For decades, a big piece of Jersey City's Bergen-Lafayette neighborhood sat empty, fenced off and contaminated. Now it's heading for construction.
The Jersey City Council recently gave final approval to the financial agreement for the first two phases of the Canal Crossing project, clearing the way for 508 new homes near the Garfield Avenue Light Rail Station, Jersey Digs reported Oct. 2. Boraie Development is behind the project.
The plan includes 102 affordable homes, and the city says some will rent for $1,000 a month or less.
The council vote is the latest step in a long process. Jersey Digs first reported on the project's initial approvals in April and on more detailed plans in June, and the paper described the cleanup of the property as a roughly 50-year effort. Jersey Digs said the financial agreement clears the way for the first homes to rise.
The tax deal
The council approved a 30-year payment in lieu of taxes agreement, or PILOT, for the land. That means the project will pay less than it would under conventional taxes once it's built. But the city points out the property pays only about $65,000 a year in taxes today, and projects the development will generate about $1.9 million in its first year of operation.
The deal also sends 10% of the PILOT revenue to the Jersey City Board of Education to help fund local schools.
It's the first housing agreement fully negotiated under Mayor James Solomon's "Building for Working Families" agenda.
"Jersey City residents fought for decades to reclaim this land, and tonight we delivered on their promise," Solomon said. "Canal Crossing is what it looks like when development works for the people who live here: affordable homes for families, good union jobs, and a brand-new park, all built on land that sat empty for generations."
Two buildings to start
The first building, at 900 Garfield Avenue, was designed by Beyer Blinder Belle. It's planned at 10 stories with 293 homes: 39 studios, 160 one-bedrooms, 80 two-bedrooms and 15 three-bedrooms. Fifty-nine of those, about 20%, will be affordable. The first phase also includes 11,426 square feet of ground-floor retail split among three storefronts, plus 212 parking spaces.
The second phase is a six-story mixed-use building with 215 homes, again with 20% set aside as affordable. That breaks down to 16 studios, 116 one-bedrooms, 73 two-bedrooms and 10 three-bedrooms, along with 68 parking spaces and 6,900 square feet of ground-floor commercial space.
The developer will also build a new 33,000-square-foot park as part of the deal.
The city says both buildings will go up under a 100% union labor agreement, with prevailing wages for building service workers.
The site was used for heavy industry for years and was left contaminated with chromium, and residents and community groups pushed for decades to get it cleaned up. With remediation now meeting the state's strictest standards, the city hopes the first residents could move in about two years from now.
Boraie has more phases planned to the east of these first two buildings. The company originally proposed up to 1,200 homes across its Canal Crossing sites back in 2021, though it isn't clear whether those plans have changed. The full Canal Crossing site covers about 20 acres.
A general contractor hasn't been announced, and no construction start date has been set.
Why it matters for Contractors
This is two good-size buildings, a park and the start of a much bigger build-out, all on one site. The 10-story building at 900 Garfield and the six-story building next to it add up to more than 500 homes, plus retail, commercial space and parking, which means a long run of concrete, framing or steel, MEP, roofing, elevators, fire protection and interior finishes. The 33,000-square-foot park adds site work, hardscape and landscaping. Two things stand out. First, the 100% union labor agreement: contractors and subs who want a piece of this will need to be signatory or partner with union shops. Second, the site's chromium history: even with remediation meeting state standards, expect soil management and environmental requirements to be part of the job. With further phases planned to the east, the companies that perform well on the first two buildings could be well placed for what comes next.