032818 ( APPLICATION FOR LONG-TERM TAX EXEMPTION REDEVELOPMENT AREA BOND FINANCING ON BEHALF OF ONE JOURNAL SQUARE PARTNERS URBAN RENEWAL COMPANY, LLC, ONE JOURNAL SQUARE TOWER SOUTH URBAN RENEW AL COMPANY, LLC & ONE JOURNAL SQUARE TOWER NORTH URBAN RENEWAL COMPANY, LLC In accordance with the terms of Executive Order No. 2015-007 as well as the Executive Order of April 5, 2017, of the Mayor of the City of Jersey City and the requirements of the LongTenn Tax Exemption Law, N.J.S.A. 40A:20-1, et seq. and the Redevelopment Area Bond Financing Law, N.J.S.A. 40A:12A-64 to 73, Applicant is hereby filing the following information: APPLICANT: ONE JOURNAL SQUARE PARTNERS URBAN RENEWAL COMPANY, LLC ONE JOURNAL SQUARE TOWER SOUTH URBAN RENEWAL COMP ANY, LLC ONE JOURNAL SQUARE TOWER NORTH URBAN RENEW AL COMPANY, LLC c/o The KABR Group LLC 100 Challenger Road Ridgefield Park, New Jersey 07660 Telephone: (201) 843-0745 Email: lrappaport@kabrgroup.com PROJECT: One Journal Square Podium Block 9501 Lot 23 Qualifier C0003 One Journal Square Tower South Block 9501 Lot 23 Qualifier C0002 One Journal Square Tower North Block 9501 Lot 23 Qualifier COOOl TYPE OF PROJECT: Mixed-use Residential/Retail/Office!Parking ADDRESS: 10 Journal Square PROJECT NAME: To Be Known as "One Journal Square" ARCIDTECT: Woods Bagot Architects PC 142 West 57th Street, gth Floor New York, NY 10019 (646) 756-3323 032818 CIVIL, SURVEY, GEOTECHNICAL, AND TRAFFIC ENGINEERING: Langan Engineering & Environmental Services, Inc. 619 River Drive Center 1 Elmwood Park, NJ 07407 (973) 560-4900 STRUCTURAL ENGINEER: WSPGroup 228 East 45th Street, 3"' Floor New York, NY 10017 MEP ENGINEERS: WSP Group 512 Seventh Avenue New York, NY 10018 (212) 532-9600 ELEVATOR CONSULT ANT: VDA (Van Deusen & Associates) 120 Eagle Rock Avenue, Suite 310 East Hanover, NJ 07936 (973) 994-9220 LANDSCAPE CONSULTANT: SCAPE Landscape Architecture PLLC 277 Broadway, Suite 1606 New York, NY 10007 (212) 462-2628 PARKING CONSULTANT: Philip Habib and Associates 102 Madison Avenue #11 New York, NY 10016 ATTORNEY: Eugene T. Paolino, Esq. Genova Burns LLC 30 Montgomery Street Jersey City, NJ 07302 (201) 469-0100 STATUTE: Long-Term Tax Exemption Law, N.J.S.A. 40A:20-1, et seq., Redevelopment Area Bond Financing Law, N.J.S.A. 40A:12-A64 et seq. CITY OF JERSEY CITY APPLICATION FOR TAX ABATEMENT AND REDEVELOPMENT AREA BOND FINANCING FOR: ONE JOURNAL SQUARE PARTNERS URBAN RENEWAL COMPANY. LLC, ONE JOURNAL SQUARE TOWER SOUTH URBAN RENEWAL COMPANY, LLC & ONE JOURNAL SQUARE TOWER NORTH URBAN RENEWAL COMPANY, LLC PROPERTY: BLOCK 9501, LOT 23 QUALIFIER C0003, C0002, COOOl 1. Identification of Property: The subject improvements are located within the Journal Square "Zone 1: Core" Area and are subject to the Journal Square 2060 Redevelopment Plan, as amended and supplemented on real property as described on the Tax Map of the City of Jersey City as Block 9501, Lot 23 with condominium Qualifiers (the "Property"), which has an area of approximately 2.082 acres and is presently unimproved and is bounded by Journal Square Plaza and John F. Kennedy Boulevard to the west, Concourse East to the north, Hudson County Community College to the east and Sip Avenue to the south. A survey of the Property and a tax map are attached as Exhibit C, Description of the Property. 2. Type of Exemption Requested: The Property is or will be owned under a condominium regime, consisting five (5) separate condominium units, owned by three (3) condominium unit owners, to wit, One Journal Square Partners Urban Renewal Company, LLC ("Partners"), One Journal Square Tower South Urban Renewal Company, LLC ("Tower South") and One Journal Square Tower North Urban Renewal Company, LLC ("Tower North" and collectively, Partners, Tower South and Tower North are -313810836v5 (21349.005) referred to as "Applicant,"). Applicant seeks one or more financial agreements with the City of Jersey City for a tax exemption or abatement for the Project established pursuant to the Long-Term Tax Exemption Law, N.J.S.A. 40A:20-1, et seq. (the "Act") with an annual' service charge as set forth hereafter and as permitted under the Act. Applicant proposes either (a) one (!) financial agreement that addresses the tax abatement or exemption for each Unit of the Project or (b) five (5) separate financial agreements for each of the five (5) Units of the Project, as the City deems appropriate. The Applicant is also seeking bond financing pursuant to the Redevelopment Area Bond Financing Law, N.J.S.A. 40A:12A-64 et seq. (the "RAB Law") with anticipated net RAB proceeds of approximately $8,897,543.00. (Additional information on the Redevelopment Bonds is included in Exhibit V.) The proceeds of the Redevelopment Bonds will be applied to pay costs of the Project, which will include certain public and private infrastructure and other improvements. 