Special offer

A Tax What?

By
Real Estate Agent with Sothbey's International Realty

taxes

 If you live in the New Jersey area, you have probably heard a lot of talk lately about tax abatements. The New Jersey City Council has recently voted to approve a 20 year abatement for a proposed condo property development in the Powerhouse Arts district. This means more condos for Jersey!

 

A tax abatement is a lowering of the taxes granted to a developer. The developer can then build, or upgrade, or somehow “develop” property with less financial risk. Once a project is finished, the abatement can be passed on to the person or company that buys or rents the property.

 

When and if it is finished the proposed development  at 160 First Street, would contain a 14 story building. Most of the building would be devoted to condos. Of the 159 residential condominium units, 152 would be market rate units. The other seven would be moderate and/or workforce affordable housing.

 

In addition to the residential units, the developers plan retail space on the ground floor encompassing approximately 3,800 square feet. This is all wrapped up with room for about 64 parking spaces. All in all, it promises to be an ambitious project that would be the first development of properties for sale, instead of just rental property since the 2008 downturn in the economy.

 

The abatement was approved in order to allow the developers to offer larger units for somewhat less money than they could without the abatement. This, some people in the area hope, will bring some needed stability to an area heavy with rental property, and a large turnover in residency. If people are buying rather than renting, they may stay, and that will give them the incentive to help with things like neighborhood improvement projects.

 

Not everyone is in favor of tax abatements. Some people think abatements cause other taxes, such as school taxes to be shouldered by other taxpayers. People who favor the abatement think that, since the property to be developed is all but abandoned, the project will generate more taxes in the long run with the influx of new residents and businesses.

 

At any rate, if this project goes forward as planned, there will be more condo units available.  Since the area to be developed is indeed need of renewal, it may be the best thing for the Jersey City area.

 

How do you feel about the tax abatement and the proposed project?

 

Edward

Posted by

re/max, logofacebook, logo
Edward Perez, Broker Associate
NJ Luxury Group at Sotheby's International Realty
201.344.2886 mobile
edward@NJLuxuryGroup.com

E-Mail Me 


 

Comments (0)