JERSEY CITY-Hartz Mountain Industries and Roseland Property Co. have announced plans to build one of the top five tallest buildings in New Jersey, a $450 million, 1,000-unit residential complex at 99 Hudson Street here – if the Urban Hub Tax Credit (UHTC) residential program is revived.
The developers had submitted an application for the credit several months ago, says Emanuel Stern, president and COO of Hartz Mountain Industries, in the announcement. But the program was suspended after depleting its $250 million allocation.
“As we have seen through the history of the UHTC program, the economic climate – especially as it pertains to financing – will not permit a project like this to proceed without assistance,” Stern says. “Our application to EDA for the UHTC program delivers instant economic impact and smart growth benefits that will last for decades, so we are hopeful this necessary program is quickly revived so we can commence construction.”
Enacted into law in 2008, the program offers tax credits of up to 100% of the qualified capital investments to a developer, owner or tenant making a capital investment in a designated Urban Transit Hub. Credits under the program are capped at $1.5 billion, with $250 million allocated to residential projects. But the program has proved too popular. As of January 31, 2012, $219.6 million had already been allocated to residential developments, and the total program had $1.2 billion of the total $1.5 billion allocated.
On February 14, 2012, the New Jersey Economic Development Authority announced that the applications in-house and in the pipeline exceeded the cap and new approvals would be put on hold while the overall pipeline is reviewed.
Should it be re-established, the developers will create what will be the largest rental project in the state, with retail and entertainment, as well, according to Roseland, which manages Hartz Mountain’s residential projects and is a partner in four of Hartz’s residential developments.
“The waterfront in Jersey City features many compelling pieces, but it lacks a center,” says Carl Goldberg, partner in Roseland Property Co. “We see 99 Hudson providing the components that would turn an interesting area into a classic neighborhood.”
The project will create more than 2,000 long-term construction jobs over five years. Among other projects planned by Hartz Mountain and Roseland is The Estuary, a $200 million, 589-unit residential complex at Lincoln Harbor in Weehawken.
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