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Council renews citywide 5-year tax-exemption authority and OKs abatement for 38 Jackson Street grocery space
Summary
The council reauthorized the municipal five-year tax exemption and adopted a separate ordinance approving a tax-exemption agreement for the grocery tenant space at 38 Jackson Street; proponents said the abatement is intended to attract a grocer to southwest Hoboken.
The Hoboken City Council voted to readopt the five-year exemption and abatement law and approved a separate tax-exemption agreement tied to Block 6, Lot 1 (38 Jackson Street) during Thursday's meeting.
During public comment, residents asked how many properties will be eligible for the 5-year exemption and expressed concern about whether abatements primarily benefit developers rather than ordinary taxpayers. "If we go for 08/20... Do we really need to have all these tax abatements?" Rosemarie Markle asked, adding that school taxes appear unaffected by such abatements.
Council members and staff clarified the two-step process: one ordinance gives the city authority to offer five-year tax exemptions broadly; a second, site-specific ordinance approves a tax agreement with 38 Jackson Street LLC for a qualifying condominium commercial unit within the building. Council members and the project representative said the targeted abatement would apply only to the grocery store space being created at 38 Jackson Street, not the entire building.
Councilman Ramos described the abatement as a tool to entice a grocery retailer to locate in Southwest Hoboken, which the city has identified as undersupplied with food retail. "We're going to have a very good news in the next couple of days that Southwest Hoboken will no longer be a food desert and have a grocer," he said, asking the public to regard the abatement as narrowly tailored to that use.
Both measures were put to roll-call votes and carried. The council voted to reauthorize the citywide five-year exemption framework, then approved the tax-exemption and tax agreement for 38 Jackson Street LLC, authorizing execution of a tax agreement for the grocery space identified as Block 6, Lot 1, Qualifier C 0103.
The site-specific ordinance will require the applicant and city to sign a tax agreement specifying the parcel, improvements and term. City staff said the space will qualify because it will be held as a condominium commercial unit. Council members noted subsequent approvals (for bonds or site-specific action) would be required for any additional abatements.
Supporters argued the narrow, site-specific abatement would spur a grocery to locate in Southwest Hoboken and improve food access. Critics urged caution and called for transparency on how many projects will seek abatements and the budgetary effect on municipal and school revenues.
Council and staff said future abatement requests would be reviewed individually and brought before the council for approval with supporting financial and project details.
