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Journal Square Redevelopment Plans
| Click the titles below to read the full article
City may not see revenue for decades Monday, February 11, 2008 A Jersey City developer who has already received a 30-year tax abatement to help build an ambitious twin tower project in Journal Square - and has recruited a deep pockets partner to the deal - is now asking the city for a multi-million low-interest loan, city officials said. Lowell Harwood, managing partner of Jersey City-based Harwood Properties, is asking the city to lend the project $20 million to $40 million by floating "revenue allocation bonds," city officials said. In keeping with state guidelines, the developer would repay the loan, plus interest. But with revenue allocation bonds, the developer deducts the costs to cover the loan from whatever taxes are owed the city. This means it could be years, even decades, before the city sees any revenue from this $500 million, mixed-use development planned for the block adjacent to the PATH Transportation Center, officials said. Mayor Jerramiah T. Healy said his administration is hearing the developer out, but the public need not worry. "I know they are looking for some kind of assistance having to do with infrastructure," Healy said. "Just because someone may be looking for assistance, the city is not obliged to tender that assistance. Before any agreement is struck, the city council and I will be most vigilant with the taxpayers' money." Harwood, who has joined forces with the Multi-Employer Property Trust based in Bethesda, Md. - a union pension fund investment company with $6.2 billion in assets - to build the project, didn't return phone calls seeking comment. But Elizabeth Opacity, his spokeswoman, said: "We have been working in partnership with the city on an ongoing basis to discuss the best way to move this overall program forward and revitalize the entire area. There have been no final determinations. Only discussions. There are no conclusions." Journal Square Councilman Steve Lipski believes the city should give Harwood the money. "I support this one billion percent," Lipski said. "Helping the jewel of Jersey City and the only central business district of Jersey City is the right thing to do at this time." Downtown Councilman Steven Fulop blasted the request for additional assistance, especially since the developer received a 30-year tax break calling for annual "payment in lieu of taxes" of 10 percent, the lowest PILOT rate handed out in recent years. "The city is obviously broke and this is a dangerous door to open," Fulop said. "The next thing Lowell is going to ask for in a couple of months is for the city to build the building for him."
Money enough, but what vision? Thursday, August 30, 2007 T here is a new player involved in the future redevelopment of a key block in Jersey City's Journal Square. The Maryland-based Multi-Employer Property Trust (MEPT), with more than 300 participating pension funds, invests its equity in real estate and has an immense portfolio of new construction and acquisitions. It has net assets approaching $7 billion. Harwood Properties, headquartered in Journal Square, appears to have partnered with this deep-pocketed player to self-finance the proposed Square project. Harwood now is expected to have a 22 percent stake in the development of a 1.5-acre block that once was home to the old Hotel on the Square, adjacent to the PATH Transportation Center. The good news is that a major player means the proposed $400 million project - a two-tower residential complex with retail space and parking - is a good bet to get done. According to the trust's Web site, it has invested $36.2 million, mostly to help buy the development property The news that should be a concern is that another stakeholder in the project is Becker + Becker, an architecture, planning, preservation and development firm based in Fairfield, Conn. Becker + Becker and MEPT have a working history that includes several projects. The most notable collaboration was "The Octagon," a historic 19th century landmark building. It became a mixed-income, 500-unit apartment building on Roosevelt Island in New York City. The Jersey City project was once touted as twin towers of equal size. There is a new concept going before the city Planning Board on Sept. 25 for preliminary site plan approval. What is being proposed is a building of 62 stories - 55 stories of residential units sitting on a 7-story base of parking and 150,000 square feet of shops, city officials said. The number of stories for the south tower would be in the "low 40s." This newspaper's only concern is that there is need for something bold in Journal Square. Becker + Becker has a strong background in preservation and restoration. One of the most aesthetically disappointing projects on the Square is the apartment building constructed on the site of the old State Theater. An explanation was simply that planners hoped to match the brick of surrounding buildings. If anything, the State Theater project should have set a new standard for future architects. Here is another chance for something better than the status quo in Journal Square.
Plan for Square towers revised Wednesday, August 8, 2007 The twin-tower development proposed for Jersey City's Journal Square is changing shape. Originally proposed as two towers of more-or-less equal size, the latest design for of the mixed-use development to be built on the block adjacent to the Journal Square Transportation Center calls for a south tower between 35 and 40 stories and a north tower stretching 55 to 65 stories, according to the developer. The City Council is scheduled to introduce the change at its meeting scheduled for 10 a.m. today at the Mary McLeod Bethune Center, 140 Martin Luther King Jr. Drive. "Both towers have been designed to maximize views and unit layout," said Liz Opacity, spokeswoman for MEPT Journal Square Urban Renewal, LLC, the developer. "And the height difference is for aesthetics when you are looking at the towers." Lowell Harwood, managing partner of Jersey City-based Harwood Properties - a partner in the limited liability company formed to undertake the development - said Monday the design change was made at the request of his development partner, Washington D.C.-based Multi-Employer Property Trust (MEPT), a national real estate equity fund. MEPT referred all questions to Opacity. Even though there is no change in the 1.2 million gross square footage of the development, Planning Director Bob Cotter said the design change would likely add more units to the projects, a number originally pegged at 1,034. But, Opacity said, the developers are "still assessing the market and working on architectural drawings to determine the number and layout of units." The $400 million development, to include multiple levels of parking and retail, is still considered a rental project, Opacity said, but "the feasibility of the condominiums will continue to be explored." Jersey City Redevelopment Agency Executive Director Robert Antonicello predicted existing structures on the entire block would be leveled by the end of the year so construction can begin. McDonald's, at 15-16 Journal Square, still hasn't relocated.
