Council approves 30‑year tax exemption for 701 Newark Ave.; developer commits to 25% affordable units and project‑labor agreement

The Jersey City Municipal Council unanimously approved a 30‑year tax exemption for 701 Newark Avenue (ordinance 25‑048) after public testimony from union leaders, neighborhood advocates and the developer’s attorney, who said affordability and labor commitments would be recorded in writing.

The ordinance, adopted 8‑0, covers a mixed‑use development in Journal Square that will include roughly 360 units, of which the developer and project team said 25 percent (about 90 units) will be income‑restricted, including a portion restricted at 50 percent of area median income (AMI). The applicant provided a signed project labor agreement (PLA) and said the affordability restrictions would be recorded in perpetuity.

Council members and dozens of residents, union representatives and contractor groups testified over nearly two hours during the public hearing. Speakers from 32BJ SEIU and the Hudson County Building Trades said the PILOT (payment‑in‑lieu) deal was warranted because it pairs long‑term affordable housing at lower AMI tiers with union construction and permanent jobs. Adrian Orozco, New Jersey political director for 32BJ SEIU, told the council the project would “create much needed affordable housing and good union jobs for the community.” Patrick Keller of the Hudson County Building Trades said the site would generate hundreds of construction jobs and that the PLA would help locals get hired.

Developer representatives said the abatement is necessary to make the project financially feasible at the proposed affordability levels. Charles Harrington, attorney for the applicant, said the owner would place the affordability covenants in recorded deed restrictions and that the PLA and commitments on local hiring and perpetuity of affordability would be memorialized in contract terms.

Council members asked for explicit enforcement steps and monitoring. Councilperson Gilmore pressed legal staff who confirmed the affordability restrictions and other commitments would be recorded and enforceable as deed restrictions. Several council members said they would monitor hiring and community benefits during construction and after completion.

The council voted to adopt ordinance 25‑048 by voice vote; the clerk recorded the measure as adopted unanimously, 8‑0. Council members who spoke in favor cited the unusually low developer return, the 25 percent affordable set‑aside (20–50% AMI tiers), and the PLA as decisive factors. A council statement at adoption noted projected monthly rents for restricted units under the financing model (for example, a studio at about $975) and described the owner’s commitment to record the restrictions in perpetuity.

The approval requires state filings described under the New Jersey Housing and Mortgage Finance Act and related NJAC rules; the council recorded those statutory references in the ordinance title and public record.

The developer’s public remarks at the meeting included an explicit on‑record promise to put affordability terms “in writing” and “in the deed” to ensure permanence. Councilmembers said they would follow up with the administration, law department and the planning team to confirm deed language and enforcement mechanisms.

Votes were taken after extended public comment from residents and organized labor; the final tally recorded the ordinance as adopted 8‑0.

The City Council recorded the measure as adopted at the meeting; the administration and law department will deliver the final deed restrictions and any monitoring plan for council review prior to final building permits and certificate of occupancy.