was an unusual sight. City acting Building Official Ray Meyers, police and fire officials and the demolition contractor for the Tawil family, owners of most of the properties in question, were huddling on the pedestrian walk in front of the block. It is claimed that they were trying to make sure they were all on the same page as to which buildings may be earmarked for demolition.
Most tenants doing business on the block are expected to get eviction letters. This would pave the way for tearing down the structures, officials say. The exceptions are those businesses between 12-16 Journal Square, including three fast-food franchises and a card store. The most likely reason for this activity is a pending court date on April 26, when the owner of the buildings must answer why the city violations have not been abated.
It is still too good to be true. Tearing down most of the block is certainly a first step in revitalizing the city's transportation hub and an area considered the heart of the county seat. Area residents and businesses have been disappointed in the past, so they should not hold their collective breath until the first bricks are removed. If demolition becomes a reality, it should only be a short time before the entire block is leveled. Only then can we hope for any rebirth of the Square.
Most Hudson County residents support Jersey City's recently implemented business curfew, a new Jersey Journal/New Jersey City University poll shows.
The curfew, which police began enforcing on March 26, requires businesses in 12 targeted areas in the Bergen-Lafayette, Heights and Journal Square areas to be closed between 11 p.m. and 5 a.m. or face fines up to $1,250 and the possibility of up to 90 days in jail.
However, the law does not affect bars, restaurants or other businesses where liquor is sold.
On the books since 1987, the curfew was revived in the wake of a spate of shootings at the Crown Fried Chicken restaurant at Communipaw Avenue and Crescent Street. As of yesterday, four citations have been issued to businesses violating the curfew thus far, police said.
More than half of those surveyed said curfews were an "effective tool in fighting crime." But 33.1 percent said curfews were not effective tools and 11.7 percent said they did not know.
"We really didn't think we'd have that kind of support for it," said Fran Moran of NJCU's Political Science Department, the poll's supervisor along with Bruce Chadwick of the English Department.
Because the poll surveyed people throughout the county, responses reflect the views of non- Jersey City residents as well.
The results also reflect respondents' views on curfews in general, rather than on Jersey City's business curfew, the poll's supervisors said.
Support for curfews was strong across all demographic groups, "even among groups that would seem to be unlikely supporters of such a measure," Moran and Chadwick said in a written analysis of the results.
For example, 64.2 percent of men and 54.7 percent of 18- to 29-year-olds said they supported the use of curfews as effective crime-fighting tools.
Hudson County residents tend to believe that any reduction in crime due to the curfew outweighs any economic loss to area businesses, the poll shows. Some 47.6 percent of respondents said the potential drop in crime was worth the potential economic loss. Another 32.5 percent said the trade-off was not worth it, and 18.4 percent said they didn't know.
Most respondents also said they wouldn't mind if their local corner grocery store started closing earlier. The poll found 71.8 percent of respondents approved of a curfew in their neighborhoods. This general support for a curfew was widespread among all demographic groups, "including some surprising ones," Chadwick and Moran said.
The poll found 67.9 percent of 18- to 29-year-olds would like a curfew in their neighborhoods, as would 75 percent of those earning less than $30,000 annually. And 87 percent of African-Americans and 75.4 percent of Latinos also wouldn't mind if the lights went off a little earlier on their blocks.
The same building owners who allowed their Journal Square properties to deteriorate to the point they have to be ripped down are being asked to lead the redevelopment effort for the Square.
According to Ward C Councilman Steve Lipski, he and Jersey City Mayor Jerramiah Healy met a week ago with Ralph Tawil Jr., a partner in limited liability companies that own the properties on the Square.
Tawil proposed a mixed-use development for the site, Lipski said.
"It would be primarily residential, parking, and new and improved retail," Lipski said. "The Tawils are going to bring back plans and look to be designated as the developer."
Phone calls to the Tawils and Healy were not returned.
Through a spokesman, Healy has said he has no immediate plans to seize the Tawil property through eminent domain because it would cost the city too much.
Starting at 10 Concourse Plaza - a one-story building next to the PATH train station - and wrapping around the block to 88 Sip Ave. - a building that faces the Hudson County Community College's 25 Pathside entrance - the Tawils own virtually every property on the Square.
The only buildings they don't own are the three properties that house Kentucky Fried Chicken, Wendy's and McDonald's, city officials said.
The Kentucky Fried Chicken and Wendy's buildings, 12 and 14 Journal Square, are owned by 12 Journal Square LLC and 14 Journal Square LLC, which have the same Florham Park address; and the building housing the McDonald's, 15-16 Journal Square, is owned by R. Kang of Hopelawn, N.J.
Those buildings aren't slated to be torn down, city officials said.
Those owners couldn't be reached for comment yesterday.
Given the Tawils' history on the Square, Lipski was asked if he had faith the Tawils' development plans would come true.
"I am going to say 'I am from Missouri. Show me,'" Lipski said. "I think right now . the stars are in alignment. If not, (taking the land by) eminent domain is a real possibility."
Commercial tenants in the properties surrounding the Hotel on the Square were left fuming by the news that city officials plan to level that building and several others.
"It is very hard to find a new location," said Mike Patel, owner of the 99 cents store at 1-7 Journal Square, who was told by city officials he has to go. "I need like four months. They (city officials) are talking about two weeks."
Chetan Pandya, owner of the Subway sandwich shop at 8-10 Journal Square, couldn't believe what was happening.
"It's horrible," said Pandya, whose business employs five people. "We've been complaining to the landlord so many times. Nothing got better. Every day it got worse."
Pandya and Patel blamed the Tawil family, the buildings' owners, for their woes. If the Tawils had maintained their properties, they wouldn't have to leave their prime locations, they said.
And the commercial tenants said they've been paying a pretty penny to stay there. Patel, for example, signed a 10-year lease a year ago, and has been paying a limited liability company owned by the Tawils $8,000 a month in rent - not including utilities.
Pandya signed a 20-year lease two years ago and pays $5,000 a month in rent, he said.
City officials are taking the Tawils to court on April 26 for not fixing building violations identified last November.
"He (the Tawils) has collected millions of dollars in rent from all these people," said V. Rao, owner of Square News at 88 Sip Ave., adding that he pays a Tawil company $3,450 in rent every month. "If he (the Tawils) had maintained things, it would not come to this."
Commercial tenants affected by the planned demolition include: Daily Tortillas Grill, Mr. Gusto Express, 3 Guys from Italy, Twin Donuts, 99 cents & Up, Checks Cashed, Hunan Garden, Subway, Buy-to-Buy (a hair and wig supply store), Bibi's Fashion, HT Wireless, and Square News.
The owners of two other stores - a supermarket and a jewelry store - said their businesses have no names.