Harwood brings in a partner for 2-tower project at Square Saturday, APRIL 14, 2007 The two-tower development planned for Jersey City's Journal Square now has two partners sharing the risk, burden - and potential rewards - of building the $400 million project. The board of the Jersey City Redevelopment Agency voted yesterday to amend the redeveloper's agreement with Jersey City-based Harwood Properties to include Washington-based Multi-Employer Property Trust, a national real estate equity fund that invests union pension funds. "I am confident that with MEPT's support, Journal Square will soon become a thriving neighborhood and a destination," said Lowell Harwood, managing partner of Harwood Properties. "Redevelopment of Journal Square has been talked about for 30 or 40 years. Now it's finally going to happen." David Antonelli, senior vice president of Kennedy Associates Real Estate Council Inc. LP, MEPT's sole advisor and founder, noted, "We're early on in the process. There's a lot of work to be done." MEPT is a $6.2 billion real estate equity fund owned by 312 pension plans, with a portfolio of 172 properties in 25 major metropolitan markets, said company spokeswoman Pamela Silberman. The new entity created by the partnership is called MEPT Journal Square Urban Renewal, LLC. The partners declined to say what percentage of the new company they owned. The project is slated to be built on the site of the old Hotel on the Square and several stores, next to the PATH Transportation Center, and is to consist of two towers, 52 and 46 stories, containing 1,034 apartments, 150,000 square feet of retail space and three levels of parking. By next week, officials said, MEPT will be the owner of all the properties on the block still standing. The JCRA has hired a relocation specialist to help relocate the remaining businesses on the block, including a McDonald's, said JCRA Executive Director Robert Antonicello. The developer would reimburse the city for the moving expenses, Antonicello said. Harwood predicted that by August all the remaining structures on the block will be leveled. Construction would take 18 months to two years, he said.
A 30-YEAR DEAL?
|
03/07/2006 |
A new beginning for Journal Square |
Ricardo Kaulessar |
A new vision for an old square
The Harwood family harks back to the Journal Square of yesteryear, when the same strip set to be demolished was once the thriving center of the city. Throwing in the Tawil Much has been written about whether the city would ever get the Tawils to demolish their buildings and pay the steep fines they owed. |
After facing millions in fines for building violations on their dilapidated Journal Square structures, the Tawil family has entered into an agreement with Harwood Properties to sell them all. two decades of decay and delay, the effort to redevelop a key block in Journal Square in Jersey City now appears to be on the fast track.
The Jersey City Redevelopment Agency will meet tonight to name Journal Square Development LLC the designated developer for the block next to the PATH Transportation Center, officials said.
The limited partnership company is a creation of Harwood Properties, a Jersey City family-run business that plans to build two high-rise towers on the site with apartments, retail stores and underground parking.
The designation was supposed to take place at the agency's next scheduled meeting, on March 21, but a special meeting was called for tonight.
Vote on Square developer tonight
Tuesday, March 7, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
After two decades of decay and delay, the effort to redevelop a key block in Journal Square in Jersey City now appears to be on the fast track.
The Jersey City Redevelopment Agency will meet tonight to name Journal Square Development LLC the designated developer for the block next to the PATH Transportation Center, officials said.
The limited partnership company is a creation of Harwood Properties, a Jersey City family-run business that plans to build two high-rise towers on the site with apartments, retail stores and underground parking.
The designation was supposed to take place at the agency's next scheduled meeting, on March 21, but a special meeting was called for tonight.
"This is the first effort someone is making in at least 20 years to clean up that area," said James Morley, the chairman of the agency's board, explaining the reason for the special meeting. "We are trying to expedite this on the board."
Lowell Harwood, managing partner of Harwood Properties, said he wants to begin construction no later than January.
Harwood signed a contract this past January to buy out Ralph Tawil Jr., a New York real estate investor who owns roughly 80 percent of the properties on the block, including the defunct Hotel on the Square building.
Tawil reached a settlement with city officials last week to pay $1.1 million of the nearly $4 million he owed in building and fire code fines.
Tonight's meeting will be at 6 p.m. at 30 Montgomery St., in the 14th-floor rear conference room. \
Landlord has parting words
March 3, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
For over a year, mum's been the word from Ralph Tawil Jr., a Journal Square landlord who signed an agreement yesterday to pay the city roughly a quarter of the nearly $4 million in fines he owed.
But yesterday, the third-generation manager of his family's New York City-based real estate operation broke his silence. Having inked a deal to sell the family's Journal Square holdings - properties in such disrepair they must be demolished - Tawil said he wished Jersey City "good luck."
"We're happy matters are resolved," said Tawil, who answered indirectly when asked about his family's nearly two-decade legacy on the Square.
"I think the (departed commercial) tenants' reactions speak for themselves," Tawil said. "They were all very saddened to leave."
Most of these tenants are suing Tawil, claiming his neglect cost them their businesses.
Square Bargain: $1.1M fine
Friday, March 3, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
The landlord who racked up nearly $4 million in fines on his Journal Square properties since 2004 pleaded guilty yesterday to the violations and cut a deal to pay Jersey City $1.1 million, potentially the biggest fine ever collected in municipal court.
The majority of the fire traps owned by Ralph Tawil Jr. must be torn down within three months of him receiving a permit to demolish the old Hotel on the Square building or he will have to pay the full $3.7 million he owes, according to the agreement. City officials say they expect that permit to be granted within two weeks.
The fines, which ran the gamut from billboards in danger of falling to barricaded fire exits, involves roughly 80 percent of the properties on the block next to the PATH Transportation Center.
Hanging his head like a chastised schoolboy, a dour-faced Tawil signed the agreement yesterday morning before Municipal Court Chief Judge Wanda Molina, who issued her own warning.
"If I find this plea agreement is not being abided by there could be potential jail time," Molina told Tawil.
Other than indicating he understood the terms of the plea deal, Tawil - whose family began scooping up properties on the Square in the late 1980s - played almost no role in the proceedings.
His attorney, George Campion, said Tawil would deposit the $1.1 million penalty into an escrow account by a week from today. The money will be transferred to the city when the demolition work is finished, officials said.
