14B — July 24 - August 13, 2020 — New Jersey — M id A tlantic Real Estate Journal


N ew J ersey

Government policy makers, CRE leaders discuss State’s critical economic, infrastructure issues NAIOPNJ Public Policy Symposiumaddresses next steps to ensure sustainable recovery frompandemic 4 package.”


the midst of the rolling crises occurring at the state level. “Determining where and how to open businesses or whether to allow infected residents to enter the state are compelling and time-consuming issues. This is compounded by the fact that budgeting is extremely complicated.” Noting that “New Jersey played it smart in lengthening its fiscal year 2020 by three months to assess where things stand,” he said he expects to see at least a 20% reduction in the new budget. “Medicare/ Medicaid would be funded first, then schools, then mu- nicipal aid. There will be increased pressures on prop- erty taxes, compounded by a tsunami of tax appeals.” Pizzutillo added, “If there is any silver lining to this crisis, it's that government will have no choice but to consolidate services and cut non-essential spending. We can’t afford to continue to pay for layer upon layer of government.” MAREJ dential portfolio in municipali- ties with deep histories of com- merce at properties that can fulfill its need for a residential option that appeals to today’s renter,” said Ed Russo , CEO of Russo Development. “Frenetic leasing activity at our other communities speak to renters’ quest for homes that satisfy their need for luxury, safety and convenience for work and travel without having to make any compromises.” “There is no other place with a history that is so intertwined with ours in quite the same way as Hackensack,” said John Durso , head of development for The Hampshire Companies. “We have been bringing trans- formative real estate projects to life across the city for over a hundred years and are honored to be able to play such a large role in the city’s next chapter. We are confident that this project will not only be a point of pride for the city but the new residents and businesses that will call it home in the years to come.” The apartment homes’ spa- cious designs will feature high end flooring, nine-foot ceilings, ample closet space, gourmet kitchens equipped with quartz countertops, marble tile back- splashes, custom cabinetry. and stainless-steel, energy-efficient appliances. MAREJ

EW BRUNSWICK, NJ —During NAIOP New Jersey’s recent

Suarez also noted that the infrastructure bill “included a variety of things we’d like to see happen, including re- visions to the tax on debt income provision and funding for Gateway. However, the project is a lot of money and it appears President Trump is not taking things seriously around infrastructure. We think it will be in the mix, but a lot will depend on the final number they want in this bill.” On the state and local level, Pizzutillo said New Jersey can take advantage of efforts to streamline processes to get economic development un- derway. “Putting a new set of incentives in place is fiscally responsible and I believe it’s in the mix. There is also talk of codifying third-party inspec- tions and I’m optimistic we’ll see something in place in the short term.” Pizzutillo also discussed the challenges of finalizing the fiscal year 2021 budget in HACKENSACK, NJ — Hackensack’s “Riverfront Dis- trict” is underway with the completion of the foundation for Print House, a 653-unit luxury mixed-use apartment community from a partnership between RussoDevelopment, The Hampshire Companies and Fourth Edition, Inc. Plans for the former site of The Record newspaper at 150 River St. include transforming the 20-acre site into pedestri- an-friendly parks connecting Hackensack’s bustling Main St. residential, retail and office area with the waterfront and providing an esplanade along the Hackensack River. Plans also include 30,000 s/f of com- mercial and retail space. Print House will reflect the sophisticated design and abun- dant amenity package that New Jersey’s rental market has grown to expect. The first phase includes 271 studio, one- and two-bedroom rental homes and spa-like amenities including resort-style swim- ming pool, sun deck, roof deck lounge area, fully-equipped fit- ness center with a yoga studio and Fitness on Demand and a clubroom with game stations, billiards, a bar area, fireplace and dining seating, conference rooms in the business center and a private dog park. “We’ve been building our resi-

