Jerramiah Healy Answers Our Economic Questions
Jersey City’s unemployment rate is the highest its been in five years. What would your administration do to bring it down?
Jersey City’s unemployment rate is a function of the current global recession. Some areas of the country have double digit rates.
The Healy administration has a pro business, pro development philosophy. This approach has been successful. Over the course of the last 4 plus years, over 9,000 new jobs have been created.
And despite the economic recession, businesses are still relocating to Jersey City. Late last year AXA announced 900 employees would relocate to Jersey City; Arch Insurance is relocating 300 employees.
We have over 23,000 financial services employees on our waterfront. According to industry guidelines, each worker creates 2-3 other jobs – the local restaurants, cleaners, shoe repair shops, etc. These are owned and staffed by Jersey City residents.
Over the course of the last few years, world class hotels have opened in Jersey City – the Marriott Courtyard, the Doubletree, the Hyatt, the Westin and coming soon a Hilton all employing hundreds of Jersey City residents.
The Jersey City Office of Employment and Training – One Stop serviced over 10,000 residents in 2008; as a result more than 1,000 Jersey were able to find jobs during these difficult economic times.
But it just not the service sector that the Healy Administration has made a high priority for job creation. He created the Jersey City Apprenticeship Program whereby local residents receive job training in the construction trades and are hired to work on new developments-over 100 are now employed.
And again, as a result of our pro development philosophy, when construction begins at 1 Journal Square and Bayfront, and other sites in the City, hundreds of construction jobs and permanent jobs will be created.
Finally, Mayor Healy was one of the first mayors in America to endorse Barack Obama for president. To date Jersey City has received in excess of $20 Million of economic stimulus monies to hire police, pave our streets, and rehab our public housing. In fact, outside of New York City, Jersey City been called the “epi-center” of receiving these monies.
Mayor Healy will continue to foster development that will create job opportunities for Jersey City residents.
In terms of economic development, what would your main goals be?
Mayor Healy is proud of his record to date. But there is more to be done. He will continue to encourage smart growth development around transit hubs; he commits to making Jersey City green and sustainable.
Mayor Healy appointed a Deputy Mayor of Economic Development to oversee and coordinate these activities of his Administration and various City agencies.
The Administration works closely with the Jersey City Economic Development Corporation to market the benefits the City has – not only nationally but internationally to the business community, to tourists and potential residents. The Healy Administration works closely with the artists’ community, the restaurant association, the Chamber of Commerce, and the hotel industry to name just a few to promote the Jersey City brand.
Mayor Healy has assumed a leadership position in the State of New Jersey advocating and testifying in Trenton for legislative changes to laws and regulations, which will make Jersey City and the State more business friendly. Some examples are the BEIP program, the Urban Transit Tax Hub Credit law, the Urban Enterprise Zone law, and the BRAGG.
He will continue to do so.
What would your administration do to encourage small business growth in Jersey City?
On Tuesday, April 28, Mayor Healy will sponsor the first annual “Made in Jersey City Day.” He will recognize over 10 small businesses that manufacture and sell products locally and internationally.
He has been a supporter of modifying the Urban Enterprise Zone Legislation so that more small businesses can quality to offer the reduced sales tax of 3.5% instead of 7%.
He has supported the New Jersey Small Business Development Center at New Jersey City University which helps small businesses receive training, expand operations and manage growth or launch new operations.
Through his efforts, the Community Lending Investment Corporation has been more aggressively reaching out to the community to identify qualified businesses that need short term, low cost loans.
He provides financial assistance through Urban Enterprise Zone funds or Community Development Block Grants to organizations such as Women Rising and Rising Tide Capital which support and train traditionally underserved entrepreneurs with business development services.
He has established a working group of representatives of the Jersey City Economic Development Corporation and the Housing and Economic Development Department to coordinate and facilitate the zoning, permitting and approval process especially for small businesses.
Do you believe that there is a disparity within the city in terms of economic development? If so, what would you do to remedy that? If not, why not?
Before Mayor Healy took office, previous administrations focused on the Hudson River waterfront.
Under the Healy administration that philosophy quickly changed.
During the past four and one/half years, Mayor Healy made it a priority that every ward in the city gets the full resources and attention of the Administration. That commitment is working.