In January, Tawil signed a contract to sell his crumbling holdings to Harwood Properties, a Jersey City company that plans to build two high-rise towers with apartments, retail stores, parking, and possibly a hotel. Neither party has divulged the sales price.
Tawil has already demolished 17-23 Journal Square, a commercial property at the corner of Sip Avenue. His next demolition task is the vacant Hotel on the Square, at 8-11 Journal Square.
Responsibility for demolishing Tawil's other property on the block, 1-7 Journal Square, falls on the shoulders of the new developers, city officials said.
"It's a great leap forward," said Mayor Jerramiah Healy, speaking of the agreement. "We have taken some big steps down the right road and we've done it within 16 months of taking office."
Tawil, Jersey City make deal on $4M in fines
Thursday, March 2, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
Jersey City has reportedly reached a settlement with Ralph Tawil Jr. over the nearly $4 million in fines the New York investor owes the city for building, fire and sanitation fines on his Journal Square properties.
Details of the agreement are likely to be revealed today during a scheduled 9 a.m. hearing before Chief Municipal Judge Wanda Molina.
City officials and Tawil had hoped to wrap up the deal yesterday, but Molina, who had been handling the case, was out due a personal emergency.
Municipal Court Judge Nesle Rodriguez told Tawil and city officials the matter would be heard by Molina today.
During their appearance before Rodriguez, the parties revealed a deal had been struck, but neither Tawil, his attorneys, nor city officials would divulge the settlement figure.
In January, Tawil signed a contract to sell all his Journal Square properties to Jersey City-based Harwood Properties.
High hopes for Square eyesore
Wednesday, March 1, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
Two glassy high-rise towers with apartments, retail stores, three levels of underground parking, and possibly a hotel.
It's all coming to Journal Square and Harwood Properties, a company with deep roots in Jersey City, is going to make it happen, city officials announced last week.
Last month, Harwood Properties signed a contract to purchase almost every property on the block next to the Journal Square Transportation Center, including the defunct Hotel-on-the-Square building, the hopeful developer and city officials said.
The third-generation family-run firm - which already owns the Ramp Garage behind the Loew's Jersey Theater, another parking lot on Sip Avenue and is part-owner of the recently opened State Theater apartment complex - is buying out Ralph Tawil Jr., a New York City investor who has racked up nearly $4 million in fines on his Journal Square holdings. All of Tawil's buildings are slated for demolition.
City officials hailed the purchase contract and the proposed plans as the biggest step forward to date toward the rebirth of the once storied square.
"This comes after two decades of eyesore and waste," Jersey City Mayor Jerramiah Healy said. "Obviously the Harwoods have a long history in the city and in Journal Square in particular."
Lowell Harwood - a Lincoln High graduate and managing partner of the company - declined to say how much his firm is paying for the properties, citing a confidentiality agreement with Tawil.
However, he said he's already spent a hefty sum on the first phase of an environmental study, drillings to find out how much rock is on site, and renderings of the finished product.
Chris Fiore, interim director of the Jersey City Redevelopment Agency, said the limited partnership entity formed by the Harwoods to develop the site, Journal Square Development LLC, is likely to be named "designated developer" for the site at the agency's meeting on March 21.
Once that is accomplished, city officials and Harwood would negotiate the details of the plan, including the height of the towers, and how many apartments they will contain, Fiore said. A market study would help determine the feasibility of a hotel, Harwood said.
Harwood wouldn't say when a closing was scheduled, but pointed out that in order to be named "designated developer" for the site, Harwood Properties has to demonstrate that it owns or is about to own the land. If all goes according to plan, Harwood said, construction will begin in January.
Harwood said he's in negotiations to purchase the three buildings on the block not owned by the Tawils - 15-16 Journal Square, which houses the McDonald's and Songs Hallmark; 14 Journal Square, which formerly housed a Wendy's; and 12 Journal Square, which houses Kentucky Fried Chicken.
It began with single lot in NYC
Wednesday, March 1, 2006
Harwood Properties, the privately owned company set to develop Journal Square, has its roots in a New York City parking lot.
Wolfe Harwood and his wife, Sarah, started a hat-selling business sometime in the 1920s. But their real estate empire began soon afterward with an investment aimed at cashing in on a new-fangled technology: they purchased a parking lot at the corner of Bowery and Bayard streets in Lower Manhattan.
Seventy-five years later, the family's parking empire included 55 garages in New York City, and nearly 200 lots in the Northeast U.S. and Canada.
Samuel Harwood, Lowell's father, purchased the family's first Jersey City property in 1936 - a parking lot at the corner of Cottage Street and what is now Kennedy Boulevard.
Today, the family still owns the Square Ramp garage behind the Loew's Jersey Theater and a second parking lot on Sip Avenue.
They also have numerous real estate investments up and down the Eastern Seaboard, including being part-owners of the recently opened State Square 130-unit apartment complex and a half-block in Manhattan's theater district.
Day in court, finally, over $4M in fines
Wednesday, March 01, 2006
Ralph Tawil Jr., the New York City real estate investor who owns roughly 80 percent of the Journal Square block next to the Journal Square Transportation Center, is due in Jersey City Municipal Court today to answer for nearly $4 million in fines his Journal Square investments have been socked with since 2004.
Tawil, or a representative, is supposed to appear at 2 p.m. before Chief Municipal Court Judge Wanda Molina.
The fines run the gamut from billboards in danger of falling to blocked fire exits, and have been accumulating against the properties since 2004.
City officials have agreed to postpone this court case three times given the progress Tawil has made in demolishing these eyesore structures: The old bargain store building he owned closest to the PATH station has already been leveled, and his properties at the corner of Sip Avenue are in the process of being torn down
A sale at Square with benefit for all
Tuesday, February 28, 2006
T here is an almost unbelievable piece of good news coming from Jersey City's Journal Square. A developer has come forward with plans to rebuild the Square's eyesore block, changing it from a group of ramshackle, deteriorating edifices to a pair of towers that would house either rental or condo units and a possible hotel.