The long-awaited transformation of Journal Square is about to begin.
A massive demolition job is planned for Journal Square, city officials revealed yesterday. When it's over, just three properties on the block just south of the Journal Square Transportation Center - the ones housing Kentucky Fried Chicken, Wendy's and McDonald's restaurants - will be left standing.
A start date for the demolition work has yet to be scheduled, city officials said yesterday, but Ray Meyer, the city's acting construction official, said the work was "imminent" due to the deteriorated conditions of the hotel and the corner building.
By the end of this week, affected commercial tenants will receive a letter from the city ordering them to evacuate the properties, he said.
Demolition plans include ripping down the mostly vacant Hotel on the Square - a crumbling symbol of the city's many failed attempts to redevelop the Square - and all the properties between the hotel and the PATH station, Meyer said.
That would wipe out 14 businesses, including Twin Donuts and 3 Guys from Italy pizzeria.
Also slated to be knocked down is 17-23 Journal Square, at the corner of Sip Avenue, and an adjacent building, 88 Sip Ave.
All the properties slated for demolition are owned by limited liability companies run by the New York-based Tawil family, who began to amass properties on the Square in the late 1980s.
During a tour of the properties yesterday with the owner's demolition contractor, Meyer pointed out cracks in the exterior walls of both properties.
The cracks could give, causing the parapets and the billboards perched on top of both properties to plummet to the ground, he said. "That's five stories," Meyer noted.
The demolition would represent the most tangible step the city has taken to redevelop the Square, and that has at least one city official hopeful about the future.
"I am extremely proud of the efforts of the officials in the city," said City Councilman Steve Lipski, whose ward includes Journal Square. "I believe the owners of these properties also look forward to taking these properties down.
"We look forward to the demolition and the redevelopment of the property in the not too distant future," Lipski said, noting city officials now await a development plan from the Tawils.
But if current conditions of the Tawils' Journal Square properties are any indication, redevelopment could take a while.
Pointing to the Hotel on the Square (8-11 Journal Square), Meyer said the walls are cracked, roof damaged, and the chimney is moving in different directions. The courtyard behind the hotel has "several structural deficiencies," he said.
Most of the buildings slated for demolition share an adjoining wall. Knocking down one building will affect the other.
"It's dominoes," said Michael Ambrosio, the demolition subcontractor for the Tawils.
Yet, the demolition contractors plan to leave untouched three buildings not owned by the Tawils. Marie Grasso, owner of MMG Demolition in Staten Island, the prime demolition contractor, said those buildings will only have to close one day during the demolition work.
For the other properties slated to be ripped down, Grasso said a fence extending roughly 10 feet onto the sidewalk would have to be erected.
Wednesday, April 06, 2005
By Ken Thorbourne Journal staff writer
In what might prove a step along the long and winding road to getting Journal Square redeveloped, 10 Concourse Plaza - a one-story structure next to the PATH station - had its electricity and gas cut yesterday, paving the way for demolishing the building, according to a city official.
"It's a preliminary action leading to the issuance of a demolition permit," said David Donnelly, a special assistant to Jersey City Mayor Jerramiah Healy.
Donnelly couldn't say when the demolition permit would be issued or when the dilapidated structure might be torn down.
The building, which until recently housed a bargain store, is one of a trio of properties on the square owned by limited liability companies controlled by the Tawil family that have been classified as "unsafe structures" by Jersey City's Building Department.
The New York-based developers also own 8-11 Journal Square - the former Hotel on the Square - and 17-23 Journal Square, a corner property at Sip Avenue that had to be hastily evacuated last November because of fire and building code violations.
A Jan. 28 inspection report called all three buildings "substantial fire hazard(s)" that "blight the neighborhood."
"These buildings need to be rehabilitated or demolished forthwith," the report states, issuing a Feb. 5 deadline for compliance.
The building owners were subsequently granted a 60-day extension.
Along with 10 Concourse Plaza, the building owners intend to demolish the vacant corner property, city officials said.
Donnelly said he wasn't sure what the building owner had in mind for the Hotel on the Square property, which is vacant except for some commercial properties on the ground level.
City attorneys are scheduled to be in court on April 26 to charge the Tawil companies with non-compliance in regard clearing up the violations at the hotel and corner property - a move Donnelly said the owners welcomed in order to legally extricate themselves from existing leasing agreements.
Calls to the representatives of the Tawil family were not returned.
The Tawil's ownership of Journal Square properties dates back to the late 80s, when they bought 1-7 Journal Square, along with the hotel and corner lot.
Although their properties have all deteriorated, the Tawils - by virtue of the fact they own most of the properties of the square - have frequently been mentioned as potential developers of the site.
And they continue to amass more property on the square.
NJ Transit is in the process of selling to Renaissance Center Urban Renewal Associates, a limited liability company run by family members, 88 Sip Avenue and a 34,000 square-foot parking lot it had been leasing to the Tawils. These properties are in the back of the square and face the entrance for Hudson County Community College at 25 Pathside.
Journal Square store opens again after three-month closure
Thursday, March 10,
2005
By Michelangelo Conte
Journal
staff writer
A Sip Avenue store on Journal
Square in Jersey City opened its doors last Tuesday for the first
time since city officials closed it down, along with a number of
other shops, more than three months ago when the building 22 Journal
Square was found to be unsafe.
As it turns out, the building
that houses the store, Square News, is separate from the one that
was condemned.
"In November, everything
happened so fast and they thought this was the same as that," said
the owner, who identified himself as V. Rao of North Bergen.
"The landlord is the same,
but this is 88 Sip and the other building, 22 Journal Square, is
the one that has the problems."
Rao said his lawyer had
been working with city officials to get Square News reopened since
it was shut along with the other stores when cracks were discovered
in the facade of 22 Journal Square, leading to fears of a collapse.
Rao estimated he has lost
$35,000 since his store was shuttered.
NJ Transit recently said
it would sell 88 Sip Ave., the 34,000-square-foot building that
houses Square News, to Renaissance Center Urban Renewal Associates.
The company is owned by
members of the Tawil family, New York City real estate developers
who also own the deteriorating Hotel on the Square at 8-11 Journal
Square and 17-23 Journal Square, at the corner of Sip and Bergen
avenues.
That corner building, which
is three stories, was hastily evacuated on Nov. 18 after building
inspectors found it unfit for occupancy. It has remained vacant
and is slated for demolition within the next two months.
The one-story 88 Sip Ave.
is an adjacent but separate building and is safe for occupancy,
said Fire Capt. Andrew Johnson. If 17-23 Journal Square is demolished,
it will not directly affect 88 Sip Ave., Johnson said.
