Jersey City Mayor James Solomon said the city is suing 100 developers to find revenue, also discussing police brass costs, at a budget town hall last night. <\/p>\n
By Daniel Ulloa\/Hudson County View<\/p>\n
The nearly two-hour public event<\/a> at the Miracle Temple Pentecostal Church, located at 80-88 Monticello Ave., saw the mayor take questions from residents for the first time after the City Council unanimously voted down<\/a> his 15 percent rate hike on the third quarter tax bills.<\/p>\n One resident who spoke at that meeting, John Ross, asked for details about what Solomon was doing to hold developers accountable after calling for an audit of all tax breaks less than a week after taking office in January, as HCV first reported<\/a>.<\/p>\n \u201cI\u2019ll tell you what we\u2019re doing and what we can\u2019t do: It\u2019s honesty and transparency, not telling you things that are false. So first thing is we are auditing every tax break from every developer as we speak. If they get a tax break, we are auditing them, checking to make sure they\u2019re giving us money,\u201d Solomon explained.<\/p>\n \u201cThe second is we\u2019re charging them wherever we can. So, for years, developers, when they built a new building, they were charged 2001 rates to pay in 2026. We changed that, they now pay 2026 rates, not 2001 rates connected to the water and sewer systems. We have sued developers and property owners who are not paying their fair share of taxes.\u201d<\/p>\n To date, Solomon said that has administration has filed around 100 lawsuits against developers to ensure the city gets the full amounts of taxes they are owed and that the city netted an additional $2.5 million simply by assigning the proper sewer and water fees.<\/p>\n While it is not particularly easy, there are select circumstances where municipalities can rescind tax breaks, such as when the Jersey City Council, including Solomon, voted to rescind<\/a> a 20-year deal<\/a> for an Amazon warehouse for violations of their project employment and contracting agreement (PECA).<\/p>\n At the town hall, the mayor added that tax abatements and payment in lieu of taxes are contracts that the city can\u2019t break without getting sued, continuing that in New Jersey, tax rates must be consistent across the board.<\/p>\n \u201c \u2026 I would love nothing more than being able to charge the waterfront properties and towers a higher tax rate than the one- to four-family homes in the neighborhoods. The state constitution does not let us do that,\u201d Solomon explained.<\/p>\n \u201cNow I support the constitutional amendment required to change that, but that requires the governor, the legislature \u2013 it requires everybody \u2013 changing those policies: It\u2019s not something that I as the mayor am able to just do. So anyway we can make developers, corporations pay their fair share, we will, but we are constrained by what the law allows us to do.\u201d<\/p>\n At one point, a man yelled out that \u201cthe developers have owed the city for years!\u201d to which Solomon admitted that the 100 lawsuits would take time to yield financial returns for the city, certainly not before this year\u2019s budget is finalized.<\/p>\n Solomon replied that Kushner Cos. in Journal Square barely pay for city services due to \u201csweetheart deals,\u201d while other developers pay more when asked specifically about PILOTs throughout the city.<\/p>\n \u201cHomeowners are being crushed by questionable water charges. I have posted undeniable proof,\u201d resident Cindy Meryl said about rising costs from the Jersey City Municipal Utilities Authority (JCMUA) and Veolia.<\/p>\n