Kushner’s talks with JC over 1 Journal Square are collapsing: report

Developer says it's all politics

Apr.April 25, 2018 01:30 PM

1 Journal Square, Steve Fulop and Charles Kushner

Jersey City Mayor Steven Fulop is threatening to shut down building plans for two luxury rental towers in his city that were planned by Kushner Companies. And Kushner Companies is threatening a lawsuit.

While the Jersey City government says Kushner Companies missed a deadline to begin construction and defaulted on a $40,000 municipal fee, Kushner Companies says the city is playing politics, slighting the company because of Jared Kushner’s role in President Trump’s administration, the Associated Press reported.

The breakdown in negotiations over the 66-story towers at 1 Journal Square is latest blow for the company’s project. The Real Deal reported in January that Kushner Companies had abandoned a $150 million construction fundraising drive through the EB-5 visa program.

Despite this, Kushner announced in January that the project was “shovel-ready.”

But in February, as talks broke down, Kushner attorneys wrote a letter to the city threatening to take “necessary action to protect” its interests in the project.

WeWork backed out as the project’s anchor commercial tenant last summer. As a consequence, the development lost a $6.5 million tax credit. Kushner Companies later withdrew an application for a 30-year property tax break when Fulop publicly spoke in opposition to the development. [Crain’s] — Will Parker

Related Articles

An aerial view and a rendering of The Element at 400 Claremont Avenue (Credit: Google Maps)

Jersey City mixed-use project lands $120M in financing

Brookfield's Ric Clark (Credit: Getty Images)

“There was no quid pro quo”: Ric Clark on Brookfield’s 666 Fifth purchase, and renovation plans

South Carolina town puts moratorium on development (Credit: iStock)

The high cost of low taxes: South Carolina town bans all development for 16 months

Scale model of Manhattan at Gulliver's Gate (Credit: Getty Images)

Gulliver’s Gate closes at Kushner’s Times Square property

U.S. Rep. Alexandria Ocasio-Cortez and Sunnyside Yards (inset) (Credit: Getty Images and Wikipedia)

AOC resigns from Queens megadevelopment steering committee

Harbor Group International's Jordan Slone and Kushner Companies's Charlie Kushner  (Credit: Sasha Maslov, Harbor Group)

Multifamily still delivers as investors avoid rent control

Charlie Kushner and Laurent Morali with the Pierre Apartments in Hackensack, New Jersey (Credit: Sasha Maslov, Pierre Apartments)

Kushner Cos. buying 1,000-unit suburban apartment portfolio

Donald Trump with Rep. Emanuel Cleaver II, Rep. Ron Kind and Sen. Cory Booker (Credit: Getty Images, iStock)

Trump’s Opportunity Zone program is under investigation