But with the Tawil family
planning to buy the Square News building - which it now leases from
NJ Transit - Rao wonders what its fate will be. He currently has
a 10-year lease with the Tawil family.
Rao, a native of India,
signed the 10-year lease for the space nine months ago. After just
over four months, his business was closed with the others.
He pays $3,450 a month
in rent, he said. As a prerequisite to reopen, the city had Rao
put a scaffolding on his store's roof at an initial cost of $3,500
and monthly rent of $150, to protect it should anything fall from
the taller building.
He said his store took
in about $1,200 on a busy day. He said he took in about $17 last
Tuesday.
He's had to throw away
all the perishables in the store and is now having it restocked
and is working to get the phone line hooked up so his lottery machine
can operate.
"Nothing in my place has
a problem, but still I am closed 31/2 months and today I still don't
know the reason," Rao said. "Of course I will file a suit, but I
don't know who to go after. That is for my lawyer to determine."
A Sip Avenue store has managed
to reopen its doors and is restocking its shelves. City officials
closed it down, along with a number of other shops, more than three
months ago when the building 22 Journal Square was determined to
be unsafe. The reason the Square News store has been allowed to
open again is that it is in an adjacent but separate building from
the one that was condemned.
Store owner V. Rao said
he is in 88 Sip Ave., a building owned by NJ Transit. The state
transportation agency plans to sell the 34,000-square-foot building
that houses Square News to Renaissance Center Urban Renewal Associates.
The buyer is owned by the Tawil family, New York City real estate
developers who also own the deteriorating Hotel on the Square at
8-11 Journal Square and 17-23 Journal Square, at the corner of Sip
and Bergen avenues.
Being aware that there
is some movement in that corner of the Square that has been blocked
off to the public makes one appreciate the high energy that the
students of Hudson County Community College bring to the entire
area. The college students are constantly on the move to and from
classes or they just visit Square stores and eateries. The people
who go to President Glen Gabert's college are the ones who bring
life to a part of the city that needs rebirth.
The college is expanding,
and its new Culinary Arts Institute and Conference Center on Newkirk
Street will bring more activity to the area, as have the renovated
administration building on Sip Avenue and the Fine Arts studios.
No one wants to see a person's
business go under, but the building that the Square News occupies
is not in the same category as the ones revived by the HCCC. Under
the Tawil family, the future for 88 Sip Ave. and the rest of the
dilapidated block that has the former Hotel on the Square as its
landmark is a question mark, and doesn't appear hopeful. It's too
bad that the far larger property currently sucks much life out of
the area once called the Heart of Jersey City.
A Sip Avenue store on Journal
Square in Jersey City opened its doors yesterday for the first time
since city officials closed it down, along with a number of other
shops, more than three months ago when the building 22 Journal Square
was found to be unsafe.
As it turns out, the building
that houses the store, Square News, is separate from the one that
was condemned.
"In November, everything
happened so fast and they thought this was the same as that," said
the owner, who identified himself as V. Rao of North Bergen.
"The landlord is the same,
but this is 88 Sip and the other building, 22 Journal Square, is
the one that has the problems."
Rao said his lawyer had
been working with city officials to get Square News reopened since
it was shut along with the other stores when cracks were discovered
in the facade of 22 Journal Square, leading to fears of a collapse.
Rao estimated he has lost $35,000 since his store was shuttered.
NJ Transit recently said
it would sell 88 Sip Ave., the 34,000-square-foot building that
houses Square News, to Renaissance Center Urban Renewal Associates.
The company is owned by
members of the Tawil family, New York City real estate developers
who also own the deteriorating Hotel on the Square at 8-11 Journal
Square and 17-23 Journal Square, at the corner of Sip and Bergen
avenues.
That corner building, which
is three stories, was hastily evacuated on Nov. 18 after building
inspectors found it unfit for occupancy. It has remained vacant
and is slated for demolition within the next two months.
The one-story 88 Sip Ave.
is an adjacent but separate building and is safe for occupancy,
said Fire Capt. Andrew Johnson. If 17-23 Journal Square is demolished,
it will not directly affect 88 Sip Ave., Johnson said.
But with the Tawil family
planning to buy the Square News building - which it now leases from
NJ Transit - Rao wonders what its fate will be. He currently has
a 10-year lease with the Tawil family.
Rao, a native of India,
moved to the United States 19 years ago and worked for a recruiting
firm until he purchased the business Square News and signed a 10-year
lease for the space, nine months ago. After just over four months,
his business was closed with the others.
He pays $3,450 a month
in rent, he said. As a prerequisite to reopen, the city had Rao
put a scaffolding on his store's roof at an initial cost of $3,500
and monthly rent of $150, to protect it should anything fall from
the taller building.
He said his store took
in about $1,200 on a busy day. He said he took in about $17 yesterday.
The city gave him a permit
to have his electricity turned back on and the switch was thrown
by Public Service Electric and Gas on Friday.
He's had to throw away
all the perishables in the store and is now having it restocked
and is working to get the phone line hooked up so his lottery machine
can operate.
"Nothing in my place has
a problem, but still I am closed 31/2 months and today I still don't
know the reason," Rao said. "Of course I will file a suit, but I
don't know who to go after. That is for my lawyer to determine."
NJ Transit is preparing
to sell a 34,000-square-foot piece of property at 88 Sip Ave., south
of the PATH station, to Renaissance Center Urban Renewal Associates
for $3.5 million. The land is two separate parcels with two buildings
housing a clothing store and a convenience store. There is also
a parking lot for about 110 cars.
The problem is that the
principals buying the property are members of the Tawil family,
New York City real estate developers who also own the block where
the shuttered former Hotel on the Square is the prominent landmark.
The buildings in question are 8-11 and 17-23 Journal Square. Businesses
were hastily evacuated on Nov. 18 after building inspectors found
it unfit for occupancy - a facade was separating from one structure.
It has remained vacant and is slated for demolition - someday.
City administration after
city administration has promised to tackle this hideous Journal
Square problem. It has all been lip service. With this in mind,
some of the responses to the proposed sale have been ridiculous.
Councilman Steve Lipski,
who represents Journal Square, declined to comment, saying he first
wanted to discuss the plans with the Tawil family. One can only
assume the councilman was practicing a stand-up comedy routine.
Jack Beirne, director
of the city Department of Housing, Economic Development and Commerce,
said the sale adds value to the site and could make redevelopment
there more likely. The betting is that this nation will colonize
Mars before any redevelopment occurs on the Tawil properties.
At least Donald Smartt,
the executive director of the Journal Square Restoration Corporation,
makes some sense when he notes that public ownership of that piece
of land has been a stumbling block in the overall development of
the square. Unfortunately, the proposed new owners may prove to
be a bigger hurdle than NJ Transit.
