Vega defends deal to allow towers to rise at 111 First
Tuesday, June 27, 2006
By STEVE CHAMBERS
NEWHOUSE NEWS SERVICE
After a fierce struggle with a billionaire developer, a colony of artists was forced to move last year from a historic warehouse they turned into a warren of studios near the waterfront in booming Jersey City.

Now, following a year of tense negotiation and legal wrangling, the city is poised to sign an agreement with developer Lloyd Goldman that will allow him to 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.

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The agreement - which is slated to be discussed at tomorrow night's City Council meeting - also will allow the developer to build another high-rise next door, on the site of another warehouse he tore down.

Supporters of the agreement say it has provisions that will preserve the historic nature of the district while resolving costly and risky litigation, but opposition is already bubbling among the ranks of historic preservationists, artists and new district residents.

Council President Mariano Vega defended the settlement as the best deal for the city, something that will end expensive litigation and pave the way for a special piece of architecture on the site.

"We have worked feverishly to protect the city's interests and accomplish the values we set out for the district, while not giving away the store," he said. "We have a reasonable settlement."

Vega said the city forced concessions from Goldman that will protect the district and be good for the city. He said the developer will donate $1 million to the arts, set aside 117 of perhaps 1,000 residential units for lower-income residents and preserve a facade that will maintain the hip streetscape the city was attempting to create. He said a major gallery and performance space will be included in the project.

Discussion with neutral engineering consultants hired by the city supported Goldman's contention that the building was unsafe, Vega said. He said it's likely the building will be torn down and the facade re-created with the original bricks.

Goldman argued it could cost tens of millions of dollars to renovate the building, and district restrictions meant the project would be a money loser. He threatened to mothball the building and wait out the administration.

Instead, Vega said, Goldman has agreed to hire a world-class architect who will work to make the skyscraper project something special.

"The mayor wanted a world class architect, and that means much more money has to be spent by the developer," Vega said. "We want something that will help define the zone and certainly allows it to be distinguished from any other high rise."

Community activists are livid, however, that Goldman will win and, in their mind, the Powerhouse Arts District will be corrupted.

"It's a drag to see that someone with so much money and power can basically impose himself on an entire city," said Jeff Baker, a former resident of 111 First St. who restores and builds historic doors. "Jersey City is such a great city, but it's growing so fast that I see a great void in arts and entertainment."