"This man has taken money from the city," said Gaughan, explaining the council's decision. The site is in the historical industrial site in the Lafayette section.
Gaughan said that Shapiro, who had originally bought the property with the aim of turning it into an assisted living center for seniors, owed the city approximately $120,000 in taxes. Currently, a company in Maryland called the Housing Trust of America wants to transform it into a residential project.
Designation by the City Council would allow Housing Trust of America, which specializes in historical redevelopment, to purchase the property from the bankruptcy trustee. The designation would also allow the owners to apply for development grants from the state and the federal government, and would save the Whitlock site from being torn down. Instead, development would have to include the existing historic structures.
Before the council goes forward, Gaughan said they want to know the extent of Shapiro's involvement with the Housing Trust.
When interviewed on April 10, Wally Scuggs, president and managing member of Housing Trust of America, stated that Shapiro was not part of the company, but did have a minor economic interest in the Whitlock Cordage project.
"Mr. Shapiro is a consultant for our company on an as-needed basis," Scuggs said.
Scuggs added that while he was aware the City Council was not happy with Shapiro's handling of the Whitlock property, he stated his firm needed Shapiro's knowledge of the property to aid in its redevelopment.
The Whitlock Cordage industrial complex dates back to the Civil War area, when rope and related products were manufactured there. The facility was closed in the 1960s and bought by Shapiro. As reported earlier, Shapiro was subjected to a number of code violation fines by the city for neglect of the historical property. Shapiro filed for bankruptcy, and Whitlock was scheduled for demolition before Housing Trust of America announced it would purchase the property and save and rehabilitate all but two of the eight buildings on the property.
Gaughan asked for patience from members of Jersey City preservation groups, such as the Jersey City Landmarks Conservancy, which had been working to save the property from the wrecking ball.
"We have a problem with [Shapiro] making money from the project," said Gaughan. "We do not have a problem with the historical designation."
Gaughan said the council may go to court to see if any money could be taken from any income Shapiro makes on involvement with the Whitlock redevelopment. The council voted 6 to 1 to table the historical designation, with Councilperson Viola Richardson voting against. Council members Mary Donnelly and Mariano Vega were absent from the Wednesday night meeting.
Shopping Center news
The council also voted 7 to 1 to have attorney Steve Edelstein represent the City Council in any future legal actions involving the Martin Luther King Shopping Center's proposed supermarket.
According to Corporation Counsel Alex Booth, the Jersey City Economic Corporation, which operates the MLK Shopping Center, designated Extra Grocery as the grocery store for the shopping complex. Extra would replace City Markets, the complex's previous supermarket.
However, Booth obtained an opinion of the Wilentz law firm, which handled the leasing of the supermarket space for the MLK complex, saying that Extra or any other supermarket actually would have to be approved by the mayor and City Council before operating in the complex.
Council President L. Harvey Smith said a second supermarket, Supreme Market, was also being considered for the MLK Complex, and the council and the EDC should compare the pros and cons of both supermarkets.
Booth said he forwarded the information he gathered on the supermarket designation procedure to the mayor's office. Booth further stated the mayor's office favored having the Extra supermarket in MLK and advised the council to instruct Edelstein to look into the matter.
Stan Eason, the mayor's press director, said Booth's remarks that Cunningham had been involved in the choice of Extra Grocery are "ridiculous."
He also disagreed with the Wilentz firm's decision.
"The EDC board made the choice on Extra and it does not have to go before the council," Eason stated. "The priority is getting a store in there with a proven urban track record as soon as possible, not six months from now."
Edelstein also represented the City Council in the lawsuit by Mayor Glenn D. Cunningham, attempting to remove Booth from the directorship of the city law department.
As of Thursday, Gene Nelson, director of the EDC, had returned phone calls.
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