Only Councilman E. Junior
Maldonado, chairman of the Jersey City Redevelopment Agency, made
any sense by stating the obvious. Maldonado said he could not see
how it's a good thing since the Tawils have not done anything with
the property they already own.
What is the lesson here?
NJ Transit built the white elephant called the Journal Square Transportation
Center, a complex that many blame for helping to kill the vitality
of the area. Now with this building sale, it is obvious NJ Transit
is not a friend of Jersey City.
NJ Transit to
sell lot, 2 buildings for $3.5M
Wednesday, February 23, 2005
By Maria Zingaro Conte
Journal staff writer
NJ Transit is preparing
to sell property it owns in Journal Square in Jersey City to the
same landlords who have been cited for countless building and fire
code violations in other buildings in the area.
According to Dan Stessel,
a spokesman for NJ Transit, the state agency is selling a 34,000-square-foot
piece of property at 88 Sip Ave., behind the PATH station, to Renaissance
Center Urban Renewal Associates. The company's principals are members
of the Tawil family, New York City real estate developers who also
own the deteriorating Hotel on the Square at 8-11 Journal Square
and the building at 17-23 Journal Square.
That structure was hastily
evacuated on Nov. 18 after building inspectors found it unfit for
occupancy. It has remained vacant ever since and is slated for demolition
within the next two months.
According to Stessel,
NJ Transit's board of trustees voted in September to give George
Warrington, the agency's executive director, the authority to finalize
the sale with RCURA, which currently leases the property.
The land, comprised of
two separate parcels, contains two buildings, which house a clothing
store and a convenience store. There is also a parking lot with
space enough for 110 cars.
The property will be sold
for $3.5 million, Stessel said.
"It is currently leased
to RCURA and so we've opted to sell the property seeing we don't
anticipate it will serve a purpose for NJ Transit in the future
and to further Jersey City's redevelopment plan," he said.
Harold Sutton, the person
named by NJ Transit as the contact for RCURA, did not return telephone
calls seeking comment on the sale. Sutton works for Centurion Realty,
the same property management company that handles the Tawils' other
buildings in Journal Square.
City officials from the
last three administrations have been pushing for the redevelopment
of Journal Square, and have often criticized the Tawils for the
poor conditions of their buildings.
Questioned for his opinion
of increasing the Tawils' holdings in the area, Ward C Councilman
Steve Lipski, who represents Journal Square, declined to comment,
saying he first wanted to discuss the plans with them.
"I would like to meet
with the (new) owners of the property to find out what their intentions
are, with specific times and dates, and lock that in and, if movement
isn't done, look at whatever options the city has," he said.
Jack Beirne, director
of the city Department of Housing, Economic Development and Commerce,
said the sale would increase the options for the property and could
make redevelopment there more likely.
"It only adds value to
the site," he said.
Similarly, Donald Smartt,
the executive director of the Journal Square Restoration Corporation,
said he viewed the sale as a positive step.
"The acquisition of this
property by a private sector entity is a small, significant step
forward in the eventual development of the overall property," he
said. "The public ownership of that piece of land has been a stumbling
block in the overall development of the square. That stumbling block
has now been removed."
But Councilman E. Junior
Maldonado, who is also the chairman of the Jersey City Redevelopment
Agency, was less pleased at the prospect of the sale.
"Personally, I can't see
how it's a good thing," he said. "These individuals haven't done
anything with the property they already own. Certainly we'd like
to see that property, along with the properties they already own,
go into a more competent developer's hands."
17-23 Journal
Square to be gone by April's end
Monday, February 21, 2005
By Ken Thorbourne
Journal staff writer
The owners of a dilapidated
building on Journal Square in Jersey City that was hastily evacuated
last November after city inspectors found numerous building and
fire code violations will now have until April 25 to tear down the
battered structure. The original deadline was Feb. 25.
The multi-story building
is located at 17-23 Journal Square, at the corner of Sip Avenue.
Building Inspector Ed Ciolko said the property owners were given
the 60-day extension because they've taken action to begin the demolition
process.
Ciolko emphasized that
the city gave the building owners the choice of correcting the violations
or ripping down the structure, but it is was the owners' decision
to demolish the building.
The owners of the building,
also own 1-7 Journal Square and the mostly vacant 8-11 Journal Square,
commonly known as Hotel on the Square.
All the buildings - which
collectively represent all but three lots on the east side of Journal
Square between the PATH train station and Sip Avenue - are owned
by limited liability corporations traceable to the Tawil family,
real estate developers with offices in Manhattan.
Removal or renovation
of these structures is seen by city officials as key to the rejuvenation
of Journal Square, which in its heyday, was a hub of activity with
three functioning theaters, several department stores and first-class
restaurants.
Earlier this week, city
officials received a $100,000 state grant to help plan commercial
and economic revitalization in the immediate area, based on the
fact Journal Square is also a PATH train stop and is next to a bus
depot.
The latest inspection
report, issued Jan. 28, threatened the owners of the deteriorating
building at 17-23 Journal Square with fines of $500 per week until
the buildings were compliant with city codes. Ciolko said he didn't
foresee the city collecting this money since the owners picked up
the paperwork last week to get the ball rolling on the demolition
job.
On the Jan. 28 report,
Ciolko, wrote the structures were "attractive nuisances (representing)
a substantial fire hazard and they blight the neighborhood."
Roughly 10 businesses
were displaced because of the deterioration of 17-23 Journal Square.
Journal Square properties
owned by the Tawils have been cited for violations before.
An inspection report on
Sept. 27, 2002 levied a nearly $11 million fine on the owners for
"masonry parapets" and "certain portions of the brick
facade" at 17-23 Journal Square "posing a hazard to street
and pedestrian traffic around the building." The report ordered
the owners to erect a "sidewalk shed" around the perimeter
of the building to protect the public.
Ciolko couldn't recall
if the Tawils ever paid the fine. He said the existing sidewalk
shed around 17-23 Journal Square was erected in response to the
violations found last November.
Companies owned by the
Tawils purchased 1-7 Journal Square for $3 million in Dec. 1986,
8-11 Journal Square in Sept. 1987 for $2 million, and 17-23 Journal
Square for $2.3 million in April 1988, according to city records.
Amid area's
decay, officials envision revitalization of Jersey City Friday, February 18, 2005
By Ken
Thorbourne
Journal
staff writer
The scenes represented
opposite sides of Journal Square. Ironically, they were played out
just a short walk apart.
Smiling broadly, Jersey
City Mayor Jerramiah Healy stood at the top of the escalators leading
to the PATH station at Journal Square on Tuesday, accepting a cardboard
replica of a $100,000 check from state officials to help plan the
future of the transportation hub and once-storied Square.