3. Term of Tax Exemption: Pursuant to N.J.S.A. 40A:20-12 of the Act, it is requested that the term of the financial agreement(s) be for a period consistent with any bonding issued pursuant to the RAB Law but not less than thirty (30) years from the completion of each phase of the Project or no longer than thirty-five (35) years from the date of execution of each financial agreement(s) related to the condominium units in the Project. Applicant refers the City to a certain Redevelopment Agreement between the Applicant and the Jersey City Redevelopment Agency ("JCRA"), dated April 2015, subsequently amended, (the "Redevelopment Agreement") for phasing and timing of the Project. -413810836v5 (21349.00S) 4. Description of Project and Operations: The land upon which the Project will be built has a postal address of 10 Journal Square but will be known as "One Journal Square" and also designated as Block 9501 Lot 23 Qualifiers 1, 2 and 3 on the Tax Maps of the City of Jersey City. The Property will be divided into five (5) condominium units and will be owned as follows: Unit 1: Residential Tower 1 (North Tower2=-owned by One Journal Sguare Tower North Urban Renewal Company, LLC. Unit 2 will consist of a fifty-six (56) story residential tower with 756 market rate residential units located above the Podium and lobby, circulation, amenity and mechanical spaces located in the Podium ("Tower North Unit"). Unit 2: Residential Tower 2 (South Tower)-owned by One Journal Sguare Tower South Urban Renewal Company, LLC. Unit 1 will consist of a fifty-six (56) story residential tower with 756 market rate residential units located above the ten (10) story podium component (the "Podium") and lobby, circulation, amenity and mechanical spaces located in the Podium ("Tower South Unit"). Unit 3: Podium/Retail-owned by One Journal Sguare Partners Urban Renewal Company, LLC. Unit 3 consists of approximately 96,333 gross square feet of gross floor area (GFA) ofretail in the Podium (the "Retail Unit"). Unit4: Podium/Office-also owned by One Journal Square Partners Urban Renewal Company LLC. Unit 4 consists of approximately 118,836 GFA of offices in the Podium (the "Office Unit"). -513810836v5 (21349.005) Unit 5: Podium/Parking-owned by One Journal Square Partners Urban Renewal Company LLC. Unit 5 consists of approximately 278,954 square feet of gross floor area to accommodate approximately 864 parking spaces in the Podium (the "Parking Unit.") The Project will further include the total revision and creation of a new plaza area (the "Plaza") in front of the Project. The Plaza will be operated and maintained by the Applicant at its cost and expense pursuant to a certain Maintenance Agreement, dated June 4, 2009, binding upon Applicant and the City. The Plaza will include the addition of lawn areas, new pavers, seating areas, planting beds and street and ornamental trees. The Plaza will also include construction of a memorial waterwall and reflecting pool in the Plaza area. Site plans and architectural plans are included as Exhibit G. 5. Estimated Total Project Cost (All Units and the Plaza): Total Project Cost is defined pursuant to N.J.S.A. 40A:20-3(h). The estimated Total Project Cost $897,269,577 and is calculated as follows: Item A. Cost of land and improvements to Urban Renewal Entity Amount $67,005,195 B. Architect, engineer, surveying and attorney fees paid or payable in connection with the planning, construction and financing of the Project $43,455,977 C. Projected construction cost as certified by independent and qualified architect, including the cost of any preparation of the site $691,590,832 -6- ( 13810836v5 (21349.005) D. Insurance, interest and finance costs during construction $59,222,144 E. Cost of obtaining initial permanent financing $0 F. Marketing, connnissions and other expenses paid or payable in connection with initial leasing $21,895,429 G. Real estate taxes and assessments during the construction period $1,600,000 H. Developer's overhead based on N.J.S.A. 40A:20-3(h) TOTAL $12,500,000 $897,269,577 A certification of projected construction costs by a qualified architect or engineer is included as Exhibit H. It is estimated that labor costs will be approximately 40% of construction costs and materials and supplies will be approximately 60%. 