The 135-year-old factory complex was inhabited by artists until this March, when landlord and developer Lloyd Goldman evicted them to build luxury condos. While he has done some demolition work there, he is now prevented from doing more.
Tuesday's meeting, and a meeting the day before the board, had been ordered by State Superior Court Judge Maurice Gallipoli.
Lloyd Goldman's company, New Gold Equities, acquired 111 First St. and sister property 110 First St. in 1991 when the previous owner defaulted on a loan. There are eight buildings in the 111 First St. complex.
For months, the firm has been seeking certificates of appropriateness and economic hardship from the historic commission to demolish the main building, because the owner claims it is in danger of collapsing due to engineering reports citing its instability.
The commission voted 5-0 on Tuesday to deny New Gold both certificates. While this decision closes a chapter in the ongoing battle between the city and New Gold over the building staying intact, the issue is far from over.Lawsuit a few days earlier
The week before the historic commission met to discuss the demolition, New Gold filed a lawsuit in U.S. District Court in Newark against the city of Jersey City, seeking $100 million in damages from what they allege are the city's attempts to prevent the building owner from demolishing it, and for not allowing for construction on 110 First St.
Named in the complaint are the Historic Preservation Commission and its chairman Stephen Gucciardo, city planners Robert Cotter and Maryann Bucci-Carter, the Jersey City Planning Board, the Jersey City Municipal Council, former acting mayor and City Council President L. Harvey Smith, mayoral aide David Donnelly, and Urban Planner Peter Abeles.
Last year, New Gold took the tenants of 111 First St. to court over the raising of rents. The tenants saw this as the owner's attempt to force them out to convert the building into market-rate housing as reflective of other Newport area upscale buildings located nearby.
After several hearings, the tenants lost their battle and had to vacate by March 1.
New Gold had already arranged for 110 First St. to be demolished in July of last year after receiving approval from the city's building department, and in August they were allowed to cut down the smokestack in the courtyard of 111 First St.
But the city approved ordinances since that time designating the area historic. Historic district ordinance an obstacle
In November, the City Council approved ordinances giving the names Powerhouse Arts District and Warehouse Historic District to areas of Downtown Jersey City spanning Washington to Marin boulevards. The districts would preserve buildings in the area from demolition on the basis of their historic importance, and new construction is supposed to set aside 10 percent of the units for artists at a discounted rate.
But in their current lawsuit, New Gold claims that designating these districts, among other efforts by the city, prevents the owner from contributing to the redevelopment of the area with a new building.
New Gold also says the existing building is in "imminent danger" of collapsing and has little if no resale value.
"The shocking and deliberate conduct of the Jersey City Government towards New Gold has been part of a consistent pattern to misuse the government's power and violate our rights," said Daniel E. Horgan, attorney for New Gold, in a press release about the lawsuit.
Bill Matsikoudis, the city's corporation counsel, said New Gold's lawsuit "is nothing more than an attempt by New Gold to drown the city in litigation."
When contacted for comment, some of the persons named in the lawsuit were taken aback since they had not been served with official papers.
Smith thanked this reporter for notifying him about the lawsuit but said that he wasn't surprised he was being sued. He had voiced his support for the historic district in which 111 First St. is located as acting mayor, and had negotiated directly with Goldman for the city to purchase the building.
Abeles, who said that he was an unpaid consultant retained by the former tenants of 111 First St. to help them purchase the building, was amused.
"I didn't realize I was that powerful," he said. Horgan said all parties named in the lawsuit would be notified by the end of last week. A 'fine' mess
The City of Jersey City is considering legal action of their own, as they are seeking the payment of $72.8 million in fines from New Gold for fire code violations found during inspections of 111 First St. done by Fire Department officials between December 2001 and August 2004.
The violations include fire doors in need of repair and exit signs not being illuminated. Most of the violations carry a $5,000 per day penalty.
There may be a possible silver lining for New Gold, as an offer was made by an independent Realtor during the Tuesday meeting to purchase both 111 and 110 First Street. Jersey City-based attorney Constantine Bardis made a short presentation on behalf of his client, Alma Realty of Astoria, N.Y., who would commit $7.5 million to close on the purchase of both buildings within 30 days of acceptance of this order by New Gold, with $3 million given upfront.
A letter from Bardis to Horgan states, "Upon review of the tax assessors' records, 110 First St. is currently assessed at $1,580,000 million and 111 First St. is currently assessed at [three] million dollars."
Horgan commented after the meeting only that the offer "warrants further investigation." Destroy, or rehabilitate?
So what happens next with the building?
New Gold can rehabilitate it, sell it, or take the matter to court. If the latter occurs, it will be up to the judge to decide whether to allow for demolition.
Monday and Tuesday's meetings dealt with two issues - whether the building is in such unstable shape that it would have to be demolished, and whether the building can be rehabilitated.
On Monday, Bernstein questioned Michelle Berlinger, vice president of BLDG Management, which manages 111 First St. for New Gold. Bernstein grilled her on how she determined that the building as it currently exists had "no value" as she has stated in past HPC meetings.
Bernstein then questioned Frederick Porcello, the engineer retained by New Gold to study the structure of the building, on his rationale for determining that 111 First St. was in danger of collapsing.
On Monday and Tuesday, Horgan sharply questioned the experts retained by the city in recent weeks to inspect the 111 First St. building.
Just before the clock struck midnight on Tuesday, the five remaining members of the HPC who had not recused themselves or been disqualified due to conflict of interest, voted to deny New Gold's demolition applications.
Post a Comment