Healy spoke about a revitalized
Loew's Jersey Theater just across Kennedy Boulevard, referred to
the old State Theater building now being redeveloped and set to
re-open in the fall as a 130-unit mostly market-rate rental complex.
But just down the block,
a less reassuring reality was playing out.
Michael D'Angelo and a
crew of helpers were removing boxes of unsold supermarket goods
from a dark and cold corner deli, one of 10 businesses shuttered
in November when city inspectors deemed 22 Journal Square unsafe
because of numerous code violations.
"Nobody cares," shouted
D'Angelo, a friend of the owner, as he dragged another crate of
unsold goods toward the door. "They just come here and shut us down.
Boom. The landlord didn't even talk to them."
The deterioration of 22
Journal Square and the cracks discovered in another long-standing
Journal Square eyesore, the Hotel-on-the-Square, didn't happen overnight.
Their slow but steady
demise - along with the recent closure of Canton's Chinese restaurant
on Bergen Avenue, one of the last white-tablecloth restaurants in
the area - is emblematic of the decline of the Square itself.
A major cultural and retail
hub in the 1940s and 1950s, the square is now a tarnished image
of its former self, given over to panhandlers and pushers by night.
"The first thing is cleanliness
and beautification," said Naty Caballero, a 25-year Jersey City
resident and frequent PATH train rider, when asked how she would
improve the square. "Soon as it gets dark, it's scary walking around
here."
But city officials and
advocates for the Square paint a different picture. They argue the
glass is half full and the seeds for a revival are in place.
Middle-class singles,
couples and families, perhaps shut out of the booming Hoboken housing
market, are flocking to the Journal Square area, they said.
And there are tangible
improvements: More than 200 city employees will soon be working
at One Journal Square Plaza, the preservation of more than 100 jobs
at the ADP building at Two Journal Square Plaza and the ongoing
presence of Hudson County Community College, including its new culinary
arts center under construction on Newkirk Street.
And planning for the Hotel-on-the-Square
properties and 22 Journal Square is ongoing.
These properties are owned
by limited liability corporations traceable to the Tawil family,
based in New York City, officials said. Plans are in motion to raze
22 Journal Square.
The city remains open
to negotiating a deal with the Tawil family to redevelop their property,
said Steve Lipski, the area's councilman.
The city also has the
option to seize them under eminent domain, but Lipski said he favors
first negotiating with the Tawils, and, he said, Healy is reluctant
to use eminent domain.
"We'd have to pay for
the highest and best use of that property which would be millions
and millions of dollars," said David Donnelly, special assistant
to the mayor. "The mayor believes that would be unfair to the taxpayers
of Jersey City."
Even if it's somewhat
costly, Donald Smartt, director of the Journal Square Restoration
Corporation, a private entity supported by local businesses, believes
it's time to bring in a new developer.
"There have been probably
four administrations since the current property owners have become
the current property owners and each administration is tempted to
have the same conversation (with the Tawils)," Smartt said. "What
is problematic is the property owner's failure to address . the
impact of this vacant, unmaintained, unattractive property in the
midst of our central business district."
Phone calls to a representative
of the Tawil family were not returned.
Lipski sees the mix of
uses contemplated for the Square area as a key to success.
"It is a balanced approach:
city employees, education, parking facilities, the residential units,"
he said. "It's not just all abated, private, market-rate units."
The reactivated Loew's
Theater is seen as another catalyst for a rejuvenated Journal Square.
To this point, the Friends
of the Loew's, the group spearheading the theater's comeback, have
invested roughly $2.5 million for restoration and solicited $1.4
million worth of volunteer labor, said Colin Egan, director of the
76-year-old theater, which closed in 1986 and re-opened in 2001.
"What we haven't looked
at is what to do with the Square proper," Egan said. "How do we
get restaurants? What kind of retail do we want? We just haven't
looked at this in a long-term way."
Businesses clear out,
but no demolition plan Monday, January 24, 2005
By Jeff Theodore Journal staff writer
The status of 22 Journal
Square , a building deemed unsafe and on the brink of collapsing
a few months ago because of several building and fire code violations,
remains unclear.
A letter mailed by Centurion
Realty, the New York City company that manages the building, ordered
tenants to remove all possessions from the structure by last Wednesday.
Adams Acquisition LLC, also based in New York City , owns the property.
The letter also mentioned
that engineers for the Adams company had determined that the building
should be demolished.
However, while Adams officials
have sought information from city officials about engineer and demolition
permits, they haven't filed anything in writing, city spokesman
Stan H. Eason said Friday.
"The company is not
mandated to tear the building down," Eason said. "They
could undergo a rehabilitation of it. But you've got to figure that
it would be more costly to rebuild."
Samuel Stark, an assistant
property manager with Centurion, which manages the building, couldn't
be reached for comment on Friday.
Donald Smartt, executive
director of the Journal Square Restoration Corporation, said Friday
that he has received reports from his staff of surveyors and engineers
being spotted at the site.
"But I really don't
have a clue of what that indicates," Smartt said. "All
I know is that something is going to happen. It's up to the owner
to choose the timing for it."
An engineering report
produced for Centurion on Nov. 18 last year detailed the unstable
condition of the building, noting that the structure's facade was
particularly perilous.
"Stability is a major
concern due to the severity of the displacement in the brick”, according
to the report. Smartt has said he thinks demolishing the building
would provide a spark for the Journal Square area and make room
for possible new development.
No. 22 to be razed
no word yet on hotel Monday, January 10, 2005
By Maria Zingaro Conte Journal staff writer
The displaced tenants
of 22 Journal Square were notified last week that the building they
were forced to hastily evacuate nearly two months ago is slated
for demolition and must be cleaned out in the next 10 days.
On Nov. 16, city building
officials ordered a hurried evacuation of 22 Journal Square , deeming
it unsafe because of numerous building and fire code violations.
The move meant the ten businesses there had toshutter immediately.
The building has been
unoccupied ever since, several of its shops seemingly frozen in
time with goods still lined up neatly on the shelves and sodas still
in their refrigerator cases. But the condition of the structure
has deteriorated, with several upper-story windows broken and uncovered,
exposing the interior to the elements.
The news that 22 Journal
Square must be emptied out came to the tenants late last week via
a letter dated Dec. 29 and sent by Centurion Realty, the New York
City company which manages the building. Adams Acquisition LLC,
also based in New York City , owns the property.
"It has been determined
by our engineer that the building should be demolished," the
letter said. "As of the date of this letter, your lease with
Adams Acquisition . is hereby terminated and as such, you are to
remove all possessions from your units immediately. Possessions
that are not removed by Jan. 19, 2005 will be considered abandoned
and removed by the building's contractors."