6. Financial Structure: Construction and operation of each Unit of the Project will be financed through private equity and debt and other available construction financing. The construction loan will be repaid through a permanent mortgage from a traditional lender. A portion of construction work will be funded through bonds issued under the RAB Law. In addition, pursuant to N.J.S.A. 52:27D-489a et seq. and N.J.A.C. 19:31-4, the New Jersey Economic Development Authority (EDA) has awarded the Podium Component a rebate of certain state taxes to be generated by the Project under the Economic Redevelopment and Growth program. -7- 7. Annual Service Charge: The Annual Service Charge or payments in lieu of taxes ("PILOT") requested shall be equal to five and a quarter per cent (5.00%) of Annual Gross Revenue, as defined in the Act. The total PILOT for all Units of the Project is estimated to be $3,448,768.00. The County of Hudson shall be entitled to a fee based upon five percent (5%) of the Annual Service Charge, pursuant to N.J.S.A. 40A:20-12, which fee to the County of Hudson is estimated to be $172,438.00. The total amount of PILOT pledged for the proposed RAB bonds is $620,778.00, resulting in an initial net PILOT to the City of$2,827,989.00. See Exhibit J for Fiscal Plan and Annual Service Charge computation. 8. Construction Schedule: Subject to the terms, covenants and conditions of the Redevelopment Agreement, as amended and supplemented, it is estimated that construction of the Podium Component and the North Tower of the Project will be completed within thirty-six (36) months after the issuance of a building permit for those components. The construction of the South Tower of the Project will also be completed within thirty-six (36) months after issuance of a building permit for the South Tower of the Project. 9. Zoning Information: The Property is located in the Journal Square "Zone 1: Core" Redevelopment Area. As such, it is subject to the Journal Square 2060 Redevelopment Plan (the "Redevelopment Plan") as adopted and amended by the Municipal Council of the City of Jersey City. The Redevelopment Plan specifically provides for and permits the development of the proposed improvements at the Property. I 0. Real Estate Tax Assessment: The real estate tax assessment for the Property for 2017 is as follows: -8- BLOCK/LOT/QUAL COMPONENT LAND Block 950 I Lot 23 A Block 9501 Lot 23 B Tower North Tower South $2,536,700 $1,775,690 $0 $0 $2,536,700 $1,775,690 Block 9501 Lot 23 C Podium $761,010 $0 $761,010 $5,073,400 $0 $5,073,400 TOTAL 11. Current Real Estate Taxes: Current (2017): TOTAL $395,725.20 BLOCK/LOT/QUAL QUALIFIER TOTAL Block 9501 Lot 23 Block 9501 Lot 23 COOOI C0002 $197,862.60 $138,503.82 Block 950 I Lot 23 C0003 $59,358.78 TOTAL 12. IMPROVEMENTS $395,725.20 Status of the Municipal Taxes and Other Charges: All real estate taxes and other assessments against the Property have been paid. Since the Property is now subject to a master condominium deed, real estate tax qualifiers have been issued. Municipal taxes, fees and charges on all other properties owned by the developer, affiliates or principals or partners have also been paid. See Exhibit P. 13. Disclosure Statement and Certificate of Formation: Partners, Tower South and Tower North are each qualified urban renewal limited liability companies formed on January 8, 2014, and as amended on December 16, 2014, pursuant to the laws of the State of New Jersey. The Certificate of Formation and ownership of each entity (the "Disclosure Statement") is set forth in Exhibit Q. - 9- 14. Certification as to Commencement: Except as specifically permitted pursuant to the Redevelopment Agreement, Applicant hereby certifies that it has not and will not commence construction prior to the receipt of final approval and the execution of a Financial Agreement ]:,etween the City of Jersey City and Applicant. Attached as Exhibit R-1 is a Commencement Certification. 