annual Public Policy Sympo- sium, government policy mak- ers and commercial real estate leaders discussed steps that are being taken at both the state and federal levels to en- sure New Jersey’s sustainable recovery from the COVID-19 pandemic. In his keynote remarks, Con- gressman Frank Pallone (D-6), chairman of the House Energy and Commerce Committee, said he is optimistic that the White House and Republican and Democratic congressional leaders will negotiate another federal economic stimulus package once Congress is back in session at the end of the month. “Unfortunately, in my opin- ion, we’re one of the only coun- tries where the virus has been politicized, which makes it a difficult environment. It’s not just about the virus, it’s the economy. We need to cre- ate jobs long-term and have a revitalized infrastructure initiative.” Acknowledging the ongoing impact of the virus, Pallone said the House passed the HEROES Act. “Essentially it proposed another round of everything, including checks for individuals, support for businesses, extending federal unemployment benefits until the end of year and providing more money for testing. The Senate flatly rejected the pro- posal about a month ago.” House Democrats also have proposed the Moving Forward Act, a $1.5 trillion plan to re- build not only highways, bridg- es and mass transit, but also to invest in education, housing, hospitals and internet access, all while moving towards a 100% clean energy economy. “About half of the funds are for roads and transit, and it would provide money for the Gateway program and other projects in the New York metropolitan area,” said Pallone. Legislative Leaders Address Short- and Long-Term Priori- ties Senate president Steve Sweeney and Assembly Speak- er Craig Coughlin spoke about the Legislature’s immediate priorities and responded to questions posed by NAIOP NJ CEO Michael McGuinness and Gus Milano , president and COO of Hartz Moun-

Craig Coughlin, assembly speaker; Stephen Sweeney, Senate president and Hon. Frank Pallone, 6th Congressional District

of the pandemic. Sweeney said, “I support it one thousand percent. The private sector can do a lot better than the govern- ment sector in a whole host of areas.” Coughlin agreed, adding, “I think the LSRP program has been hugely suc- cessful, and this is the kind of business-friendly, no-cost initiative I suspect I’ll be able to support going forward.” While they also support the continued use of PILOTs as incentives to transform mu- nicipalities, Coughlin said, “I’ve seen the positive effects, but also the need to constantly ensure that the scope is in the best economic interests of the community.” Sweeney added, “I support PILOTS, but I don’t support towns that starve underfunded school districts.” Sweeney and Coughlin were also on the same page re- garding the hot-button issue of liquor license reform. “I recognize that licenses are necessary for urban redevelop- ment, but we need to solve the conundrum of compensating current liquor license holders,” Coughlin said. Recovery Initiatives, Incentives and Finalizing a State Budget for FY 2021 The program concluded with insights from NAIOP Senior VP Government Affairs Aq- uiles Suarez and Anthony Pizzutillo , NAIOP NJ Pub- lic Affairs consultant. The discussion was led by Adam Pasternack , president of property management with Russo Development . On the national level, Suarez said that while Congress has no appetite to force insurance companies to cover pandemic- related business interruption costs, he believes the issue of business liability will have to be addressed. “We think businesses that are following mandated guidelines should be protected, and are hoping this will be included in the Phase

tain Industries, Inc. , which zeroed in on critical issues impacting the CRE industry. “Our biggest focus is to try to get hold of the budget and make sure we don’t make decisions we’ll regret in the future,” said Sweeney. “We will need to borrow funds because the federal government isn’t stepping up and doing what it should, but we can expect there will be shortfalls.” Asked if fiscal controls would continue to be a focus in Tren- ton, Sweeney said, “The more we can reduce costs, the more affordable it is to live and work here. We were actually on the cusp of getting some things done, such as school districts pulling together plans to con- solidate. As we come out of COVID, I think we’ll see more consolidations and efforts to do more shared services. We can’t tax our way out of this one.” Sweeney and Coughl in agreed that business incen- tives and cost-free measures, such as relaxing certain rules and regulations, are all on the table. “While economic incen- tives have been on the back burner – and rightly so – the truth is they are an important part of moving forward,” said Coughlin. “We have probably been set back two years by virtue of not having a plan in place, and we should make it a goal to have that happen sooner rather than later.” He added, “The Senator, myself and the governor have been working on an econom- ic incentive bill for quite a while. We recognize we need to get through this year and be poised for when the recovery comes, but it’s a challenge. At a time when we have the great- est need, we have the fewest resources available.” Both leaders indicated their support for legislation to codify third-party inspections, which helped keep development proj- ects moving during the height

Print House first phase underway

Made with FlippingBook Learn more on our blog