Ivona Tukendorf, an agent
with Associated Business Center insurance agency, a former 22 Journal
Square tenant, said her company had already moved out of the building.
"We already have
moved because we already heard word that they were going to bring
down the building," she said adding that the move had come
just after her company renovated some of its offices in the structure.
"Of course we were upset."
The letter to the tenants
is signed by Samuel Stark, an assistant property manager with Centurion.
Stark did not return telephone calls seeking comment on the reasons
for the demolition or on the future of the property.
However, an engineering
report produced for Centurion on Nov. 18 detailed the unstable condition
of the building, noting that the structure's facade was particularly
perilous.
"Stability is a major
concern due to the severity of the displacement in the brick,"
the report said.
The report also called
for the building's parapet to be removed, although that work was
never done.
Jersey City spokeswoman
Maria Pignataro said the decision to raze the building was made
because the cost of repairing the parapet and other parts of the
structure exceeded the building's total value.
"As far as plans
for the future, they don't have any yet but whatever they do would
have to conform to the Journal Square Redevelopment Plan,"
Pignataro said.
Questioned over Mayor
Jerramiah Healy's position on the demolition, Pignataro said the
mayor was eager to see Journal Square redeveloped and was looking
forward to hearing more about the future plans for the site.
No date for the demolition
has been set yet, she said, adding that city building officials
must still issue a demolition permit before the work can proceed.
There is also still no
word on the fate of another now-infamous Journal Square building:
the Hotel on the Square building at 8 Journal Square , which is
owned by Madison Acquisitions, a company at the same address as
Adams Acquisitions.
The same day 22 Journal
Square was closed, the Hotel on the Square was also emptied after
large cracks running through the building were found. Although since
then, the tenants of that building have been allowed to return to
the premises, concerns over the condition of the structure have
persisted and city officials and others have called for the redevelopment
of the entire area.
Donald Smartt, the executive
director of the Journal Square Restoration Corporation, said the
pending demolition of 22 Journal Square could be the first step
towards that redevelopment.
"Should the building
be slated for demolition either by private action or as a result
of public action, everyone I've talked with, business owners, property
owners, board members, consumers, commuters all view the removal
of not only 22 but all of the properties (on that block) collectively
known as the Hotel on the Square properties, as in the best interests
of the future of the square as it would make way for vitally needed
and essential new development," he said.
Maria Zingaro Conte
covers Jersey City . She can be reached at mzconte@jjournal.com.
Fears mount over dilapidated
building Tuesday, December 14, 2004
By Maria Zingaro Conte Journal staff writer
Concern over the safety
of the dilapidated Hotel on the Square building in Journal Square
in Jersey City is mounting after a tenant noticed that a large crack
in the structure's masonry had widened.
Meanwhile, a parking lot
adjacent to Hotel on the Square is expected to reopen Thursday after
being closed for nearly two weeks while workers removed the steel
girders above it.
On Nov. 16, city building
inspectors forced an evacuation of the Hotel on the Squarelocated
at 8 Journal Squareafter discovering cracks running through
the building.
Since then, engineers
found the structure safe for occupancy and the businesses on the
first floor were allowed to reopen. The upper floors of the five-story
building have not been occupied for several years.
But Donald Smartt, the
executive director of the Journal Square Restoration Corporation,
the organization which oversees the area's business district, said
yesterday he notified city officials that the crack may be widening.
He was alerted to the situation by one of the tenants in the building.
"I received a call
on Friday from the owner of McDonald's indicating that he was of
the belief that the crack along the parapet was widening and he
expressed concern over the safety of his customers and his employees,"
Smartt said. "I sent my operations supervisor to take pictures
of what he had concerns about, and then I shared that with both
the property manager and the city inspectors, and at this point
I haven't heard anything about that."
McDonald's owner, Darren
Lentini, denied any knowledge of the situation and representatives
from Centurion Realty, the company that manages the Hotel on the
Square, could not be reached for comment yesterday afternoon.
The city's acting construction
code official, Ray Meyer, said yesterday that he reached out to
Centurion but had not heard back as of last night.
"I've been made aware
that there is a change in condition of the building," said
Meyer, who added that he planned to have inspectors there as early
as today.
A Nov. 23 inspection report,
prepared by Consulting Engineers Collaborative of Kenilworth, confirmed
that the building's parapet was damaged and needed to be removed.
The report also recommended
the removal of the billboard on the roof of the building because
it placed additional stress on the already weakened parapet masonry.
The billboard was taken down about two weeks ago, but the parapet
remains intact.
On the same day that inspectors
closed the Hotel on the Square, they also evacuated neighboring
22 Journal Square after finding numerous building and fire code
violations. That building remains empty.
For several days before
the building closures, workers had been removing a steel roofing
structure over the parking lot next door to 22 Journal Square ,
which is owned by NJ Transit and leased to Central Parking. At the
time, city inspectors theorized that the removal of one of the girders
supporting that roof might have caused the building facade to weaken.
However, building officials
have since concluded that the demolition process at the parking
lot would not pose any danger to the lot's adjoining structures
and work there resumed on Dec. 4.
Today, most of the roof
structure has been removed. A person answering the telephone at
Central Parking Corporation's Newark office said the lot was expected
to reopen on Thursday.
Maria Zingaro Conte
covers Jersey City . She can be reached at mzconte@jjournal.com.
Decaying buildings
a factor in long decline new pain in closings Thursday, December 04, 2004
By Maria Zingaro Conte Journal staff writer
While Hudson County big
box and shopping mall retailers may be optimistic over their prospects
for turning holiday season profits, the outlook among business owners
in problem-plagued Journal Square in Jersey City is not as bright,
according to the results of a recent survey.
The survey, conducted
Nov. 23 and 24 by the Journal Square Restoration Corporation, which
oversees the business district, came just one week after city inspectors
closed down three buildings in Journal Square because they were
deemed unsafe.
According to Journal Square
Restoration Corporation Administrator Donald Smartt, the survey
found that merchants in the area estimated holiday sales would be
either flat or down 7 to 10 percent from last year.
The questionnaire was
given to Journal Square retailers who participated in this year's
sidewalk sales program. Most merchants also reported that current
sales, customer spending and in-store traffic overall had not changed
or were down slightly from the previous year, Smartt said.
The results are just the
latest piece of bleak news for Journal Square businesses.
Last week, in the wake
of the building closures, engineers from Consulting Engineers Collaborative
in Kenilworth were brought in to inspect one of the vacated buildings,
the Hotel on the Square. The engineers found that the structure's
chimney and parapet needed to be repaired, according to a report
issued Nov. 23.
The report also calls
for a more detailed engineering study to be done as soon as possible.
