A 34-story tower is planned for a surface parking lot at 693-701 Newark Avenue in Jersey City. Image via Apple Maps.
A development looking to revitalize a surface parking lot into a mixed-use complex with significant affordable housing has been awarded a state incentive just months after securing a tax exemption from Jersey City.
The New Jersey Economic Development Authority (NJEDA) recently approved a tax credit for a project at 701 Newark Avenue in the city’s Journal Square community. The NJEDA approved an award of up to 60 percent of the total project cost, not exceeding $89.96 million.
The development comes courtesy of Lions Group and is expected to cost about $162 million. Designed by C3D Architecture, the project will consist of a 34-story building with 360 residential units including 90 affordable units.
The planned tower for the site. Image courtesy of C3D Architecture.
The ground floor of the development will sport nearly 3,000 square feet of ground-floor retail space along the Homestead Place Pedestrian Plaza, which will be expanded northbound to the development as part of the work. The walkway will provide improved access to nearby supermarkets, healthcare facilities, the Hudson Pride Center, and the local library.
“Over the past decade, we’ve made Jersey City a model for affordable housing by requiring strong inclusionary mandates and delivering thousands of new and affordable units across all six wards,” said Jersey City Mayor Steven M. Fulop in praising the tax award. “The NJEDA’s support for 701 Newark Avenue builds on that progress, bringing 90 new affordable homes and vital community connections to the heart of Journal Square.”
News of the new award comes just a few months after Jersey Digs reported about a 30-year tax exemption for the property that was approved by Jersey City’s Council. Under the agreement, Lions Group would pay the City, in lieu of property taxes, 11 percent of annual gross revenue for the first fifteen years.
Dubbed the annual service charge, that fee is estimated to be $6,513,936 for the first five years after the project is completed. The annual service charge would increase to 12 percent of the annual gross revenue for years 16 through 20 under the deal, with an additional increase would occur to 13 percent of the annual gross revenue for years 21 through 30.
This slice of Journal Square is being transformed with several glass-heavy towers, many building built by Long Island-based Namdar Group, that are slated to connect via the Homestead Place Pedestrian Plaza all the way to the area’s PATH station.
Lions Group has not yet announced a construction timeline for their contribution to the area’s development.