Canal Crossing Breaks Ground in Jersey City With School-Revenue PILOT

Housing and public space

Work has begun on Canal Crossing in Jersey City’s Bergen-Lafayette neighborhood, across from the Garfield Avenue Hudson-Bergen Light Rail stop, Gothamist reported. Boraie Development is building the project on a long-vacant former chrome-processing site.

The roughly $320 million first phase is planned for 508 homes, including 102 reserved for households earning 50% or less of area median income. Plans also include about 20,000 square feet of commercial space and a public park.

Cleanup and future phases

Ron Riccio, the court-appointed administrator overseeing site cleanup, told Gothamist that soil at the property has been cleared for residential development, while groundwater remediation continues. PPG, the site’s last user, has been held responsible for funding the cleanup, according to Riccio.

Boraie Development said later phases are expected to add another 1,700 housing units. The project is also set to bring new roads, sewers and electricity to the tract.

A PILOT with school funding

The Jersey City Council approved a 30-year payment-in-lieu-of-taxes agreement for the first phase. City spokesperson Eric Koch said the deal is expected to generate about $1.9 million for the city in its first year, with a tenth of that revenue going to Jersey City Public Schools.

Gothamist reported that this is the city’s first PILOT approved under an ordinance requiring 10% of new PILOT revenue to be dedicated to the school system. For the first 15 years, the developer will pay the city 10% of annual gross revenue; the agreement sets higher payments later in its term.