MOVE 'EM OUT
Saturday, September 23, 2006
By KEN THORBOURNE
JOURNAL STAFF WRITER
There's now a price tag on the three buildings standing in the way of redeveloping a key block of Jersey City's Journal Square - and the city plans to seize the properties if the owners don't sell.
The buildings - one home to a KFC, one to a McDonald's and Song's Hallmark store and one vacant - are collectively worth $5.2 million, according to appraisers under contract with the Jersey City Redevelopment Agency, the entity overseeing the redevelopment of the block, next to the PATH Transportation Center.
The agency's board voted Tuesday night to formally accept the appraisals and begin negotiations to purchase the properties. If agreement can't be reached with the owners, the agency will seize the properties through its powers of eminent domain, said JCRA Executive Director Robert Antonicello.
In May, the agency signed a deal with Journal Square Development LLC - a limited partnership created by Jersey City-based Harwood Properties - to build a two-tower retail/residential complex on the block.
But in order to do so, these three buildings have to be removed. Harwood Properties is under contract to buy the other properties on this block.
Lowell Harwood, managing partner of Harwood Properties, attended Tuesday's meeting and said the board's vote allows the $350 million project to move forward.
"We're just getting started," Harwood said. "We're not done."
Harwood has said he hopes to break ground early next year and anticipates a two-year construction timetable.
Under the terms of the agreement inked in May, Harwood was supposed to first negotiate with the owners on his own before the agency stepped in. Harwood said he made offers to the owners but they never responded. Harwood Properties is also on the hook to reimburse the agency whatever money it has to shell out to buy the properties.
Robert Kang, who owns 15-16 Journal Square (McDonald's and Song's Hallmark) acknowledged that he was contacted by a broker representing Harwood but said the offer was so low he never responded.
He declined to say what the offer was, as did Harwood. Antonicello said the city is satisfied that a fair offer was made. Florham Park-based developer Fred Kruvant, who owns 12 and 14 Journal Square, didn't return phone calls seeking comment.
Including materials and equipment still inside the properties, the KFC building is worth $1.4 million and the vacant one, where there used to be a Wendy's, is valued at $1.2 million. The McDonald's/Song's Hallmark property is worth $2.4 million, according to the appraiser.
Former Planning Board member Jeffrey Kaplowitz, who is a commercial real estate broker in Jersey City, said the city's offer seems fair.
"I don't think those are unreasonable prices, give or take 10 percent," he said.