Click the titles below to read the full article

• A New Era Seen for the Square, June 19, 2006
• SQUARE ZEAL! Plan calls for towers to rise from the rubble, March 8, 2006
• A new beginning for Journal Square , March 7, 2006
• Vote on Square developer tonight , March 7, 2006
• Landlord has parting words, March 3, 2006
• Square bargain: $1.1M fine, March 3, 2006
• Tawil, Jersey City make deal on $4M in fines, March 2, 2006
• High hopes for Square eyesore, March 1, 2006
• It began with single lot in NYC, March 1, 2006
• Day in court, finally, over $4M in fines, March 1, 2006

• A sale at Square with benefit for all , February 28, 2006
• Harwoods see towers in place of Tawil blights, February 25, 2006
• Tawil's day in court deferred for 4th time, February 23, 2006
• Leaky pipe forces 2 Tawil tenants to close businesses at Square, February 18, 2006
• Gone in 60 days, February 01, 2006

• Tawils' court date again put off; city pushes teardown, November 29, 2005
• Square demolitions behind schedule, but city not worried yet, October 29, 2005
• Square stores to shut, demolition is unclear, October 26, 2005
• Demolition going slow at Square, September 21, 2005
• Square landlord, biz tenants ordered to talk, September 14, 2005
• Wendy's closes at Square, September 14, 2005
• City: Contractor told us work could begin; Asbestos halts 2 demolitions, July 27, 2005
• Politico law firm hired by Tawils, July 25, 2005
• Square sandwich shop closing as demolition countdown starts, July 22, 2005
• Square demolition off until fall, July 21, 2005
• One question remains: Will Tawils rebuild on Square properties they've allowed to crumble? July 7, 2005
• Tawil family has racked up millions in fines for properties, June 30, 2005
• Sides settle payment dispute Square demolition continues, June 23, 2005
• Unlike Square properties, DKNY building across the river sparkles, June 22, 2005
• UP TO THE TAWILS, FOR NOW: Mayor quotes family as promising housing,
  retail stores, parking, June 22, 2005
• City should help Square shape up, June 21, 2005
• DEMOLISHING AMERICAN DREAM: Shop owners stand to lose everything when
  Square buildings come down, June 21, 2005
• Limited Partnerships: Safety net for large companies, June 20, 2005
• 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 , June 20, 2005
• 2 Square demolitions halted by contractors' money dispute, June 16, 2005
• Square demolition is back on track, June 11, 2005
• Demolition project under way with gutting of two buildings, June 8, 2005
• THE BEGINNING OF THE END: Demolition project under way with gutting of two buildings, May 24, 2005
• Square demolition jobs are showing progress, May 17, 2005
• Journal Square on the move: Concourse demolished, State Square building opened, May 16, 2005
• Square eyesore still standing, May 10, 2005
• Knock buildings down, then talk, May 9, 2005
• 1 Square building to be a pile of bricks by Monday, May 6, 2005
• Tawil's being sued by 3 Square tenants, April 29, 2005
• Warrant issued for manager of Square buildings, April 28, 2005
• 14 businesses doomed 3 restaurants to survive, April 26, 2005
• Commercial tenants fuming over the plans near Hotel on the Square, April 21, 2005
• Demolitions a first step to new Square? April 14, 2005
• Lights out, Hudson says to businesses, April 14, 2005
• Lipski: Housing, parking and retail planned, April 13, 2005
• Commercial tenants fuming over the plans, April 13, 2005
• 14 businesses doomed, April 13, 2005
• Journal Square redevelopment inching closer, April 6, 2005
• Journal Square store opens again after three-month closure, March 10, 2005
• On gloomy block, one store reopens, March 04, 2005
• Square store is allowed to reopen, March 02, 2005
• Doesn't NJ Transit know the buyer? February 25, 2005
• Square buildings in shambles, and owner eyes more, February 23, 2005
• Demolition deadline extended 2 months, February 21, 2005
• 'Square' Pegs, February 18, 2005
• Risky Business, November 17, 2004 (PDF Format)
• Building violations close businesses, November 25, 2004
• Building woes may rejuvenate Square, December 02, 2004
• To remove Square building's parapet, December 03, 2004
• Journal Square business gloom, December 04, 2004
• Crack in 'Hotel' now wider, Jersey City told, December 14, 2004
• Tenants at Square site must vacate, January 10, 2005
• Square site's future cloudy, January 24, 2005

 

Demolition going slow at Square

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.

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Square landlord, biz tenants ordered to talk

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.

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Wendy's closes at Square

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.

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City: Contractor told us work could begin;
Asbestos halts 2 demolitions

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.

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Politico law firm hired by Tawils

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.

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Square sandwich shop closing as demolition countdown starts

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.

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Square demolition off until fall

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.

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One question remains:
Will Tawils rebuild on Square properties they've allowed to crumble?

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.

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Tawil family has racked up millions in fines for properties

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."

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Sides settle payment dispute Square demolition continues

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.

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Unlike Square properties, DKNY building across the river sparkles

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.

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UP TO THE TAWILS, FOR NOW
Mayor quotes family as promising housing, retail stores, parking

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."

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City should help Square shape up

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.

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DEMOLISHING AMERICAN DREAM
Shop owners stand to lose everything when Square buildings come down

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."

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Limited partnerships: Safety net for large companies

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.

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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

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."

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2 Square demolitions halted by contractors' money dispute

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."

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Square demolition is back on track

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.

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2 Square demolitions halted by contractors' money dispute

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."

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THE BEGINNING OF THE END
Demolition project under way with gutting of two buildings

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 d