
The 'new' Journal Square takes another step forward
City says two properties to be seized through eminent domain
Wednesday, October 18, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
Within 30 days, two buildings standing in the way of a two-tower development in the heart of Journal Square in Jersey City will be seized by the city through eminent domain and transferred to the developer, a city official said yesterday.
The acquisition of the third and final building is delayed because the property owner needs time to hire a lawyer, said Robert Antonicello, executive director of the Jersey City Redevelopment Agency.
The two buildings in the process of being condemned are 12 and 14 Journal Square, respectively the sites of a former Wendy's and a current Kentucky Fried Chicken.
The third building slated to be taken, 15-16 Journal Square, houses four businesses - a McDonald's, Song's Hallmark, HT Wireless and a dentist's office.
"We're losing customers because they're not sure if we're going to be around," said Mohamad Abushaar, the manager of HT Wireless. "It (relocation and redevelopment plans) has everybody so mixed up, so confused."
Collectively, the buildings represent the only properties on the block next to the Journal Square Transportation Center not already sold to or under contract to be sold to Harwood Properties, the Jersey City firm designated to build two mixed-use towers on the site.
"We have filed with the court to pursue the condemnation," Antonicello said yesterday. "The money (to purchase the building) has been posted in the courts. The agency would buy them and then convey them to the Harwoods."
The purchase prices are based on appraisals the agency had conducted. According to those assessments 12 Journal Square is worth $1.5 million, 14 Journal Square $1.2 million, and 15-16 Journal Square $2.5 million.
According to the development agreement Harwood Properties inked with the city in May, the company is on the hook to reimburse the city whatever money it shells out to buy the buildings.
The building owners, who couldn't be reached yesterday to comment, are free to contest these building appraisals in court, but that won't hold up the condemnations, Antonicello explained. The court cases can proceed even as the buildings are being demolished, he said.
Harwood Properties is under contract to buy the other properties still standing on that block before the year is out - 1-7 Journal Square, Antonicello said.
The two businesses still in operation there - Three Brothers Pizza and Daily Tortillas - either will have to be evicted by the current owner, New York investor Ralph Tawil Jr., or the future owner, Harwood Properties, officials said.
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