Council Officially Grants CANCO Tax Deal

Jersey City is officially in the business of insuring profits of residential developments in the city granting the CANCO lofts an amended tax abatement. The council voted 7-0, reports the Journal.

Canco Lofts is a redevelopment project of the old American Can company. The old factory is a five building complex that in years passed has served as a canvas for a local artist-- neon lights installed in the building read "It is green thinks nature even in the dark."

The first phase of the building complex is well under way, but sales have been sluggish. Last year's credit collapse has not helped matters, though others point out that the complex is far from the PATH train at Journal Square. One solution proposed by the city, but not well regarded by the Port Authority, is adding another PATH station. That is unlikely to happen soon.

Critics have suggested that by granting the abatement deal to Canco, which has already sold more than a quarter of the units, that developers will expect to be able to renegotiate abatement deals whenever profits are threatened. This is not the first abatement to be renegotiated.

Previously, the council granted an amendment to a double tower development on Washington Blvd. Those, the Monaco Towers, first sought an amended abatement in January, which initially was rejected. That project, which is not currently under construction, later received a new abatement when the developer was ready to walk away from the project entirely. The difference of course is that Canco Lofts are nearly ready for their first residents to move in to units, while the Monaco Towers has only driven (and since removed) test pilings.