Jersey City suing the Port Authority for $400M

Bi-state agency owes taxes on city properties, Jersey City mayor alleges

New York /
May.May 23, 2014 08:00 AM

Jersey City is suing the Port Authority of New York and New Jersey, alleging the bi-state agency owes back taxes on dozens of properties it owns across Jersey City.

On Thursday, a $400 million suit was filed in federal district court against the organization.

Jersey City Mayor Steve Fulop told the Jersey Journal earlier this year that he was planning to file the suit. In a statement on Thursday he said Jersey City “will not be bullied or pushed around” by the Port Authority.

Months negotiation between the Port Authority and the city have been unsuccessful, Fulop told NJ.com.

According to NJ.com, Fulop also intends to pursue legal action against the Port Authority’s planned $118 million waste transfer station at Greenville Yards, on the southern end of the city.

The Port Authority owns 40 city properties, but pays “no real-estate taxes on any of them,” according to the complaint. If the Port Authority paid traditional taxes, the city would gain $18 million annually, the suit says.

“While the Port Authority has benefited handsomely from its acquisition and ownership of properties in the city, the city has suffered an undue loss of taxes,” the complaint says. NJ.com reports that according to Jersey City, the Port Authority pays $2.2 million in payments in lieu of taxes for seven of its 40 city properties. The Port Authority pays nearly $90,000 in taxes every year for the 9.3 acre property at Journal Square. According to NJ.com, the property would generate $9.6 million in regular taxes. [NJ.com] – Claire Moses 


Related Articles

arrow_forward_ios
Port Authority Inks Deal to Bring $145M Cargo Hub to JFK (iStock)
Port Authority inks deal to bring $145M cargo hub to JFK
Port Authority inks deal to bring $145M cargo hub to JFK
CBRE CEO Robert Sulentic and One World Trade Center (CBRE, iStock)
Port Authority taps CBRE to manage WTC
Port Authority taps CBRE to manage WTC
Silverstein Properties’ Larry Silverstein and Brookfield’s Brian Kingston (Getty/Illustration by Kevin Rebong for The Real Deal)
Port Authority taps Silverstein, Brookfield to build 5WTC
Port Authority taps Silverstein, Brookfield to build 5WTC
Douglas Durst of the Durst Organization, Port Authority Executive Director Rick Cotton, and Conde Nast CEO Roger Lynch. (Getty)
Condé Nast isn’t paying rent at 1WTC amid lease dispute
Condé Nast isn’t paying rent at 1WTC amid lease dispute
The bus terminal was built in the 1950s and designed to serve one fourth of the riders it sees today. (Getty)
Port Authority to raze, replace “hell on earth” bus terminal
Port Authority to raze, replace “hell on earth” bus terminal
TRD's Erik Enguist and Port Authority's Rick Cotton
Port Authority, out $3B, has waterfront land to sell
Port Authority, out $3B, has waterfront land to sell
TRD's Erik Enguist and Port Authority's Rick Cotton
Can the Port Authority bring NYC back? Tune in to TRD Talks Wednesday
Can the Port Authority bring NYC back? Tune in to TRD Talks Wednesday
Port Authority Bus Terminal and AECOM CEO Troy Rudd (Roger Rowlett via Wikipedia; AECOM)
“Worst place on earth” may be buried underground
“Worst place on earth” may be buried underground
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...