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.

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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.

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Square stores to shut, demolition is unclear

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."

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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.

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.

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.

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."

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

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.

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.

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.

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.

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.

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.

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.

"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

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.

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.

"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.

"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."

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.

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.

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

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.

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."

City should help Square shape up

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

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.

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.

"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

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.

"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

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.

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.

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.

"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.

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.

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."

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.

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.

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

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.

Square demolition jobs are showing progress

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."

Journal Square on the move: Concourse demolished, State Square building opened

Journal Square is making a lot of noise again.

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.

©The Hudson Reporter 2005

Square eyesore still standing; Safety concerns delay 10 Tube Concourse demolition

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.

Knock buildings down, then talk

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.

1 Square building to be pile of bricks by Monday

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.

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.

Tawils being sued by 3 Square tenants

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.

Warrant issued for manager of Square buildings

Thursday, April 28, 2005

By KEN THORBOURNE

JOURNAL STAFF WRITER

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.

14 businesses doomed 3 restaurants to survive

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

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.

Demolitions a first step to new Square?

Thursday, April 14, 2005

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.

Lights out, Hudson says to businesses

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.

Lipski: Housing, parking and retail planned

Wednesday, April 13, 2005

By Ken Thorbourne

Journal staff writer

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."

Ken Thorbourne can be reached at kthorbou@jjournal.com.

Commercial tenants fuming over the plans

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.

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.

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.

The owners of two other stores - a supermarket and a jewelry store - said their businesses have no names.

14 businesses doomed

Wednesday, April 13, 2005

By Ken Thorbourne

Journal staff writer

The long-awaited transformation of Journal Square is about to begin.