Jersey City Sues the Port Authority

Friday, May 23, 2014 - 03:04 PM


Jersey City is suing the Port Authority of New York and New Jersey for $315 million in back taxes.   

The bi-state agency owns 40 properties in Jersey City, but isn't required to pay real estate taxes on any of them, according to a statement released by Mayor Steven Fulop.  

The Port Authority and the city have an agreement on seven of the properties that does generate payments in lieu of taxes, but the mayor argues that structure is inadequate. One example: Fulop says the Port Authority pays Jersey City $87,000 a year for the Journal Square PATH Plaza. But the assessed tax rate, according to the mayor, is $9.5 million.

In a statement, Fulop said the city has attempted to settle the matter outside of court for months, to no avail. “We feel confident we have a strong case against the Port Authority and will prevail on behalf of the Jersey City taxpayers," he said. 

The city is also seeking to block a Port Authority barge-to-rails waste transfer project currently under development.

A spokesperson for the Port Authority said "Jersey City’s claims are without merit, and we will  vigorously defend ourselves against these allegations.”

Jersey City filed the suit in a federal court in Newark.


Comments [1]

David Bensman from West Orange

Why not report on the way the PANYNJ's construction practices are devastating the communities in Bayonne and Staten Island where the Bayonne Bridge is being raised. The construction project is devastating two neighborhoods, where residents are calling it a "human rights abuse." The PANYNJ refused to do an environmental impact statement, for which arrogant omission it has been sued by the NRDC and the Coalition for Healthy Ports. In the meantime, residents can't sleep, there are unending traffic jams, and the daytime noise and pollution make life unbearable. People in both communities have risen in protest; the Bayonne group even has a webpage, but as usual, the human suffering is being ignored by the larger metropolitan area. The Bridge raising is essential to the regional economy, but it is being carried out in the PANYNJ's usual arrogant way; the needs of the Bridge's neighbors are being ignored, and this is going to go on for two years unless public pressure causes it to be replanned in a more humane way. This is a political issue; the PANYNJ was created 90+ years ago to insulate the economic development planners from democratic voices. The only reason the PANYNJ can get away with its ruthless reign is that it is not accountable to the people of NJ and NY. If you go to a PANYNJ meeting, you can easily see and hear that there is no public input, no discussion, no debate. The voices of the people in Bayonne and Staten Island deserve to be heard.

May. 24 2014 10:07 AM

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