In Journal Square, the first phase of the renaissance of the city’s center has been completed with the demolition of the old hotel on the Square – soon to be replaced by new residential towers, and retail space. The City Council is reviewing a memorandum of understanding with Friends of the Loew’s to jointly restore that magnificent jewel to it former state.
Mayor Healy commissioned a comprehensive “vision’ study for 244 acres in the heart of the city which over the next several decades will provide new mass transit, green space, new residential and commercial establishments – creating jobs and ratables.
He took polluters to court to compel them to clean up brownfields so that they could be used for productive purposes.. One example it the Bayfront Development on the west side which will be a hundred acre transient oriented community of 8,000 new residences and 1,000,000 square feet of commercial and retail space – creating jobs and ratables.
Mayor Healy proposed the development of the AMB warehouse on the west side of the city – creating 400 construction jobs and 300 permanent jobs.
Mayor Healy has supported additional resources for the Central Avenue Special Improvement District (SID); he created the Monticello Avenue SID; and called for a comprehensive marketing and business development study for the MLK Hub which is currently underway.
The Administration is encouraging businesses in the Mall at 440 to become members of the city’s Urban Enterprise Zone program which will increase sales.
And, finally residential development is occurring throughout the City – Summit Heights,
Webb Apartments, the Monticello, Canco, the Beacon, Barbara Place Terrace – all projects that will create more affordable and market rate housing and increase ratables.
Yes, a rising tide lifts all boats and economic development is occurring throughout the City
Do you believe that Jersey City faces a large property tax increase like Hoboken and West New York? If so, what could your administration do to soften the blow? If not, why?
No. The Healy Administration has restrained spending while seeking new sources of reoccurring revenue. Notwithstanding state mandates and rising health care costs, taxes have remained stable for the past two years.
The number of full time municipal employees in 2006 was 2,640; in 2009 it is 2,651 – these numbers include police and fire. And he hired 250 more cops.
The tax base has been stable based on a combination of new development which increased ratables and under Mayor Healy’s leadership the creation of parking and hotel taxes which generate over $5 Million per year.
We are contain to lobby Trenton for more tools to raise revenue and we will continue to be prudent in our expenditures. In short, we will do everything possible to keep taxes stable.
How would your Administration handle tax abatements going forward?
The judicious use of tax abatements over the last several decades is the primary financial tool which has created the dramatic economic development that Jersey City has experienced.
Financial institutions would not be willing to lend hundreds of millions of dollars to developers unless there was certainty about the tax basis of a project.
For the next four years, Mayor Healy will create development throughout Jersey City and will utilize tax abatements and other incentive programs to create the prosperity that the Hudson River waterfront has today.
Some of the developments that are presently are under construction as a result of receiving tax abatements are the Beacon, Canco, Gloria Robinson Homes, Summit Heights, 100 Water Street, and Fred Martin apartments.
How would you pass the city’s budget in a more timely fashion?
In addition to the calculation of city revenues, the adoption of the city budget is dependent on knowing the amount of aid that the State is providing.
We got the final figure from the State for the “09 budget on April 21st. The City Council passed a resolution on April 22 to adopt the budget amendments and will vote on the budget May 7th.
Do you have any ideas for bring more recurring revenues into the city budget, so we don’t have to rely on PILOT payments, property sales and other one-time revenues each year?
As discussed earlier, Mayor Healy fought Trenton for the ability to impose a hotel tax and parking taxes. Revenues from these sources will continue to increase as these industries grow. We have also proposed a realty transfer tax, which would dedicate some of the funds currently collected to the City.
The City is presently re-drawing its Urban Enterprise Zone map. Currently more that one third of the city is within the zone. We expect to expand the area, which means more businesses would qualify for the 3 ½% sales tax. The means more UEZ monies will come directly to the city which will give us the ability to hire more cops, clean more streets, install more CCTV cameras, fund gateway beautification projects, increase the amount of business relocation money, and provide business improvement grants to small and medium size business. All of which will assist the municipal budget while making our city safer, cleaner, greener and more affordable.
In these difficult economic times, Mayor Healy’s continued emphasis is to create development, which in turn will create jobs and generates taxes – not raise taxes!!
