Powerhouse project gets developer
FRESH START

Originally appeared in the Jersey Journal on Friday, July 21, 2006

By JARRETT RENSHAW

The outlook for the long-dormant Powerhouse in Downtown Jersey City got a little brighter this week after the city Redevelopment Authority designated a developer with a lengthy track record for successfully transforming industrial-age buildings into modern entertainment complexes.

City officials say the designation of Baltimore-based Cordish Companies - a key player in the turnaround of Baltimore's Inner Harbor - represents a fresh start for the long-troubled Powerhouse project, which is widely considered the cornerstone of the Powerhouse Arts District.

"This is a turning point for the Powerhouse Arts District and all of Jersey City," Jersey City Mayor Jerramiah Healy said in a written statement. "Their work at the Inner Harbor in Baltimore is world class and we expect nothing less in Jersey City."

News of the designation was greeted warmly by members of the community who have long fought to see the site both preserved and used.

"It's excellent," said John Gomez, founder and former president of the Jersey City Landmarks Conservancy. "We actually visited with Cordish back in 2000, hoping they would come aboard."

The current president of the Conservancy, Joshua Parkhurst, agreed.

"I am glad to see the process is moving along and I hope that the builders will come to the community groups and include them," he said.

Officially known as the Hudson and Manhattan Powerhouse, the one-acre building on Washington Boulevard stands 140 feet tall. Built in 1906 to provide power to the Hudson Tubes - the predecessor to the PATH - the building is structurally sound, though a leaky roof has caused extensive corrosion.

The details of the redevelopment project are still being negotiated, but informal plans call for a multi-level mix of entertainment and retail. Its listing on the National Register of Historical Places also means it will restored under U.S. Department of Interior guidelines.

The project has long been hampered by the fact that the city's partner, the Port Authority of New York and New Jersey, houses its transformers for the PATH system at the site.

The Port Authority is spending $400,000 for a consultant to conduct a review of the site, which will look at alternative places for the transformers and the agency's projected power needs in the future, said Steve Coleman, a spokesman for the Port Authority.

"From our discussions with the Port Authority, we are optimistic that the issue would be resolved," said city Corporation Counsel Bill Matsikoudis.

It's too early to put forth a timeline, but if and when the transformer issue gets resolved the project will begin to catch momentum, said JCRA Executive Director Bob Antonicello.

How the transformer issue is resolved, along with a host of other considerations, will help determine how the project gets funded. City officials said they expect to lease the space to Cordish, but they would not speculate on other funding formulas.

The JCRA had previously designated a Pennsylvania-based developer at the site, but Antonicello said the project was too large and the city had to find them in default of the agreement.