The engineering firm,
hired by Centurion Realty, the company that manages all of the closed
buildings, also recommended that the billboard atop the five-story
Hotel on the Square be removed because of the strain it placed on
the structure. The sign was taken down Saturday.
Along with Hotel on the
Square, the report assessed the two-story building adjacent to it,
at 10 Tube Concourse, which was also closed by the city, and found
that the structure's wooden roof was falling in and would have to
be replaced.
Representatives from Centurion
Realty did not return telephone calls seeking comment on the findings.
Although the businesses
on the first floor of the Hotel on the Square building were allowed
to reopenthe upper stories have been vacant for yearsthe
businesses in 10 Tube Concourse and at 22 Journal Square, on the
corner of Sip and Bergen avenues, were not so lucky. Those buildings
have been closed to all occupants since Nov. 16.
Several of the remaining
merchants in Journal Square blame the poor condition of the evacuated
buildings and other nearby structures for the recent decline in
business.
"The haunted house
has got to go," said Sunflower Deli owner Chris Chang, referring
to the Hotel on the Square. "Get rid of those buildings and
build new ones, strip malls."
Chang said he would welcome
any new development in the area to draw more people in and bolster
his sagging profits.
Mike and Terry Randolph,
who were out shopping on Journal Square yesterday, both said they
had noticed a decline in the number of people shopping in the area
recently.
"The 99 cent store
closed and that really hurt," Mike said, referring to one of
the shops in 10 Tube Concourse.
"All this closing
up, it gives you a very morbid feeling," Terry added. "The
neighborhood is dying."
Smartt said while the
building closures themselves probably have had very little effect
on business in the Square, the condition of the buildings had significantly
hurt commerce in Journal Square in recent years.
"The condition of
the Journal Square properties, the hotel and the surrounding half-block,
is clearly detrimental to the long-term viability and health of
all of the commercial properties," he said. "No healthy
business district can suffer the lack of investment that is clearly
seen in these properties."
Yoon Kim, who has owned
Song's Hallmark in Journal Square for last 17 years, said he had
mixed feelings about whether the vacant buildings should be razed
or simply repaired. His greeting card and gift store sits between
two of the closed structures and could also fall prey to the wrecking
ball, depending on what is developed there.
"That would be the
best thing for Jersey City , but as a merchant, for me it's vice
versa," he said. "For me, to repair the buildings (would
be best)."
Kim is among those who
believe the shuttered buildings are deterring customers from coming
to his shop because they give people the impression that all the
stores along the east side of the Square are closed.
But on the opposite side
of the square, Abraham Sedhom, owner of Way In Jewelry, reported
that business was down there as well.
Sedhom's nephew, Sam Sedhom,
who was in the shop visiting, said he recently moved his jewelry
store out of Jersey City because business had been so bad. He blamed
his uncle's business troubles on the parking shortage in Journal
Square .
"People come to shop
for 10 minutes and they wind up paying a $50 parking ticket,"
he said.
Joanne Van Dorn, president
of the Hudson County Chamber of Commerce, agreed that insufficient
parking is a deterrent.
"It's a similar problem
in all of the shopping areas," she said. "Parking is always
their biggest problem and that prevents people from coming out at
night to shop there."
Also, parking lot work
will send scores of drivers elsewhere Friday, December 03, 2004
By Maria Zingaro Conte Journal staff writer
This weekend, workers
will remove the parapet from the deteriorating building at 22 Journal
Square in Jersey City in what could be the first step in the demolition
of the entire structure.
In recent days, several
sources have confirmed that the owners of the vacated structure
have brought in contractors to estimate the cost of razing the building.
But according to acting
Jersey City Construction Official Ray Mayer, demolition is still
a long way off.
"I heard that they
brought contractors in to demolish it, but it's not a definite yet,"
Mayer said.
Before anything can happen,
the property owner, Adams Acquisition Company, based in New York
City , must first obtain a demolition permit from the city. The
city also would have to determine the stability of the remaining
structure, Mayer said.
In the meantime, the building's
parapet will be removed.
Asked what he wants to
see happen at 22 Journal Square, Mayor Jerramiah Healy said he would
support any future development of the property that would bring
more ratables, investment and jobs, but noted that such a project
would not necessarily entail demolition of the structure.
"I don't own the
building. They can do what they want with it," he said. "Whatever
they do they will have to be in conformity with our zoning ordinances."
On Nov. 16, city building
officials uncovered numerous building and fire code violations at
22 Journal Square and closed the building, forcing all of the businesses
there to close.
Officials were alerted
by a Jersey City Incinerator Authority worker who saw a piece of
the building's facade fall.
The nearby Hotel on the
Square building, at 8 Journal Square , was also closed after inspectors
discovered structural cracks running through that building.
Since then, engineers
hired by the property owners recommended that the parapet and the
masonry between the roof and upper-story windows at 22 Journal Square
be removed.
According to a Nov. 18
engineering report, prepared by Engineers Plus of Hasbrouck Heights,
the parapet was unstable because of severe cracking. The report
also said that once the parapet is removed, the building's steel
structure should be inspected.
For several days before
the building closures, workers had been removing a steel roofing
structure over the parking lot next door to 22 Journal Square ,
which is owned by NJ Transit and leased to Central Parking. At the
time, city inspectors theorized that the removal of one of the girders
supporting that roof may have caused the building facade to weaken.
Yesterday, workers from
the parking company were handing out flyers to customers to inform
them the lot will be closed for a week beginning today because repairs
are again proceeding.
Mayer confirmed that the
last of the girder structure would be removed, but said the process
would not pose any danger to the adjoining structure, since it was
only a section of plaster and lathe that had crumbled away before,
not a structural element.
But just in case some
debris does fall, bridges have been installed over the sidewalks
surrounding the building, Mayer noted.
Representatives from Central
Parking did not return telephone calls yesterday. Jersey City Ward
C Councilman Steve Lipski, who represents Journal Square , said
he was happy that at least some action was being taken in the area.
"I think that when
people see that things are moving in the direction of addressing
its unsightliness and unsoundness, then people will start to say
'Hey, at least the ball is starting to move and something will happen.'"
But to Nader Wahba, the
owner of the Associated Business Center insurance agency, which
was displaced when 22 Journal Square was closed, the situation still
seems bleak.
"The last thing that
happened yesterday was I went upstairs to find some items and I
found the door broken, the door to my office and that of my neighbor,"
he said.
For Wahba, the past two
weeks have been a scramble to relocate his office.
"I am planning to
move this Saturday," he said, adding that he would be seeking
reimbursement from his landlord for the November rent he paid.