Lowell Harwood, and his nephew Scott, of Harwood Properties, Mayor Jerramiah Healy, County Executive Tom DeGise, and Councilmen Bill Gaughan and Steve Lipski were yesterday inspecting the infamous block that is home to the former Hotel on the Square.
mmmmm
One reason it is of interest is that the Tawil real estate concerns owe about $4 million in building code violation fines - will the city be paid? The entire issue of the Journal Square block and it being an impediment to restoring the "heart of the city" has become a very public concern for more than a decade.
The important thing is that someone has stepped in and bought the property and they have a plan. Artist renderings that have been available show promise. Besides the possible housing, it calls for three levels of underground parking and shops accessible from the street.
The new owners are hoping to get something started on the Square by January. A completed project could herald more and better development in an area that is blessed by mass transportation and its proximity to New York City and the state's major roadways. The Harwood purchase could also trigger more speculative development.
Hudson County Community College is expanding its Square campus with new construction and renovation of existing office buildings. There are plans for new condo development between the area of the Hudson County Administration building at Newark Avenue and the depressed highway. Finally, there may be a mini-boom in a location other than Downtown, and the city would benefit from this "heart" transplant.
Harwoods see towers in place of Tawil blights
Saturday, February 25, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
A family with deep roots in Jersey City has signed a contract to purchase most of the properties on a key block in Journal Square, and is likely to be named the site's designated developer, city officials said yesterday.
The family-owned firm, led by Scott Harwood, is purchasing all Journal Square properties owned by Ralph Tawil Jr., an investor who owns roughly 80 percent of the block next to the PATH Transportation Center, including the defunct Hotel on the Square.
Having racked up nearly $4 million in building and fire code fines - and in the process of demolishing several of these properties - the New York City-based Tawil is apparently ready to leave town.
Harwood, whose roots in Jersey City stretch back three generations, signed a contract to purchase the Tawil properties in January, the developer and city officials said yesterday.
Harwood's vision for the site: Two mixed-use high-rise towers, which would include apartments, retail stores, parking and, possibly, a hotel.
"There is no reason that Journal Square, which arrived much earlier (in economic importance to the city) than the waterfront, cannot be renewed," said Harwood, who with his son, Scott, and nephew, Brett, owns two Journal Square parking lots, is part-owner of the recently opened State Theater apartment complex.
Jersey City Mayor Jerramiah Healy is pleased a hometown developer is taking on the job.
In the past few weeks, Harwood, who wants to start construction next January, has presented his plans for the Square to Healy and commissioners at the city's redevelopment agency.
Chris Fiore, acting interim director of the redevelopment agency, said the Harwoods would likely be named the "designated developer" for the site at the agency's next meeting on March 21.
Tawil's day in court deferred for 4th time
Thursday, February 23, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
The owner of the biggest eyesores in Journal Square has a new court date - again.
Ralph Tawil Jr., who has racked up nearly $4 million in fines from building and fire code violations at his defunct Hotel-on-the-Square and other Journal Square properties, has a court date set for Wednesday in Jersey City Municipal Court, City Corporation Counsel Bill Matsikoudis said.
The trial is to determine if the fines are valid, and if - or how much - Tawil actually has to pay.
But it's no sure bet the court appearance will happen.
Jersey City officials agreed to postpone three prior court dates with Tawil in return for the landlord making steady progress demolishing dilapidated properties he owns on the block next to the Journal Square Transportation Center so the area can be redeveloped.
Construction workers have dismantled the top half of one Tawil property - 22 Journal Square, at the corner of Sip Avenue.
The second floor of the building, which formerly housed a dentist's office, has been dismantled brick-by-brick so as not to disturb the adjacent building, which is owned by someone else.
Meanwhile, two eateries occupying Tawil-owned buildings are open again after a water pipe was repaired over the weekend.
The two eateries - Daily Tortilla and Three Guys Pizza - were closed Feb. 16 by city inspectors because the broken pipe meant neither had running water.
The pipe was repaired Saturday morning and the businesses have re-opened, the restaurant owners said.
Leaky pipe forces 2 Tawil tenants to close businesses at Square
Saturday, February 18, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
Two Journal Square eateries have been forced to close because of a leaky water pipe that their landlord never bothered to fix, city officials said yesterday.
This is the same landlord - Ralph Tawil Jr. - who has racked up nearly $4 million in fines for building and fire code violations at other properties on the block, near the Journal Square Transportation Center in Jersey City. The buildings are being demolished.
Tawil received three written notices over a one-month period to repair the leaky pipe, which caused flooding and ice around the fountain in Journal Square, said Rich Henning, a spokesman for United Water, which runs the city's water system.
But Tawil never took action, Henning said. So on Thursday night, water company workers closed a valve leading from a water main to the pipe located in front the old Hotel on the Square building, which Tawil also owns.
City health officials immediately closed down Three Guys Pizza and Daily Tortillas, at 1-7 Journal Square, since they lacked running water, but allowed a check cashing establishment, also affected by the water stoppage, to remain open.
Furious about the closure of his business, Andrea Greco, owner of Three Guys Pizza, had to be physically restrained when a representative of the Tawil family showed up yesterday morning.
"Everybody is worried about what Journal Square is going to look like - what about the small business?" Greco screamed.
Sam Stark, Tawil's property manager, said he was "working on" getting a plumber to the scene, but couldn't say when the leak would be fixed. Stark insisted no written notices had been sent to Tawil's offices in Manhattan.
For more than a year, city officials have been pressing Tawil to empty and demolish several of his properties on the block so the area can be redeveloped. Tawil has evicted more than a dozen tenants over the past several months - tenants he did not have to compensate.
But the three remaining tenants - the ones affected by the water stoppage - have clauses in their leases that call for payments from Tawil if they have to leave before their leases are up, according to their attorney, David Lipari.
The manager of the Daily Tortillas, who would only identify himself as Mr. Chin, declined to comment.
