111 First deal is approved artists angry
Friday, June 30, 2006
By EARL MORGAN
JOURNAL STAFF WRITER
The Jersey City City Council approved a settlement agreement with the owners of 110-111 First St., but it did nothing to satisfy the artists who once lived at 111 First St. and are now are vowing to fight the owner, accusing him of violating the city's arts district ordinance.

The owner of the buildings, New Gold Equities, will build at least one and possibly two high-rise residential towers through the middle of 111 First St. One of the towers could be 40 stories high.

Advertisement






The agreement, approved 5-2 by the council Wednesday night, also allows the developer to build another high-rise across the street at 110 First St.

According to the terms of the settlement, in return for the city dropping all litigation against it, the owner, New Gold Equities, agrees to provide 120 units for artists and gallery and retail space at the site.

New Gold Equities will also contribute $1 million to the city for the "advancement of the arts."

Corporation Counsel Bill Matsikoudis said the city will divide that money between the Jersey City Museum and the Loew's Jersey Theater in Journal Square.

The city had charged that the developer allowed 111 First St. to deteriorate and threatened to fine New Gold Equities principal Lloyd Goldman $75 million for fire-code violations. But Goldman sued the city for $100 million, saying it was denying his rights to develop his property.

State Superior Court Judge Maurice Gallipoli ordered the parties into mediation, weakening the city's position by throwing out its historic designation ordinance protecting the warehouse properties.

Council members Steve Fulop and Viola Richardson voted against the agreement Wednesday night. Before casting her vote, Richardson made a reference to the threatened $75 million in fines.

"Are we getting $70 million in affordable housing?" she asked.

Some of the artists asked that the vote be delayed because the public had no opportunity to review the settlement, but the council decided to go ahead with a vote.

Some of the artists, who were out in force, were afforded an opportunity to put their statements on the record and for nearly an hour supporters of the arts district spoke, many in opposition to the settlement.