Thursday, December 02,
2004
By Michaelangelo Conte and Maria Zingaro Conte Journal staff writers
The shops at 22 Journal
Square remained closed due to numerous fire and building code violations
this week. City workers found large horizontal cracks running through
the masonry above the fifth-story windows at the rear of the Hotel
on the Square, as well as on the side of the building at the same
level, Jersey City Acting Construction Official Raymond Mayer said.
"The structural cracks
up there indicate a possible failure," said Mayer, standing
in the parking lot behind the hotel building, which has been closed
for more than a decade. "We asked the owner to have his engineer
figure out what is going on and provide an assessment as to its
remediation - removal, shoring up or demolition."
The crisis on the Square
began Nov. 16 when city officials found about 20 violations at 22
Journal Square , a building on the corner of Sip and Bergen avenues
housing several businesses. They also found threatening cracks in
the masonry at the top of the building's front wall.
Those discoveries led
to inspections in adjoining buildings along Sip and Bergen avenues,
and their subsequent closure due to fire code violations. Most of
those stores have reopened, but 22 Journal Square has been locked
down and will remain closed until the owner corrects all fire and
building code violations, officials said.
The violations may finally
mean the end to Hotel on the Square, long criticized by Journal
Square residents and workers as an eyesore, said former Mayor Gerald
McCann, special projects manager for the Jersey City Incinerator
Authority.
"These violations
may foster redevelopment of the area," McCann said. "I
think the solution is the redevelopment of the area and demolition
of the buildings, regardless if redevelopment is done by the county,
city or privately. I think the solution has to be demolition."
Jersey City officials
are waiting for the engineering report that will determine the fate
of the Hotel on the Square building, which was shuttered two weeks
ago for building code violations, but Mayor Jerramiah Healy said
he hopes the deteriorating structure will ultimately be demolished.
"Everyone wants to
do something about the Hotel on the Square," said Healy. "That's
an eyesore. It's holding up progress in Journal Square ."
The sidewalks around 22
Journal Square were closed Nov. 16, and although crews worked overnight
to erect heavy-duty scaffolding around the building, portions of
the sidewalk remained closed pending a report determining if the
scaffolding is strong enough to provide protection to pedestrians
should masonry fall, officials said.
Questioned over his hopes
for the site and over talk of moving Hudson County Community College
to the site, the mayor was unequivocal.
"I certainly don't
want another school there, which does not bring any ratables to
Jersey City ," he said. "We need ratables and jobs for
Jersey City ."
Representatives from Centurian
Realty, the company which manages the buildings, could not be reached
for comment last Monday.
Engineers hired by the
building owner, Adams Acquisition L.L.P., of West 40th Street in
Manhattan, were compiling a report on the condition of the building's
cracked facade, said Steven McGill, coordinator of the Jersey City
Office of Emergency Management.
Once complete, the engineering
report will be turned over to the city Building Department for use
in determining if the sidewalks can reopen, and also to decide how
the bowed and cracked parapet bordering the three-story-high roof
can be made safe, McGill said.
Owners of the six shops
in the building's first floor and three offices in its third floor
won't be allowed to reopen until the parapet is rendered safe and
about 20 fire code violations inside the building are addressed,
McGill said.
City officials said representatives
of the 22 Journal Square ownership group didn't arrive until the
morning of Nov. 18 to look at the site.
When they arrived, city
officials told them they could be arrested if a good faith effort
to deal with the violations wasn't made within 24 hours. That night,
the owner had a scaffold construction crew working on the Square.
The Hotel on the Square
building is owned by Oxford Acquisition, at the same West 40th Street
address as the 22 Journal Square owner.
But the 99 cent store
on the Square will remain closed because it has no secondary exit,
and Jersey Bargain Center is shuttered because its roof is in danger
of collapse, officials said.
Thursday, November 25,
2004
By Michaelangelo Conte Journal staff writer
Nine Journal Square businesses
were locked up and a section of sidewalk remained off limits this
week because some 20 fire and building code violations remained
uncorrected in a building at the corner of Sip and Bergen avenues,
officials said.
Last Thursday morning,
the operators of six shops on the first floor of 22 Journal Square
and two on the building's third-floor were given time to take what
they wanted from their stores before city officials shut them down,
officials said.
"Our goal is to get
them up and operating as soon as possible, but it's based on the
owner doing what he has to do," said Jersey City Fire Department
Prevention Specialist Matthew M. Barrett.
"In order to get
them open, they have to put up a scaffold to make the street safe,
and they have to abate the electrical problems and bring the building
up to code."
Samuel Stark, assistant
property manager for Centureon Realty LLC Construction, promised
a construction crew would begin constructing a protective scaffold
over the sidewalk, Barrett said, and last Thursday night workers
could be seen putting it up. The scaffold will allow the busy sidewalk
around it to reopen, Barrett said.
"The shop owners
felt they have been there a long time, have been complaining to
the owner a long time, and nothing has been done," Barrett
said. "City officials tried to explain that they were working
for their safety."
Last Thursday night, the
water, electricity and gas service to the building had been turned
off, the shops closed and the doors had been boarded up, Barrett
said. Temporary guard rails channeled pedestrian traffic away from
the building and out of danger of being hit by any falling masonry
from the cracked and bulging parapet.
Since last Tuesday, city
officials have demanded that the building owner, Adams Acquisition
L.L.P., of West 40th Street in Manhattan , make necessary repairs
to the building, Barrett said.
As of last Wednesday,
Barrett said, city officials had tried to contact representatives
of the owner by phone 16 times and of the five times they got through,
they were told someone would arrive at the building within half
an hour.
It was not until 10 a.m.
last Thursday that representatives of the building owner arrived
at the site and city officials notified them they could be arrested
if they did not show a sign of good faith that they would make the
required repairs within 24 hours.
Last Tuesday, threatening
cracks in the facade and numerous fire code violations were found
in the three-story building and inspectors also found fire code
violations in adjacent businesses running along Bergen Avenue to
the PATH Transportation Center .
Officials shut down all
the businesses, but many of those along Bergen reopened the next
day and by last Thursday, all but the Hunan Gardens Restaurant had
remediated the violations and were open for business, Barrett said.
The McDonald's that is
adjacent to 22 Journal Square put up a protective scaffold over
its doorway by noon last Thursday.
A dangerous masonry condition
also exists on the rear wall of the Hotel-on-the-Square building,
which is owned by Oxford Acquisition, at the same West 40th Street
address as the 22 Journal Square owner, Barrett said.
Inspectors took a look
at a few other Journal Square businesses last Thursday and said
there is a chance they would have to close a few of them due to
rat problems and other violations, Barrett said. When inspectors
entered 22 Journal Square last Tuesday they found six homeless people
inside, Barrett said.
Representatives of Centureon
Realty could not be reached for comment last week.