Gilbert Ramos, manager of the check cashing store, said the business is moving across the street to 80 Journal Square on April 1.
But in the meantime he's roughing it.
"I brought water from home," he said.
Gone in 60 days?
Wednesday, February 01, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
The two biggest eyesores in Journal Square will be gone in two months, under the latest demolition plan promised by city officials.
The two properties - the Hotel on the Square building, at 8-11 Journal Square, and a three-story commercial property at 17-23 Journal Square - will be demolished by April 1, city Corporation Counsel Bill Matsikoudis says.
The demolition is part of a massive rehabilitation plan for the block adjacent to the Journal Square Transportation Center.
Most of the block, including the two largest properties slated for demolition, is owned by New York real estate investor Ralph Tawil Jr. and his family. Their buildings have racked up nearly $4 million in building, sanitation and fire code fines, city officials said.
Neither Ralph Tawil nor his attorney returned phone calls for comment.
The Tawils haven't met city-imposed deadlines in the past, and Matsikoudis said they haven't agreed to the April 1 deadline in writing.
But with a Feb. 22 court date on the fines looming, he said he's confident they will abide by it this time.
"It's clear they (the Tawils) are supposed to have certain work done by that date (Feb. 22), and work afterwards," Matsikoudis said.
The city, Matsikoudis indicated, is willing to collect less than the full $4 million in fines in return for steady progress on the demolition.
Forcing the Tawils to pay the fines, Matsikoudis said, "may serve as a disincentive for the Tawils to take the action that is most important, which is to have these hazardous buildings demolished so the city can move forward on redeveloping Journal Square."
Asbestos removal at 17-23 Journal Square is ongoing and will start at the hotel building tomorrow, he said.
The timetable for demolishing a row of one-story commercial buildings between the PATH station and the hotel - also owned by the Tawils - hasn't been established, Matsikoudis said.
Daily Tortillas, Three Brothers Pizza, and a check cashing establishment are still operating along the strip.
Tawils' court date again put off; city pushes teardown
Tuesday, November 29, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
For the third time in six months, Jersey City officials have agreed to postpone a court hearing with the Tawil family - New York City landlords who owe the city millions of dollars in building and fire code violations for dilapidated properties they own on Journal Square.
The hearing had been scheduled for Nov. 16.
"We are trying to work with the Tawils to resolve this overall situation - the speedy demolition of the buildings, and the asbestos remediation, and the settlement of the fines," said Corporation Counsel Bill Matsikoudis, explaining why the city agreed to delay the court showdown.
"Our most important goal is the demolition of the properties," he added.
City officials are essentially holding out the carrot of reducing the fines owed by the Tawils - currently nearly $4 million - in return for them continuing to remove tenants from the affected buildings and preparing the hulking monstrosities for large-scale demolition.
"To the extent that these pending fines can be utilized by Jersey City as an incentive to the Tawils to undertake the remediation and the demolition of the buildings, we will do so," Matsikoudis said.
Asked why the city couldn't both collect the fines and press the Tawils to continue the demolition work, Matsikoudis declined to elaborate on the city's strategy.
A new court date on the fines has been scheduled for Feb. 2, he said.
Through several limited partnerships the Tawils own 80 percent of buildings on the block adjacent to the PATH Transportation Center, including the vacant Hotel on the Square at 8 Journal Square.
The properties are in such disrepair the Tawils have now vowed to tear them all down - the first step toward redeveloping the block.
But the demolition process, begun in the spring, is moving haltingly.
Neither the Tawils, nor their attorneys, returned telephone calls to comment.
Yesterday, sign handlers working for Viacom could be seen dismantling billboards atop 1-7 Journal Square, a strip that includes the now-closed Mr. Gusto Express, Twin Donut, and the 99 cents and Up store.
Square demolitions behind schedule, but city not worried yet
Saturday, October 29, 2005
By KEN THORBOURNE
JOURNAL STAFF WRITER
Jersey City officials met Thursday with an attorney for the landlord who owns several dilapidated buildings slated to be demolished in Journal Square and established that the project is four to six weeks behind schedule, a city official said yesterday.
"But if it goes four to six months behind schedule then that would indicate their (the landlords) lack of desire to properly demolish and redevelop the area around Hotel on the Square," said City Councilman Steve Lipski, who represents the area and related what happened in the meeting.
The properties in questions are located on the block next to the PATH Transportation Center and are owned by partnerships controlled by the Tawil family, New York City real estate investors who have racked up millions of dollars in fines for building and fire code violations.
The city is using the fines as leverage to try to force the Tawils to move forward with demolition, Lipski said.
A court hearing to deal with these fines was scheduled for Sept. 16, but that was postponed after the Tawils hired the politically connected law firm Weiner, Lesniak to represent them.
One of the firms partners, state Sen. Raymond Lesniak, D-Elizabeth - chairman of First Bank Americano in Union City - is a Union County political powerbroker.
Joseph Ranieri, an associate in the firm, represented the Tawils at Thursdays meeting.
The new court date is Nov. 16, but the city might agree to another postponement if there is acceptable progress on the demolition, Lipski said.
A determination would be made by Nov. 9 if the Tawils are making sufficient progress in demolishing these buildings, Lipski said. The Tawils have accumulated at least $3.7 million in fines, he said.
Yesterday was the deadline for several commercial tenants in buildings owned by the Tawils to close up shop.
Only a handful of tenants remain: Daily Tortillas Grill and Three Guys From Italy Pizza and HT Wireless. The buildings that house McDonalds, Songs Hallmark, Kentucky Fried Chicken and the former Wendys have different owners.
HT Wireless is on the first floor of the mostly vacant Hotel on the Square building. This building has been deemed an unsafe structure. Yet, HT Wireless can operate since employees could scurry out their front doors in the event of a fire, Lipski said.