15. Estimated Jobs and other Worker-related Benefits to be Created: It is projected that the construction of all Units of the Project will generate approximately the following: • 4,367 on-site jobs during construction for construction workers, architects, engineers and other direct construction related workers; • $313,000,000 in additional wages to these workers; • 1,841 jobs related to local and regional suppliers, generating $100,000,000 in new wages; • $116,000,000 m new wages for "induced" or ."indirect" jobs for restaurants, services etc.; • 350-400 new permanent jobs in retail, grocery, building etc.; • 1, 100 induced and indirect ongoing jobs created in Jersey City; • 750 new office jobs generated at the site. The Applicant will enter into both a Project Labor Agreement and a Project Employment and Contracting Agreement with the City of Jersey City. 16. Compliance with State and Local Redevelopment Laws: Applicant certifies that the proposed Project is located within the Journal 'square Redevelopment Area and as such meets the requirements of the laws of the State of New Jersey for consideration for tax abatement. In - 10 - addition, it is further certified that Applicant has been lawfully established as an urban renewal entity and, as such, will be entitled to receive the benefits of a tax abatement under the laws of the State of New Jersey and the City of Jersey City. Attached as Exhibit R-2 is a Compliance Certification. 17. Affordable Housing Contribution: Pursuant to Ordinance 13-088, Applicant will make an Affordable Housing Contribution of approximately $3,009,184.50. See Exhibit N. 18. COMPONENT TOTAL Tower North Tower South $1,134,000 $1,134,000 Podium $741,184.50 TOTAL $3,009,184.50 Diligent Inquiry Certification: Applicant certifies that diligent inquiry has been made to confirm the accuracy of all information contained in the application and that the information is true and correct. An executed certification is included as Exhibit R-3. 19. Form of Financial Agreements: Attached as Exhibit S-1 is a proposed form of · Financial Agreement between the City of Jersey City and Applicant with Exhibits. 20. Fees: The Application fee of $9,500 was simultaneously paid to the City of Jersey City with the submission of the Application. A copy of the check is included as Exhibit U. 21. List of Exhibits for Project: A. B-1. B-2. B-3. C. Cover Page Compliance Statement- Director of Office of Tax Abatement and Compliance Compliance Statement- Office of Housing Code Enforcement Compliance Statement- Office of Tenant Landlord Relations Description of the Property - 11 - D. E. F. G. H. I. J. K. L. M. N. 0. P. Q. R-1. R-2. R-3. S-1. S-2. S-3. T. U. V. Copy of Deed Nature of Proposed Project and General Statement Requested Term of Tax Exemption Site Plans and Architectural Drawings Certification of Project Cost Sources for Constrnction Fiscal Plan Construction Schedule Certified Copy of the Plan Approval Resolution; Redevelopment Area Affordable Housing Trust Fund Contribution Current Tax Levy Status of Municipal Taxes and Fees Disclosure Statement and Certificate of Formation; Commencement Certification; and Good Faith Estimate of Jobs Certification of Compliance with State and Local Law Certification; Certificate of Diligent Inquiry Certification. Proposed Form of Financial Agreement Proposed Form of Project Employment and Contracting Agreement Proposed Project Labor Agreement Not Applicable Proof of Payment Other- Redevelopment Area Bonds I hereby certify to the best of my knowledge and belief, that all of the information contained in this application is true and correct and that I have made a diligent inquiry, as set forth in Exhibit R-3, to confirm the accuracy of all such information. ONEJOURNALSQUAREPARTNERSURBAN RENEWAL COMPANY, LLC, ONEJOURNALSQUARETOWERSOUTHURBAN RENE\VAL COMPANY, LLC and ONE JOURNAL SQUARE TOWER NORTH URBAN RENEWAL COMPANY, LLC ugene T. Paoli o, Esq., Authorized Signatory - 12 -