A NEW ERA SEEN FOR THE SQUARE
Stores, residences and parking approved for 40-story towers next to PATH Center

Originally appeared in the Jersey Journal in on Monday, June 19, 2006

Ken Thorbourne

The highly-anticipated 40-story, two-tower development planned for Jersey City's Journal Square has taken another step forward, as City Council members voted to permit residential housing on the block next to the PATH Transportation Center.

"Progress has been made on the waterfront. Now it's reaching Journal Square," City Council President Mariano Vega said Wednesday night, capping off the unanimous vote.

Lowell Harwood, managing partner of Harwood Properties, the builder, praised city officials for taking action, noting he's 90 percent pleased with the pace of the project.

"I never give anything I'm doing a perfect grade," joked Harwood, who signed a deal in February to purchase 80 percent of the properties on the block, including the old Hotel on the Square building, which is now demolished.

Besides the properties he's under contract to buy, Harwood has to purchase three other buildings on the block before he can build: 15-16 Journal Square, which houses McDonald's and Songs Hallmark, and 12 and 14 Journal Square, home to a Kentucky Fried Chicken and formerly a Wendy's.

Harwood has been negotiating with the owners but has not reached an agreement. If he can't strike a deal, his contract with the Jersey City Redevelopment Agency calls for the city to step in and take the properties through eminent domain. The owners - who couldn't be reached to comment - would have to be paid fair market value and Harwood would be on the hook to reimburse the city for all expenses.

Six weeks ago, Harwood inked a 65-page agreement with the JCRA which calls for him to build two residential towers, ground floor retail, a hotel and three sub-surface parking levels.

But test borings are showing rock near the surface, so the underground parking has been scrapped, Harwood said.

The latest plan calls for a loading dock and one level of retail shops underground, with the street level and second floor dedicated to retail, and floors 3 through 7 devoted to parking, Harwood said.

The eighth level would be the "amenity floor" for the residents living in the 1,000 rental units. The two towers - one 40 stories tall and the other "slightly taller" - would be built on top of the eighth floor, Harwood said.

Two business are still operating at properties Harwood is under contract to buy - Three Brothers Pizza and Daily Tortillas.

The current owner, Ralph Tawil Jr., is negotiating with these businesses to leave, Harwood said. Tawil left the Square in disgrace earlier this year, paying the city $1.1 million in fines for building and fire code violations he accumulated over 20 years.

Harwood is also seeking a partner to share the risk in this massive venture.

"We're talking to some very strong people to be a joint venture," he said. "In this economy, you're trying hedging your bet."