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
Wednesday, September 21, 2005By KEN THORBOURNE
JOURNAL STAFF WRITER
Five months after the first brick was poked out, 10 Tube Concourse - a one-story building next to the PATH Transportation Center in Journal Square - has been reduced to rubble.
The next wall to fall will be a free-standing one next to the restaurant Mr. Gusto Express, acting Construction Code Official Ray Meyer said yesterday.
After that, asbestos will be removed from 17-23 Journal Square, followed by the parapets - the part of the brick facade that extends beyond the roof line - and the billboards on top of the Hotel on the Square building and 17-23 Journal Square, Meyer said.
This work is part of a massive demolition - and redevelopment - plan for this key block of Journal Square.
Roughly 80 percent of the properties on the block are owned by the Tawil family, New York City real estate investors who have allowed their buildings to deteriorate to the point they are now, according to city officials, beyond repair.
But the planned demolition is moving at a snail's pace.
In May, contractors began to dismantle 10 Tube Concourse and 17-23 Journal Square, a three-story commercial property at the south end of the block. But work had to be stopped after state inspectors found asbestos.
Fearing that ripping down one building could affect adjacent properties, the Tawils have decided not to proceed with further demolition until the commercial tenants in their buildings are all gone.
Most of these tenants have been given a deadline of Oct. 28 to move, said David Lipari, an attorney representing the small business suing the Tawils.
Square landlord, biz tenants ordered to talk
Wednesday, September 14, 2005By KEN THORBOURNE
JOURNAL STAFF WRITER
The owners of Three Bros. Pizza, Twin Donuts, and several other businesses on Journal Square businesses will have an opportunity to confront the landlord who's trying to evict them, their attorney said yesterday.
"We were ordered by the court to attempt to mediate," said Jersey City-based attorney David P. Lipari. "Hopefully we can have some construction conversations with the Tawil family in regard to this matter."
The Tawil family, New York City-based investors, own 80 percent of the block neighboring the PATH Transportation Center. Their properties have fallen into such disrepair that they must be torn down, city officials said.
But in order to proceed with those plans, several businesses that have made Journal Square their homes must be tossed out.
"My tenants want to be compensated for their loss of business, loss of their livelihood, loss of investments, and loss of their ability to provide for them for them and their families," said Lipari, who represents 13 businesses.
An attorney representing the Tawils didn't return phone calls yesterday.
No date has been set for the mediation hearing, Lipari said. Many tenants have already left. Those who remain have been given an Oct. 28 deadline to vacate their premises, Lipari said.
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Wendy's closes at Square
Wednesday, September 14, 2005By KEN THORBOURNE
JOURNAL STAFF WRITER
Wendy's on Journal Square closed last week due to poor sales and limited opportunity to expand, according to a spokeswoman for the Ohio-based company.
"This has been in the works for two years," said Pat Yonchek, field marketing manager for Wendy's International, referring to Thursday's closure of the fast-food establishment.
"The store was under-performing and sales potential was limited," she said. "There was no drive-through and no room for expansion."
Plus the store's five-year lease had expired, Yonchek said.
The store - one of 6,000 around the world and at least five in Hudson County - even removed a bathroom to add seating, Yonchek said.
But although the store was "jammed" during peak hours, off-peak hours remained "very slow," Yonchek said.
City: Contractor told us work could begin;
Asbestos halts 2 demolitions
Wednesday, July 27, 2005By KEN THORBOURNE
JOURNAL STAFF WRITER
Jersey City officials are blaming a demolition contractor for telling them that two Journal Square buildings were free of asbestos and thus could be demolished.
But last month the demolition work had to be halted, and steps taken to ensure public safety, after it turned out the buildings—10 Tube Concourse and 17-23 Journal Square—did indeed contain the carcinogen, officials said.
The buildings in question are owned Ralph Tawil Jr. and his family—New York City-based landlords who own roughly 80 percent of the block adjacent to the PATH Transportation Center, including the dilapidated Hotel on the Square.
Prior to the start of demolition work, city officials received a letter on May 4 from Marie Grasso, owner of MMG Design Inc. of Staten Island—the demolition contractor hired by the Tawils—stating "all asbestos has been cleared" at the two properties, said Maria Pignataro, a spokeswoman for Mayor Jerramiah Healy.
But Grasso—who hired a subcontractor to work at the site—said she never told city officials the buildings didn't contain asbestos.
"There is a back wall behind the parking lot that has asbestos that has to be removed and has been exposed to the public for more than 30 years," she said.
However, Pignataro said the letter left city officials with the mistaken belief that the properties were asbestos-free and demolition could begin immediately.
But on June 7, inspectors with the state's Department of Health and Senior Services—working in conjunction with the federal Environmental Protection Agency—collected samples from debris at the site.
City officials said they don't know what prompted state inspectors to show up at the site, since city officials had no reason to doubt the information Grasso had given them, Pignataro said.
As it turns out, it's a good thing state inspectors stepped into the picture. By June 23, the samples had proven positive for asbestos and city officials closed the worksite, Pignataro said.
Interim measures have since been taken to insure the public's safety, said Nathan Rudy, public information officer for the state Department of Health and Senior Services.
A tarp has been draped over a dumpster in the rear of 10 Tube Concourse identified as containing asbestos. There is also a tarp over the front of that property, although the building is completely exposed from every other direction.
City officials await an asbestos removal plan from the Tawils that must be approved by EPA officials, they said.
Politico law firm hired by Tawils
Monday, July 25, 2005By KEN THORBOURNE
JOURNAL STAFF WRITER
With millions of dollars in fire and building code violations hanging over their heads, Ralph Tawil Jr. and his family—owners of several dilapidated properties on a key block of Journal Square—have hired a high-powered law firm to represent them in their dealings with Jersey City.
According to city officials, the Tawils have hired the Parsippany-based law firm Weiner Lesniak. One of the firm's principals, state Sen. Raymond Lesniak, D-Elizabeth—chairman of First Bank Americano in Union City—is a powerful Union County political boss and a close mentor of former Gov. James McGreevey.