Do you think the city needs to institute an additional tax to help pay for its services?
Would your administration instate any of the following taxes; a city income tax, a corporate income tax, a city payroll tax, a commercial rent tax?
In addition to our geographic location, comprehensive mass transit system, one of the most significant advantages, Jersey City has to offer compared to Manhattan is that we do not have these taxes!!
In conversations Mayor Healy has with businesses that relocate to Jersey City from Manhattan and the other boroughs, the absence of these taxes are primary considerations in their decision to relocate.
New Jersey is constantly ranked near the top in taxes rates for both the individual and corporations. That is why Mayor Healy is a frequent visitor to Trenton to encourage the Governor’s office and lawmakers to make the State economic climate more business friendly.
In the midst of this global recession, raising taxes is not an option.
Do you think the city’s budget is too large? If so, how would you try to remedy it?
If not, why?
The present budget is approximately only 10% higher than that of “06, and there has been a slight reduction in civilian employees. This has occurred during a period of inflation, where we have seen $100 per barrel oil, increasing health care costs, and mandated state costs.
Mayor Healy continues to keep spending in check.
What can Jersey City do to help stem the tide of foreclosures in the city and help homeowners who are facing the loss of their homes?
Unlike many other cities in the nation, Jersey City was not part of the real estate speculation bubble. Individuals did not buy houses for speculative purposes – they bought to be home owners.
Mayor Healy is addressing this issue several ways. First, along with other New Jersey Mayors, he lobbied the Obama administration to declare a six month moratorium on foreclosures; to modify bankruptcy legislation to enable restructuring of sub-prime loans; and to require lending institutions that receive federal fiscal support to refinance mortgages.
Second, he supported Governor Corzine’s statewide program that expanded legal services to homeowners that are facing foreclosure and creating special offices to work with homeowners, mortgage lenders and the courts to work out and refinance loans rather then having buyers face foreclosure.
Third, through the City’s Department of Housing, the Neighborhood Stabilization Program works with neighborhoods and homeowners to minimize these problems.
Do you think the city has an adequate amount of public housing and housing for low-income residents? If not, what are your plans to remedy the situation? If so, please elaborate.
No urban city in America can make the claim that there is an “adequate amount” of public and low income housing.
Mayor Healy’s continued goal is to make life more affordable by providing an array of affordable housing for Jersey City residents. In 2008, 221 units of affordable housing were created. There are presently 369 units of affordable housing under construction and another 350 in the planning stages.
We have opened Webb Apartments, broke ground on Summit Heights, completed Harriet Tubman Homes, started the Monticello and Witten Street, and Mary Norton Manor to name just a few.
All of these developments will benefit from the new philosophy of the Healy Administration. Affordable housing no longer needs to be cramped, segregated and low quality. We have set an extraordinary precedent by making our affordable housing LEED certified. Making these buildings energy efficient is not only beneficial for the environment but is also beneficial to the ultimate occupants because their monthly energy bills are lower as a result of technology that reduces energy consumption.
We have continued our promise to replace our most distressed public housing of last resort with vibrant HOPE VI mixed income communities to provide our most vulnerable public housing residents with better homes. In 2008 two HOPE VI mixed income developments featuring green technologies were completed at Barbara Place Towers and Gloria Robinson Court. Construction has also started at the Ocean Pointe Senior Center with extensive on-site services to ensure low income seniors can “age in place” with dignity.
Not only did all of thee projects improve the quality of life for public housing residents and their neighbors, but just last year, public housing revitalization created 200 construction related jobs and generated $3.5 million in contracts for Jersey City.
But we are not done.
Mayor Healy was recently informed by the Obama Administration that our Housing Authority will receive $7.8 Million in economic stimulus monies for demolition and additional rehabilitation of our public housing projects.
Finally, Mayor Healy is committed to creating opportunities for our teachers, police and fire fighters to buy homes in Jersey City. We partnered with the state in the Live Where You Work program, a special home mortgage incentive program that provides a low interest 30 -40 year fixed rate first mortgage for people who live and work in Jersey City. The program also provides down payment assistance.
These are more changes that work for the people of Jersey City.

