Two years after Charles Kushner called the mayor of Jersey City “another stupid New Jersey politician” and his company sued the city for blocking his massive multi-purpose project in Journal Square, both sides ended their legal battle.
Mayor Steve Fulop said the city had settled all disputes with Kushner Companies and the real estate firm could move forward with the construction of two 64-story towers in Jersey City. According to Fulop, the city will not provide any tax breaks to Kushner.
Kushner Companies first planned to build mixed-use towers for vacant land in the underdeveloped Journal Square in 2014. The apartments were to sit on top of commercial and commercial space, with WeWork being one of the anchored tenants.
It was hung as a transformation project for the Jersey City area, which was known mainly as a transportation hub because it was the headquarters of the Port Authority Trans-Hudson transit system.
However, the project got into trouble when the Kushner Companies plan increased $ 150 million construction funding through the EB-5 program failed in May 2017. A Chinese roadshow promoting the project caused a stir and triggered a federal investigation.
Tensions then began to frustrate between Fulop and Kushner over tax cuts and missed payments.
In April 2018, the city was threatened block developmentreferring to the missed construction start date and the unpaid municipal fee of $ 40,000. Diana Jeffrey, executive director of the redevelopment in Jersey City, also said the agency doubted the developers’ ability to fully fund 1 Journal Square and “carry out the project.”
Jersey City has denied the tax reduction project, which led Kushner to sue in June 2018 and alleged discrimination against him. ties to President Donald Trump. The judge dismissed the lawsuit in August 2019. The company faced another lawsuit last year and again accused the city of persecuting the company over Jared Kushner’s relationship with Trump (Charles’ son, former head of Kushner Companies, the president’s son) father-in-law and senior adviser).
At the time of the initial suit Fulop said “Bottom line – the same way they use the presidency illegally to make money is the same way they try to use the presidency to pretend to be a victim.” They will do anything to manipulate the situation. “
In addition to his secular reference to Fulop, Charles Kushner, the founder of Kushner Companies, accused the mayor of changing sides to appeal to “Trump haters.”
But now that the disputes have been settled, Kushner Companies can finally move forward with its project.
Construction is scheduled to begin in 2021 and will include a 10-story parking garage for residents of the building. WeWork will no longer be a tenant. Each tower will have 52 stories of housing units above a 12-storey basic building with a ground floor shop, equipment, other residential uses and structured parking, according to a press release from Fulop’s office.
The height of the buildings was also reduced to 710 feet from the original 758.
The new redevelopment agreement includes a $ 2.5 million investment in local art initiatives and will require Kushner to focus on local recruitment, the release said.
“Fortunately, after many years and many previous developers who left the property to stagnate, the great team of the city and Kushner Companies were able to postpone their differences and work together to reach a common ground,” Fulop said in a statement.
Kushner companies are betting on large sums New Jersey, the state where the company became famous. The company recently purchased seven rental buildings from First Real Estate Investment Trust in New Jersey $ 266.5 million. The portfolio consists of 1,058 units in Wayne, River Edge, Westwood Hills, Rockaway, Red Bank and Hackensack and Middletown in New York.