Key fund-raisers for many Democrats across the state, the law firm specializes in municipal law, land use and zoning, labor and employment, and insurance work, according to its Web site.
The firm has assigned attorney Joseph Ranieri to work with the Tawils, city officials said—and he certainly has his work cut out for him.
Properties owned by the Tawils through various limited partnerships have amassed millions of dollars worth of fire and building code fines. And in response to a planned demolition of these properties, the Tawils are being sued by at least 14 commercial tenants who claim they are being evicted from their stores through no fault of their own.
The demolition work that began roughly a month ago has ground to a halt with the discovery of asbestos in two buildings slated to be taken down and a fear that adjacent buildings are so unstable that taking down one could cause others to collapse.
The Tawils own roughly 80 percent of the properties on the block adjacent to the PATH Transportation Center.
Square sandwich shop closing as demolition countdown starts
Friday, July 22, 2005By KEN THORBOURNE
JOURNAL STAFF WRITER
The Subway sandwich shop at 8-11 Journal Square is among the first of a stream of commercial tenants that will vacate a key block in Journal Square over the next several months.
"This is tremendous loss for us," said Chetan Pandya, the owner of the sandwich shop which is slated to close Sunday at the end of the business day. "To move out, look for another location, move back in. It's too much."
The store's landlord—a limited liability company owned by New York City real estate investor Ralph Tawil Jr. and his family—plans to demolish several dilapidated buildings he owns on the block next to the PATH Transportation Center, presumably to make room for a new development.
Pandya, who owns a second Subway store at Newark and Summit avenues, opened his Journal Square shop three years ago and has been paying roughly $4,000 per month rent, he said.
And even though his business has not been cited for any violations, it is housed in a property that has racked up several million dollars in fire code and building violations and is part of a massive demolition plan agreed to by city officials and his landlord.
Aside from losing half of his business, Pandya said six employees will be out of work.
As per a clause in his lease, Pandya received a three-month notice that his building was slated for demolition, which gives him until July 27 to move out. But since he has to remove equipment and store it, Pandya said he must close on Sunday to have enough time to be out by Tuesday.
Several other commercial tenants on the block have been notified they have until November to leave.
Through different corporate entities, the Tawils own roughly 80 percent of the properties on this block and plan to tear all of them down. The only properties not owned by the Tawils are the buildings that house the Kentucky Fried Chicken, Wendy's, Song's Hallmark and McDonald's, 12, 14, and 15-16 Journal Square respectively.
Square demolition off until fall
Thursday, July 21, 2005By KEN THORBOURNE
JOURNAL STAFF WRITER
Demolition work on two eyesore properties on Journal Square will likely not resume until November, an elected official said yesterday.
The two properties in question—10 Tube Concourse and 17-23 Journal Square—bookend the block next to the PATH Transportation Center.
The takedown of these buildings, owned by New York City real estate developer Ralph Tawil Jr. and his family, was begun roughly a month ago, but is now on hold for two reasons, said Ward C Councilman Steve Lipski, who represents the area.
Lipski said there's a concern that some of the structures are sounstable that taking one down could damage its neighbors.
Those properties were slated to be included in a more widespread demolition effort later this year, and the tenants in those properties were told they had to be out by November.
Therefore, Lipski said, it makes more sense to wait until they are out of harm's way before proceeding.
Secondly, asbestos—a known carcinogen—has been discovered at both 10 Tube Concourse and 17-23 Journal Square, Lipski said. However, he said, there's no immediate danger to the public—asbestos is a problem only if it becomes airborne—and the Tawils have until mid-September to come up with a asbestos removal plan.
By November, the Tawils must present a detailed demolition plan to city officials, Lipski said.
These three properties—10 Tube Concourse, 17-23 Journal Square, and the Hotel on the Square at 8 Journal Square—have racked up at least $3.1 million in fire code violations and $40,000 in building code fines, city officials said.
The properties are so deteriorated, the Tawils have decided to rip them down rather than repair them.
And they've extended their demolition plans to all their holdings on the block, which includes 1-7 Journal Square - home to several small businesses including 3 Brothers Pizza, Twin Donuts, and a 99 cents store.
Most of these tenants had clauses in their leases that called for a six-month notice if their building became slated for demolition, an attorney representing the tenants said.
Also, a court hearing on building and fire code fines attached to Tawil properties scheduled for yesterday was postponed until September, said Alan Pearlman, the acting chief municipal prosecutor.
The attorney representing the Tawils had a scheduling conflict, city officials said.
One question remains:
Will Tawils rebuild on Square properties they've allowed to crumble?
Thursday, July 07, 2005 By KEN THORBOURNE
JOURNAL STAFF WRITER
The redevelopment of the heart of Journal Square hinges on an unlikely savior: a landlord who has run up millions of dollars in fines over the Hotel on the Square and other dilapidated properties.
But Ralph Tawil Jr. and his family—New York City real estate investors who control about 80 percent of the block adjacent to the Journal Square Transportation Center—say they believe they can breathe new life into the center of the city.
The Tawils didn't return phone calls seeking comment for this article, but Jersey City Mayor Jerramiah Healy said he met several weeks ago with Ralph Tawil Jr., who runs the family business, to discuss redevelopment plans for the site.
Reluctant to seize the property through eminent domain, Healy said he is taking the Tawils at their word—that they want to build a mixed-used development that's primarily residential, with retail stores and parking.
But this plan sounds eerily familiar to anyone who has monitored redevelopment proposals for the Square. In fact, the Tawils have been party to most of them.
In partnership with local developer Joseph Panepinto Sr., Ralph Tawil Sr. and his brother Saul Tawil began to amass properties on the Square in the late 1980s. Their stated goal: to build a $100 million office and retail complex.
But by 1990, the partnership was in shambles, with the Tawils suing Panepinto, charging him with reneging on a deal to include them as owners of a parking lot behind the Square.
The court squabble ended with the Tawils buying out Panepinto—who has since played a role in converting the old State Theater site into a mostly market-rate apartment building. But in the process, the effort to redevelop the Hotel on the Square block fell by the wayside.
Then in 1997, the office tower plan was resurrected—slightly revised to accommodate a gymnasium, conference center and library that Hudson County Community College hoped to build.
"We are looking at financing the entire project privately, ourselves," Ralph Tawil Sr. said at the time. "We're going to do this and help change the face of Journal Square."
An artist's rendering depicted a 15-story metal and glass office building with a series of smaller retail buildings fronting the Square, with the highest of the shops reaching four stories.
But the Tawils never came up with the financing, and the deal—once again— fell through.
By June 1999, the Tawils were back—this time with a big-money partner: Charles Kushner of Florham Park.
An $80 million Kushner/Tawil proposal included an office tower, with high-quality ground-floor retail, and a building for the college.
"This is going to happen," declared former Hudson County Executive Robert Janiszewski, now in jail on unrelated corruption charges. "It will be a 'Great Leap Forward,' if you will, in urban development."
Not satisfied the plan provided enough parking, commissioners of the Jersey City Redevelopment Agency voted 3 to 2 against it in October 1999.
But Kushner and the Tawils kept pushing for it.
Two years later, city officials killed the plan, concluding the Tawils and Kushner couldn't finance their proposal.
Kushner, a major Democratic fund-raiser, is now serving time for making illegal campaign contributions to the Bill Bradley presidential campaign.
Mayor Healy said he will give the Tawils a chance to redevelop the site.
"But if we continue to see the kind of foot-dragging we've seen for the last two decades, we'll have to move on," he said.
Tawil family has racked up millions in fines for properties
Thursday, June 30, 2005By KEN THORBOURNE
JOURNAL STAFF WRITER
It's perhaps one of the most incongruous scenes in Jersey City.
Surrounded by globe lights and a kiosk, the fountain in the middle of Journal Square spews water 12 feet into the air, pumping feverishly to effectuate a gurgling calm.
But hovering right behind the fountain is the five-story, mostly vacant Hotel on the Square building, looking like a defeated boxer with his teeth knocked out.
Charles Sciangula, a Journal Square resident since 1969, feels "downhearted" when he walks past the eyesore.
"You invest 30 years in an area and you expect it to change for the better, but this looks worse," he said.
And the view doesn't improve as one moves to the outer extremes of this block.
Next to the PATH transportation center stands what's left of an old bargain store. Earlier this year, its roof collapsed and the owner decided to rip the building down rather than repair it.
At the other end of the block, at Sip Avenue, a three-story commercial building that had to be hastily evacuated in November due to numerous building and fire code violations is perhaps one of the biggest fine collectors in the history of Jersey City.
Current fines on this property—which is in the process of being dismantled—total more than $3.5 million and the tab is still running, city officials say.
In 2002, this building was slapped with a nearly $11 million fine because bricks on the facade showed the potential to fall and strike pedestrians, according to city records. City officials said two weeks ago they couldn't locate this file, so therefore couldn't say when or if these violations were addressed.
All three properties are owned by limited liability companies controlled by the Tawil family, New York City-based real estate investors who began scooping up properties on the Square with an ex-partner in the late 1980s.
The Tawils also own 1-7 Journal Square, which includes Twin Donuts and a 99-cent store. On the other side of the block, they are in the process of buying 88 Sip Ave. (Square News) and the parking lot in front of the Hudson County Community College entrance; they are currently leasing those properties from NJ Transit.
In short, they own every parcel on this critical block of Journal Square except the buildings that house McDonald's, Song's Hallmark, Wendy's and Kentucky Fried Chicken.
For nearly two decades—and over the course of several mayoral administrations—the Tawils have presided over the deterioration of this prime real estate, while at the same time collecting top dollar for their commercial rentals.
The decay of 8-11 Journal Square (the hotel), 17-23 Journal Square at Sip Avenue, and 10 Tube Concourse next to the PATH station is to the point that both the Tawils and city officials now agree they are beyond repair and must be torn down.
The Tawils have since notified all their Journal Square tenants they must abandon their premises no later than Oct. 28 so the buildings can be razed.
Several times in the past the Tawils floated plans to develop this block. Each time, for various reasons, their plans fell through.
And even as their attorney prepares to go to court to address the staggering amount of fines his client has been assessed, the Tawils - because they own 80 percent of the block - are being considered as potential developers for the site, city officials said.
The logic eludes Louis Jurado, a lifelong Jersey City resident.
"They just drained these properties dry," Jurado said. The city "should put a lien and take away their properties. You get a ticket, they suspend your license. They should take their licenses too."
Ralph Tawil Jr. and Hal Sutton, principals in various Tawil-run partnerships, didn't return several phone calls for comment. Ralph Tawil Sr., Tawil Jr.'s grandfather, started the business.
Why city officials have allowed such a key block in the city to fall into such disrepair seems to boil down to a couple of reasons. The first, according to City Council president and former acting Mayor L. Harvey Smith, is the city's fear of extended litigation.
"They (the Tawils) have a lot of money," Smith observed when asked why the city hasn't seized their holdings through eminent domain. "We'll be hung up in condemnation court for years. With them, it either ends up in court or there's been the threat of going to court."
In a pre-election debate in April, Jersey City Mayor Jerramiah Healy said he was philosophically opposed to taking the Tawil Journal Square property by eminent domain to turn it over to another private owner.
Two weeks ago Healy said he's not ruling anything out.
"The buildings have been an eyesore for 20 years," Healy said. "They are now a roadblock for any development of Journal Square.
"These buildings must be razed, and they (the Tawils) are going to have to do that," he added. "Either they (the Tawils) will develop something or they will transfer that property to developers who will do just that."
Therefore, it's a Catch-22: Because the city can't afford to take them over, they're going to remain in their dilapidated state until the Taw